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The 10 Best Monthly Dividend Stocks For Income Investors

  • By Sarah Foley
  • Sep 08, 2022
best dividend stocks

Many investors are unaware of the fact that monthly dividend stocks exist. But is it possible to make a solid monthly dividend income from your stocks? Let’s take a quick look at the best dividend stocks that will let you generate income every 30 days.

Best Monthly Dividend Stocks

STAG Industrial (NYSE: STAG)

STAG Industrial is a real estate investment trust specializing in warehouses and light industrial properties. The company’s primary focus is on distribution centers for large-scale national companies.

In total, STAG Industrial currently owns more than 550 buildings across 40 states. A near majority of STAG’s portfolio consists of online ventures that need places to store products. As more and more businesses move online, this puts STAG in an excellent position to succeed.

best monthly dividend stocks

STAG Industrial Logo. (PRNewsFoto/STAG Industrial, Inc.)

STAG rents out buildings at healthy rates, boosting its revenue and dividend price in turn. Share prices have climbed fairly steadily for nearly two years, only seeing a decline since the beginning of this year.

The business recently revealed that it has fully closed the sale of two industrial real estate sites. Both were completely occupied for gross proceeds of around $82.0 million, or 5.2% cash capitalization rate.

STAG’s ability to successfully execute transactions despite the present market turbulence is demonstrated by this sale of two industrial buildings with a considerable cap rate reduction.

This deal increases STAG’s capacity to recycle cash when opportunities present themselves over the rest of the year. With a dividend of 4.67% and a real estate occupancy rate above 98%, Stag is an awfully tempting stock.

AGNC Investment Corp. (NASDAQ: AGNC)

AGNC is the first of a few real estate investment trusts (REITs) on our list, focusing predominantly on agency mortgage-backed securities. With agencies, assets are backed by the federal government in the event a default happens.

The REIT buys and sells these mortgages for profit. Its portfolio comprises over $61 billion in securities, most of which are residential properties. AGNC stock has had a pretty lackluster year, seeing a slight decrease from the middle of 2021.

The advantage of the mortgage REIT market is how predictable it is. Investors can frequently access all the general information they want by closely monitoring Fed monetary policy and the interest rate yield curve.

 

best monthly dividend stocks

 

Things are now not looking good for AGNC and its competitors. The nation’s central bank is swiftly increasing interest rates in an effort to rein in historically high inflation.

Additionally, the yield curve for interest rates has flattened. This often causes net interest margin to decrease and near-term book values for mortgage REITs to decline.

However, this sector is a wise bad-news investment. That’s because protracted bull markets are when the yield curve steepens the most.

Additionally, the yields AGNC earns from upcoming MBS purchases will increase along with interest rates. This should lead to consistent net interest margin growth sooner rather than later.

That aside, AGNC has a very impressive 11.98% yield to keep many dividend investors happy. With mortgage rates still lower than usual, AGNC looks to be a solid choice for income for the foreseeable future.

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Safe Monthly Dividend Stocks

Realty Income (NYSE: O)

With a dividend of 4.48%, Realty Income is worthy of every investor’s consideration. Realty Income owns over 11,400 properties in all 50 states, Puerto Rico, the United Kingdom, and Spain.

Most of these properties are single-tenant retail sites and represent over 1,100 different clients. Realty Income minimizes its financial risk by maintaining a diverse portfolio.

The company is involved in key U.S. markets and has clients in many different industries. With stable business operations, Realty Income’s dividends will likely remain steady.

While malls have struggled over the past decade, standalone properties have plenty of potential. A good portion of Realty Income’s properties are convenience stores and pharmacies in high-traffic areas.

Realty Income has paid 626 monthly dividends, so it has a history of consistent payments. The company has also increased its dividends more than 100 times in the 26 years since its IPO.

 

best monthly dividend stocks

 

Its extremely steady corporate structure makes it appropriate for a retiree’s portfolio. Realty Income makes investments in single-tenant buildings that are then leased out on long-term triple-net leases to a substantial percentage of investment-grade tenants.

According to these agreements, the renter is responsible for paying taxes, insurance, and upkeep. The periods of triple-net leases are often longer (seven to ten years) and include automatic rent increases.

For both sides, these contracts entail a significant financial investment. A triple-net-lease operator like Realty Income would choose a drugstore, dollar shop, or convenience store as a tenant.

Because they are less economically sensitive, these businesses are sometimes referred to as defensive stocks. People will continue to buy snacks, paper plates, and toothpaste regardless of the status of the economy.

Companies like Realty Income set themselves apart from mall REITs with this defensive quality. During a recession, people will spend less on high-end clothing and other discretionary things.

Realty Income has even trademarked itself as the “Monthly Dividend Company”, which shows its commitment to paying its shareholders. It does, in fact, distribute a dividend every month.

During the COVID-19 epidemic, most REITs were compelled to reduce their payouts. However, Realty Income increased its dividend three times in 2020.

ARMOUR Residential REIT, Inc. (NYSE: ARR)

Like many other REITs, ARMOUR invests in mortgage-backed securities guaranteed by an entity sponsored by the U.S. government. The REIT doesn’t own actual property, acting more as a financial institution than a landlord.

It seeks to manage these securities, buying and selling over time for profit. ARMOUR stock has yet to recover from the fall at the onset of the Covid pandemic. Shares have dropped some since the beginning of this year, resulting in a net loss across the board.

 

best monthly dividend stocks

However, the company maintains a 16.78% dividend yield, which is more than enough to keep most investors happy. ARMOUR has done well to keep this high rate despite its share price losses.

Monthly REIT Dividend Stocks

SL Green Realty (NYSE: SLG)

SL Green Realty is a REIT that owns and operates properties in Manhattan and the surrounding area. SL Green is the largest commercial landlord in New York City. The company owns 64 buildings with a total footprint above 34.4 million square feet.

SL Green has a market capitalization above $2.95 billion and a current dividend yield of 7.78%. Share prices have seen ups and downs this year, settling in 33% below what they were last year.

Occupancy rates are hovering around 92%, indicating that companies are forsaking remote work and returning to an office setting. SL Green has a robust business model and will likely remain a monthly dividend-paying company for years to come.

 

best monthly dividend stocks

The business just disclosed that the joint venture’s acquisition of 450 Park Avenue had been completed. Institutional investors from South Korea and Israel make up the ownership group.

On behalf of the partnership, SL Green will be in charge of leasing and managing the property while holding on to a 25.1% ownership stake.

With this acquisition and a focus on multi-year commercial leases, SL Green has a vast portfolio of properties throughout the city. This sets them up for financial stability even in a challenging market.

Agree Realty (NYSE: ADC)

Agree Realty is another strong real estate investment venture to make the list. The REIT owns and operates 1,600 properties in 48 different states around the country. Most of these investments are large, freestanding, single-tenant commercial spaces centering on retail.

To keep costs down, tenants have responsibility for taxes, maintenance, and insurance. Agree is new to the monthly dividend game, having switched from regular quarterly dividends at just the beginning of 2021.

 

best monthly dividend stocks

Great news came recently for income investors as a regular monthly payout of $0.234 per ordinary share has been issued.

The annualized dividend amount for the monthly dividend is $2.8 per common share, which is a 7.8% increase over that of the quarterly dividend of $2.604 per common share.

Stockholders with records as of the close of business on July 29, 2022 will receive the dividend on August 12, 2022.

At 3.77%, Agree makes its mark as a healthy monthly dividend stock to invest in. Add in a solid second-quarter financial report, and you’re also looking at a stock with good long-term potential.

Best Monthly Dividend Stocks With High Yield

LTC Properties (NYSE: LTC)

LTC’s portfolio is split between skilled nursing facilities and senior housing (LTC stands for long-term care). In total, the company has more than 200 investments across 30 states.

It serves as a landlord and does not operate these facilities. The baby boomer generation is getting older, which bodes well for LTC in both the short and long term.

 

best monthly dividend stocks

 

This population covers those born from the late 1940s through 1960, and most people are just now considering long-term care.

LTC’s net income increased yearly in the first and second quarters of 2022. The company received nearly all the anticipated rent and acquired 11 senior living facilities in Canada through a joint venture for around $236 million.

Its stock has returned roughly 30% overall so far this year, and it is presently yielding a respectable 5.19%. LTC’s dividend accounts for three-quarters of its current budget. Even if it loses realty income for its properties at any point, the dividend likely won’t be at risk.

Dynex Capital, Inc. (NYSE: DX)

Dynex Capital is a mortgage REIT investing in mortgage bonds and securities. The company does so with both commercial and residential properties. To appeal to shareholders, it uses these investments to generate high dividends.

The company’s dividend yield is currently 10.15%. Share prices have declined since the beginning of the year, likely due to lower-than-expected revenue in the last few quarters.

 

best monthly dividend stocks

Investors are still optimistic about Dynex Capital as businesses claim physical locations. The current trend points to dividend and stock growth in the future.

Best Growth Monthly Dividend Stocks

Gladstone Commercial Corporation (NASDAQ: GOOD)

Gladstone Commercial Corporation is a REIT collecting single and anchored multi-tenant office and industrial properties. The REIT has a pretty even split between office and industrial settings to help stay diverse.

It also invests in build-to-suit scenarios where a business needs a new building. Already with a presence in over half of the United States, Gladstone consistently works to expand its presence into new ones.

Share prices saw a healthy rise until the end of 2021 when lackluster financials sent things back down. Even with a downturn, Gladstone looks strong to continue paying out monthly dividends for the foreseeable future.

 

best monthly dividend stocks

 

If you put in $10,000 today, you’ll receive 530 shares valued at around $18.9, bringing in roughly $66 monthly. Although it doesn’t seem like much money, consider the yield. The stock of Gladstone Commercial is now yielding around 7.9%.

That’s pretty impressive, considering it is around inflation rates. Gladstone has a lengthy history of producing returns that are higher than inflation.

Pembina Pipeline Corporation (NYSE: PBA)

Pembina Pipeline Corporation stands out as its dealings are in the energy sector. Specifically, the company has transportation and storage capabilities for oil and natural gas throughout Western Canada.

It forms long-term contracts with businesses in the energy sector to use its equipment, providing a steady source of revenue. In recent news, Pembina’s Alberta Carbon Grid transportation system was selected for use.

Investors were excited about the news and positive revenue numbers, increasing share prices. Its share price has leveled off some of late but is still 13% higher than last year at this time. These gains allow Pembina Pipeline to pay out a healthy 5.75% dividend at current.

 

best monthly dividend stocks

 

The company announced it has increased its projection for adjusted EBITDA in 2022 from a previous range of $3.35 billion to $3.55 billion to between $3.45 billion and $3.6 billion.

Expecting high crude oil and natural gas liquids prices gives the guidance a lift. The stock of Pembina, whose shares have increased by almost 13% over the past year, may be a terrific option to invest in the booming oil and gas industry.

With many long-term investments, things are looking up for Pembina Pipeline.

Should You Buy Monthly Dividend Stocks?

Yes! However, most publicly traded companies do not provide a monthly dividend, and a quarterly dividend is much more commonplace. Many companies were forced to forego a dividend yield when the pandemic first hit as they experienced heavy losses.

A venture with a monthly yield in today’s market shows that it recovered well from the downturn and has some cash to spare. A monthly dividend stock strategy can help you net a consistent monthly income when done carefully.

 

best monthly dividend stocks

Where to Buy Monthly Dividend Stocks

You’ll likely won’t find dividend stocks on the less stable OTC markets. For a business to be able to pay out a dividend yield, it must have a stable business model to lean on.

Robinhood is a trading platform that lists the thousands of stocks on the NYSE and NASDAQ exchanges, where high-yield stocks like to hang out. Its quick-to-access system makes it simple for users new or old to navigate to stocks of particular interest.

Should you wish for a deeper dive, consider Webull instead. Webull has more complex tools that suit traders looking for hidden gems and breakout stocks that aren’t on anyone’s radar.

Best Monthly Dividend Stocks: Final Thoughts

Monthly dividend-paying stocks are a unique investment opportunity. They are a great choice for risk-averse investors who want the stability of consistent monthly income, in addition to share value gains.

Best Monthly Dividend Stocks FAQ

Here are answers to some of the most popular questions on monthly dividend stocks.

Are Monthly Dividend Stocks Worth It?

There is no definitive answer to this question as it depends on the individual investor’s circumstances and goals. Monthly dividend stocks tend to be a great way to generate regular income, especially for retirees who rely on their portfolios for monthly income. 

What Stocks Pay Monthly Dividends?

REITs like AGNC Investment Corp. and ARMOR Residential REIT are great options. These companies tend to pay out more in dividends annually than they earn in profits, so they rely on the continual flow of rent payments from their tenants to make those payments.

How Do Monthly Dividend Stocks Work?

These stocks pay out dividends on a monthly basis. Say you purchase shares of a stock that pays out $0.50 per share each month. Over a year, you would receive $6.00 in dividends, compared to the $2.00 you would receive if the company paid out quarterly dividends.

Can You Live Off Dividends?

It’s not likely to make a living off dividends, but it is possible to bring in steady income with a little bit of planning. The most common way is to invest in high-yield dividend stocks. These are stocks that pay out a large percentage of their profits as dividends.

Does Tesla Pay Dividends?

No, Tesla does not currently pay a dividend. There are many reasons why a company may not be paying dividends, but one of the most common is that it uses its profits to reinvest in the business to grow faster. Tesla is certainly no exception to this rule.

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Sarah Foley is a freelance content writer based in Chicago. She covers finance as well as real estate, technology, pop culture, and more.