In this article, we will take a look at the 10 Best Monthly Dividend Stocks to Buy Now.
Dividend stocks have stayed popular with investors for a long time, no matter how often they pay. Companies put real thought into payout schedules. Annual or semi-annual dividends can look appealing because the checks are larger, though the timing can feel uncertain. Most large companies settle on quarterly payments since they strike a balance between flexibility and consistency. A smaller group pays monthly, and for many investors, that steady income stream is hard to ignore.
Monthly dividend stocks come with trade-offs. High yields often catch attention, but they can also raise red flags. In many cases, those yields reflect past dividend cuts rather than strength. That pattern shows up because many monthly payers fall into specific categories like REITs, closed-end funds, BDCs, and royalty trusts. Still, not all of them struggle. Some companies in this group have managed to hold their payouts steady for years and even raise them, while keeping yields well above average.
Dividend stocks can play a role in almost any market. For investors with time on their side, reinvesting dividends often makes the biggest difference. Over long stretches, the compounding effect adds up. An estimate from Charles Schwab shows how powerful that can be. A hypothetical $10,000 investment in the broader market at the end of 1993 would have grown to more than $182,000 by the end of 2023 with dividends reinvested. Without reinvestment, that same investment would have reached about $102,000.
Those numbers help explain why dividends still matter. They offer income today and the potential for stronger growth over time, especially when investors stay patient and let compounding do its work.
Given this, we will take a look at some of the best dividend stocks with monthly payouts.
Our Methodology:
For this list, we reviewed a list of companies providing monthly dividends to their shareholders. Among these, we specifically chose businesses with robust dividend practices, consistently maintaining their payouts across multiple years. The majority of these selected companies operate within the Real Estate Investment Trust (REIT) sector, as they are required to allocate 90% of their income towards dividends. From that list, we picked 11 stocks with the highest number of hedge fund investors, using Insider Monkey’s Q3 2025 database of hedge funds and their holdings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Fund Holders: 12
Dividend Yield as of January 28: 4.85%
On January 27, Citizens analyst Brian McKenna raised his price target on Main Street Capital Corporation (NYSE:MAIN) to $74 from $70 and kept an Outperform rating on the stock. In a research note, he said the private capital industry is settling into a new environment shaped by lower interest rates. That shift is creating uneven effects across different products, which makes it more important to understand where earnings are really coming from. McKenna added that scale and diversification should help support steady growth through 2026, even as picking the right managers becomes more important amid continued industry expansion.
Earlier in the month, on January 13, Main Street announced that it had fully exited both its debt and equity investments in KBK Industries following the company’s sale to a strategic buyer. Founded in 1975 and based in Rush Center, Kansas, KBK manufactures large aboveground and belowground fiberglass and steel tanks used across a wide range of U.S. end markets.
Main Street first invested in KBK in January 2006, leading a majority recapitalization alongside the company’s existing owners, senior management, and several co-investors. Its initial investment included $5.75 million in first-lien, senior secured term debt with equity warrant participation, along with a $0.25 million minority equity stake.
Over the life of the investment, Main Street generated a $17.3 million gain from the exit of its equity position and collected $25.1 million in cumulative dividends. Taken together, those returns translate into an annual internal rate of return of 127.2% and a 62.7x multiple on invested equity. When factoring in the firm’s debt, warrants, and equity investments, the overall return equates to an IRR of 27.7% and a 3.5x multiple.
Main Street Capital Corporation (NYSE:MAIN) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies, as well as debt financing to private businesses owned by, or being acquired by, private equity sponsors.
9. Capital Southwest Corporation (NASDAQ:CSWC)
Number of Hedge Fund Holders: 12
Dividend Yield as of January 28: 10.85%
On January 22, Capital Southwest Corporation (NASDAQ:CSWC) announced the formation of a joint venture with another private credit asset manager. The new venture will operate as an off-balance-sheet private fund focused mainly on first-out senior secured debt investments in the lower middle market.
Ownership of the joint venture will be split evenly, with Capital Southwest and its partner each holding a 50% equity stake. A board of managers, made up of equal representation from both firms, will oversee all investment and operational decisions. The venture is also expected to put a senior secured credit facility in place, using borrowed funds to support its investment activity.
Capital Southwest said the joint venture should strengthen its competitive position in the lower middle market by allowing it to offer more flexible capital solutions. Management also pointed out that the structure makes it easier to place portions of larger transactions into the joint venture. That approach helps maintain portfolio diversification while broadening the range of lower middle market platform companies the firm can pursue. CEO Michael Sarner said he is encouraged by the fund’s potential and believes it will allow Capital Southwest to compete across a wider set of investment opportunities.
Capital Southwest Corporation (NASDAQ:CSWC) is an internally managed business development company based in Dallas, Texas, with about $1.9 billion in investments at fair value as of September 30, 2025.
8. Dynex Capital, Inc. (NYSE:DX)
Number of Hedge Fund Holders: 18
Dividend Yield as of January 28: 13.80%
On January 9, BTIG named Dynex Capital, Inc. (NYSE:DX) as its top pick to quickly benefit from President Trump’s directive for government-sponsored enterprises to buy up to $200B in mortgage-backed securities, a move aimed at bringing mortgage rates down. BTIG said tighter agency MBS spreads could lift Dynex’s mark-to-market net asset value by about 8%, assuming spreads narrow by 20 basis points. That tightening had already taken place by early January 9. The firm has a Buy rating on the stock and a $16 price target.
Dynex reported its fourth-quarter 2025 results on January 26. Book value per common share rose to $13.45 at year-end, up from $12.67 at the end of the third quarter. During the quarter, the company raised $393 million in equity through at-the-market common stock issuances, bringing total capital raised in 2025 to $1.2 billion after issuance costs.
Investment activity picked up as well. Dynex bought $3 billion of Agency RMBS and $284 million of Agency CMBS in the fourth quarter. For the full year, purchases totaled $8.2 billion in Agency RMBS and $1.2 billion in Agency CMBS. The average balance of interest-earning assets climbed 58% over the course of 2025. Liquidity stood at $1.4 billion as of December 31, 2025.
Dynex reported a strong performance in 2025, delivering a 29.4% total shareholder return and a 67% total return over the past decade. Management attributed the results to disciplined execution and a consistent focus on risk management. Over the last 13 months, the company’s market capitalization nearly tripled as it raised and deployed capital into what it viewed as attractive opportunities.
Dynex Capital, Inc. (NYSE:DX) is an internally managed REIT with a long history of paying attractive dividends. The company focuses on disciplined risk management while investing in high-quality mortgage assets tied to U.S. residential and commercial real estate.
7. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 19
Dividend Yield as of January 28: 6.47%
On January 5, Cantor Fitzgerald cut its price target on LTC Properties, Inc. (NYSE:LTC) to $36 from $37 while maintaining a Neutral rating. In a research note, the firm said US equity REITs delivered a 2.9% return in 2025, trailing the S&P 500. Looking ahead, 2026 could be more constructive, supported by an improving macro backdrop and rising M&A activity. Cantor also pointed to steady supply and demand dynamics, strong balance sheets, and a well-covered dividend yield of about 4% as reasons the sector remains appealing despite recent underperformance.
Later in the month, on January 26, LTC announced a $108 million acquisition in its Senior Housing Operating Portfolio (SHOP). The deal covers a three-property portfolio in Atlanta, Georgia, with nearly 400 independent living, assisted living, and memory care units. The communities are 92% occupied, were built between 2014 and 2018, and are managed by The Arbor Company, an existing LTC operator that will continue to run the properties. Management said the acquisition supports LTC’s strategy of pairing high-quality real estate with experienced operators to drive long-term growth.SHOP investments totaled $360 million in 2025, with $108 million already completed year-to-date in 2026. SHOP now represents 27% of LTC’s gross investment, up from zero in May 2025. The average age of SHOP properties stands at nine years. Over the same period, skilled nursing exposure has declined to 35% of gross investment, down from 46% at the end of 2024.
Chief Investment Officer Dave Boitano said the transaction sets the tone for 2026. He further made the following comment:
“With SHOP now comprising 27% of our real estate portfolio and a robust pipeline in front of us, we’re positioned to scale quickly and convert that momentum into sustained NOI growth by continuing to add newer, high-quality assets while deepening our relationship with quality operators like Arbor.”
LTC Properties, Inc. (NYSE:LTC) is a real estate investment trust focused on seniors housing and health care assets. The company invests primarily through SHOP structures, along with triple-net leases and joint ventures, and owns nearly 190 properties across the United States.
6. Phillips Edison & Company, Inc. (NASDAQ:PECO)
Number of Hedge Fund Holders: 23
Dividend Yield as of January 28: 3.59%
On January 15, Evercore ISI started coverage of Phillips Edison & Company, Inc. (NASDAQ:PECO) with an Outperform rating and a $41 price target. The firm highlighted the company’s focus on grocery-anchored shopping centers and its concentration in necessity-based tenants, which tend to hold up well across economic cycles. With solid fundamentals and ongoing leasing opportunities, Evercore believes PECO is positioned for continued growth.
In its business update and investor presentation, Phillips Edison pointed to portfolio occupancy of 98%, supported by steady demand from its tenant base, which the company refers to as “Neighbors.” Management emphasized the experience of its team, noting decades of operating through different market cycles and deep local knowledge built through long-standing tenant relationships. PECO also outlined a growing pipeline of ground-up outparcel developments and repositioning projects.
The company also stressed its more than 30 years in the grocery-anchored shopping center space, saying that experience shapes how it evaluates quality and long-term performance at the property level. PECO’s centers are located in markets with an average median household income of $92K within a three-mile radius, about 15% above the national average. Population growth in these markets has outpaced the US average by roughly 5% over the past three years. Management believes these demographic trends support rent growth and long-term value creation, with portfolio income projected to rise 26% over the next five years.
Phillips Edison & Company, Inc. (NASDAQ:PECO) is one of the largest owners and operators of grocery-anchored shopping centers in the U.S.
5. Apple Hospitality REIT, Inc. (NYSE:APLE)
Number of Hedge Fund Holders: 22
Dividend Yield as of January 28: 8.25%
On January 6, Barclays began coverage of Apple Hospitality REIT, Inc. (NYSE:APLE) with an Overweight rating and a $14 price target. The firm rolled out coverage on seven hotel REITs at the same time. Barclays said hotel REITs are still viewed by many investors as a short-term trading space rather than a place to find long-term excess returns. Its preference leans toward companies with “definable business strategies and solid balance sheets.”
Apple Hospitality REIT owns a collection of hotels that feel familiar to many travelers. Brands like Courtyard, Fairfield, and Residence Inn appear across its portfolio, which spans the country. Anyone who has stayed at one of these properties knows the model. Simple rooms, consistent service, and locations built around everyday travel.
Management has focused on tightening operations. That work includes improving efficiency, cutting operating costs, and replacing older hotels with newer assets. Occupancy has steadily improved alongside these efforts. Over time, those small operational gains tend to add up, especially in a sector where margins matter.
Apple Hospitality REIT, Inc. (NYSE:APLE) is a US-based real estate investment trust that owns upscale, room-focused hotels. Its portfolio includes roughly 221 properties with nearly 29,900 guest rooms spread across 85 markets in 37 states, along with one property leased to third parties.
4. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 23
Dividend Yield as of January 28: 5.28%
On January 20, Deutsche Bank analyst Omotayo Okusanya upgraded Realty Income Corporation (NYSE:O) to Buy from Hold and set a $69 price target. In a research note, he pointed out that REITs have lagged the S&P 500 in each of the past four years, and in nine of the last 11. Deutsche expects that trend to stretch into 2026.
For context, the firm projects a weighted average return of 10.3% across its REIT coverage. That compares with Deutsche’s equity strategy team forecast calling for the S&P 500 to reach 8,000, implying about 16.9% upside versus 2025. The broader backdrop matters here. Deutsche sees a tougher U.S. macro setup for REITs, with expectations for only one Federal Reserve rate cut in 2026, slower GDP growth, and higher unemployment. In that environment, REIT earnings growth is unlikely to keep pace with the broader market, which makes the sector less appealing for growth-focused investors.
Realty Income Corporation owns properties across the United States and eight European countries, including the United Kingdom. Retail assets account for roughly 80% of its rental income. That retail concentration can look risky at first glance. In practice, single-tenant retail properties tend to be fairly uniform. They are easier to buy, sell, and re-lease when needed. Beyond retail, the portfolio includes industrial properties, which generate about 15% of rents, along with more specialized assets such as vineyards and casinos.
Management understands the limits that come with Realty Income’s scale and has worked over time to keep growth options open. The casino investments show that approach in action. An initial property purchase was followed by additional deals in the same space, some structured more like loans. That shift has widened the range of assets the company can invest in, while still staying within its disciplined framework.
Realty Income Corporation (NYSE:O) operates as a real estate investment trust focused on acquiring and managing freestanding commercial properties. Its business centers on long-term net lease agreements that generate steady rental income from a diversified base of commercial tenants.
3. Healthpeak Properties Inc. (NYSE:DOC)
Number of Hedge Fund Holders: 29
Dividend Yield as of January 28: 7.08%
On January 9, Goldman Sachs started coverage of Healthpeak Properties Inc. (NYSE:DOC) with a Neutral rating and a $17 price target. In a research note, the analyst said channel checks and modeling point to solid upside in senior housing occupancy, RevPOR, and margins. Over time, those gains may run into limits tied to vacancy levels, affordability, and new supply. At the same time, Goldman sees improving cash flow visibility from NNN structures and better-defined opportunities across senior housing REIT investments.
The firm also noted how much Healthpeak’s portfolio has changed since 2019. The biggest shift came with the merger with Physicians Realty Trust, which closed on March 1, 2024. That deal effectively doubled the size of Healthpeak’s outpatient medical portfolio and reshaped the company’s overall mix.
A few days earlier, on January 7, Healthpeak announced plans to form and take public Janus Living, Inc., a new REIT focused entirely on senior housing. Healthpeak plans to contribute its 34-community, 10,422-unit senior housing portfolio to Janus Living and will act as its external manager. After the IPO, Healthpeak expects to keep a controlling interest, with public shareholders owning the rest.
Healthpeak Properties Inc. (NYSE:DOC) operates as a fully integrated healthcare REIT. The company acquires, develops, owns, leases, and manages healthcare real estate across the United States, with a focus on building long-term value across its platform.
2. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 29
Dividend Yield as of January 28: 12.63%
On January 28, Wells Fargo raised its price target on AGNC Investment Corp. (NASDAQ:AGNC) to $12 from $10 and kept an Overweight rating. The firm pointed out that AGNC reported Q4 core EPS of $0.35, which came in below its $0.38 estimate and the $0.37 consensus. During the earnings call, management said the October and December rate cuts should support net spread and dollar roll income. Wells Fargo also views the outlook for additional Fed rate cuts in 2026 as supportive for agency MBS REITs and book value.
During the Q4 2025 earnings call, President, CEO, and Chief Investment Officer Peter Federico said the company ended the year on a strong note and delivered solid results across 2025. He noted that “AGNC’s 11.6% economic return in the fourth quarter drove our impressive full year economic return of 22.7%,” and said the picture looks even better when shareholder returns are included. With dividends reinvested, AGNC’s total stock return reached 34.8% for the year, close to double the S&P 500’s return.
Federico also said mortgage spreads stayed relatively stable and described the investment environment as more supportive as the Federal Reserve shifted toward a more accommodative policy stance. In his view, those conditions leave AGNC “very well positioned to generate compelling risk-adjusted returns with a substantial yield component for our shareholders.”
AGNC Investment Corp. (NASDAQ:AGNC) is an internally managed REIT that provides private capital to the U.S. housing market. The company focuses on adding liquidity to residential mortgage markets, helping support housing finance and homeownership across the country.
1. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 32
Dividend Yield as of January 28: 4.28%
On January 6, RBC Capital trimmed its price target on Agree Realty Corporation (NYSE:ADC) to $79 from $80 and kept an Outperform rating. The firm said fourth-quarter acquisitions came in slightly below its expectations, though still within management’s guidance. Cap rates landed where RBC expected, according to the research note.
The company’s dividend history can look confusing at first glance. When Agree Realty shifted from a quarterly to a monthly payout in 2021, it appeared as if the dividend was cut. On an annual basis, that was not the case. The REIT has raised its dividend every year since emerging from the 2008–09 financial crisis. Over the past decade, the payout has grown at a 5.3% compound annual rate. Two increases in 2025 pushed the dividend another 3.6% higher.
That pattern looks sustainable. Agree Realty continues to grow its portfolio and plans to invest up to $1.65 billion in real estate during 2025. Tenant relationships remain a strength, with weighted average lease terms of more than nine years already in place. Taken together, steady acquisitions and long leases support the case for consistent, incremental dividend growth.
Agree Realty Corporation (NYSE:ADC) operates as an integrated real estate investment trust focused on owning, acquiring, developing, and managing net-leased retail properties.
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