Monthly Dividend Payers

Q: What stocks pay monthly dividends?

The most well-known monthly dividend payers include Realty Income (O), which calls itself "The Monthly Dividend Company," AGNC Investment (AGNC), STAG Industrial (STAG), LTC Properties (LTC), and several BDCs and closed-end funds. Most monthly payers are REITs and income-focused funds rather than traditional operating companies. A few non-REIT companies like Pembina Pipeline also pay monthly.

Q: Why do some stocks pay monthly dividends?

Companies pay monthly to attract income-focused investors who prefer regular cash flow. Monthly payments align better with living expenses like rent and bills, making them ideal for retirees. Some companies, particularly REITs, collect monthly rental income from tenants, making monthly distributions a natural fit for their cash flow cycle. The monthly schedule also provides a marketing advantage that differentiates them from quarterly payers.

Q: Are monthly dividend stocks safe?

Safety varies widely among monthly payers. Blue chip REITs like Realty Income with investment-grade credit ratings and decades of dividend history are considered relatively safe. However, some monthly payers — particularly BDCs and mortgage REITs — carry higher risk due to leverage and interest rate sensitivity. Evaluate the payout ratio, debt levels, and quality of underlying assets before investing. A very high yield (above 8-10%) often signals elevated risk.

Q: How much do I need to invest for $1,000 per month in dividends?

At an average yield of 5%, you would need approximately $240,000 invested to generate $1,000 per month ($12,000 annually). At 4% yield, the requirement rises to $300,000. Higher-yielding monthly payers at 7-8% would require about $170,000, but carry more risk. Building a diversified portfolio of monthly payers across different sectors reduces the risk of any single dividend cut significantly impacting your income.

Q: What is a REIT?

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. REITs must distribute at least 90% of taxable income to shareholders as dividends, which is why they tend to offer high yields. Types include equity REITs that own properties, mortgage REITs that invest in real estate debt, and hybrid REITs. REITs cover sectors like retail, office, industrial, healthcare, data centers, and residential properties.

Q: How are monthly dividends taxed?

Tax treatment depends on the type of dividend. REIT dividends are generally taxed as ordinary income (your regular tax rate) rather than at the lower qualified dividend rate. However, the Section 199A deduction allows a 20% deduction on REIT dividends for most taxpayers, effectively reducing the tax rate. Regular corporate monthly dividends that meet the qualified dividend criteria are taxed at favorable rates of 0%, 15%, or 20% depending on your income bracket.

Q: What is the difference between dividend yield and payout ratio?

Dividend yield measures the annual dividend as a percentage of the stock price — it tells you how much income you receive per dollar invested. Payout ratio measures dividends as a percentage of earnings or cash flow — it tells you how sustainable the dividend is. A company paying 80% of earnings as dividends has less margin for error than one paying 40%. For REITs, use FFO (funds from operations) payout ratio instead of earnings-based metrics.

Q: Can monthly dividends be reinvested automatically?

Yes, most brokerages offer DRIP (Dividend Reinvestment Plans) that automatically reinvest dividends into additional shares, often with no commission. Monthly dividends compound faster than quarterly ones because reinvestment happens 12 times per year instead of 4. Over long periods, this more frequent compounding can result in measurably higher returns, particularly in tax-advantaged accounts like IRAs where reinvested dividends are not immediately taxed.

Q: What happens if a monthly dividend stock cuts its dividend?

Dividend cuts typically cause the stock price to drop 10-30% or more as income investors sell. For monthly payers, even a reduction (not elimination) can trigger significant selling. To minimize this risk, focus on companies with low payout ratios, investment-grade credit, and long dividend track records. Diversifying across multiple monthly payers also helps — if one cuts, the impact on your total portfolio income is limited.

Stocks that pay dividends every month instead of quarterly. Ideal for income investors who want steady, predictable cash flow.

33 stocks Updated May 11, 2026

$890.17B Total Market Cap

2.55% Avg Dividend Yield

— Avg P/E Ratio

+0.00% Avg Daily Change

Monthly dividend stocks pay dividends every month rather than the typical quarterly schedule. This makes them especially attractive to retirees and income investors who rely on regular cash flow to cover living expenses. Monthly payouts also allow for more frequent compounding when dividends are reinvested.

Most monthly dividend payers are REITs (Real Estate Investment Trusts), business development companies (BDCs), and closed-end funds. Companies like Realty Income (O), AGNC Investment, and STAG Industrial have built their brands around reliable monthly distributions. REITs are required to distribute at least 90% of taxable income, which supports their high dividend yields.

This list tracks stocks and funds that pay monthly dividends to shareholders, sorted by dividend yield. It includes current prices, yields, P/E ratios, and market caps updated daily. Always verify dividend schedules directly as payment frequency can change.

#	Symbol	Name	Price	Yield %	Annual Div	Payout %	Market Cap
1	SLRC	Slr Investment Corp	$13.49	9.08%	$1.64	96.69%	735.40M
2	ARES	Ares Management Corp - A	$126.25	4.38%	$5.49	333.11%	28.03B
3	BEN	Franklin Resources Inc	$31.05	4.33%	$1.31	130.25%	16.05B
4	SFNC	Simmons First Natl Corp-Cl A	$21.27	4.03%	$0.85	69.05%	3.11B
5	BX	Blackstone Inc	$123.77	3.77%	$8.12	199.17%	154.25B
6	FISI	Financial Institutions Inc	$35.41	3.61%	$1.31	34.96%	698.67M
7	FG	F&G Annuities & Life Inc	$28.30	3.58%	$1.04	51.70%	3.67B
8	MCBS	Metrocity Bankshares Inc	$32.56	3.57%	$0.92	36.25%	931.02M
9	HBNC	Horizon Bancorp Inc/In	$18.51	3.45%	$0.62	79.96%	956.13M
10	PFG	Principal Financial Group	$100.50	3.28%	$3.08	57.72%	21.71B
11	ORRF	Orrstown Finl Services Inc	$36.67	3.25%	$1.06	25.53%	722.20M
12	CMS	Cms Energy Corp	$72.61	3.08%	$2.19	61.90%	22.53B
13	WAFD	Wafd Inc	$35.55	3.07%	$1.25	43.91%	2.71B
14	OLN	Olin Corp	$26.84	2.99%	$0.80	86.74%	3.16B
15	CFR	Cullen/Frost Bankers Inc	$138.85	2.97%	$4.11	40.40%	8.71B
16	FNB	Fnb Corp	$17.90	2.90%	$0.49	30.80%	6.38B
17	KRO	Kronos Worldwide Inc	$7.29	2.84%	$0.20	64.04%	842.19M
18	ITW	Illinois Tool Works	$254.76	2.52%	$6.13	58.22%	73.36B
19	CTSH	Cognizant Tech Solutions-A	$51.68	2.50%	$1.25	27.35%	24.87B
20	EFSC	Enterprise Financial Service	$59.83	2.28%	$1.32	24.25%	2.19B
21	OBK	Origin Bancorp Inc	$46.88	2.14%	$0.61	25.10%	1.45B
22	ALL	Allstate Corp	$213.15	2.13%	$4.09	23.12%	53.31B
23	MRSH	Marsh & Mclennan Cos	$163.25	1.97%	$3.48	40.84%	85.75B
24	TJX	Tjx Companies Inc	$153.36	1.22%	$1.65	33.53%	173.99B
25	UNTY	Unity Bancorp Inc	$53.64	1.19%	$0.56	9.68%	540.54M
26	GRC	Gorman-Rupp Co	$77.28	0.99%	$0.75	36.95%	2.04B
27	ESI	Element Solutions Inc	$43.90	0.76%	$0.32	40.78%	10.69B
28	HXL	Hexcel Corp	$95.32	0.75%	$0.69	49.27%	7.27B
29	ESOA	Energy Services Of America	$17.31	0.70%	$0.09	396.15%	317.02M
30	KNSL	Kinsale Capital Group Inc	$304.87	0.32%	$0.68	3.13%	7.03B
31	L	Loews Corp	$104.50	0.24%	$0.25	3.12%	21.49B
32	CE	Celanese Corp	$57.17	0.21%	$0.12	15.62%	6.27B
33	MRVL	Marvell Technology Inc	$170.13	0.15%	$0.24	7.68%	144.39B

Frequently Asked Questions

What stocks pay monthly dividends?

The most well-known monthly dividend payers include Realty Income (O), which calls itself "The Monthly Dividend Company," AGNC Investment (AGNC), STAG Industrial (STAG), LTC Properties (LTC), and several BDCs and closed-end funds. Most monthly payers are REITs and income-focused funds rather than traditional operating companies. A few non-REIT companies like Pembina Pipeline also pay monthly.

Why do some stocks pay monthly dividends?

Companies pay monthly to attract income-focused investors who prefer regular cash flow. Monthly payments align better with living expenses like rent and bills, making them ideal for retirees. Some companies, particularly REITs, collect monthly rental income from tenants, making monthly distributions a natural fit for their cash flow cycle. The monthly schedule also provides a marketing advantage that differentiates them from quarterly payers.

Are monthly dividend stocks safe?

Safety varies widely among monthly payers. Blue chip REITs like Realty Income with investment-grade credit ratings and decades of dividend history are considered relatively safe. However, some monthly payers — particularly BDCs and mortgage REITs — carry higher risk due to leverage and interest rate sensitivity. Evaluate the payout ratio, debt levels, and quality of underlying assets before investing. A very high yield (above 8-10%) often signals elevated risk.

How much do I need to invest for $1,000 per month in dividends?

At an average yield of 5%, you would need approximately $240,000 invested to generate $1,000 per month ($12,000 annually). At 4% yield, the requirement rises to $300,000. Higher-yielding monthly payers at 7-8% would require about $170,000, but carry more risk. Building a diversified portfolio of monthly payers across different sectors reduces the risk of any single dividend cut significantly impacting your income.

What is a REIT?

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. REITs must distribute at least 90% of taxable income to shareholders as dividends, which is why they tend to offer high yields. Types include equity REITs that own properties, mortgage REITs that invest in real estate debt, and hybrid REITs. REITs cover sectors like retail, office, industrial, healthcare, data centers, and residential properties.

How are monthly dividends taxed?

Tax treatment depends on the type of dividend. REIT dividends are generally taxed as ordinary income (your regular tax rate) rather than at the lower qualified dividend rate. However, the Section 199A deduction allows a 20% deduction on REIT dividends for most taxpayers, effectively reducing the tax rate. Regular corporate monthly dividends that meet the qualified dividend criteria are taxed at favorable rates of 0%, 15%, or 20% depending on your income bracket.

What is the difference between dividend yield and payout ratio?

Dividend yield measures the annual dividend as a percentage of the stock price — it tells you how much income you receive per dollar invested. Payout ratio measures dividends as a percentage of earnings or cash flow — it tells you how sustainable the dividend is. A company paying 80% of earnings as dividends has less margin for error than one paying 40%. For REITs, use FFO (funds from operations) payout ratio instead of earnings-based metrics.

Can monthly dividends be reinvested automatically?

Yes, most brokerages offer DRIP (Dividend Reinvestment Plans) that automatically reinvest dividends into additional shares, often with no commission. Monthly dividends compound faster than quarterly ones because reinvestment happens 12 times per year instead of 4. Over long periods, this more frequent compounding can result in measurably higher returns, particularly in tax-advantaged accounts like IRAs where reinvested dividends are not immediately taxed.

What happens if a monthly dividend stock cuts its dividend?

Dividend cuts typically cause the stock price to drop 10-30% or more as income investors sell. For monthly payers, even a reduction (not elimination) can trigger significant selling. To minimize this risk, focus on companies with low payout ratios, investment-grade credit, and long dividend track records. Diversifying across multiple monthly payers also helps — if one cuts, the impact on your total portfolio income is limited.