I’m looking for great stocks to buy this month to make winning passive income. Of course, I’m not only talking about shares of dividend companies that currently bring the highest profits. Instead, I look for companies in good shape that will allow for increased payouts to shareholders over time.

I believe the following dividend stocks will give me the best of both worlds.

Here’s why I think they’re worth taking a closer look at in October.

Tritax Big Box REIT

Tritax’s merger with British REIT Commercial Property REIT in May opened the door to advancement FTSE100. And it enters the index as one of the largest dividend payers. As the table above shows, dividend yields over the next two years will exceed the broader Footsie average of 3.5%.

These types of real estate investment trusts (REITs) can be an excellent choice for income investors. This is because they are obliged – in exchange for tax benefits – to pay at least 90% of their annual rental income in the form of dividends.

This is also because tenants are typically locked into long-term contracts, which provides them with the necessary cash flow (not to mention the certainty) to pay a immense and usually increasing dividend over time.

As of June, Tritax had a weighted average outstanding lease term (WAULT) for the Foundation’s core assets of 14 years.

That bodes well for future payouts, as does its place in a rapidly growing market. Demand for the state-of-the-art logistics centers in which it specializes should continue to grow as e-commerce volumes boost, supply chains are optimized and companies invest in improving their ESG credentials.

Higher than normal interest rates have recently put pressure on real estate stocks like Tritax Big Box. This poses a risk in the future. However, falling inflation means the Bank of England looks poised for a series of interest rate cuts, which would provide a boost to the sector as a whole.

Please note that tax treatment depends on each client’s individual situation and may change in the future. The content of this article is for informational purposes only. It is not intended to be and does not constitute any form of tax advice.

Basic health properties

Like Tritax Big Box, Primary Health Properties is classified as a REIT, which provides investors with the same dividend benefits. However, at least over the next two years, the dividend yield will be more impressive at 7%.

Moreover, its dividend growth record is also better. Payouts to shareholders increased every year until 2009.

Like other facilities in this industry, its tenants have signed long-term contracts. In June, his WAULT was 9.8 years.

Primary Health also has an ace up its sleeve, which makes it a reliable dividend payer. The company’s focus on healthcare-related premises (such as GP surgeries) means that rents are generally guaranteed by local authorities and the NHS.

As with Tritax, the future direction of interest rates creates uncertainty here. Profits could also come under pressure if health policy changes in the UK. But overall, I think basic health benefits are a great share of income to consider.