The places you regularly visit could offer you a path to a lifetime of passive income

Modern life involves a lot of routine. Most of us have to go to the grocery store every week, and we tend to need to put gas in our cars quite often. We will also routinely go out to eat (or take out) and buy something at a department store or pharmacy. These activities are so routine that we probably don’t give them much thought.

However, the places we regularly visit could be a gold mine of passive income. Many essential retailers we frequent rent out their space, providing the owners with rental income.

You don’t have to be a homeowner to get some of this passive real estate income. A lot Easier and the lower cost path to passive income is to invest One real estate investment trust (REIT) focused on ownership types of the properties you visit frequently.

Shopping for dividends

Agree with Realty (ADC 0.19%) owns more than 2,200 commercial properties at the national level. Top tenant sectors include grocery stores (9.6% of rent), home improvement centers (9.2%), and tire and auto service locations (8%) net rented at retailers like Walmart, Krogerand Lowe’s.

These leases provide the REIT a very stable rental income as tenants cover operating costs such as routine maintenance, building insurance and property taxes. He also receives about 11% of his rent land leasewhere he owns the land under commercial properties.

The Retail REIT pays out less than 75% of investor income in dividends each month. Payout Agree Realty currently yields around 4%. At this rate, it can turn every $100 invested in its stock into more than $4 in annual dividend income.

Agree Realty uses the income it retains to help finance new investments in income-producing commercial properties. In the first half of this year, it invested $302 million in 102 net lease properties and committed another $101 million to 25 development projects. These investments will increase his rental income and should activate REIT to increase its dividends. It has grown its payout at an annual rate of 5.7% over the past decade.

Fueling more income in your pocket

Getty Realty (GTY -0.13%) is a REIT focused on investments in convenience and retail real estate. It owns more than 1,100 properties net leased to companies that operate convenience stores, car washes, auto service centers, quick service restaurants (QSRs) and gas stations.

The REIT pays out less than 80% of its cash flow as dividends, and its payout currently yields more than 5.5%. Getty has increased its dividend at a compound annual rate of 5.2% since 2019.

Getty Realty continues to grow its portfolio. In the first half of the year, invested over 100 million dollars in acquisition or development of car service centers, car washes and QSRs. Also committed to invest an additional $53 million in 25 additional properties. These new investments should increase their income, which should allow it to further increase its dividend.

An attractive passive income stream

Four Corners Property Trust (FCPT 1.28%) focuses on investments in restaurants and commercial properties. The REIT has over 1,150 net leased properties across over 150 brands. Notable brands include Olive Garden (35.4% of its rent), Longhorn Steakhouse (10%) and Chili’s (7.4%). In addition to holding real estate for restaurants, the REIT owns auto service properties (10%) and medical retail locations (8%).

The REIT pays out about 80% of its cash flow in dividends. Its payout currently yields nearly 5% and ihas routinely increased its dividendinclusive by 1.5% at the end of last year.

Four Corners Property Trust also routinely acquires several income-producing properties. The REIT recently bought 19 Bloomin’ Brands restaurant properties for $66.4 million, becoming the third-largest tenant. It also buys a steady stream of unique properties with recent deals, including additional restaurants, veterinary properties, clinics and auto service locations. The REIT’s steadily growing portfolio should boost its cash flow so it is possible continues to increase its dividends.

Collect passive income from the places you frequent visit

REITs allow anyone to collect passive income from everyone types of real estateincluding the places we frequent to buy groceries and fill up our cars. They typically pay out a large portion of this income to investors in dividends. These payments tend to increase annual as REITs buy more income-producing properties. Bbecause of this, you could ppotentially collect lifetime income by investing in the properties you regularly visit to buy the goods and services you need.