Real estate investment trusts (REIT) are some of the best dividend stocks on the market. They typically pay a reliable, high-yielding, and growing dividend, checking off the list of what's important in a dividend stock.
Agree Realty (ADC 0.93%) is a retail REIT that fits this framework. But how much would you have to invest to make $1,000 in dividends?
A great dividend stock, plus more
Agree owns properties throughout the U.S. and leases them to retail chains you know and love, like Walmart, CVS, and Lowe's. It runs an efficient business with development and acquisitions as key growth drivers. As of the end of the first quarter, it had $1.3 billion in liquidity, with plans for $600 million in acquisition targets for the year.
REITs pay out 90% of their net income as dividends, which is why they're such compelling choices for passive income. Agree's dividend yields a high 4.9% at the current price, and that has increased over the past five years, along with the dividend itself. It raised the dividend 2.9% last week.
What sets Agree apart from most other REITs is that it pays a dividend monthly, which it has been doing since 2021.
The annualized dividend is now exactly $3 per share, and so to make $1,000 in annual dividend income from Agree stock, you would need to buy 334 shares, which would get you exactly $1,002 this year. At current levels, that'll cost you about $20,450. Is it worth the money?
For retirees or other investors looking for a solid passive income stream, Agree is an excellent choice. If you have invested for decades and have a large nest egg, this could be an option as part of a well-diversified portfolio. If your investing base isn't so big right now, you might be better off putting some money into Agree and spreading the rest into other stocks.
