Three Creative Strategies for Investors Seeking Monthly Passive Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 30 2025
0mins
Should l Buy STAG?
Source: Yahoo Finance
Investment Options for Passive Income: Investors have various options for generating monthly passive income, including publicly-traded securities like Realty Income (O), STAG Industrial (STAG), and Permian Basin Royalty Trust (PBT), each offering unique benefits and yields.
Realty Income as a Top REIT: Realty Income is highlighted for its strong track record in providing monthly dividends, with a 5.7% yield and a portfolio of over 15,000 properties, making it a reliable choice for passive income investors.
STAG Industrial's Unique Position: STAG Industrial focuses on industrial real estate, particularly warehouses, benefiting from the e-commerce boom and offering a 3.8% monthly yield, making it a compelling option for investors looking for growth in a stagnant market.
Understanding Investment Strategies: The article emphasizes the importance of understanding different investment strategies for wealth building, noting that the right choice can significantly impact financial success, whether investing small or large amounts.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy STAG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on STAG
Wall Street analysts forecast STAG stock price to rise
10 Analyst Rating
3 Buy
7 Hold
0 Sell
Moderate Buy
Current: 36.320
Low
38.00
Averages
40.90
High
46.00
Current: 36.320
Low
38.00
Averages
40.90
High
46.00
About STAG
STAG Industrial, Inc. is a real estate investment trust (REIT), which is focused on the acquisition, ownership and operation of industrial properties throughout the United States. Its platform is designed to identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial property types and tenants through the principled application of its proprietary risk assessment model; provide growth through sophisticated industrial operation and an attractive opportunity set, and capitalize on its business appropriately given the characteristics of its assets. The Company's portfolio consists of approximately 603 buildings in 41 states. It owns all of its properties and conducts substantially all of its business through STAG Industrial Operating Partnership, L.P. (Operating Partnership).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Warehouse REITs Show Strong Inflation Resilience
- Rent Growth Mechanism: Warehouse REITs typically include automatic annual rent increases tied to inflation in their leases, allowing them to maintain stable income during inflationary periods, thus enhancing their appeal to investors.
- EastGroup Properties Advantage: EastGroup focuses on industrial properties in major population centers, owning 65.1 million square feet, facing little competition due to land scarcity, maintaining a high occupancy rate of 96.2%, and projecting a 6% increase in FFO per share for 2026, indicating strong growth potential.
- Stag Industrial Characteristics: Stag Industrial specializes in single-tenant properties with a portfolio of 120 million square feet; while its monthly dividend distribution attracts investors, its FFO growth rate is lower than EastGroup's, and its debt-to-market capitalization ratio of 31.7% indicates some financial risk.
- Investment Choice Analysis: Although Stag offers a higher dividend yield, EastGroup's growth potential and dividend growth rate are more attractive, and considering Stag's diverse client base and larger portfolio, opting for Stag's relatively higher dividend at its current price seems more reasonable.
See More
EastGroup Properties Increases Dividend for 14th Consecutive Year
- Consistent Dividend Growth: EastGroup Properties has increased its dividend for 14 consecutive years, raising its quarterly payout by 10.7% to $1.55 per share last year, demonstrating the company's stability and profitability amidst economic fluctuations, which attracts long-term investors.
- Strong Financial Metrics: In 2025, EastGroup reported FFO per share of $8.95, up 7.7%, with guidance for 2026 FFO per share between $9.40 and $9.60, indicating a solid outlook for profitability and cash flow in the future.
- Low Debt Ratio Advantage: EastGroup's debt-to-market-cap ratio stands at only 14.7%, significantly below the healthy standard for industrial REITs (25%-30%), providing the company with greater flexibility in its capital structure, which is beneficial for future expansion and investment.
- Market Competitiveness: Focusing on industrial properties in major population centers, EastGroup owns 65.1 million square feet of properties with a high occupancy rate of 96.2%, ensuring its competitive edge in the market and ability to raise rents.
See More
STAG Industrial Reports Strong Q4 2025 Earnings with Positive Outlook
- Significant Performance Growth: STAG Industrial reported a core FFO per share of $0.66 for Q4 2025 and $2.55 for the full year, reflecting a 6.3% increase compared to 2024, indicating strong performance and enhanced profitability in the market.
- Robust Leasing Activity: The company completed 31 leases totaling 3 million square feet in Q4, with cash leasing spreads of 16.3%, demonstrating strong market demand, and projecting cash leasing spreads of 18% to 20% for 2026.
- Active Acquisition Strategy: Acquisition volume reached $285.9 million in Q4, followed by an additional $80.6 million building acquisition, showcasing the company's proactive strategy in expanding its asset portfolio, with 2026 acquisition guidance set between $350 million and $650 million.
- Dividend Increase and Payment Frequency Change: STAG announced a 4% increase in dividends, the largest since 2014, while changing the payment frequency from monthly to quarterly, reflecting confidence in future cash flows and commitment to shareholder returns.
See More
STAG STAG Q4 2025 Earnings Call Transcript
See More
High Yield Potential of Real Estate Investment Trusts
- Digital Realty Trust Overview: Digital Realty Trust (DLR) owns over 300 data centers across 55 metropolitan areas, serving tech giants like Microsoft, Amazon, and Google, which diversifies its customer base and positions it for long-term growth in cloud computing and AI, with projected revenue of $6.65 billion in 2026, an 8.8% year-over-year increase.
- High Occupancy and Yield: With over 80% occupancy across its data centers, Digital Realty Trust offers a 2.83% dividend yield, providing stable cash flow for investors and reflecting its strong market position in the rapidly growing tech sector.
- Stag Industrial's Market Position: Stag Industrial (STAG) operates 601 warehouses across 41 states, with major clients including Amazon, FedEx, and UPS, and reported a 16.2% year-over-year net income increase in Q3 2025, indicating robust demand and growth potential in the logistics sector.
- Stable Dividend Returns: Stag Industrial Trust's 3.46% dividend yield and 95.8% overall occupancy rate ensure predictable cash flow, enhancing its appeal as a long-term investment, particularly amid increasing economic uncertainty.
See More
STAG Industrial Reports Strong Q4 Earnings Driven by Leasing Activity
- Earnings Beat: STAG Industrial reported a core FFO of $0.66 per share for Q4, exceeding analyst expectations of $0.64, and up from $0.65 in Q3 and $0.61 a year ago, indicating sustained profitability growth.
- Significant Revenue Growth: The company achieved revenue of $220.9 million in Q4, surpassing the $211.2 million consensus, and increasing from $210 million in the prior quarter and $199.3 million a year ago, reflecting strong market demand recovery.
- Accelerated Leasing Activity: During Q4, STAG commenced leases totaling 3.0 million square feet, with cash rent change of 16.3% and straight-line rent change of 27.4%, demonstrating heightened activity in the leasing market and enhancing future revenue sustainability.
- Strategic Investments and Acquisitions: The company acquired seven buildings totaling 2.2 million square feet for $285.9 million at a cash capitalization rate of 6.4%, while selling eight buildings totaling 1.6 million square feet for $88.8 million, optimizing its asset portfolio.
See More
Warehouse REITs Show Strong Inflation Resilience
- Rent Growth Mechanism: Warehouse REITs typically include automatic annual rent increases tied to inflation in their leases, allowing them to maintain stable income during inflationary periods, thus enhancing their appeal to investors.
- EastGroup Properties Advantage: EastGroup focuses on industrial properties in major population centers, owning 65.1 million square feet, facing little competition due to land scarcity, maintaining a high occupancy rate of 96.2%, and projecting a 6% increase in FFO per share for 2026, indicating strong growth potential.
- Stag Industrial Characteristics: Stag Industrial specializes in single-tenant properties with a portfolio of 120 million square feet; while its monthly dividend distribution attracts investors, its FFO growth rate is lower than EastGroup's, and its debt-to-market capitalization ratio of 31.7% indicates some financial risk.
- Investment Choice Analysis: Although Stag offers a higher dividend yield, EastGroup's growth potential and dividend growth rate are more attractive, and considering Stag's diverse client base and larger portfolio, opting for Stag's relatively higher dividend at its current price seems more reasonable.
See More
EastGroup Properties Increases Dividend for 14th Consecutive Year
- Consistent Dividend Growth: EastGroup Properties has increased its dividend for 14 consecutive years, raising its quarterly payout by 10.7% to $1.55 per share last year, demonstrating the company's stability and profitability amidst economic fluctuations, which attracts long-term investors.
- Strong Financial Metrics: In 2025, EastGroup reported FFO per share of $8.95, up 7.7%, with guidance for 2026 FFO per share between $9.40 and $9.60, indicating a solid outlook for profitability and cash flow in the future.
- Low Debt Ratio Advantage: EastGroup's debt-to-market-cap ratio stands at only 14.7%, significantly below the healthy standard for industrial REITs (25%-30%), providing the company with greater flexibility in its capital structure, which is beneficial for future expansion and investment.
- Market Competitiveness: Focusing on industrial properties in major population centers, EastGroup owns 65.1 million square feet of properties with a high occupancy rate of 96.2%, ensuring its competitive edge in the market and ability to raise rents.
See More
STAG Industrial Reports Strong Q4 2025 Earnings with Positive Outlook
- Significant Performance Growth: STAG Industrial reported a core FFO per share of $0.66 for Q4 2025 and $2.55 for the full year, reflecting a 6.3% increase compared to 2024, indicating strong performance and enhanced profitability in the market.
- Robust Leasing Activity: The company completed 31 leases totaling 3 million square feet in Q4, with cash leasing spreads of 16.3%, demonstrating strong market demand, and projecting cash leasing spreads of 18% to 20% for 2026.
- Active Acquisition Strategy: Acquisition volume reached $285.9 million in Q4, followed by an additional $80.6 million building acquisition, showcasing the company's proactive strategy in expanding its asset portfolio, with 2026 acquisition guidance set between $350 million and $650 million.
- Dividend Increase and Payment Frequency Change: STAG announced a 4% increase in dividends, the largest since 2014, while changing the payment frequency from monthly to quarterly, reflecting confidence in future cash flows and commitment to shareholder returns.
See More
STAG STAG Q4 2025 Earnings Call Transcript
See More
High Yield Potential of Real Estate Investment Trusts
- Digital Realty Trust Overview: Digital Realty Trust (DLR) owns over 300 data centers across 55 metropolitan areas, serving tech giants like Microsoft, Amazon, and Google, which diversifies its customer base and positions it for long-term growth in cloud computing and AI, with projected revenue of $6.65 billion in 2026, an 8.8% year-over-year increase.
- High Occupancy and Yield: With over 80% occupancy across its data centers, Digital Realty Trust offers a 2.83% dividend yield, providing stable cash flow for investors and reflecting its strong market position in the rapidly growing tech sector.
- Stag Industrial's Market Position: Stag Industrial (STAG) operates 601 warehouses across 41 states, with major clients including Amazon, FedEx, and UPS, and reported a 16.2% year-over-year net income increase in Q3 2025, indicating robust demand and growth potential in the logistics sector.
- Stable Dividend Returns: Stag Industrial Trust's 3.46% dividend yield and 95.8% overall occupancy rate ensure predictable cash flow, enhancing its appeal as a long-term investment, particularly amid increasing economic uncertainty.
See More
STAG Industrial Reports Strong Q4 Earnings Driven by Leasing Activity
- Earnings Beat: STAG Industrial reported a core FFO of $0.66 per share for Q4, exceeding analyst expectations of $0.64, and up from $0.65 in Q3 and $0.61 a year ago, indicating sustained profitability growth.
- Significant Revenue Growth: The company achieved revenue of $220.9 million in Q4, surpassing the $211.2 million consensus, and increasing from $210 million in the prior quarter and $199.3 million a year ago, reflecting strong market demand recovery.
- Accelerated Leasing Activity: During Q4, STAG commenced leases totaling 3.0 million square feet, with cash rent change of 16.3% and straight-line rent change of 27.4%, demonstrating heightened activity in the leasing market and enhancing future revenue sustainability.
- Strategic Investments and Acquisitions: The company acquired seven buildings totaling 2.2 million square feet for $285.9 million at a cash capitalization rate of 6.4%, while selling eight buildings totaling 1.6 million square feet for $88.8 million, optimizing its asset portfolio.
See More
