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Most companies pay dividends on a quarterly schedule because that aligns with their financial reporting. The problem with that cadence is that it doesn't align with expenses, many of which tend to be monthly. Because of that, retirees and others who live off their passive income often need to be more creative to match their income with their expenses.

However, some companies have chosen to pay dividends each month. Further, a few of them offer higher-yielding dividends. Those features make them ideal passive income investments.

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Three high-yielding monthly dividend stocks are AGNC Investment (NASDAQ: AGNC), EPR Properties (NYSE: EPR), and Realty Income (NYSE: O). Here's a closer look at these lucrative passive income investments.

A monster income stock

AGNC Investment pays a whopping dividend. The real estate investment trust (REIT) yields an eye-popping 15.5%. That's more than 10 times higher than the S&P 500's dividend yield (around 1.2%).

The mortgage REIT invests in residential mortgage-backed securities (MBSes) guaranteed against credit loss by government agencies like Fannie Mae and Freddie Mac. That makes them a very low-risk investment. They're also fairly low returning (low- to mid-single-digit yield).

AGNC Investment boosts its return potential by using leverage (i.e., borrowing money to buy more MBSes). That can be a very lucrative investment strategy. The REIT currently earns a high enough return to cover its costs and monster dividend, which it has paid for 55 straight months. While the company's leveraged MBS strategy has risks (significant changes in interest rates and market conditions can impact its returns), it currently enables the REIT to pay a very lucrative monthly dividend.

Steady income growth ahead

EPR Properties is a REIT that owns experiential real estate, such as movie theaters and attractions. It leases these properties to operating companies under long-term agreements. Those leases supply it with steady rental income to pay dividends. The REIT's monthly payout currently yields 7.9%.

The company's rental income covers its dividend with room to spare. It uses the excess cash and its balance sheet capacity to invest in new experiential real estate. This year, it's on track to invest $225 million to $275 million into new properties. Meanwhile, it has about $150 million of experiential development and redevelopment projects lined up that it expects to fund over the next two years. Overall, it sees a total addressable market opportunity of more than $100 billion for experiential real estate investment.

EPR Properties expects a combination of rent growth and new investments to increase its funds from operations (FFO) by 3% to 4% per share each year. That should support a similar growth rate in its dividend (it gave investors a 3.6% raise earlier this year). That steadily rising payout should provide investors with a passive income stream that should more than outpace inflation in the future.

The Monthly Dividend Company

Realty Income's mission is to deliver dependable monthly dividends to its investors that rise over time. It's so committed to that dividend payment frequency that it calls itself The Monthly Dividend Company.

The diversified REIT (retail, industrial, and casino properties) has certainly delivered on that objective over the years. It has declared 654 consecutive monthly dividends throughout its history. It has raised its payment 128 times since its public market listing in 1994, which includes delivering 109 straight quarterly dividend increases and 30 consecutive years of dividend growth. The REIT has grown its payout at a 4.3% compound annual rate since coming public three decades ago. It currently yields around 6%.

Realty Income is in a strong position to continue growing its dividend. It retains significant cash after paying its dividend, giving it some funds to make new income-generating investments. It also has one of the strongest balance sheets in the REIT sector. Those factors give it ample financial flexibility to continue capitalizing on the multitrillion-dollar commercial real estate market.

Lucrative monthly income streams

AGNC Investment, EPR Properties, and Realty Income pay very high-yielding monthly dividends backed by income-generating real estate investments. That makes them ideal options for investors seeking to generate consistent passive income each month. They could supply their investors with lots of income in the future.

Should you invest $1,000 in AGNC Investment Corp. right now?

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Matt DiLallo has positions in EPR Properties and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.