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.
8. Orchid Island Capital, Inc. (NYSE:ORC)
Number of Hedge Fund Holders: 11
Orchid Island Capital, Inc. (NYSE:ORC) is a specialty finance company that invests in residential mortgage-backed securities (RMBS), with a portfolio split between traditional mortgage pass-through certificates and collateralized mortgage obligations, as well as structured Agency RMBS.
In its latest earnings update, CEO Robert Cauley pointed to two key events shaping the quarter: the reciprocal tariffs announced in April, known as Liberation Day, and the passage of the “One Big beautiful bill” in July. Both stirred market volatility and influenced investor sentiment. Cauley explained that Orchid Island Capital, Inc. (NYSE:ORC) was well-prepared, holding high cash reserves and keeping leverage at the low end of its range. This positioning limited the need for deleveraging and enabled the repurchase of more than 1.1 million shares at a steep discount early in the quarter. He added that while the company maintained a defensive stance, it also generated a cash buffer through selective share sales.
Orchid Island Capital, Inc. (NYSE:ORC) is one of the safest stocks to buy, as the company has been making regular dividend payments since its IPO in 2013. Currently, it offers a monthly dividend of $0.12 per share for a dividend yield of 20.54%, as of September 23.
7. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 16
LTC Properties, Inc. (NYSE:LTC) is a healthcare-focused REIT that invests mainly in senior housing and skilled nursing facilities through triple-net leases, mortgage loans, and other income-producing structures. This approach provides a relatively stable cash flow to fund its monthly dividend.
The senior housing sector faced major challenges during the COVID-19 pandemic, which put pressure on LTC Properties, Inc. (NYSE:LTC)’s tenants. Some operators struggled with rent payments, and a few even filed for bankruptcy. Despite these setbacks, the REIT’s solid financial position allowed it to manage the impact, pursue new investments, and continue paying its monthly dividend.
LTC Properties, Inc. (NYSE:LTC) has paid regular dividends to shareholders since 2005, which makes it one of the safest stocks to consider. The company offers a monthly dividend of $0.19 per share for a dividend yield of 6.43%, as of September 23.
6. Apple Hospitality REIT, Inc. (NYSE:APLE)
Number of Hedge Fund Holders: 24
Apple Hospitality REIT, Inc. (NYSE:APLE) is a Virginia-based real estate investment trust that owns and operates hotel properties across the United States. Its portfolio includes well-known brands such as Courtyard, Fairfield, and Residence Inn, covering locations nationwide.
Apple Hospitality REIT, Inc. (NYSE:APLE)’s management has focused on boosting efficiency, cutting operating costs, and upgrading its portfolio by replacing older hotels with newer ones. Combined with steady improvements in occupancy rates, these efforts position the REIT to deliver long-term value for investors.
Apple Hospitality REIT, Inc. (NYSE:APLE) has gained recognition from investors for its consistent dividend track record. Since 2008, the company has regularly paid distributions and has at times provided shareholders with supplemental payouts, which makes it one of the safest stocks to consider. The company’s monthly dividend comes in at $0.08 per share for a dividend yield of 7.79%, as of September 23.
5. Phillips Edison & Company, Inc. (NASDAQ:PECO)
Number of Hedge Fund Holders: 25
Phillips Edison & Company, Inc. (NASDAQ:PECO) is an American real estate investment trust company that owns and develops shopping centers across the US. In its Q2 2025 results, CEO Jeffrey S. Edison reported another strong quarter, noting a 4.2% rise in same-center NOI and an 8.5% increase in core FFO per share. He announced higher full-year 2025 guidance for NOI and FFO, citing the strength of PECO’s grocery-anchored and necessity-based strategy.
Edison credited the company’s performance to its experienced team, solid retailer partnerships, and disciplined acquisition efforts. During the quarter, PECO acquired $133 million in assets, bringing year-to-date purchases to $287 million, and reaffirmed full-year acquisition guidance of $350 million to $450 million.
In addition to the strong quarter, Phillips Edison & Company, Inc. (NASDAQ:PECO) also declared a 5.7% hike in its monthly dividend to $0.1083 per share. The company has paid regular dividends to shareholders since initiating its dividend policy in 2021, which makes it one of the safest stocks to buy. As of September 23, the stock has a dividend yield of 3.74%.
4. STAG Industrial, Inc. (NYSE:STAG)
Number of Hedge Fund Holders: 26
STAG Industrial, Inc. (NYSE:STAG) owns and manages a nationwide portfolio of warehouses and light industrial properties, leasing them out to a broad mix of tenants.
STAG Industrial, Inc. (NYSE:STAG)’s expansion strategy is built on carefully acquiring individual properties in key logistics and industrial hubs, rather than large-scale portfolios. This approach helps manage risk while adding value. The company’s performance is measured by maintaining high occupancy, keeping a diverse tenant base, and consistently increasing rental income.
STAG Industrial, Inc. (NYSE:STAG)’s dividend history makes it an appealing option for income investors. The company offers a monthly dividend of $0.1242 per share and has a dividend yield of 4.23%, as of September 23. It has maintained its payouts since 2011.
3. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 27
Realty Income Corporation (NYSE:O) is an American real estate investment trust that specializes in single-tenant commercial properties. The company operates under a triple-net lease structure, where tenants cover property taxes, insurance, and maintenance costs. This arrangement allows businesses to secure longer and often more affordable lease terms.
With a market cap of around $54 billion, Realty Income Corporation (NYSE:O) is the largest net lease landlord in the U.S., owning over 15,600 properties, most of which are retail locations. Its massive scale gives it advantages like easier access to capital and the ability to execute large transactions, though it also makes meaningful growth slower as significant investments are needed to move the needle. For conservative investors, however, it remains a leading high-yield stock.
On September 9, Realty Income Corporation (NYSE:O) announced a 0.2% increase in its monthly dividend to $0.2695 per share, marking its 132nd dividend raise since going public in 1994. The company offers a monthly dividend of $0.2695 per share and has a dividend yield of 5.43%, as of September 23.
2. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 28
AGNC Investment Corp. (NASDAQ:AGNC) differs from traditional real estate investment trusts because it doesn’t own physical properties. Instead, it operates as a mortgage REIT, investing in mortgages that are bundled into bond-like securities. In this sense, it functions more like a mutual fund, with its business value tied to the daily fluctuations in those securities.
AGNC Investment Corp. (NASDAQ:AGNC) focuses on total return, meaning its strategy works best when investors reinvest dividends rather than spend them. Over time, the company has delivered solid results, and its performance history shows it can serve as a useful diversifier, as it doesn’t move in close step with the broader stock market.
AGNC Investment Corp. (NASDAQ:AGNC) is a strong dividend company as it has consistently paid dividends since its IPO in 2008, initially following a quarterly schedule. In 2014, the company shifted to a monthly dividend format. From its public debut through the fourth quarter of 2024, AGNC has returned a total of $14 billion in dividends to shareholders. Currently, it offers a monthly dividend of $0.12 per share and has a dividend yield of 14.68%, as of September 23.
1. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 34
Agree Realty Corporation (NYSE:ADC) is a net-lease REIT that owns stand-alone retail properties. Its portfolio is concentrated on tenants in essential sectors such as grocery, home improvement, discount, and drug stores, which generally hold up well against e-commerce pressure and economic slowdowns. This approach helps the company maintain consistent rental income to fund its dividends.
In January 2021, Agree Realty Corporation (NYSE:ADC) shifted from paying dividends quarterly to a monthly schedule. Over the last decade, it has delivered dividend growth at a compound annual rate of 5.6%, though the pace slowed to 2.4% in the past year.
Looking ahead, Agree Realty Corporation (NYSE:ADC) plans to invest roughly $1.5 billion in properties during 2025. With continued portfolio expansion and long-term tenant agreements that average more than eight years, Agree Realty is positioned to remain a steady and dependable source of monthly dividend growth over the long term. Currently, it offers a monthly dividend of $0.256 per share for a dividend yield of 4.3%, as of September 23.
While we acknowledge the potential of ADC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADC and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: Dividend Stock Portfolio For Retirement: 10 Stocks to Buy and 10 Best S&P 500 Dividend Stocks to Invest in.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
