Stock Quotes in this Article: IRC, RIT

The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

SAN FRANCISCO (Stockerblog) -- In August 2009, I predicted that the bottom of the real estate market would take place in November of that year. There were positive signs in 2010, but as I mentioned in my article, real estate is like a giant ship; it takes a long time to turn -- unlike the stock market, which can turn on a dime.


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    If you think real estate is turning around, there are alternatives to buying a rental house. Alternatives include real estate investment trusts and closed-ended funds that invest in real estate securities. These investments can provide liquidity and income, plus you don't have to worry about being called at 2 o'clock in the morning about a leaky toilet. At, we've found various real estate stocks that pay dividends monthly, with yields ranging from 2.3% to 7%.

    For example, Inland Real Estate (IRC), a real estate investment trust that owns and operates shopping centers and single-tenant retail properties in the Midwest, yields 6.2%. The company has been paying monthly dividends since July of 2004. The stock trades at 11 times forward earnings. It just reported lower fourth-quarter results, with funds for operations at 21 cents a share for the quarter versus 23 cents a share for the same quarter last year.

    LMP Real Estate Income Fund (RIT) is an exchange traded fund that invests in various companies involved in the real estate sector. The stock provides a yield of 4.3%, which is payable monthly. Dividends have been paid since 2002. The ETF trades at a price to earnings ratio of 3. The stock is currently selling below its net asset value as of year end of 11.07.

    For an Excel list of all monthly dividend stocks, including real estate stocks including real estate stocks, which can be downloaded, updated, and sorted, visit

    At the time of publication, author had no positions in stocks mentioned.

    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books Investing in Brazil Stocks and The Green Light on Green Stocks.