8 Best Monthly Dividend Stocks

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Monthly dividend stocks are useful for investors in search of regular interest payments, which can be beneficial during retirement. Some investors may also choose to invest in monthly dividend stocks during bear markets when the prices of their stocks are dropping.

Regardless of your situation, the regular interest that monthly dividend stocks provide can make planning your finances easier, especially if you rely on your portfolio for income. They can also help calm your fears about a struggling market as you receive consistent dividends each and every month.

Best Monthly Dividend Stocks

Take a look at some of the best monthly dividend stocks and what makes them stand out.

1. Main Street Capital Corporation

Main Street Capital Corporation (MAIN) is a private equity firm that invests in lower-middle-market companies with revenues between $10 million and $150 million. The company has been around since the mid-1990s. In that time, it has helped over 200 private companies grow. It focuses on companies with strong competitive advantages, stable and positive cash flow and seasoned management teams with established track records.

Building Wealth

Pros: Track record of success

Cons: Some recent dividends have been lower than usual

Market cap: $2.97 billion

Dividend yield: 6.38%

2. Realty Income Corporation

Realty Income Corporation (O) is a real estate investment trust that invests in commercial properties. As a REIT, the company is so confident in its ability to pay monthly dividends that it calls itself The Monthly Dividend Company. It is also a member of the S&P 500 and S&P 500 Dividend Aristocrats index.

A dividend aristocrat is a company that pays regular dividends and increases them consistently. O has increased its dividend 116 times since it was first listed on the NYSE in 1994.

Pros: Strong history of increasing dividends

Cons: Dividend yield is still on the low side

Market cap: $40.93 billion

Dividend yield: 4.28%

3. SL Green

SL Green (SLG) is a REIT that invests in office buildings and shopping centers in New York City. It has properties in Midtown, Midtown South and downtown. As of March 31, 2022, the company held interests in 71 buildings totaling 34.7 million square feet. SL Green is based in New York City and was founded in 1997.

Pros: Strong real estate portfolio is an attractive market; high dividend yield

Building Wealth

Cons: Investments limited to New York City

Market cap: $2.92 billion

Dividend yield: 8.04%

4. AGNC Investment Corporation

AGNC Investment Corporation (AGNC) is a REIT that invests in residential mortgages. Specifically, it invests in mortgage-backed securities. Although it invests on a leveraged basis, its investments are “agency MBS,” which means they are backed by government agencies. This can help reduce risk for investors. Notably, AGNC’s dividend yield is the highest on this list.

Pros: Double-digit dividend yield

Cons: High debt load; despite high dividend yield, dividends have decreased significantly since 2011

Market cap: $6.07 billion

Dividend yield: 12.61%

5. EPR Properties

EPR Properties (EPR) describes itself as an experiential REIT. It invests in commercial properties, primarily focused on entertainment. This includes amusement parks, movie theaters and ski resorts. Its current investment portfolio contains $6.4 billion worth of assets and the company claims its market potential is up to $100 billion worth of assets.

Pros: Potentially has a lot of room to grow its portfolio

Cons: Share price is down more than 34% over the past five years; hasn’t always paid consistent monthly dividends

Building Wealth

Market cap: $3.59 billion

Dividend yield: 6.85%

6. Apple Hospitality REIT

Apple Hospitality REIT (APLE) is a REIT that invests in upscale hotels in the United States. Its extensive portfolio includes 219 hotels with more than 28,700 guest rooms. Those hotels span 86 markets across 36 states. They include hotels in leading brands, such as Marriott and Hilton.

Pros: Large portfolio that invests in major hotel brands

Cons: Relatively low yield and earnings per share

Market cap: $3.47 billion

Dividend yield: 4%

7. Prospect Capital Corporation

Prospect Capital Corporation (PSEC) is a business development company that makes debt and equity investments in middle-market companies in the United States. It does so across many industries and aims to provide stable returns to investors. Its portfolio includes $7.5 billion of assets and it has already funded more than 375 investments. Its website notes that it has already declared more than $3.7 billion of dividends for investors.

Pros: High dividend yield

Cons: Low level of ownership by institutional investors, such as mutual funds

Market cap: $2.82 billion

Dividend yield: 9.93%

8. STAG Industrial, Inc.

STAG Industrial, Inc. (STAG) is a REIT focused on acquiring and operating industrial properties in the United States. Most of its properties are manufacturing facilities or warehouses. It has acquired 74 buildings totaling 12.9 million square feet and invested $1.4 billion. Overall, its enterprise value is $9.9 billion, with 551 buildings totaling 110.1 million square feet. The company has a presence in 40 states.

Pros: Unique opportunity to invest in warehouses; operates in most states

Cons: Dividend yield is on the low end

Market cap: $5.50 billion

Dividend yield: 4.84%

Final Take

Dividend stocks can be the perfect investment for those who need regular income, such as retirees. These stocks tend to operate in established sectors, such as real estate, which allows them to pay regular income to investors. Some even pay monthly dividends, which is perfect if you rely on your portfolio as a source of income.

If you need income from your portfolio every month, look for industries that can pay dividends consistently, such as real estate, energy and private equity. However, keep in mind that it isn’t always best to chase high yields. Instead, you should look for companies that consistently increase dividends. These are known as dividend aristocrats and these companies will be less likely to cut dividends in the future.

FAQ

  • What stocks pay the highest monthly dividends?
    • The stocks that pay the highest monthly dividends may vary from month to month as companies increase or decrease their dividends. At the moment, some of the highest monthly yields come from Orchid Island Capital (ORC; yield: 19.15%), Armour Residential REIT (ARR; yield: 17.07%) and AGNC Investment Corporation (AGNC; yield: 12.61%). Keep in mind that chasing high dividends can be dangerous and that double-digit dividends can be unsustainable in some cases.
  • Can you make monthly income from dividends?
    • Several dividend stocks pay dividends to investors every month. Some monthly dividend stocks may even increase their dividends -- known as dividend aristocrats. Hence, you can certainly make monthly income from dividends.
  • Which shares give dividends monthly?
    • There are many shares that give monthly dividends, including all of the monthly dividend stocks on this list. For other shares, you can either check the company's shareholder information or look it up on a stock research website such as Nasdaq.com.
  • Are monthly dividend stocks worth it?
    • Monthly dividend stocks can be worth it in some cases. In general, dividend stocks are worth it for retirees and those who want a consistent monthly income from their stocks. However, dividend stocks tend to be heavily concentrated in a few sectors, such as energy, real estate and private equity. These sectors may not provide the same growth opportunity as other sectors, such as technology. Thus, monthly dividend stocks may not be as useful for those who are focusing on building wealth.

Information is accurate as of July 14, 2022.

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About the Author

Bob Haegele is a personal finance writer who specializes in topics such as investing, banking and credit cards. He left his day job in 2019 to pursue his passion for helping people get out of debt and build wealth. You can find his work at outlets such as Business Insider, Forbes Advisor and SoFi.

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