2 Stocks That Cut You a Check Each Month
Investors looking to live off of the dividends their portfolios generate can make life easier by adding some monthly-pay stocks to their portfolios. It's almost like collecting a regular paycheck. The real estate investment trust (REIT) sector is where you'll find a lot of options, with two particularly attractive choices in Realty Income (NYSE: O) and Agree Realty (NYSE: ADC). The pair has many similarities and a couple of key differences.
Both Realty Income and Agree make use of the net-lease approach. This basically means they own single-tenant properties, and their tenants are responsible for most asset-level operating costs (like maintenance). Across a large enough portfolio this is a fairly low-risk investment approach, even though any single property carries material tenant risk. Both Realty Income and Agree are sizable REITs (more on this below).
In addition to this, both are heavily focused on retail assets. For Agree, retail is the sole asset class, while Realty Income generates about 75% of rents from retail and mixes in industrial assets and some unique one-off properties (vineyards and a casino) to round things out. The benefit of retail properties is that they tend to be smaller and roughly similar to each other. That means that they can be bought and sold fairly easily, and finding a new tenant for a well-located asset isn't all that hard.
Source Fool.com
