Monthly Dividend Stock In Focus: Agree Realty

Updated on April 9th, 2026 by Nathan Parsh

Real Estate Investment Trusts, or REITs for short, are a core holding for many income investors due to their high dividend yields.

At the same time, monthly dividend stocks are also appealing for income investors, due to their more frequent payout schedules.

Agree Realty (ADC) is a rarity among REITs, in that it pays a monthly dividend. Monthly dividend stocks pay shareholders 12 dividends per year instead of the more typical quarterly payments.

We created a list of 119 monthly dividend stocks (along with important financial metrics such as dividend yields and payout ratios). You can download the monthly dividend stocks spreadsheet by clicking on the link below:

Agree Realty’s dividend yield is 4.0%, more than three times the average yield of the S&P 500 Index.

Agree Realty offers a high level of dividend safety and the potential for dividend growth in the coming years. This article discusses ADC in greater detail.

Business Overview

Agree Realty is a retail Real Estate Investment Trust. Agree has developed over 40 community shopping centers throughout the Midwestern and Southeastern United States.

As of December 31st, 2025, the property portfolio consisted of 2,674 properties located in 50 states and contained approximately 55 million square feet of gross leasable area.

At the end of the fourth quarter of 2025, Agree’s portfolio was 99.7% leased, and a weighted-average remaining lease term of approximately 9.0 years.

Two-thirds of annualized base rent comes from investment-grade retail tenants.

Its property portfolio is diversified and spans several industry groups, including grocery stores, home improvement retailers, auto service, and convenience stores.

Source: Investor Presentation

At the same time, Agree Realty has high-graded its portfolio by reducing its exposure to tenant groups most at risk from the current challenges, specifically the coronavirus pandemic.

For example, Agree Realty has largely avoided or disposed of troubled retail sectors, such as movie theaters, pharmacy, car washes, health & fitness, and entertainment.  In all, Agree Realty generates two-thirds of its ABR from investment-grade tenants.

This portfolio quality is reflected in the company’s strong fundamentals. Agree Realty has posted impressive results in a highly challenging period for many REITs, particularly those operating in the retail industry.

The company reported Q4 and full-year 2025 results on February 10th, 2026, showing solid growth. Revenue grew 18.5% to $190.5 million. Net income attributable to common stockholders improved 24.9% to $54.2 million. Core FFO grew 7.3% to $1.10 and AFFO per share was up 6.5% to $1.11. During Q4, the company invested $377 million across 94 properties.

In 2025, revenue was up 16.4% to $718.4 million while net income increased 8.3% to $196.9 million. Core FFO grew 5.1% to $4.28 and AFFO per share increased 4.6% to $4.33. Totaled dividends for the period were higher by 2.7% to $3.081. The company invested $1.55 billion in 338 properties during the year.

For 2026, the company projects AFFO per share between $4.54 and $4.58 and investments of $1.4 billion to $1.6 billion in new properties. Monthly dividends for April remains at $0.262 per share, which is 4% higher than the dividend distributed during the same period of last year.

Growth Prospects

Agree Realty has grown AFFO by a compound rate of 6.1% over the past ten years and by 5.0% per year over the past five years.

We expect that Agree Realty will continue to grow at a slightly slower pace of 4.0% annually for the next five years. We see Agree Realty being able to grow AFFO through its three-pronged growth strategy revolving around acquisitions, development, and partner capital solutions.

During the fiscal year of 2025, Agree Realty invested $1.55 billion in 338 retail net lease properties and committed $118 million to 14 development projects.

Looking back further, it has invested nearly $11 billion in properties since 2010.

Source: Investor Presentation

Looking ahead, we project AFFO of $4.56 per share for 2026, which would a 5.3% improvement from last year. 

Dividend & Valuation Analysis

Prior to 2021, Agree Realty had paid a quarterly dividend like the vast majority of dividend stocks. But in 2021, the company switched to a monthly dividend schedule.

Agree Realty currently pays a monthly dividend of $0.262 per share. On an annualized basis, the $3.14 dividend payout represents a 4.0% current yield.

Considering the S&P 500 Index currently yields just 1.16%, Agree Realty stock is an attractive option for income investors.

And, the company grows its dividend regularly. Agree Realty increased its dividend by approximately 5.4% per year in the past 10 years.

The dividend is also highly secure. Based on the expected AFFO of $4.56 for 2025, Agree Realty has a projected dividend payout ratio of 69% for the entire year.

Agree Realty’s payout ratio has remained highly consistent in the last decade, around the mid–70s. This is a healthy payout ratio for a REIT, which must pay out the majority of its earnings to shareholders.

The company operates a healthy balance sheet with a net debt-to-equity ratio of 0.6x, well below many other REITs. Keeping a manageable level of debt is very important for REITs to keep the cost of capital down.

The company maintains investment-grade credit ratings of BBB.

In addition to the dividend, total returns will also be aided by the possibility of an expanding multiple. Shares trade at 17.1x the expected AFFO for the year, which is below our target multiple of 18x AFFO. Reaching our target by 2031 would add 1.0% to annual returns over this period.

In total, we project total annual returns of 8.5% through 2031, driven by 4% AFFO growth, the starting yield of 4.0%, and a small tailwind from multiple expansion.

Final Thoughts

Real Estate Investment Trusts are popular for their high dividend yields, but extreme high-yielders should be avoided. Investors should not ignore REITs with somewhat lower yields, as these REITs often have superior fundamentals.

Agree Realty is an example of this; although its 4.0% yield trails many other REITs, it makes up for this with a high dividend safety and growth rate.

However, we view shares as a hold due to total projected returns, though we note the quality of the company.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.