All of us could benefit from a little extra income every month, and many dividend investors look for passive income through dividend stocks. Retirees and beginner investors could use a little extra income regularly, and fortunately, there are several companies that reward investors with monthly dividends.
The S&P 500 includes some of the leading companies in the U.S. stock exchange, and there are stocks that can reward you with a check each month. Stocks like Realty Income (NYSE:O), Healthpeak Properties (NYSE:DOC), and LTC Properties (NYSE:LTC) may be just what you’re looking for. These are some of the highest-yielding dividend stocks in the S&P 500 and have healthy-looking profits that can cover the payout obligations.
Quick Read
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Healthpeak Properties (DOC) yields 6.84% with a 66.71% payout ratio and 35 years of dividend payments.
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Realty Income owns over 15,000 properties with a 98.7% median occupancy rate and has paid dividends for 109 straight quarters.
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LTC Properties yields 6.28% and has completed 85% of its $406M investment plan focused on senior housing.
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Healthpeak Properties Inc.
Healthpeak Properties is a Real Estate Investment Trust (REIT) that operates in the healthcare industry in the U.S. The REIT has outpatient medical buildings, lab properties, and Continuing Care Retirement Communities, which are set to benefit from the rising demand and expansion of the sector.
There will always be people entering retirement and sick people to treat. Hence, Healthpeak will continue to grow in the coming years. The REIT has a yield of 6.84% and pays monthly dividends. It has a payout ratio of 66.71%, and the annual payout is $1.22. This REIT is a cash cow with 35 years of dividend payments.
In the third quarter, it reported a loss of $0.17 per share, and the adjusted funds from operations stood at $0.46 per share. While it managed to beat revenue estimates, it missed the EPS guidelines. Exchanging hands for $17.84, the stock is down 11.51% year to date. I believe the post-earnings sell-off is overblown and the stock will gain momentum in 2026.
The business continues to be driven by the rising demand for senior housing. Healthpeak Properties has a strong balance sheet and an ability to sustain the dividends. The stock looks cheap and has a juicy yield of 6.8%.
Realty Income
A top REIT, Realty Income invests in single-tenant commercial properties and pays monthly dividends. It has an attractive yield of 5.71% and is an ideal stock for income and growth investors who seek a check each month.
An S&P 500 company, Realty Income owns more than 15,000 properties that are leased to grocery stores, restaurants, home improvement stores, and drugstores. It leases out properties to recession-resistant tenants, which ensures steady monthly income. It works under a triple-net agreement, keeping the operating expenses at a minimum.
The company pays out a conservative percentage of the cash flow in dividends, which means there is scope for growth in the long term. It is in a very comfortable position in terms of cash flow. Realty Income retains a significant part of the cash to invest in new properties, which continue to generate free cash flow. It also has one of the strongest balance sheets in the REIT segment.
Realty Income has different property types across various industries. The REIT has a median occupancy rate of 98.7%, and it has paid dividends for 109 straight quarters. It has a payout ratio of 75.37%, and the annual dividend amounts to $3.23 per share.
Realty Income stock is up 7.74% in 2025 and exchanging hands for $56.67. Driven by an expanding portfolio, the stock is a solid long-term buy and hold for passive income investors.
LTC Properties
LTC Properties is another healthcare REIT that focuses on skilled nursing facilities and senior housing. The REIT invests in senior housing facilities and healthcare properties through joint ventures, mortgage financing, construction financing, and sale-leasebacks.
The company has over 190 properties across 25 states, and the addressable market continues to expand as the population ages. This is why LTC Properties will always have a market to cater to. It has an occupancy rate of 81% in the senior housing operating portfolio. LTC pays monthly dividends and has a yield of 6.28%.
In the third quarter, it made significant progress toward the $460 million investment plan and completed about 85% of the target. Senior housing constitutes about 60% of its investment, and LTC has invested $270 million into the portfolio.
It shouldn’t need much explaining to understand why the company could be a big player in the long term. There’s a shortage of senior housing facilities and the elderly population is growing at a rapid pace. The company already sees a massive gap between the demand and capacity. This is where it can make a huge difference. LTC Properties will see a strong rise in demand by 2030, and if it continues expanding the portfolio, the company is set to benefit.
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