When investors buy a stock, they’re looking for a positive total return over time. It’s important, however, to realize that total return has two components. One is capital appreciation, which is achieved as the stock’s price rises. The other is income, which comes in the form of dividend payments. Not all stocks pay dividends, and of those that do, not all pay regular dividends on a predetermined schedule. Some special categories of companies — namely real estate investment trusts, or REITs, business development companies, or BDCs, and master limited partnerships, or MLPs — are actually required by law to pay dividends if they have taxable income.
Most stocks and other securities that pay regular dividends make quarterly distributions, but a relatively small group of companies pay income monthly. Investors with income as their primary objective may find monthly dividend stocks particularly attractive.
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Monthly dividends have several benefits. The first and most obvious is that it’s always preferable to get paid earlier rather than later. Once a dividend is paid, it’s quite literally money in your pocket. It can be spent right away, it can be saved in an interest-bearing account for the future or it can be reinvested into the market.
Hedging inflation is another big benefit to monthly dividends. After the COVID-19 pandemic, the U.S. economy endured two and a half years of high inflation. Today, according to some economists, President Trump’s tariff policy could usher in another period of rapidly rising prices. Investors who collect dividends monthly will enjoy more purchasing power than those who have to wait three months for a check.
A third advantage to monthly income is a simple matter of convenience. Our economy largely operates on a monthly basis. Generally, bills are due monthly, and budget plans are made from a monthly perspective. Monthly dividend-paying stocks just fit better with most people’s financial schedules.
If you’ve decided to look into monthly dividend stocks, this list is an excellent place to start. All seven of the stocks below have a consistent history of distributing monthly income. It’s a good bet that one or more will fit nicely in your portfolio:
| Stock | Forward Dividend Yield |
| Ellington Financial Inc. (ticker: EFC) | 12.3% |
| Gladstone Capital Corp. (GLAD) | 7.5% |
| Main Street Capital Corp. (MAIN) | 7.7% |
| Orchid Island Capital Inc. (ORC) | 20.9% |
| SL Green Realty Corp. (SLG) | 5.6% |
| LTC Properties Inc. (LTC) | 6.5% |
| Realty Income Corp. (O) | 5.8% |
Ellington Financial Inc. (EFC)
EFC is a $1.2 billion mortgage REIT. Mortgage REITs, or mREITs, don’t own physical real estate and collect rent the way equity REITs do. Instead, mREITs invest in commercial mortgages and/or mortgage-backed bonds and collect interest rather than rent.
Connecticut-based EFC operates in two segments. The portfolio segment buys and holds U.S. government agency-backed residential mortgage-backed securities. Its other division is called Longbridge Financial. Longbridge originates, underwrites and services reverse mortgages that are aggressively marketed to retired homeowners with little or no previously existing mortgage debt.
This monthly dividend stock has an impressive forward yield of 12.3%.
Gladstone Capital Corp. (GLAD)
GLAD is organized as a BDC. GLAD is a sort of closed-end investment company that generates its revenue and earnings by making high-interest loans and equity investments in small private companies in the U.S. Many of the companies GLAD invests in were originally funded by venture capital firms or private equity companies. GLAD is primarily an income vehicle, but if one of its borrowers gets bought out or goes public, the stock can experience significant capital appreciation.
Like all BDCs, GLAD is a pass-through entity, meaning it avoids corporate taxation by distributing most of its taxable income — a minimum of 90% — back to investors as a dividend.
The stock has a market cap of $584 million and a healthy forward yield of 7.5%.
Main Street Capital Corp. (MAIN)
MAIN is a large, $4.9 billion BDC that trades on the New York Stock Exchange. This company makes long-term loans and equity investments to middle-market private and thinly traded public companies.
Main Street’s clients use the proceeds of its investments to fund expansion, mergers and acquisitions, and restructurings. MAIN focuses on companies with between $10 million and $150 million in annual revenue. The company makes a concerted effort to diversify its client base both geographically and by sector.
MAIN pays a regular monthly dividend and has also been known to distribute special supplemental dividends when business is particularly good. The stock’s forward yield is 7.7%.
[Read: 5 Dividend Aristocrat ETFs to Buy Now]
Orchid Island Capital Inc. (ORC)
ORC is a $754 million, Florida-based mREIT that invests exclusively in agency residential mortgage-backed securities, or RMBS, meaning that the bonds in the company’s portfolio are all backed by a U.S. government housing agency, such as Fannie Mae or Freddie Mac.
A single-agency RMBS is made up of dozens or even hundreds of home mortgages that have been bundled together and collateralized by Wall Street investment bankers. This diversification, along with the agency backing, makes RMBS bonds a very secure income investment.
Like all publicly traded REITs, ORC pays a regular dividend. The forward yield for this stock is an exceptional 20.9%.
SL Green Realty Corp. (SLG)
For more than 15 years, SLG has held the distinction of being the largest commercial landlord in New York City. The company is organized as a REIT, and it owns and operates over 30 million square feet of office space, mostly in Manhattan.
SLG focuses on buying and building class A office buildings, which are the highest quality real estate in terms of construction, location, features and tenant amenities. In other words, SLG owns premier properties and serves New York’s most prestigious tenants. For example, in April, Franklin Resources Inc. (BEN) signed a lease for office space in SLG’s PENN 1 development at 250 West 34th Street in Manhattan.
Wall Street analysts estimate SLG will generate $673 million in revenue for 2025, an 11% year-over-year increase. The stock has a forward dividend yield of 5.6%.
LTC Properties Inc. (LTC)
Senior housing and geriatric health care services are in great demand as America’s baby boomers age, and that demand is projected to remain high for many years to come. LTC is a REIT positioned to take advantage of that ongoing trend.
LTC owns long-term-care facilities and assisted living senior housing, which it buys from and leases back to professional medical operating companies. These sale and lease-back transactions benefit both parties. The sellers get a cash infusion, and LTC takes ownership and collects long-term rental income.
LTC is officially classified as an equity REIT, but it has characteristics of an mREIT as well. Specifically, it engages in mortgage financing, mezzanine lending and preferred equity investing in health care real estate. Currently, the company has an interest in more than 187 properties spread over 25 states.
LTC has a market capitalization of $1.6 billion and a forward dividend yield of 6.5%.
Realty Income Corp. (O)
One of Realty Income’s stated objectives is to provide shareholders with attractive, risk-adjusted returns over the long run, and that’s what this REIT has been doing since its founding 56 years ago.
The company focuses on big-box retail outlets, warehouse stores, convenience stores and chain drug stores. It strives to sign long leases of 15 years or more, and it generally only rents to tenants with investment-grade credit ratings.
Retail is a tough business, so investors can expect ups and downs in the stock price, but from an income standpoint, the company has been very consistent. O has declared and paid 657 consecutive monthly dividends and is a component of the S&P Dividend Aristocrats index. This means O has increased its annual payout for at least 25 consecutive years.
The stock’s market cap is around $50 billion and its forward yield is 5.8%.
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7 Best Monthly Dividend Stocks to Buy Now originally appeared on usnews.com
Update 05/23/25: This story was previously published at an earlier date and has been updated with new information.
