In this article, we will take a look at some of the safest stocks to buy now.
Dividend growth stocks are popular among investors because they are considered safe and capable of generating consistent income. Companies that raise their payouts signal financial strength and an improving position. The idea is so appealing that Morningstar’s database lists 68 funds and exchange-traded funds with “dividend growth” in their name, collectively holding $158 billion in investor capital.
Dividends come from a company’s profits. Many factors influence profits, including the company’s performance and the overall economy. The payout ratio determines the safety of a dividend. This ratio shows the percentage of earnings paid out as dividends. A 100 percent payout ratio means all earnings are distributed, while a 50 percent ratio means half of the earnings go to dividends.
The higher the payout ratio, the smaller the safety margin for earnings fluctuations. At 100 percent, even a 10 percent decline in earnings would mean dividends exceed earnings. In theory, a company could cover this by using cash reserves or borrowing, but in practice, it would likely cut the dividend.
Most companies offer quarterly dividends to shareholders, but a few pay monthly. While monthly payments can be more challenging for companies to maintain, our list highlights some of the safest dividend stocks that provide 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 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s Q2 2025 database of nearly 1,000 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Gladstone Land Corporation (NASDAQ:LAND)
Number of Hedge Fund Holders: 8
Gladstone Land Corporation (NASDAQ:LAND) focuses on acquiring and leasing farmland to both independent and corporate farming operators. Its portfolio includes 150 farms across 15 states, covering roughly 103,000 acres, with crops ranging from vegetables and berries to almonds and pistachios.
Gladstone Land Corporation (NASDAQ:LAND) depends on owning prime farmland, maintaining solid tenant relationships, and structuring leases with fixed base rents and variable participation terms. Recently, it has shifted more leases toward profit-based participation, which will push much of its revenue recognition into the fourth quarter of 2025 when harvest outcomes are reported.
Gladstone Land Corporation (NASDAQ:LAND) is one of the safest stocks to buy as the company has paid regular dividends to shareholders for 148 consecutive months. In addition, the company has raised its dividends 35 times in the past 39 years. Currently, it offers a monthly dividend of $0.0467 per share and has a dividend yield of 6.01%, as of September 23.
9. Ellington Financial Inc. (NYSE:EFC)
Number of Hedge Fund Holders: 10
Ellington Financial Inc. (NYSE:EFC), a Connecticut-based specialty finance firm, invests in a wide range of financial assets tied to mortgages, consumers, corporations, and other sectors.
CEO Laurence Eric Penn called Q2 2025 an “excellent quarter,” citing solid results from both the diversified investment portfolio and loan origination platforms. Ellington Financial Inc. (NYSE:EFC) posted GAAP net income of $0.45 per share, translating to an annualized economic return of nearly 14%, with book value per share rising to $13.49.
Penn also emphasized the benefits of its credit hedging strategy, noting that the firm entered the quarter with a sizable hedge portfolio as credit spreads widened due to tariff uncertainty. He further pointed to the completion of six securitizations at favorable levels during the quarter.
Ellington Financial Inc. (NYSE:EFC) is a solid dividend company that offers monthly dividends to shareholders. The company’s monthly payout comes in at $0.13 per share and has a dividend yield of 11.95%, as of September 23. It is among the safest stocks to buy as the company has maintained its payouts for 15 consecutive years.
