Most dividend stocks pay quarterly, but what if you could receive income every single month? Monthly dividend stocks make that possible, providing consistent cash flow that aligns with your monthly bills and expenses.
In this comprehensive guide, we'll explore the best monthly dividend stocks for 2026, how to build a monthly income portfolio, and the pros and cons of monthly payers.
Why Monthly Dividend Stocks?
Consistent Cash Flow
Monthly dividends provide:
- Regular income that matches monthly expenses
- Easier budgeting for retirees and income investors
- Faster compounding when reinvesting (DRIP)
- Psychological benefits of seeing regular deposits
The Math of Monthly Reinvestment
When you reinvest monthly instead of quarterly, your money compounds 12 times per year instead of 4. Over decades, this can add up to thousands of extra dollars.
Example: $100,000 invested at 5% yield:
- Quarterly reinvestment over 20 years: ~$271,000
- Monthly reinvestment over 20 years: ~$275,000
That's $4,000 extra just from more frequent compounding!
Top Monthly Dividend Stocks for 2026
1. Realty Income (O) - "The Monthly Dividend Company"
Yield: ~5.2% | Monthly Dividend: Yes | Dividend Aristocrat: Yes
Realty Income has trademarked itself as "The Monthly Dividend Company" and has paid 640+ consecutive monthly dividends. This REIT owns over 13,000 commercial properties leased to tenants like Walgreens, Dollar General, and FedEx.
Why we like it:
- 29+ years of dividend increases
- Investment-grade credit rating
- 98%+ occupancy rate historically
- Diverse tenant base across industries
Considerations:
- Interest rate sensitivity as a REIT
- Retail real estate evolution
Use our Dividend Yield Calculator to see your potential income from Realty Income.
2. AGNC Investment Corp (AGNC)
Yield: ~14% | Monthly Dividend: Yes | Sector: Mortgage REIT
AGNC invests in agency mortgage-backed securities guaranteed by government-sponsored entities. The high yield comes with higher volatility, making it suitable for investors who understand the risks.
Why we like it:
- One of the largest mortgage REITs
- Monthly dividend payments
- Professional management team
- Agency MBS focus (government-backed)
Considerations:
- Sensitive to interest rate changes
- Dividend has been cut in the past
- Book value fluctuates
3. Main Street Capital (MAIN)
Yield: ~6.5% | Monthly Dividend: Yes | Plus: Special dividends
Main Street Capital is a business development company (BDC) that provides debt and equity capital to middle-market companies. They pay regular monthly dividends plus supplemental dividends.
Why we like it:
- Internally managed (lower fees)
- Monthly + supplemental dividends
- Strong track record
- Diversified portfolio of investments
Considerations:
- Economic sensitivity
- BDC complexity
4. STAG Industrial (STAG)
Yield: ~4.2% | Monthly Dividend: Yes | Sector: Industrial REIT
STAG Industrial owns and operates industrial real estate, primarily warehouses and distribution centers - the backbone of e-commerce logistics.
Why we like it:
- E-commerce tailwind
- Monthly dividends since 2011
- Growing dividend (14+ years of increases)
- Single-tenant industrial properties
Considerations:
- Tenant concentration risk
- Interest rate sensitivity
5. LTC Properties (LTC)
Yield: ~6.8% | Monthly Dividend: Yes | Sector: Healthcare REIT
LTC Properties invests in senior housing and skilled nursing facilities. The aging population creates long-term demand for these properties.
Why we like it:
- Demographic tailwinds (aging population)
- Monthly dividends for 20+ years
- Diversified tenant base
- Triple-net leases
Considerations:
- Regulatory risks in healthcare
- Operator quality matters
6. Gladstone Investment (GAIN)
Yield: ~7% | Monthly Dividend: Yes | Type: BDC
Gladstone Investment is another BDC offering monthly dividends. They focus on buyouts and recapitalizations of mature companies.
Why we like it:
- Monthly dividends
- Experienced management (Gladstone family of funds)
- Focus on established companies
Considerations:
- BDC structure complexity
- Economic sensitivity
7. EPR Properties (EPR)
Yield: ~7.5% | Monthly Dividend: Yes | Sector: Experiential REIT
EPR Properties focuses on experiential real estate: movie theaters, ski resorts, water parks, and attractions. It's a unique play on the experience economy.
Why we like it:
- Unique property portfolio
- Monthly dividends
- Post-COVID recovery potential
- Triple-net leases
Considerations:
- Entertainment sector volatility
- Top tenant concentration
8. Pembina Pipeline (PBA)
Yield: ~5.5% | Monthly Dividend: Yes | Sector: Energy Infrastructure
Pembina Pipeline is a Canadian energy infrastructure company with a long history of monthly dividends. Their pipelines and facilities transport oil and gas across North America.
Why we like it:
- Essential energy infrastructure
- Monthly dividends
- Stable fee-based revenue
- Growth opportunities
Considerations:
- Energy sector exposure
- Currency risk (Canadian company)
9. Apple Hospitality REIT (APLE)
Yield: ~6.0% | Monthly Dividend: Yes | Sector: Hotel REIT
Apple Hospitality owns upscale select-service hotels under Marriott and Hilton brands. Hotels benefit from both business and leisure travel recovery.
Why we like it:
- Premium hotel brands (Marriott, Hilton)
- Monthly dividends
- Diversified across 35+ states
- Post-pandemic travel recovery tailwind
Considerations:
- Economic sensitivity (travel dips in recessions)
- Seasonal revenue fluctuations
10. ARMOUR Residential REIT (ARR)
Yield: ~13% | Monthly Dividend: Yes | Sector: Mortgage REIT
ARMOUR invests in agency-backed residential mortgage-backed securities. Similar to AGNC but smaller, offering very high yield with corresponding volatility.
Why we like it:
- Very high monthly yield
- Agency-backed securities (government guaranteed)
- Experienced management
Considerations:
- High volatility in book value
- Dividend has been reduced over time
- Interest rate sensitive — best for experienced investors
11. Gladstone Commercial (GOOD)
Yield: ~7.5% | Monthly Dividend: Yes | Sector: Diversified REIT
Gladstone Commercial owns industrial and office properties across the U.S. Part of the Gladstone fund family with a long history of monthly payments.
Why we like it:
- Monthly dividends since 2005
- Industrial + office diversification
- Triple-net leases
- Part of established Gladstone family
Considerations:
- Office exposure carries risk in work-from-home era
- Smaller REIT by market cap
12. Agree Realty (ADC)
Yield: ~4.5% | Monthly Dividend: Yes | Sector: Net Lease REIT
Agree Realty switched from quarterly to monthly dividends and has been growing aggressively. They focus on high-quality retail tenants with investment-grade credit.
Why we like it:
- Monthly dividends with annual increases
- Focus on investment-grade tenants (Walmart, Costco, Dollar General)
- Rapid portfolio growth
- Strong dividend growth rate (5-7%/year)
Considerations:
- Lower yield vs. other REITs (offset by growth)
- Interest rate sensitivity
13. Orchid Island Capital (ORC)
Yield: ~16% | Monthly Dividend: Yes | Sector: Mortgage REIT
Orchid Island invests exclusively in residential mortgage-backed securities. The extremely high yield reflects significant risk and volatility.
Why we like it:
- Highest monthly yield on this list
- Agency-only portfolio
- Monthly income stream
Considerations:
- Extremely volatile — for income-focused risk-tolerant investors only
- Dividend has been cut multiple times
- Book value erodes over time
14. Prospect Capital (PSEC)
Yield: ~11% | Monthly Dividend: Yes | Type: BDC
Prospect Capital is one of the largest business development companies, lending to middle-market businesses across diverse sectors.
Why we like it:
- Long history of monthly dividends
- Large, diversified loan portfolio
- Above-average BDC yield
Considerations:
- Trading at discount to NAV historically
- Higher risk loan portfolio vs. Main Street Capital
- Management fee structure
15. Shaw Communications / Canadian Utilities
Yield: ~5.0% | Monthly Dividend: Yes | Sector: Canadian Utilities
Several Canadian utilities and telecoms pay monthly dividends, including Canadian Utilities (CU.TO), Fortis (FTS), and TransAlta Renewables. Canadian companies often pay monthly vs. the quarterly U.S. standard.
Why we like it:
- Utility stability with monthly payments
- Regulated revenue = predictable income
- Many have 25+ years of dividend growth
- Diversification outside U.S. markets
Considerations:
- Currency risk for U.S. investors
- May require international brokerage access
- Withholding tax in non-registered accounts
Complete Monthly Dividend Stocks Comparison Table
Here's every stock side by side for easy comparison:
| Stock | Ticker | Yield | Type | Safety | Best For |
|---|
| Realty Income | O | 5.2% | Net Lease REIT | ⭐⭐⭐⭐⭐ | Core holding |
| AGNC Investment | AGNC | 14.0% | Mortgage REIT | ⭐⭐ | High income (risky) |
| Main Street Capital | MAIN | 6.5% | BDC | ⭐⭐⭐⭐ | Quality BDC |
| STAG Industrial | STAG | 4.2% | Industrial REIT | ⭐⭐⭐⭐ | E-commerce growth |
| LTC Properties | LTC | 6.8% | Healthcare REIT | ⭐⭐⭐ | Aging population play |
| Gladstone Investment | GAIN | 7.0% | BDC | ⭐⭐⭐ | Income + specials |
| EPR Properties | EPR | 7.5% | Experiential REIT | ⭐⭐⭐ | Experience economy |
| Pembina Pipeline | PBA | 5.5% | Energy Infra | ⭐⭐⭐⭐ | Energy income |
| Apple Hospitality | APLE | 6.0% | Hotel REIT | ⭐⭐⭐ | Travel recovery |
| ARMOUR Residential | ARR | 13.0% | Mortgage REIT | ⭐⭐ | High yield (risky) |
| Gladstone Commercial | GOOD | 7.5% | Diversified REIT | ⭐⭐⭐ | Consistent monthly |
| Agree Realty | ADC | 4.5% | Net Lease REIT | ⭐⭐⭐⭐ | Growth + income |
| Orchid Island | ORC | 16.0% | Mortgage REIT | ⭐ | Speculative income |
| Prospect Capital | PSEC | 11.0% | BDC | ⭐⭐ | High yield BDC |
| Canadian Utilities | CU.TO | 5.0% | Utility | ⭐⭐⭐⭐ | Stability |
Safety ratings are approximate and based on dividend history, payout sustainability, and business model quality. Check DividendPro's safety scores for real-time analysis.
Strategy 1: Monthly Payers Only
Build a portfolio exclusively with monthly dividend stocks:
| Stock | Allocation | Yield | Monthly Income ($10K invested) |
|---|
| O | 25% | 5.2% | $10.83 |
| MAIN | 20% | 6.5% | $10.83 |
| STAG | 20% | 4.2% | $7.00 |
| AGNC | 15% | 14% | $17.50 |
| LTC | 20% | 6.8% | $11.33 |
| Total | 100% | ~6.5% | $57.50/month |
Strategy 2: Quarterly Payers in Rotation
Build a portfolio where different quarterly payers create monthly income:
January, April, July, October:
- Johnson & Johnson (JNJ)
- Coca-Cola (KO)
- Microsoft (MSFT)
February, May, August, November:
- Procter & Gamble (PG)
- PepsiCo (PEP)
- Apple (AAPL)
March, June, September, December:
- McDonald's (MCD)
- Home Depot (HD)
- Chevron (CVX)
This creates reliable income every month while owning blue-chip Dividend Aristocrats.
Strategy 3: Hybrid Approach
Combine monthly payers for baseline income with quality quarterly payers:
- 40% Monthly payers (O, MAIN, STAG)
- 60% Quarterly Aristocrats (JNJ, PG, KO, etc.)
This balances yield, quality, and monthly income consistency.
Calculate your ideal portfolio mix with our Dividend Income Calculator.
Risks of Monthly Dividend Stocks
Higher Yields Often Mean Higher Risks
Many monthly payers offer above-average yields. Before investing, consider:
- Payout ratio - Is the dividend sustainable?
- Dividend history - Has it been cut before?
- Business quality - Is the underlying business solid?
- Sector risks - REITs are interest-rate sensitive
REIT-Heavy Exposure
Most monthly dividend stocks are REITs, which means:
- Interest rate sensitivity
- Required 90% income distribution
- Real estate market risks
- Sector concentration in your portfolio
Tax Considerations
REIT dividends are often taxed as ordinary income, not at the qualified dividend rate. Consider holding REITs in tax-advantaged accounts like IRAs.
How to Analyze Monthly Dividend Stocks
Key Metrics to Check
- FFO Payout Ratio (for REITs) - Should be below 85%
- Dividend History - Look for consistency
- Balance Sheet Strength - Low debt levels
- Occupancy Rates (for REITs) - Above 95% is good
- Management Track Record - Internally managed is often better
Red Flags to Avoid
- Yields above 12-15% (often unsustainable)
- Recent dividend cuts
- Declining FFO or earnings
- High debt levels
- Insider selling
Track Your Monthly Income with Dividend Pro
Building a monthly dividend portfolio is exciting, but tracking it is essential. Dividend Pro helps you:
- See income by month - Visualize your dividend calendar
- Track yield on cost - Watch your effective yield grow
- Get ex-dividend alerts - Never miss a payment
- Analyze portfolio diversification - Avoid over-concentration
Ready to build your monthly income stream? Start your free trial and take control of your dividend portfolio.
Conclusion
Monthly dividend stocks offer a compelling way to generate consistent income, but they require careful selection. Focus on quality over yield, diversify across sectors, and use tools like Dividend Pro to track your progress.
The best monthly dividend portfolio is one that lets you sleep at night while providing reliable income. Start with quality names like Realty Income and STAG Industrial, then carefully add higher-yielding options as you learn more.
Frequently Asked Questions About Monthly Dividend Stocks
How many stocks pay monthly dividends?
There are roughly 50-75 publicly traded stocks that pay monthly dividends. Most are REITs (Real Estate Investment Trusts), BDCs (Business Development Companies), and Canadian companies. While this is a smaller universe than quarterly payers, there are enough quality options to build a diversified portfolio.
Are monthly dividend stocks safe?
It depends on the stock. REITs like Realty Income (O) and STAG Industrial have very safe dividends backed by long-term leases. However, mortgage REITs like AGNC and ORC carry significantly more risk. Always check payout ratios, FFO coverage (for REITs), and dividend history before investing. Use DividendPro's safety scores for real-time analysis.
Can you live off monthly dividend stocks?
Yes — many retirees build monthly dividend portfolios for living expenses. A portfolio of $500,000 yielding 6% generates ~$2,500/month. The key is diversifying across multiple monthly payers and supplementing with quarterly payers to cover all 12 months. Use our Dividend Income Calculator to model your scenario.
What is the best monthly dividend ETF?
Popular monthly dividend ETFs include SPHD (Invesco S&P 500 High Dividend Low Volatility), JEPI (JPMorgan Equity Premium Income), and O itself (which is so popular it acts ETF-like). For pure monthly dividend stock exposure, consider building a custom portfolio with individual stocks for higher yield and control.
Do monthly dividends compound faster?
Technically yes — receiving dividends 12 times per year instead of 4 means more frequent reinvestment, which compounds slightly faster. The difference is small (maybe 0.1-0.3% annually) but adds up over decades. Try our DRIP Calculator to model the compounding difference.
How do I avoid monthly dividend traps?
Watch for yields above 10% — they often signal danger. Check for declining revenue, rising debt, frequent dividend cuts, and payout ratios above 90% (for non-REITs) or above 100% of FFO (for REITs). A high yield that gets cut to zero is worse than a moderate yield that grows every year.
What's the difference between monthly and quarterly dividends?
Monthly dividend stocks pay 12 times per year vs. 4 times for quarterly payers. Monthly payments are more convenient for budgeting and compound slightly faster when reinvested. However, the fundamental quality of the business matters more than payment frequency.
How much do I need to invest in monthly dividend stocks?
You can start with any amount — even $100 through fractional shares. To generate $1,000/month in income, you'd need roughly $200,000 invested at an average 6% yield. Use our Dividend Income Calculator to calculate your specific target.
Related Resources:
- Track Your Portfolio with DividendPro — Monitor monthly income, safety scores & growth
- DRIP Calculator — See how reinvesting monthly dividends compounds
- Dividend Aristocrats List 2026 — Quality quarterly payers to complement monthly stocks
- Yield on Cost Calculator — Track your true returns over time
- Dividend Income Calculator — Calculate your path to monthly income goals
- Free Dividend Calculators — All our free tools in one place
