Investing $50,000 Into These Top Real Estate Dividend Stocks Could Produce Nearly $250 of Passive Income Each Month

Key Points

• Realty Income has increased its monthly dividend 132 times since going public over 30 years ago.

• Healthpeak Properties recently switched to paying monthly dividends.

• EPR Properties expects to steadily increase its monthly payout as it expands its experiential real estate portfolio.

• 10 stocks we like better than Realty Income ›

Real estate investing can be a great way to make some passive income. You have lots of options, including purchasing a rental property, investing in a real estate partnership, or buying a real estate investment trust (REIT). Each one has its benefits and drawbacks.

REITs can be a great choice because they enable you to build a diversified real estate portfolio that produces lots of steady passive income. For example, you could collect nearly $250 of dividend income each month by investing $50,000 into these three top monthly dividend-paying REITs:

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Data source: Google Finance and author's calculations. Note: Dividend yield as of Oct. 1, 2025.

Another great thing about REITs is their accessibility -- you don't have to invest much to get started and can easily buy and sell shares in your brokerage account. So, don't fret if you don't have $50,000 to invest in REITs right now. You can start by investing a small amount each month and gradually build your passive income portfolio. Here's why these REITs are excellent choices for those seeking to build passive income from real estate.

Realty Income

Realty Income has a simple mission: It aims to provide its investors with dependable monthly dividend income that steadily rises. The REIT has certainly delivered on its mission over the years.

The landlord has raised its monthly dividend payment 132 times since its public market listing in 1994. It has delivered 112 consecutive quarterly increases and raised its payment at least once each year for more than three decades, growing it at a 4.2% compound annual rate during that period.

Realty Income backs its high-yielding monthly dividend with a high-quality real estate portfolio. It owns retail, industrial, gaming, and other properties secured by long-term net leases with many of the world's leading companies. Those leases provide it with very stable rental income, 75% of which it pays out in dividends. Realty Income retains the rest to invest in additional income-producing properties that grow its income and dividend.

Healthpeak Properties

Healthpeak Properties is new to paying monthly dividends, having switched from a quarterly schedule earlier this year. The REIT owns a diversified portfolio of healthcare-related properties, including medical office buildings, laboratories, and senior housing. It leases these properties to healthcare systems, biopharma companies, and physicians' groups under long-term leases that feature annual escalation clauses.

The healthcare REIT had maintained its dividend payment at a steady rate over the past few years, allowing its growing rental income to steadily reduce its dividend payout ratio, which is now down to 75%. With its financial profile now healthier, Healthpeak has begun increasing its dividend, providing its investors with a 2% raise earlier this year.

Healthpeak should be able to continue growing its dividend in the future. Rental escalation clauses should boost its income by around 3% per year. Meanwhile, the REIT has growing financial flexibility to invest in additional income-producing healthcare properties.

EPR Properties

EPR Properties invests in experiential real estate, including movie theaters, eat-and-play venues, wellness properties, and attractions. It leases these properties back to operating companies, primarily under long-term net leases.

The REIT pays out around 70% of its cash flow in dividends each year, retaining the rest to invest in additional income-producing experiential properties. It currently plans to invest between $200 million and $300 million each year. It acquires properties and invests in experiential build-to-suit development and redevelopment projects. EPR has already committed to investing $109 million into projects it expects to fund over the next 18 months.

This investment range can support a low- to mid-single-digit annual growth rate in its cash flow per share. That should support a similar growth rate in its dividend payment. EPR is on track to grow its cash flow per share by around 4.3% this year and has already increased its monthly dividend payment by 3.5% this year.

Ideal REITs to own for passive income

If you want to start building passive income, consider adding Realty Income, Healthpeak Properties, and EPR Properties to your portfolio. Their growing real estate assets and history of steadily rising monthly dividends make them compelling options for anyone seeking dependable and increasing passive income. Investing in these REITs can help you take the first step toward securing your financial future.

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Matt DiLallo has positions in EPR Properties and Realty Income. The Motley Fool has positions in and recommends EPR Properties and Realty Income. The Motley Fool recommends Healthpeak Properties. The Motley Fool has a disclosure policy.