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 Mar 25, 2026

$814.40B Total Market Cap

3.07% 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	$14.06	11.45%	$1.64	96.69%	778.49M
2	FG	F&G Annuities & Life Inc	$24.64	8.10%	$0.96	18.94%	3.73B
3	EFSC	Enterprise Financial Service	$54.18	6.21%	$1.32	24.25%	1.95B
4	CFR	Cullen/Frost Bankers Inc	$135.33	6.10%	$4.11	40.40%	9.14B
5	BEN	Franklin Resources Inc	$23.89	5.53%	$1.31	130.25%	12.36B
6	ARES	Ares Management Corp - A	$106.50	4.61%	$5.49	333.11%	25.85B
7	SFNC	Simmons First Natl Corp-Cl A	$19.34	4.60%	$0.85	69.05%	2.70B
8	BX	Blackstone Inc	$108.38	4.18%	$8.12	199.17%	138.69B
9	FISI	Financial Institutions Inc	$30.59	3.80%	$1.13	32.26%	672.36M
10	HBNC	Horizon Bancorp Inc/In	$16.27	3.57%	$0.64	79.96%	927.04M
11	MCBS	Metrocity Bankshares Inc	$28.64	3.53%	$0.83	32.64%	813.77M
12	PFG	Principal Financial Group	$88.72	3.47%	$2.85	41.91%	20.24B
13	ORRF	Orrstown Finl Services Inc	$35.63	3.37%	$0.88	59.76%	686.94M
14	WAFD	Wafd Inc	$31.58	3.31%	$1.25	43.91%	2.51B
15	OLN	Olin Corp	$28.04	3.25%	$0.80	86.74%	2.66B
16	KRO	Kronos Worldwide Inc	$5.40	3.16%	$0.48	64.04%	723.68M
17	CMS	Cms Energy Corp	$75.44	3.01%	$2.19	61.90%	23.13B
18	FNB	Fnb Corp	$16.49	2.84%	$0.49	30.80%	5.87B
19	ITW	Illinois Tool Works	$266.45	2.28%	$6.13	58.22%	81.42B
20	CTSH	Cognizant Tech Solutions-A	$59.79	2.14%	$1.25	27.35%	29.68B
21	ALL	Allstate Corp	$204.71	2.13%	$4.09	23.12%	53.31B
22	MRSH	Marsh & Mclennan Cos	$174.20	1.95%	$3.48	40.84%	89.56B
23	OBK	Origin Bancorp Inc	$40.96	1.48%	$0.61	25.10%	1.26B
24	UNTY	Unity Bancorp Inc	$51.02	1.29%	$0.56	9.68%	495.76M
25	GRC	Gorman-Rupp Co	$62.49	1.17%	$0.75	36.95%	1.70B
26	TJX	Tjx Companies Inc	$159.74	1.10%	$1.46	33.88%	172.10B
27	ESI	Element Solutions Inc	$35.25	0.97%	$0.32	40.78%	8.06B
28	ESOA	Energy Services Of America	$13.32	0.90%	$0.09	396.15%	244.16M
29	HXL	Hexcel Corp	$82.24	0.81%	$0.69	49.27%	6.72B
30	MRVL	Marvell Technology Inc	$98.45	0.32%	$0.24	0.00%	79.34B
31	KNSL	Kinsale Capital Group Inc	$327.22	0.27%	$0.60	3.36%	8.70B
32	L	Loews Corp	$106.40	0.23%	$0.25	3.12%	22.34B
33	CE	Celanese Corp	$62.66	0.22%	$2.81	15.62%	6.01B

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.