In this article, we will take a look at the 10 Monthly Dividend Stocks To Buy and Hold Forever.
Geopolitical tensions have been driving sharp moves in the market, and Jefferies is advising investors to stay focused on companies with strong fundamentals and dependable dividends.
The past few weeks have not been stable. The Iran war triggered a broad selloff, and then news of a ceasefire pushed stocks higher. From March 2, the first trading day after the initial Middle East strikes, through March 30, when the S&P 500 reached its low for the year, the index fell nearly 8%. Since then, sentiment has improved, as peace talks and the ceasefire helped lift the market, and by last week, the index had recovered those losses.
In this kind of environment, Jefferies is pointing investors toward what it calls “income darlings.” These are companies that return capital on a consistent basis through dividends and share buybacks. The investment firm made the following remark:
“Global markets remain volatile amid geopolitical changes and fluctuations in expected government, monetary policy and economic outcomes. We maintain the view that prudent portfolios include an element of ballast.”
Given this, we will take a look at some of the best dividend stocks that offer monthly dividends.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
For this list, we screened for companies that offer monthly dividends to shareholders. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. PennantPark Floating Rate Capital Ltd. (NYSE:PFLT)
Number of Hedge Fund Holders: 7
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is a business development company (BDC) that focuses on investing in middle-market companies. There are risks tied to this part of the market. Even so, the company’s management team has done a strong job of managing those risks and keeping things balanced.
What stands out is in the name itself: “floating rate.” Around 99% of its $2.33 billion loan portfolio carries variable interest rates. The Federal Reserve’s move toward lowering rates has put some pressure on PennantPark’s weighted-average yield on debt securities. At the same time, the oil price shock following the Iran war could push the central bank to shift its monetary policy. If that happens, PennantPark’s loan portfolio is positioned to benefit.
Management has also focused on protecting invested capital. As of December 31, 2025, only 0.5% of the portfolio at cost was on non-accrual, meaning those investments were not making payments. The company has also spread its $2.61 billion investment portfolio across 160 companies, including common and preferred stock positions. This limits reliance on any single investment and reduces the risk of one position having an outsized impact.
In addition, nearly all of PennantPark Floating Rate Capital Ltd.’s $2.33 billion in loans, except for $20.1 million, is in first-lien secured debt. First-lien secured debtholders are first in line for repayment if a borrower files for bankruptcy protection.
9. Gladstone Commercial Corporation (NASDAQ:GOOD)
Number of Hedge Fund Holders: 12
Gladstone Commercial Corporation (NASDAQ:GOOD) is a diversified real estate investment trust (REIT) that owns net-leased office and industrial properties across the US. It focuses on secondary markets, where it can earn higher investment yields. That approach helped the company generate stable income for years. Still, its streak of more than 200 consecutive months of either raising or maintaining its payout came to an end in 2023, when it made a 20% cut.
The main issue was underperforming office properties. The company is still working through its portfolio and trying to offload assets that are not delivering. There is still a chance of another dividend cut. At the same time, management appears to have steadied the business and shifted back into growth mode. The focus has moved toward industrial properties, which remain in higher demand. The company is keeping well-tenanted office properties for the long term and selling those it does not expect to perform.
As a result, industrial properties now make up 69% of base rents. The share of office properties continues to decline. There has also been a leadership change. Founder David Gladstone stepped down as CEO, though he remains chairman. Buzz Cooper, the longtime President and a member of the company since its founding, has taken over as CEO. The transition may have seemed sudden, but Gladstone Commercial Corporation is no longer a new company, and Cooper’s long history with the company offers some continuity for investors.
8. Prospect Capital Corporation (NASDAQ:PSEC)
Number of Hedge Fund Holders: 13
During the fiscal Q2 2026 earnings call, CEO John Barry said Prospect Capital Corporation (NASDAQ:PSEC) generated net investment income of $91 million, or $0.19 per common share. He also reported a net asset value of $3 billion, which came out to $6.21 per common share. He added that the firm’s net debt to total assets ratio was 28.2% as of December 31. He also announced monthly distributions of $0.045 per share for February, March, and April.
Barry said the company continued to move forward on its strategic priorities. One area he pointed to was the shift toward its core business of first lien senior secured middle market loans. The first lien mix increased by 728 basis points to 71.4% since June 2024. He also noted efforts to reduce second lien exposure. The company has nearly completed its exit from subordinated structured notes, with that segment down 818 basis points to almost zero over the same period. He added that the firm remained active in exiting targeted equity-linked assets, including real estate. It completed major asset sales within Echelon Transportation in July and December 2025.
As a BDC, Prospect Capital invests in debt and equity in “middle market” companies that often struggle to secure bank loans because they are seen as higher-risk borrowers. In return, BDCs charge higher interest rates than traditional banks. They also need to pay out at least 90% of their taxable income as dividends to maintain a lower tax rate.
Prospect Capital Corporation holds more than 450 investments across its $6.5 billion portfolio, though it remains smaller than top-tier BDCs. Its portfolio also leans more toward higher-risk, lower-quality assets, including structured credit, payment-in-kind loans, equity, and real estate. That explains why Prospect offers higher yields than other BDCs, but it also carries greater risk and is more exposed to broader macro pressures.
7. Ellington Financial Inc. (NYSE:EFC)
Number of Hedge Fund Holders: 18
On April 7, Ellington Financial Inc. (NYSE:EFC) announced that its Board of Directors had declared a monthly dividend of $0.13 per share. The payment is scheduled for May 29, 2026, to shareholders of record as of April 30.
During the Q4 2025 earnings call, management said its focus for 2026 is clear. It plans to grow its loan origination market share while keeping credit performance strong. It also noted that these efforts, together with the company’s securitization platform, should support steady and disciplined portfolio growth. Laurence Penn, CEO, said the company was expecting an economic return of around 2% for January. He added that loan production and overall portfolio growth remained solid, particularly in non-QM, commercial mortgage bridge, and reverse mortgage loan segments.
He also discussed a planned acquisition of a small residential mortgage servicer. The goal is to bring more servicing work in-house, especially when it comes to handling delinquent assets.
Ellington Financial Inc. operates as a real estate investment trust (REIT). The company invests in and manages mortgage-related, consumer-related, corporate-related, and other financial assets. Its business is split between the Investment Portfolio Segment and the Longbridge Segment.
6. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 18
LTC Properties, Inc. (NYSE:LTC) is a healthcare REIT. It focuses on senior housing and skilled nursing properties, using triple net leases, mortgage loans, and other income-generating structures. That model tends to produce steady cash flow, which supports its monthly dividend.
The COVID-19 pandemic created real pressure on the seniors housing segment and, in turn, on LTC’s tenants. Some operators struggled to meet rent obligations, and a few filed for bankruptcy. LTC’s balance sheet helped it get through that period. It managed to offset part of the lost income and continued paying its monthly dividend, even as some peers reduced theirs. Even so, the company has not raised its payout since 2016.
There are signs of longer-term support for the business. A study by Syracuse University projects that by 2030, the number of Americans aged 65 and older will reach 73 million. To benefit from that shift, LTC Properties, Inc. still needs to stabilize its tenant base and work with stronger operators. That alignment will matter if it wants to translate the demographic trend into consistent returns for shareholders. For now, investors are left with a yield of over to 6%.
5. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Fund Holders: 21
On April 21, Main Street Capital Corporation (NYSE:MAIN) announced that it had completed a follow-on investment in an existing portfolio company, UBM ParentCo, LLC, which operates as United Business Mail. The company provides “marketing mail” commingle services and focuses on improving postage, transportation, and delivery efficiency for large-scale mailers.
Main Street, together with its co-investor, MSC Income Fund, Inc., invested to support UBM’s strategic acquisition of a national provider offering asset-light palletized mail consolidation, mail optimization services, freight brokerage, and warehousing and distribution for both B2B and B2C customers. Main Street’s share of the deal included an additional $15.6 million in first lien, senior secured term debt. Both Main Street and MSIF had initially invested in UBM in December 2025.
Main Street Capital Corporation is an investment firm that lends to middle-market companies, most of which are owned by or in the process of being acquired by private equity firms. It operates in a niche area and has built a strong track record over time. Since its IPO in 2007, the company has delivered total returns of 1,570% to shareholders. Over the same period, earnings per share have risen by 1,680%.
The dividend has also grown steadily. It has more than doubled since 2010. Management has shown a willingness to adjust payouts when conditions call for it, as seen during the pandemic, when preserving capital became necessary. Over the longer term, Main Street Capital Corporation has maintained a pattern of consistent dividend growth.
4. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 31
AGNC Investment Corp. (NASDAQ:AGNC) reported its Q1 2026 earnings on April 21. During the earnings call, President, CEO, Director, and Chief Investment Officer Peter Federico said the company posted a negative economic return of 1.6% for the quarter. He linked the result to a late-quarter risk-off shift. Uncertainty around the war in Iran and the possibility of a broader Middle East conflict increased interest rate volatility, weighed on investor sentiment, and pushed Agency MBS spreads wider.
Federico also said that, at current levels, Agency MBS offer a more attractive return profile. He noted that spreads moved from about 135 basis points at the time of the Q4 call to roughly 150 to 175 basis points over the past two months. In his view, securities in that range present compelling value on both an absolute and relative basis.
Executive Vice President and CFO Bernice Bell said the company reported a comprehensive loss of $0.18 per common share for the quarter. She added that AGNC’s economic return on tangible common equity came in at negative 1.6%. This reflected $0.36 in dividends declared per share and a $0.50 decline in tangible net book value per share. Bell also pointed out that, as of late the prior week, tangible net book value per common share had recovered by about 6% in April, or around 5% after factoring in the monthly dividend accrual. She said this rebound had largely offset the decline seen in the first quarter.
On portfolio positioning, Federico highlighted a shift toward lower coupon holdings and a greater use of swap hedging. He said the portfolio’s market value stood at $95 billion at quarter-end, with $1.7 billion invested mainly in low-coupon specified pools. He also noted that the weighted average coupon declined to 4.95%, down from 5.12% in the prior quarter.
AGNC Investment Corp. invests in Agency residential mortgage-backed securities (Agency MBS). These securities carry a guarantee against credit losses from entities such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and Government National Mortgage Association.
3. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 31
On April 21, Barclays analyst Richard Hightower raised the firm’s price recommendation on Realty Income Corporation (NYSE:O) to $68 from $65. It reiterated an Equal Weight rating on the shares. The update came as part of a Q1 preview for the net lease REIT group. In a research note, he described the current backdrop as a “Goldilocks” environment for much of the sector. Barclays is expecting more issuance announcements and higher acquisition volume guidance across the group.
Realty Income stands out as the leading monthly dividend payer. It refers to itself as “The Monthly Dividend Company,” having paid 669 consecutive monthly dividends as of April 2026. Since its 1994 IPO, the company has increased its dividend 132 times. Over that period, it has grown the payout at a 4.2% compound annual rate, resulting in 32 years of dividend increases as a public company.
Realty Income Corporation operates as a real estate investment trust. It focuses on acquiring, owning, and managing freestanding commercial properties. These properties are leased under long-term net lease agreements to a broad mix of tenants, including investment-grade, investment-grade equivalent, and other clients.
2. EPR Properties (NYSE:EPR)
Number of Hedge Fund Holders: 34
EPR Properties (NYSE:EPR) is a real estate investment trust (REIT) that focuses on experiential real estate. Its portfolio includes movie theaters, eat-and-play venues, casinos, ski resorts, gaming facilities, themed lodging, amusement and water parks, and fitness centers.
The company uses triple net leases, where tenants handle insurance, maintenance, and property taxes. This structure helps keep EPR’s income more predictable. It partners with some of the largest operators in these industries, which together represent a $100 billion market opportunity. The movie theater segment, which went through a difficult stretch during the COVID-19 pandemic, has started to stabilize. EPR owns 148 theaters across North America, and this segment contributes about 36% of its annualized Adjusted EBITDA from real estate.
At the same time, EPR Properties has been selling lower-value theaters. The focus has shifted toward areas where demand and growth trends are stronger. That shift has supported its dividend recovery. After cutting the payout by a third during the pandemic, EPR has raised it three times. The dividend is now up 24% since 2022.
1. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 40
Agree Realty Corporation (NYSE:ADC) reported its Q1 2026 results on April 22. During the call, President, CEO, and Director Joey Agree said the company deployed nearly $425 million across its three external growth platforms in the quarter. Of that, $403 million went into acquisitions, and these were completed at a weighted average cap rate of 7.1%, with an average lease term of 11.3 years.
He also said the company raised about $660 million of forward equity through its ATM program. Total liquidity stood at roughly $2.3 billion, alongside more than $1.6 billion in hedge capital. This included a record $1.4 billion in outstanding forward equity.
CFO, Secretary, and Investor Relations Professional Peter Coughenour reported core FFO per share of $1.13 and AFFO per share of $1.14 for the quarter. He added that the company reaffirmed its full-year 2026 AFFO per share guidance in the range of $4.54 to $4.58.
Agree Realty Corporation operates as an integrated REIT focused on owning, acquiring, developing, and managing retail properties that are net-leased to tenants. Its assets are held through its operating partnership, where the company serves as the sole general partner.
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