In this article, we will take a look at some of the best dividend stocks that offer monthly dividends.
Investing in dividend-paying stocks has moved in and out of favor over time. During the strong bull market of the 1980s and 1990s, most equity returns came from rising share prices. Many investors were comfortable giving up dividends because companies were delivering steady and often dramatic price gains. Returns felt easy, and dividends seemed optional.
The next decade told a different story. A report by RidgeWorth Investments noted that the 2000s began with sharp equity losses after the technology bubble burst. Investors were reminded that stock prices don’t always go up. For a while, that lesson faded as markets recovered and price appreciation returned. Then the decade closed with one of the deepest market declines in generations. The housing crisis and the Great Recession reset expectations across the market.
Since then, volatility has become more common, and return expectations are lower. Many investors no longer want to depend on price gains alone to drive results. Income matters again, and dividends are back in focus.
Dividend-paying stocks have delivered steady return streams across different market environments. That consistency becomes especially valuable when prices stall or fall. Over time, reinvested dividends quietly compound and do much of the heavy lifting. The report illustrates how meaningful that contribution has been since the 1930s. ISI estimates that compounded dividends have accounted for roughly 50% of total stock returns on average. During difficult periods like the 1930s, 1970s, and 2000s, dividends also acted as a performance cushion when markets struggled.
Given this, we will take a look at some of the best dividend stocks that offer monthly dividends.
Our Methodology:
For this list, we looked at stocks that pay monthly dividends. Among them, we chose stocks with the highest dividend yields, which range from 3.5% to nearly 19.5% as of December 18.
Most of these stocks are from the REIT and capital market sectors. REITs are obligated to distribute about 90% of their income to shareholders, which is good for income investors as it provides them with a reliable and substantial stream of dividends. However, it’s important to note that many of these stocks, despite their high yields, don’t have a consistent history of paying dividends and have experienced dividend reductions or pauses in the past. The stocks are ranked in ascending order of their dividend yields as of December 18.
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13. Phillips Edison & Company, Inc. (NASDAQ:PECO)
Dividend Yield as of December 18: 3.58%
Phillips Edison & Company, Inc. (NASDAQ:PECO) is among the best dividend stocks to invest in.
On December 18, Barclays lifted its price target on Phillips Edison & Company, Inc. (NASDAQ:PECO) to $42 from $40 and kept an Equal Weight rating on the stock. The firm said the move followed updated estimates after PECO’s recent investor presentation.
Phillips Edison & Company, Inc. (NASDAQ:PECO) brings more than three decades of experience in grocery-anchored shopping centers, giving it a clear view of what drives performance at the property level. In its latest update, the company pointed to the strength of its portfolio demographics. The average median household income within a three-mile radius of its centers stands at about $92,000, roughly 15% higher than the US average.
Population growth across PECO’s markets has also exceeded the national pace by about 5% over the past three years. These trends support steady rent growth and help underpin long-term value creation. Looking ahead, management expects portfolio income to rise by around 26% over the next five years.
Phillips Edison & Company, Inc. (NASDAQ:PECO) focuses its acquisition strategy on grocery-anchored, necessity-based neighborhood and community shopping centers. Its nationwide portfolio now includes close to 300 properties, with plans to continue expanding. The company also highlighted strong free cash flow and EBITDA growth, largely driven by same-center NOI. That performance supports more than $300 million in net acquisitions, even after accounting for development and redevelopment spending.
Phillips Edison & Company, Inc. (NASDAQ:PECO) is a US-based REIT that owns and develops shopping centers across the country.
12. Agree Realty Corporation (NYSE:ADC)
Dividend Yield as of December 18: 4.33%
Agree Realty Corporation (NYSE: ADC) is among the top dividend stocks that offer monthly payouts.
On December 17, Mizuho lowered its price target on Agree Realty to $75 from $77. The firm kept a Neutral rating on the stock.
Agree Realty Corporation (NYSE:ADC) is a net-lease REIT that owns free-standing retail properties, including grocery stores, home improvement chains, dollar stores, and pharmacies. These are places people still visit even when budgets get tight or shopping shifts online. That focus gives the company steady rent checks and supports its dividend.
The dividend history can look confusing at first. In 2021, Agree Realty Corporation (NYSE:ADC) moved from quarterly to monthly payments. On the surface, it looks like a cut. However, on a yearly basis, the payout has gone up every single year since the 2008–09 financial crisis.
Over the past decade, the dividend has grown at a 5.3% annual rate. Two increases in 2025 have already pushed the payout 3.6% higher. Growth is still part of the plan as Agree Realty Corporation (NYSE:ADC) expects to invest up to $1.65 billion in new properties in 2025. On December 11, the company declared a monthly dividend of $0.262 per share.
11. Main Street Capital Corporation (NYSE:MAIN)
Dividend Yield as of December 18: 5.17%
Main Street Capital Corporation (NYSE:MAIN) is among the best dividend stocks to invest in.
On December 9, RBC Capital analyst Kenneth Lee trimmed his price target on Main Street Capital Corporation (NYSE:MAIN) to $66 from $67. He kept an Outperform rating on the stock. RBC still sees support for earnings and noted that net interest income could benefit as the portfolio continues to ramp and dividend income adds to results. That upside may be partly offset by a modest dip in asset yields, based on the current rate outlook.
Main Street Capital Corporation (NYSE:MAIN) also shared an update on its investment activity. On December 2, the company said it completed a follow-on investment in an existing portfolio company, Chamberlin Holding LLC. Chamberlin is a well-known specialty roofing and waterproofing contractor.
Main Street partnered with MSC Income Fund on the deal. The investment supports Chamberlin’s acquisition of a commercial roofing contractor in the Southeastern US. Main Street’s share included an additional $20 million first-lien, senior secured term loan. Both firms first invested in Chamberlin back in February 2018.
Chamberlin was founded in 1897 and is based in Houston, Texas. The company focuses on installing high-quality commercial roofing and waterproofing systems.
Main Street Capital Corporation (NYSE:MAIN) is an investment firm that provides long-term debt and equity capital to lower middle-market businesses. It also supplies debt financing to private companies backed by private equity or in the middle of an acquisition.
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