Many investors, particularly retirees, look to dividends for passive income. Especially the dividend stocks with monthly payouts are very popular among retirees. Christine Benz, Morningstar Director of Personal Finance and Retirement Planning, points out that dividends are a bird in the hand. It’s often easier to just take the cash from the dividend than it is to sell shares in order to meet your living expenses.
Investors relying on dividends in retirement should look beyond the yield. Dividend reliability and share price stability are just as important, and the potential for price appreciation should also be taken into account. Dan Lefkovitz, strategist at Morningstar Indexes, cautions that the highest yields in the market are potentially deceptive. They are often found in the riskiest sectors, industries, and companies. For investors, this can mean less reliable income and greater share price volatility. Check our list of dividend stocks with the highest yield.
This risk is evident in monthly dividend stocks, as many of them are from REITs and BDCs. These are the very stocks that offer high yields, and the dividends from them are very much subject to the earnings of the company, the cost of borrowing, and the general state of the economy. Take a look at our previous coverage as well.
High dividend strategies have always been part of the equity income portfolio. Their attraction is, of course, in the regular cash flow, particularly for those investors who are looking for a return that can survive a period of market downturn. WisdomTree has reported that dividends have historically accounted for over 40% of total global equity market returns over the past 100 years. Unlike capital gains, dividends are a regular stream of cash flow which can be reinvested. For pension funds, defined benefit plans, and anyone else who relies on portfolio income to meet ongoing outgoings, dividend payments can be a vital part of the portfolio. Btw retirees are looking at these dividend stocks for long-term gains.
Dividend-paying companies have also historically seen smaller drawdowns than some of the non-dividend-paying companies during periods of market stress, though that hasn’t been true in every market environment. The dividend income can act as a cushion against share price declines, and a focus on established businesses can reduce exposure to the kind of speculative companies that tend to struggle in times of tighter financial conditions.
Companies with pricing power, such as utilities, financials, energy majors, and consumer staples, are typically the ones you’ll find in high dividend portfolios. Their ability to pass on cost increases to customers is a key way of protecting earnings and sustaining returns in an inflationary environment.
Also read: 10 Best Dividend Growth Stocks to Buy and Hold for 3 Years
Quarterly payments are still the norm with US dividend stocks, but monthly payments are an alternative for the investor seeking income. Monthly payments can also offer a slight compounding benefit if the dividends are reinvested. Forbes put the number at 12 times a year, as opposed to four, and the difference is real. Take a $100k position earning a 10% yield. You could be looking at approximately $90 more in the first year if you were reinvesting your dividends monthly rather than quarterly. With this backdrop, we will take a look at some of the best stocks with monthly payouts.
Image by Steve Buissinne from Pixabay
Our Methodology:
For this list, we reviewed companies that pay monthly dividends to shareholders. From that list, we selected businesses with robust dividend practices that have consistently maintained payouts across multiple years. Most of these selected companies operate in the Real Estate Investment Trust (REIT) sector, as they must allocate 90% of their income to dividends. From that list, we selected 10 stocks with the most hedge fund investors, using Insider Monkey’s Q2 2026 database of hedge funds and their holdings.
Why do we care about what hedge funds do? 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 612.3% since May 2014, beating its benchmark by 375 percentage points (see more details here).
10. Gladstone Investment Corporation (NASDAQ:GAIN)
Number of Hedge Funds: 4
Dividend Yield as of October 26: 6.54%
Gladstone Investment Corporation (NASDAQ:GAIN) is a business development company that functions as a private equity fund. It targets mature, lower middle market companies with EBITDA in the range of $5 million to $25 million, good fundamentals, and strong management. The companies it acquires are generally too small to attract the larger investors and are not in a position to have the financial resources to weather a downturn. GAIN is among the highest-paying monthly dividend stocks on our list.
Gladstone pays a monthly distribution of $0.08 per share, which turns out to be $0.96 per year, and at a share price of $14, that works out to a yield of around 6%. The $0.08 per share monthly distribution has been maintained throughout 2025 and 2026, and the company has also made a number of supplemental distributions, the most recent being a $0.54 per share payment in June 2025. This payout structure provides investors with a stream of income whilst maintaining exposure to the upside of equity investments, though the strategy also carries risks.
9. Horizon Technology Finance Corporation (NASDAQ:HRZN)
Number of Hedge Funds: 6
Dividend Yield as of October 26: 18.18%
Horizon Technology Finance Corporation (NASDAQ:HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company which provides capital in the form of secured loans to venture capital and private equity-backed companies as well as to publicly traded companies in the technology, life sciences, healthcare information and services, and sustainability sectors. Find which other BDC stocks made it to our list.
Horizon Technology has paid monthly dividends since going public in October 2010, returning hundreds of millions of dollars to shareholders. Its dividend policy has changed over time, with payments reflecting the company’s investment income, accumulated undistributed income, and financial outlook. The company’s regular monthly dividend was reduced from $0.11 per share to $0.06 per share in 2026. It also declared special distributions of $0.03 per share per month for the second half of 2026. Based on the regular payout of $0.72 annually, the dividend yield is around 18%, while special distributions provide additional income for now.
Investors should distinguish between the regular dividend and these additional payments. Horizon’s board reviews distributions based on operating results, taxable income, spillover income, and its longer-term outlook. The reduced regular payout shows that the earlier $0.11 monthly rate was not guaranteed to continue.
8. Global Water Resources, Inc. (NASDAQ:GWRS)
Number of Hedge Funds: 6
Dividend Yield as of October 26: 3.83%
Global Water Resources, Inc. (NASDAQ:GWRS) has been paying monthly dividends since March 2014, through the predecessor company prior to the company going public in May 2016. The current dividend is $0.02533 per share per month, turning into $0.304 per year. At a share price of approximately $8, this equates to a dividend yield of about 3.8%. The monthly dividend has remained unchanged since 2024.
Q2 2026 results showed revenue up 24.8% YoY to $17.8 million. Net income was $2.7 million compared to $1.6 million a year prior. The growth was driven by higher regulated revenue, the new water systems acquired in 2025, and $2.1 million in revenue from infrastructure coordination and financing agreements. Despite the improvement in earnings, the regular dividend is still very high in relation to the quarterly profits. The company reported diluted earnings of $0.10 per share for the second quarter as opposed to $0.076 in quarterly dividends.
The dividend payout was in excess of earnings for that quarter, though again one quarter doesn’t determine the annual dividend coverage. The board retains discretion over future payments, which are also subject to debt covenant requirements.
Global Water Resources is a water resource management company with 39 systems which provide water, wastewater, and recycled water services. The service areas are predominantly located in the growth corridors around metropolitan Phoenix and Tucson. Global Water recycles over 1 billion gallons of water per year, with 19.9 billion gallons recycled since 2004.
Also read: 10 Worst Performing Utilities Stocks to Buy According to Analysts
7. Ellington Financial Inc. (NYSE:EFC)
Number of Hedge Funds: 15
Dividend Yield as of October 26: 13.30%
Ellington Financial Inc. (NYSE:EFC) is a mortgage-focused investment company that invests in residential and commercial mortgage loans, mortgage-backed securities, mortgage servicing rights, consumer loans, and other credit-related assets. Its income is derived from investment returns, financing costs, and the change in value of its portfolio.
Ellington Financial pays a monthly dividend, making it an option for those who prefer regular monthly income over quarterly. It has paid a dividend since 2009. The most recent common dividend declared is $0.13 per share per month, which is $1.56 per share per year. At a share price of around $11.73, this gives a dividend yield of circa 13.3%. This high yield places it among our high-yield stock list.
The high yield is a reflection of the income focus of Ellington’s investment approach, but the dividend has to be viewed in the context of the company’s earnings and the performance of its portfolio. Mortgage investments are subject to a number of risks, including interest rate movements, borrowing costs, credit losses, and changes in the valuation of the mortgages. All of these can have an impact on the income available to fund the dividend.
Ellington’s board will of course have the discretion to set the dividend amount, having regard to earnings, financial condition, working capital needs and the requirements of maintaining its REIT status. The current dividend therefore should not be regarded as a guaranteed one. Investors should also be mindful of the difference between accounting earnings and adjusted distributable earnings when looking at coverage, as the two are not the same.
For income investors, the monthly payments and the double-digit yield are certainly attractive. The real issue is whether EFC can keep producing sufficient distributable income to underpin the $0.13 per month payment without damaging its own financials.
6. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Funds: 18
Dividend Yield as of October 26: 5.94%
Main Street Capital Corporation (NYSE:MAIN) is one of the larger, more established BDCs, with around $9 billion in capital under management. Its core business is to provide debt and equity capital to lower middle market companies that are too small to readily access the public debt markets but large enough to require a substantial amount of capital. That in itself has generated a very good stream of income for the shareholders.
Main Street is currently paying a regular monthly dividend of $0.265 per share or $3.18 per year. At a share price of around $54, that gives a yield of roughly 5.9% on the regular dividend alone. Main Street has also been paying extra dividends. In September, shareholders are due a further $0.30 per share. At a share price of $54, that works out at a yield of around 7.7% on an annualized basis, taking into account both the regular and the supplemental dividend. Read the full analysis here.
Second quarter investment income was $149.6 million total and $90.3 million net. Distributable net investment income was $1.04 per share. Net asset value at the end of June was $33.92 per share, up from $33.33 at the end of 2025. Annualized return on equity was 18.9%, and investments on non-accrual at fair value were 1.1%.
There’s interest rate risk here. A lot of the BDC loans have floating rates, so falling rates would have a negative impact on investment income. Credit deterioration in the portfolio companies could also be a pressure on earnings. Main Street has never cut its regular monthly dividend since going public in 2007. In fact, the current monthly dividend is nearly 4% higher than it was a year ago. For income investors, that is a very good record.
5. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Funds: 20
Dividend Yield as of October 26: 6.08%
LTC Properties, Inc. (NYSE:LTC) is a REIT that invests in senior housing communities and skilled nursing facilities throughout the US. Its income is generated through property leases, joint ventures, and investments in senior care operators.
LTC Properties pays a monthly dividend. It has a long track record of paying dividends, having done so for over 30 years, including since the early 1990s. The most recent dividend declared for Q4 2026 is $0.19 per share per month, or $2.28 per share per year. At a share price of around $44.3, that gives a dividend yield of approximately 6%. The dividend has been $0.19 per month since 2016. The company’s operating model is changing, though, with an increase in the size of its senior housing operating portfolio. Revenue in this area comes directly from the fees and services paid by the residents rather than from rental income. This could open up further avenues for growth, though as ever the level of operating expenses and occupancy will be key to the bottom line. The most recent results provide a good measure of dividend coverage.
For Q2 2026, LTC generated core FFO of $0.68 per share versus a total quarterly dividend of $0.57. Core funds available for distribution (FAD) were $0.70 per share, again in excess of the dividend. So the dividend was covered by the core operating measures during the quarter. That said, future coverage will be dependent on the performance of the properties and investments. For income investors, it’s got the monthly payments and a very long track record of paying dividends. Whether it can continue to pay that income will depend on how well it can make the transition to operating senior housing communities and whether it can maintain the level of cash flow required to fund the distributions.
Also read: LTC Properties (LTC) Doubles Down On Senior Housing Bet
4. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Funds: 28
Dividend Yield as of October 26: 16.29%
AGNC Investment Corp. (NASDAQ:AGNC) is a mortgage REIT that primarily invests in agency residential mortgage-backed securities. The company uses leverage to enhance its returns and pays a monthly dividend to shareholders.
AGNC has just come off a very difficult quarter. Earnings and book value for the mortgage REIT both declined in Q3, and it posted a negative economic return on tangible common equity. The impact of the rate run-up was to drive down the share price, which in turn has pushed the dividend yield up to 16%. That’s a very high yield and suggests the dividend is in a very precarious position. Agency MBS underperformance led to a $1.45 per share decline (16.9%) in the REIT’s tangible net book value per share, which finished the quarter at $7.13. The company also posted an economic return on common equity of -12.7% for the quarter.
Meanwhile, net spread and dollar roll income per share was $0.37. That’s very close to the $0.36 per share in dividends it paid during the period ($0.12 a month). It was the third consecutive quarter of declining spread income, at $0.42 per share in Q1.
AGNC pays a $0.12 per share monthly dividend or $1.44 per share yearly. It has paid a dividend since its May 2008 IPO, which gives it over 18 years of dividend history. For AGNC, the key to dividend sustainability is its cost of capital rather than its earnings. CEO Peter Federico stated that the company’s total cost of capital in Q3 was approximately 19% whilst its existing portfolio was generating a 20% return on equity. New investments were yielding approximately 19%, which is why he believes the dividend is still in line with the business economics. Read its full analysis here.
3. Realty Income Corporation (NYSE:O)
Number of Hedge Funds: 34
Dividend Yield as of October 26: 5.71%
Realty Income Corporation (NYSE:O)’s string of uninterrupted monthly dividend declarations is by no means the only winning streak for the company and its investors. It has increased its dividend for 31 consecutive years since going public. Even better, it has increased its monthly dividend for 116 consecutive quarters. Read the dividend analysis here.
The real trick is Realty Income’s model and its sector concentration. The tenants at its over 15,000 properties are all commercial tenants, and they’re all on triple net leases. The tenants pay for the property taxes, the insurance, and the maintenance, so the cash flow is very predictable, apart from the risk of default.
The REIT is overwhelmingly focused on consumer-facing retail. That’s generally a risky proposition and makes it very sensitive to the state of the economy. Its biggest concentration is in supermarkets and convenience stores, which are historically recession-proof. That makes up over 20% of the portfolio.
Realty Income has a well-established track record of shrewd acquisitions and solid organic growth. Operating profit has outstripped the growth in its share count. Even with the long string of distribution increases, its trailing 12-month distributions are still only 75% of its FFO. The headroom is there to continue the hikes.
Realty Income is a publicly traded REIT that owns and leases commercial property to tenants on long-term “triple net” (NNN) leases.
2. EPR Properties (NYSE:EPR)
Number of Hedge Funds: 36
Dividend Yield as of October 26: 6.54%
EPR Properties (NYSE:EPR) is a REIT that owns experiential properties, such as movie theatres, amusement parks, fitness and recreation centers, and private schools. It leases these properties to the operators and distributes a portion of the rental income to its shareholders. It pays a monthly dividend and has paid a dividend since it went public in 1997.
EPR is currently paying a $0.31 per share monthly dividend or $3.72 per share annually. At the current share price, that’s a dividend yield of around 6.6%. The company increased its monthly dividend from $0.295 to $0.31 in 2026, which is the fourth year in a row that the dividend has been increased.
EPR is very much a different proposition to the typical REIT as it is focused on entertainment and leisure properties. Its rental income is dependent upon the tenants’ ability to attract customers and generate sufficient cash flow to meet their lease obligations. Tenant performance in movie theatres and other discretionary leisure spaces is therefore a key consideration for any dividend investor. See what analysts think about the stock.
The company’s monthly payout and the recent dividend increases mean it’s certainly one to consider in an income portfolio. That said, it’s important to remember that EPR suspended its common dividend during the pandemic and only reinstated it in 2021. That recovery is a perfect example of the importance of tenant stability and property-level cash flow in enabling distributions. The current yield is very attractive in terms of providing regular income; the question, of course, is whether future increases will be sustainable, and that will, in turn, be down to the strength of the tenant base and the ability to collect rental payments.
1. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Funds: 37
Dividend Yield as of October 26: 4.77%
Agree Realty Corporation (NYSE:ADC) is a REIT that owns retail properties leased to tenants such as grocery stores, pharmacies, and dollar stores. It uses long-term net leases, as the tenants pay property taxes, insurance, and maintenance. The company pays monthly dividends and has been rewarding shareholders consistently since 1994, so it has over 30 years of dividend history.
The October 2026 dividend was $0.271 per share or $3.252 per year, which at the current share price gives a yield of around 4.8%. Agree has a strong track record of increasing its dividend, and this is underpinned by the continued growth of its retail portfolio and the strength of its long-term leases. Its tenant mix is a big part of the dividend story. The mix of tenants is predominantly grocery stores, pharmacies, and discount retailers, which are all suppliers of the goods people buy on a day-to-day basis. This can help to maintain traffic through the store when consumer spending is weak. The long-term leases also provide a good degree of visibility into future rental income, and the net lease structure means that the landlord doesn’t have to bear many of the property-level expenses.
Agree Realty’s monthly payouts may be attractive to investors who are looking for a more predictable stream of cash rather than the quarterly payments that you often get. The company has, on the whole, continued to increase its dividend, if modestly so in comparison to some of the other high-yield REITs. Investors also have to consider the price they pay for the shares, as a rising share price can work against yield even if the dividend is increasing. It’s a mix of monthly income, a long track record of payments, and exposure to retail properties which are leased to well-established businesses.
While we acknowledge the risk and potential of ADC as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than ADC that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.
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