3 Top Dividend Stocks to Buy in January to Earn Income Every Month in 2024

There are many ways to start earning passive income in 2024. Investing in real estate or buying dividend stocks is a great way to begin.

One super easy way to start collecting passive income each month is to combine those options by investing in real estate investment trusts (REITs) that pay monthly dividends. Stag Industrial (NYSE: STAG), Agree Realty (NYSE: ADC), and Realty Income (NYSE: O) are three top monthly dividend REITs to buy this January to earn income every month in 2024.

1. Dual growth drivers

Stag Industrial is an industrial REIT that owns warehouses and light manufacturing facilities leased to high-quality tenants. The company pays its investors a $0.1225 per share dividend each month ($1.47 annually). That gives it a 3.8% yield at the recent share price. At that rate, a $1,000 investment in Stag Industrial would produce $3.16 of income each month ($37.90 annually). The more you invest in shares of Stag, the more income you can collect each month.

The industrial REIT has steadily increased its dividend payment over the years, driven by rising rental income and a growing real estate portfolio. Leases across the company’s portfolio escalate by more than 2.6% annually, providing it with built-in growth. Meanwhile, it can often capture even higher rental rates when existing leases expire, given the strong demand for industrial real estate in its markets. It recently signed two early lease renewals with a tenant at 49% above the prior rate with a 3% annual rental rate escalation for the life of the 63-month term.

Stag Industrial also routinely acquires hundreds of millions of dollars in real estate each year. It had closed $245 million of deals by the end of the third quarter of last year and had another $67.5 million lined up to close early in the fourth quarter. Meanwhile, it had about $3.1 billion of potential deals in the pipeline. Rising rents and acquisitions will increase Stag’s rental income, which should allow the REIT to continue growing its…