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8 Best Monthly Dividend Stocks

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Monthly dividend stocks are useful for investors in search of a source of income in the form of regular 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 payments 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 Corp.

Main Street Capital Corp. (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.

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Pros: Track record of success

Cons: Some recent dividends have been lower than usual

Market cap: $3.03 billion

Dividend yield: 6.56%

2. Realty Income Corp.

Realty Income Corp. (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 paid out 626 consecutive monthly dividends since 1969 and increased its dividend 116 times since it was first listed on the New York Stock Exchange in 1994.

Pros: Strong history of increasing dividends

Cons: Dividend yield is still on the low side

Market cap: $41.38 billion

Dividend yield: 4.35%

3. SL Green Realty Corp.

SL Green (SLG) is a REIT that invests in office buildings and shopping centers in New York City and is Manhattan’s largest office landlord, according to the company’s website. As of June 30, the company held interests in 64 buildings totaling 34.4 million square feet. SL Green is based in New York City and was founded in 1997.

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

Cons: Investments limited to New York City

Market cap: $3.087 billion

Dividend yield: 8.13%

4. AGNC Investment Corp.

AGNC Investment Corp. (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 mainly in agency mortgage-backed securities, which means they are backed by government-sponsored enterprises or 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: $6.262 billion

Dividend yield: 12.26%

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 $6.6 billion worth of assets, and the company claims its market potential exceeds $100 billion.

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

Cons: Share price hasn’t recovered from pandemic shutdowns; hasn’t always paid consistent monthly dividends

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Market cap: $3.213 billion

Dividend yield: 7.76%

6. Apple Hospitality REIT Inc.

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: $3.623 billion

Dividend yield: 5.29%

7. Prospect Capital Corp.

Prospect Capital Corp. (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 $7.7 billion worth of assets, and it has funded more than 375 investments. Its website notes that it has 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: $2.953 billion

Dividend yield: 9.68%

8. STAG Industrial Inc.

STAG Industrial Inc. (STAG) is a REIT focused on acquiring and operating industrial properties in the United States. It invested $1.3 billion in 2021 alone, acquiring 74 buildings totaling 12.9 million square feet. Overall, its enterprise value is $8.1 billion, with 559 buildings totaling 111.5 million square feet. The company has a presence in 40 states.

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

Cons: Dividend yield is on the low end

Market cap: $5.687 billion

Dividend yield: 4.68%

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 and REITs pay the highest monthly dividends?
    • The stocks and REITs 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 Inc. (ORC; yield: 14.74%), Armour Residential REIT Inc. (ARR; yield: 17.02%) and AGNC Investment Corp. (AGNC; yield: 12.26%). Keep in mind that chasing high dividends can be dangerous and that double-digit dividends can be unsustainable in some cases.
  • Can you earn monthly income from dividends?
    • Several dividend stocks pay dividends to investors every month. Some monthly dividend stocks known as dividend aristocrats may even increase their dividends. Hence, you can certainly earn 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.

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Daria Uhlig contributed to the reporting for this article.

Data is accurate as of Sept. 8, 2022, and is subject to change.