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The 10 Best Monthly Dividend Stocks For Income Investors

Sarah Foley - May 09, 2022

best dividend stocks

Many investors are unaware of the fact that monthly dividend stocks exist. The best monthly dividend stocks will reward you with an extra slice of income every 30 days.

There is a common misconception that stocks only offer dividend yields quarterly or annually.

However, it is possible to make a solid monthly dividend income from your stocks.

This article will talk about the best monthly dividend stocks on the market.

Monthly dividends provide a consistent and reliable income stream.

You can use this income to build up your nest egg and prepare for retirement.

Let’s take a quick look at the best monthly dividend stocks that will provide you with a steady stream of 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.

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 slight decline since the beginning of this year.

With a dividend of 4.28% and a real estate occupancy rate near 97%, 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 in 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 consists of over $68.6 billion in securities, most of which are in residential properties.

AGNC stock has had a pretty lackluster year, seeing a slight decrease from the middle of 2021.

That aside, AGNC has a very impressive 11.75% dividend yield to keep investors happy.

With mortgage rates still lower than usual, AGNC looks to be a solid choice for income for the foreseeable future.

best monthly dividend stocks featured

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Safe Monthly Dividend Stocks

Realty Income (NYSE: O)

With a dividend of 4.59%, Realty Income is worthy of every investor’s consideration.

Realty Income owns over11,000 properties in all 50 states, Puerto Rico, the United Kingdom, and Spain.

Most of these properties are single-tenant retail sites and represent nearly 1,100 different clients.

Realty Income minimizes its financial risk by maintaining a diverse portfolio.

The company is involved in key markets throughout the U.S. and also has clients in many different industries.

With stable business operations, Realty Income’s dividends will likely hold steady going forward.

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 621 monthly dividends in a row, 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.

Realty Income has even trademarked itself as the “Monthly Dividend Company”, which shows its commitment to paying its shareholders.

 

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.

However, the company maintains a 16.09% dividend yield, which is more than enough to keep most investors happy.

ARMOR 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.

In fact, SL Green is the largest commercial landlord in New York City. 

The company owns 71 buildings with a total footprint in excess of 26.9 million square feet.

SL Green has a market capitalization above $4.4 billion and a current dividend yield of 5.67%. 

Share prices have seen ups and downs this year, settling in 12% under what they were last year at this time.

Occupancy rates are hovering around 93%, indicating that companies are forsaking remote work and returning to an office setting.

SL Green has a robust business model, and it’s likely to remain a monthly dividend-paying company for years to come.

With 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 1,510 properties in 47 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 a quarterly model at just the beginning of 2021.

At 4.19%, Agree makes its mark as a healthy monthly dividend stock to invest in.

Add in a solid first-quarter financial report, and you’re looking at a stock with good long-term potential as well.

monthly dividend stocks

Best Monthly Dividend Stocks With High Yield

LTC Properties (NYSE: LTC)

LTC provides a dividend yield of 6.47%.

The company’s portfolio is split between skilled nursing facilities and senior housing (LTC stands for long-term care).

In total, LTC has more than 200 investments across nearly 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.

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

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.

Dynex currently has a dividend yield of 9.60%.

Share prices have been in decline since the beginning of the year, likely due to lower-than-expected revenue in the winter and spring.

Investors are still optimistic about Dynex Capital as businesses continue to claim physical locations.

Best Growth Monthly Dividend Stocks

Gladstone Commercial Corporation (NASDAQ: GOOD)

Gladstone Commercial Corporation is a REIT collecting both 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 all the way 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.

Its dividend yield currently sits at 7.85%.

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, sending share prices upward.

Its share price has leveled off some of late but is still 20% higher than last year at this time.

These gains allow Pembina Pipeline to pay out a healthy 5.12% dividend at current.

With many long-term investments still in place, 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.

Quarterly dividends are 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.

When done carefully, a monthly dividend stock strategy can help you net a consistent monthly income.

Where to Buy Monthly Dividend Stocks

It’s unlikely you’ll 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 a 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 stocks are a unique investment opportunity.

They are a great choice for investors who are risk-averse and 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?

Monthly dividend stocks provide a low but fairly stable amount of income each and every month.

This chunk of change can help investors plan for expenditures and the coming month’s stock picks.

What Stocks Pay Monthly Dividends?

While not a common sight, there are a decent number of monthly dividend stocks if you know where to look.

REITs like AGNC Investment Corp. and ARMOR Residential REIT are great options.

How Do Monthly Dividend Stocks Work?

Shareholders receive an amount based off quantity of shares and the dividend yield 12 times per year.

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.

Does Tesla Pay Dividends?

At this time, Tesla does not pay any sort of dividend to its shareholders.

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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.