Dividend Stocks That Pay You Monthly: Best 10 Investments for Steady Income

Investing in dividend stocks that pay you monthly can be a great way to create a steady income stream.

These stocks can help you manage your budget and provide consistent returns every month. Are you looking for reliable investment options that pay out more frequently than typical quarterly dividends?

Monthly dividend stocks are an attractive choice for many investors.

You get the benefit of regular income and can reinvest your dividends more often.

This article will introduce you to some of the top picks in this category, helping you make informed decisions on where to invest.

1) Realty Income Corp.

Realty Income Corp is known for its reliable monthly dividends.

This makes it a favorite among income-focused investors.

The company’s dividends come from rent payments on its diverse portfolio of properties.

The company has an annual dividend of $3.16 per share.

This translates to a forward yield of 5.60%.

This yield can be a great addition to your income stream.

Realty Income pays its dividends every month.

The next ex-dividend date is August 1, 2024.

This means you’ll want to own the stock before that date to receive the next dividend.

The stock is traded on the NYSE under the ticker symbol ‘O’.

It is also well-regarded as a dividend aristocrat, which signals its strong track record of dividend payments.

With Realty Income, you’re investing in a stable and well-diversified REIT.

The company’s real estate portfolio is broad, offering some protection against market fluctuations.

Whether you’re new to investing or a seasoned pro, it’s a solid pick for monthly income.

Check out more details about their dividend history on their official website or find an overview on StockAnalysis.

This can help you gauge if Realty Income fits your investment strategy.

Adding Realty Income Corp to your portfolio might just be the steady income source you’ve been looking for.

The combination of regular payments and a strong yield is hard to beat.

2) STAG Industrial Inc.

STAG Industrial Inc. is a great choice if you want monthly dividends.

This real estate investment trust (REIT) focuses on single-tenant industrial properties.

STAG Industrial has a diverse portfolio.

It includes warehouses, distribution centers, and manufacturing buildings.

This variety helps spread risk and increase stability.

One of the best things about STAG is its dividend payments.

They pay you every month.

The dividend yield is about 3.78%, which is pretty solid.

The company has been steadily growing.

Their stock recently saw gains for nine straight sessions.

You can check out more about their growth here.

STAG is not just about growth.

They also have a well-covered dividend.

This means they generate enough income to keep paying you.

For more details about their dividend yield, visit this link.

Their current stock price is around $39.14 and they have a favorable valuation.

This makes them an attractive option for long-term income investors.

You can read a detailed analysis here.

Adding STAG Industrial to your portfolio could provide steady and reliable income.

Plus, their focus on industrial properties gives them a unique edge.

3) Main Street Capital Corp.

If you’re looking for a reliable monthly dividend stock, check out Main Street Capital Corp. This company is known for its steady and attractive dividend payouts.

Main Street Capital pays dividends every month, which you will appreciate if you want regular income.

In the past year, the company paid $3.18 per share.

This gives it a dividend yield of 6.34%, which is pretty solid.

The next ex-dividend date is on September 6, 2024.

So, make sure to have your shares before then if you want to receive the next payout.

In comparison to other finance companies, Main Street Capital has a better-than-average yield.

Its dividend yield of 5.84% is higher than 75% of all dividend-paying stocks, making it a leading option in this space.

The company’s dividend payout ratio is 53.65%.

This figure indicates that it pays out just above half of its earnings as dividends, a sustainable practice for long-term investors.

If you are interested in dividend growth, you’ll be pleased to know that Main Street Capital has been increasing its monthly dividends.

For instance, as of June 30, 2024, the dividend per share was $0.720, up from $0.675 the previous year, signaling a 6.67% increase.

For more details, visit Main Street Capital’s investor relations page to keep track of their latest updates.

4) LTC Properties Inc.

LTC Properties Inc. is a real estate investment trust (REIT).

REITs are known for their steady dividend payments, and LTC is no exception.

You can expect to receive monthly dividends from this company.

LTC Properties focuses on senior housing and healthcare properties.

This gives it a unique edge, especially with the aging Baby Boomer population.

This could mean long-term growth for the company.

The dividend yield for LTC Properties is around 6.21%.

While this is slightly lower compared to some finance companies, it is still attractive for many investors.

You can find more details on its dividend history on MarketBeat.

LTC Properties offers a monthly dividend of $0.19 per share.

This makes it a good choice for those looking for regular income.

If you had invested $10,000, you could expect a decent monthly payout.

For more on this, check Yahoo Finance.

One point to consider is the dividend payout ratio, which is currently at 118.75%.

This is quite high, indicating that the company might pay out more than it earns.

This may affect sustainability in the long run.

Investing in LTC Properties Inc. could be a smart move if you’re looking for monthly income and have an eye on healthcare and senior living sectors.

You can explore more about its steady monthly dividend history on Monthly Dividend Paying Stocks.

5) AGNC Investment Corp.

AGNC Investment Corp. is a popular pick for monthly dividend stocks.

This company is a Real Estate Investment Trust (REIT) that focuses on residential mortgage-backed securities (MBS).

You can expect AGNC to pay you a handsome dividend every month.

In fact, it has an annual dividend of $1.44 per share, which yields about 14.09%.

This is quite attractive for income-seeking investors.

AGNC’s portfolio has a weighted average yield of 4.52%.

They use leverage, or debt, to boost returns.

This approach has both potential rewards and risks.

This specialized investment might not be for everyone.

If you like the idea of earning monthly dividends and are okay with some risk, AGNC could be a solid addition to your portfolio.

Be mindful that their strategy relies on market conditions and interest rates, which can impact their dividend payouts.

Keep an eye on these factors to manage your investment wisely.

You might find AGNC appealing if you’re looking for a steady and high-yielding income stream from your investments.

6) PennantPark Floating Rate Capital Ltd.

PennantPark Floating Rate Capital Ltd. is a standout option for monthly dividend stocks.

You get a monthly dividend of $0.1025 per share, which adds up to $1.23 annually.

This gives you a forward yield of 10.43% (source).

The last ex-dividend date was July 15, 2024, and the next payment is expected soon.

The company’s focus on floating rate loans can help protect your investment from interest rate changes.

This means your dividends should stay steady even if the economy shifts.

PennantPark Floating Rate Capital Ltd. also has a track record of regular payments, making it a reliable choice.

You can check more details on their dividend history.

Another plus is that PennantPark Floating Rate Capital Ltd. often declares its distributions early.

For instance, their June 2024 distribution was announced on June 4, 2024 (source).

If you want predictable income and a good yield, this stock fits the bill.

7) Dynex Capital Inc.

Dynex Capital Inc. (NYSE: DX) is a real estate investment trust (REIT).

REITs are popular because they let you invest in real estate without actually buying properties.

Dynex Capital offers an annual dividend of $1.56 per share.

This translates to a forward yield of 12.65%, which is quite attractive for income-seeking investors.

One standout feature is that Dynex Capital pays dividends monthly.

This is a great advantage if you want a steady income stream.

The next ex-dividend date is July 23, 2024, so you may want to keep an eye on that.

Another point to consider is Dynex Capital’s dividend payout ratio, which is over 100% as reported by MarketBeat.

This could be a red flag, suggesting that the dividend might not be sustainable in the long run.

It’s important to remember that Dynex Capital’s high dividend yield comes with risks.

High yields often indicate higher risk, and, in this case, it’s because the company’s payout ratio is high.

This could affect the stock’s performance.

If you want a regular income and are willing to take on some risk, Dynex Capital can be a worthy addition to your portfolio.

Just make sure you understand the risks involved before investing.

8) Broadmark Realty Capital Inc.

Broadmark Realty Capital Inc. is a solid choice if you’re into monthly dividend stocks.

They focus on real estate lending, which means they provide financing for construction and development projects.

Even though their dividend payments have been inactive lately, they used to pay $0.035 per share.

It shows they have potential when it comes to returning money to investors.

So, keep an eye on Broadmark Realty Capital Inc..

This company could resume its dividends, making it a valuable part of your portfolio.

9) Prospect Capital Corporation

Prospect Capital Corporation is a solid choice if you’re looking to get paid monthly dividends.

They offer an annual dividend of $0.72 per share, which is paid monthly.

This gives you a chance to earn regular income throughout the year.

With a forward yield of 12.85%, Prospect Capital boasts one of the higher yields among dividend stocks.

This high yield can be very attractive if you want steady returns on your investment.

The dividend payout ratio for Prospect Capital is high, at 211.76%.

While this might raise some concerns about sustainability, it has consistently paid dividends in the past.

This makes it a recognizable name in the dividend-paying world.

Another interesting point is its recent stock price, which was $5.60 as of July 16, 2024.

At this price, the yield is particularly compelling if you’re looking to add monthly income to your portfolio.

Prospect Capital is classified under asset management, which is part of the financial services sector.

The company has maintained a history of paying out dividends, which helps in evaluating its long-term performance.

If you’re in the market for a monthly dividend stock, Prospect Capital Corporation is definitely worth considering.

This could especially be true if you’re seeking higher-than-average returns combined with monthly payouts.

10) Gladstone Commercial Corp.

If you’re looking for a reliable monthly dividend, check out Gladstone Commercial Corp. This company trades under the ticker symbol GOOD.

They have a history of paying consistent dividends.

Each share of Gladstone Commercial currently brings in an annual dividend of $1.20.

This translates to a forward yield of 8.22% as noted on Stock Analysis.

The next ex-dividend date is September 20, 2024.

What’s great about Gladstone Commercial is the stability.

They specialize in owning and managing office and industrial properties.

This focus helps them generate steady income, which they pass on to shareholders through monthly dividends.

The monthly dividend payment is $0.10 per share, and you can find more details on Dividendmax.

These payments are regular and reliable, ideal for anyone wanting a consistent cash flow.

Gladstone Commercial’s dividends also have a cover of approximately 2.0.

This means their income is solid enough to maintain these payouts without stretching their finances too thin.

This information can be useful, especially if you prefer safe investments.

With a track record of consistent dividends and a focus on stable properties, Gladstone Commercial can be a smart addition to your monthly dividend portfolio.

Understanding Dividend Stocks

Dividend stocks provide a way to earn regular income by investing in companies that pay out part of their profits to shareholders.

Taking a closer look, you’ll find specific advantages to choosing stocks that pay dividends monthly.

What Are Dividend Stocks?

Dividend stocks are shares of companies that return a portion of their earnings to shareholders.

These payments, known as dividends, can be distributed on a quarterly, semi-annual, or monthly basis.

Companies across various industries pay dividends, often in cash or additional shares.

Investing in dividend stocks can be less risky compared to growth stocks, as the regular payouts provide a steady income stream.

This can be especially beneficial during market downturns.

Additionally, dividends may increase over time if the company grows and performs well, offering a potential for income growth.

Why Choose Monthly Dividend Stocks?

Selecting monthly dividend stocks can help you manage your finances more effectively.

These stocks provide more frequent payouts compared to the traditional quarterly dividends.

This regular cash flow can be useful for covering ongoing expenses or reinvesting to compound growth.

Many monthly dividend stocks offer high yields.

For instance, companies like AGNC and EFC are known for their high-yield options available as of July 2024.

This can lead to a more predictable and stable income, making it easier to budget and plan for the future.

Furthermore, monthly dividends allow investors to benefit from compounding faster.

By reinvesting the dividends each month, you can potentially grow your portfolio value more quickly than with quarterly dividends.

How to Evaluate Dividend Stocks

When choosing monthly dividend stocks, it’s crucial to look at key metrics and be aware of potential risks.

This will help you make better investment decisions.

Key Metrics to Consider

Dividend Yield: This percentage shows how much a company pays out in dividends each year relative to its stock price.

A higher yield indicates more income.

For example, stocks with yields above 7% are considered high-yield.

Payout Ratio: This metric tells you what part of a company’s earnings are paid as dividends.

A ratio less than 60% suggests a sustainable dividend.

Ratios over 100% might signal trouble, as the company is paying more in dividends than it earns.

Dividend Growth Rate: Look at how much the dividend has increased over time.

Consistent growth can mean that the company is doing well.

Companies that regularly raise dividends are often financially stable.

Earnings Stability: Stable earnings often result in consistent dividends.

Companies with fluctuating earnings might have trouble maintaining regular dividend payments.

Check historical earnings to assess stability and future potential.

Cash Flow: Healthy cash flow ensures that a company can pay its dividends.

You want to see positive cash flow that’s growing.

This reflects the company’s ability to maintain and increase dividend payouts.

Risk Factors to Watch Out For

Market Volatility: Stocks can be affected by market ups and downs.

During downturns, even companies that normally pay reliable dividends might cut or suspend payments.

Keep an eye on broader market trends.

Interest Rate Changes: Rising interest rates can negatively impact dividend stocks, especially those in sectors sensitive to rates like REITs.

Higher rates make fixed-income investments more attractive compared to dividend stocks.

Economic Cycles: Companies in cyclical industries, like oil and manufacturing, might struggle during economic downturns.

Dividends from such companies might be less reliable.

Company Debt Levels: High levels of debt can put a strain on a company’s ability to pay dividends.

Look for companies with manageable debt levels.

Check the debt-to-equity ratio for a sense of how leveraged the company is.

Competitive Pressure: Companies that face stiff competition might have to spend more to stay ahead, leaving less for dividend payments.

Assess the company’s market position and rivalry to gauge risk.

Benefits of Monthly Dividends

Monthly dividends can offer you a steady income and a chance to reinvest your money more often.

This can be great for your financial goals and help stabilize your cash flow.

Consistent Income Stream

Receiving dividends monthly rather than quarterly gives you a more reliable and regular income.

This can make budgeting easier and less stressful.

You don’t have to wait as long for your next payout, which means you can plan expenses more accurately.

For retirees or those who rely on investment income to cover living costs, a consistent income stream is incredibly helpful.

It turns your investments into a steady paycheck, helping to cover monthly bills and other recurring expenses.

Compound Interest Advantage

Monthly dividends can also boost your returns through the magic of compound interest.

When you get dividends more frequently, you have more opportunities to reinvest them.

This can speed up the growth of your investment portfolio over time.

Reinvesting dividends can lead to buying more shares, which means you can earn more dividends in the future.

Over the long term, this cycle of reinvesting can significantly increase your wealth.

This is especially beneficial if you have a long investment horizon.

Frequently Asked Questions

Learn how to maximize your income with monthly dividend stocks, including tips on the best picks, budget-friendly options, and top stocks to hold.

How can I pocket an extra $1000 each month with dividend stocks?

To earn $1000 monthly, you’ll need a diverse portfolio of high-yield stocks.

Investments like Realty Income Corp. and Main Street Capital Corp. are solid choices.

Calculate your required investment based on yield rates and dividend payments.

Which rockstar stocks hook me up with dividends every month?

Top monthly dividend stocks include Realty Income Corp., known for its consistent dividends.

Other dependable names are STAG Industrial Inc. and LTC Properties Inc., which are popular for regular payouts.

Got a tight budget? What are the best dividend stocks under $20?

Stocks like AGNC Investment Corp. often trade under $20 and still provide excellent monthly dividends.

These lower-cost stocks can help you start building your earnings without a huge initial investment.

Looking to hold on tight? What are the monthly dividend stocks you should never let go?

Reliable monthly dividend stocks like Main Street Capital Corp., which has a long history of consistent payouts, are ones you might want to keep long-term due to their stability and performance.

What are the heavy-hitter dividend stocks that offer the juiciest payouts monthly?

High-yield monthly dividend stocks such as Realty Income Corp. and STAG Industrial Inc. are known for offering some of the best monthly payouts.

These investments tend to have higher yields, translating to more income for you.

Feeling thrifty? Which monthly dividend stocks won’t break the bank?

For budget-conscious investors, stocks like AGNC Investment Corp. offer affordability without sacrificing returns.

These stocks provide a good entry point while still delivering monthly dividends.