Dividend stocks have long been a cornerstone for investors seeking consistent passive income, and real estate investment trusts (REITs) are particularly attractive due to their regular dividend payouts. And with recent economic data points suggesting the Fed's path is finally clearing up for those long-awaited interest rate cuts, we may be on the brink of an increasingly favorable environment for real estate. That makes REITs a compelling option for income-focused investors, since lower borrowing costs will enhance their profitability and dividend-paying capacity.

Given this favorable backdrop, here's a look at three REITs - STAG Industrial (STAG), Whitestone REIT (WSR), and Agree Realty Corporation (ADC) - that not only pay dividends on a monthly basis, but also have a track record of at least two years of dividend growth, are buy-rated by analysts, and are trading below their mean price targets. These attributes make them excellent candidates for investors seeking consistent passive income, with a little bit of growth on the side.

Monthly Dividend Stock #1: STAG Industrial (STAG)

STAG Industrial (STAG) is a REIT that acquires, owns, and operates single-tenant industrial properties across the U.S. With 570 buildings in 41 states, STAG's diversified portfolio maximizes cash flows and enhances shareholder value.

Speaking of happy shareholders, STAG has a solid track record of paying monthly dividends. Right now, their annualized dividend is $1.48 per share, with a forward yield of 4.06%. They just paid out $0.12 per share on April 29. Over the past five years, they've managed to grow their dividend payments at a rate of 5.1% per year, which is pretty impressive.

STAG is down 7.3% on a YTD basis, lagging the broader market.

In its first quarter 2024 earnings report, STAG reported funds from operations (FFO) of $0.59 per share, beating analysts' estimates of $0.58. Revenue for the quarter was $187.5 million, exceeding expectations of $183.1 million. Key metrics included an 88.0% retention rate for leases rolling in Q1 2024 and a 5.5% year-over-year increase in same-store cash net operating income.

Analysts have a generally positive outlook on STAG, with a consensus rating of "Moderate Buy." Out of 11 analysts in coverage, three recommend a “Strong Buy,” one says it's a “Moderate Buy,” six suggest a “Hold,” and one recommends a “Moderate Sell.” The mean price target is $39.36, suggesting an upside potential of approximately 8.2%.

Monthly Dividend Stock #2: Whitestone REIT (WSR)

Whitestone REIT (WSR) specializes in managing open-air retail centers in thriving Sunbelt cities like Phoenix, Houston, and San Antonio. The company strategically selects a mix of tenants such as restaurants, grocers, and fitness centers to serve community needs effectively.

One of the big draws of Whitestone REIT is its consistent monthly dividends. They've been paying these for over 13 years, making them a favorite for income-seeking investors. Currently, the monthly dividend is $0.04 per share, giving WSR an annual yield of about 3.97%. 

The payout ratio is a reasonable 48.2%, meaning their dividends are well-covered by earnings and cash flow. Thanks to their focus on necessity-based retail and prime locations in high-growth markets, they've maintained stable occupancy rates and cash flow even during economic ups and downs.

WSR has gained a respectable 47.2% in the past 52 weeks, though it's up just about 1% in 2024. 

Right now, WSR's market cap is $622 million, and the stock trades at roughly 16 times its forward adjusted FFO.

In their Q1 earnings report, WSR reported some mixed numbers – a 3.6% increase in revenue from the previous year to $37.2 million fell short of estimates, while FFO per share of $0.24 arrived in line. Looking ahead, analysts are predicting FFO of $0.99 per share for the full year, and $1.05 for 2025.

Analysts are optimistic about WSR, with a "Moderate Buy" consensus. Out of five analysts, three suggest a “Strong Buy,” one says “Moderate Buy,” and one says “Hold.” The average price target is $14.17, offering a 14.2% upside.

Monthly Dividend Stock #3: Agree Realty Corporation (ADC)

Agree Realty Corporation (ADC) is a retail REIT powerhouse, owning 2,161 properties across 49 states. They're all about leasing to top retail tenants, and their portfolio is a whopping 99.6% occupied.

One of the most impressive things about ADC is its consistent dividend growth. They've been paying quarterly dividends since 1994, and the latest was $0.25 per share on April 29. That comes out to a nice 4.97% yield annually. Over the past five years, the dividend has grown at a solid 6.11% CAGR, showing just how well ADC is doing at growing its cash flow.

ADC stock is down 3.8% on a YTD basis. With a market cap of $6.074 billion, ADC is priced in line with STAG and WSR, around 15x forward FFO.

ADC's Q1 2024 earnings were solid, with core FFO per share at $1.01 and AFFO per share at $1.03, both up from last year. Revenue hit $149.45 million, topping analyst predictions.

In Q1 2024, ADC acquired 31 properties for $123.5 million, focusing on home improvement and auto parts. They plan to acquire around $600 million worth of properties for the year, and with over $920 million in liquidity and no significant debt until 2028, they're set for continued growth.

Analysts are bullish on ADC, predicting full-year 2024 AFFO per share between $4.10 and $4.13. The consensus rating is a "Strong Buy," with an average price target of $65.91, suggesting a 9.4% upside from the current price.

Building a Diversified Portfolio with Monthly Dividend REITs

Wrapping it up, diving into monthly dividend REITs like STAG, Whitestone, and Agree Realty is like finding a steady stream of income that keeps on giving. These gems not only toss a regular paycheck your way, but also off the potential for solid earnings growth from here. Tucking some of these names into your investment mix can add some stability, growth potential, and that always welcome monthly cash flow into your portfolio.