Monthly Dividend Stock In Focus: Modiv Inc.

Published on April 29th, 2026 by Felix Martinez

Real estate investment trusts, or REITs, are popular among those seeking generous dividend yields. REITs are required by law to pay out the vast majority of income in the form of dividends.

As a result, many REITs pay very high dividend yields. One example is Modiv Inc. (MDV), which currently offers an 7.4% yield.

Some REITs, such as Modiv, even pay dividends monthly rather than quarterly or annually, which can appeal to investors looking for more consistent cash flows.

You can download our full Excel spreadsheet of all 119 monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

But investors shouldn’t focus solely on yield when assessing an investment opportunity. This article will analyze Modiv’s investment prospects in detail to determine whether investors should consider adding it to their portfolios.

Business Overview

Modiv is a real estate investment trust that acquires, owns, and actively manages single-tenant net-lease industrial, retail, and office properties in the U.S.

Source: Investor Relations

Modiv has 42 properties in its portfolio that occupy 4.4 million square feet of aggregate leasable area.

Source: Investor Relations

The trust had its public listing in 2022. Prior to this, Modiv was one of the largest non-listed REITs to raise funds entirely via crowdfunding. The trust was the first real estate crowdfunding platform to be entirely investor-owned.

Growth Prospects

Modiv has only been publicly traded for a short time, but management has focused on acquiring high-quality properties to add to the portfolio. This has led to a focus primarily on adding industrial properties. For example, Modiv added four industrial and one retail properties to the portfolio last year.

Despite a heavy acquisition spree, Modiv remains a relatively small REIT, as evidenced by its market capitalization of just $144 million. Even after a number of acquisitions, the total portfolio is slightly more than 40 properties.

It will take time and capital for the trust to become one of the larger names in its real estate area. REITs often issue shares to raise capital for acquisitions, but this comes at a cost to Modiv due to the stock’s high single-digit yield. Given this hefty yield, the share count has remained relatively stable, though we anticipate the trust will use this avenue to acquire attractive properties in the future.

Financing debt to fund transactions might also be difficult due to Modiv’s being one of the smaller players in its industry. Creditors may require a higher interest rate, which will likely act as a headwind.

The good news is that Modiv’s portfolio does offer some advantages. For example, the weighted average lease term is 113.8 years, which should provide the trust with predictable cash flows. Some of the trust’s tenant base can be considered high-quality, as Modiv lists 3M Company (MMM), Costco Wholesale Corp. (COST), and Northrop Grumman Corp. (NOC) as tenants.

Finally, the properties leased to tenants can be considered mission-critical to their businesses, meaning they are essential for these companies to perform their basic functions. However, this doesn’t necessarily make Modiv recession-proof, as an economic downturn could impact the need for these facilities. We note that the trust has also not operated under adverse economic conditions to date.

Given the trust’s relative youth and the likelihood of share issuance to fund acquisitions, we believe that AFFO will remain stable through 2030.

Dividend & Valuation Analysis

In our view, the dividend is Modiv’s most attractive aspect from an investment perspective.

Modiv’s dividend currently yields 7.4%, more than five times the S&P 500 Index’s average yield of 1.5%. This is one of the highest yields the stock has traded with since Modiv went public.

Modiv’s projected payout ratio for 2026 is 82%. This is a decent payout ratio, given that REITs typically have higher payout ratios. While we believe the dividend yield is safe for now, we would prefer a longer track record of payments before fully trusting the security of the trust’s dividend payments.

Given the payout ratio, we forecast that dividends will remain flat through 2031 unless AFFO grows faster than anticipated.

Shares of Modiv trade at $16.18 per share, giving the stock a price-to-AFFO ratio of just under 11.1. This is slightly above our five-year target valuation of 10.0 times AFFO. Reverting to our target valuation would slightly reduce total annual returns going forward. Overall, we project total annual returns in the mid- to high-single-digit range over the next five years, powered almost entirely by the stock’s dividend yield.

Final Thoughts

Modiv is a new name in real estate and has some interesting characteristics. The trust is motivated to grow, with acquisitions expanding its portfolio since becoming a publicly traded company. The stock also offers one of the more generous dividend yields in our coverage universe. The dividend does look safe, but short-term headwinds, such as debt financing or a possible recession, could call that safety into question.

Given that the dividend accounts for nearly all of our total return projection, we believe investors would be better off seeking more secure yields. For this reason, Modiv earns a hold recommendation at the current price.

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.