Looking for Steady Passive Income? This S&P 500 Dividend Stock Pays You Monthly.

Passive income is a wonderful thing, particularly when the stock of the company delivering it is heading higher.

And that's the case with Healthpeak Properties (NYSE: DOC), a healthcare real estate investment trust (REIT). It owns hundreds of healthcare discovery and delivery properties, including outpatient treatment centers, labs, senior housing, and related facilities.

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This REIT pays a monthly dividend

Healthpeak is one of just a handful of S&P 500 companies that pay a monthly dividend. Its current monthly payout is just over $0.10 per share, or $1.22 per year. At the stock's recent price of $20.42, its dividend yield is about 6%, which is solid by any measure.

So if you invested just $2,042 in this stock, which would buy 100 shares at its recdent price, your annual dividend income would be $122 -- enough to purchase six more shares of the stock and increase your dividend income.

Even better, Healthpeak's share price has climbed 27.5% so far in 2026. It spiked in early May when the company announced first-quarter results. Earnings per share of $0.28 were 4 times higher than the forecast of $0.06 a share, while revenue of $739 million was 7.5% above the forecast of $687 million. Most important, however, was that management raised its full-year estimate for funds from operations (FFO) -- a metric REITs typically use -- to $1.71 to $1.75 per share, signaling confidence in strong financial performance to come.

Management raised its guidance on FFO again in August, after strong second-quarter results, to $1.73 to $1.77 per share.

Of the 22 analysts who cover Healthpeak, three rate it a strong buy, five rate it a buy, and 14 rate it a hold. The average analyst price target for the stock is $23.

I like dividend stocks because they generate consistent income that can be used to buy more shares and compound the investment. That's the case with this healthcare REIT.

REIT investors need to be mindful of rising interest rates

Yet there's something else that's important to watch. Many REITs have been hit hard by rising interest rates this year, including Realty Income, another monthly dividend payer. REITs rely on borrowing to expand their portfolios. Also, because they're income assets, REITs face stiff competition from bonds when yields rise, as they have done dramatically this year. So it's smart to be aware of that factor.

Yet a longer-term trend is also in play, to the benefit of Healthpeak and its shareholders. An aging population and growing demand for healthcare and senior housing are big positives for healthcare REITs. That's why I like Healthpeak in this category.

Matthew Benjamin has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Healthpeak Properties. The Motley Fool has a disclosure policy.