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Of the roughly 12,000 listed U.S. stocks, fewer than 1% of them pay dividends each month. The majority that do return profits to shareholders in this way do so quarterly. For investors living on a regular income off of their investments, having those payments come every four to five weeks is a nice feature.
These monthly payers tend to be in businesses like real estate or private equity. Yet two of them are in the pizza business. Go figure! Here’s a group of three monthly dividend stocks I culled from the more than 70 out there, which may be a consideration in the new year.
Methodology Used For These Monthly Dividend Stock Picks
To arrive at this threesome, I screened for monthly payers, then looked for a combination of quality, valuation and my go-to as an investor–a favorable long-term price trend. I considered stocks with a market capitalization of at least $1 billion. Dividend yield level was important, but not at the expense of the other criteria. There is not much sector diversification to be had here, so the group contains a pair of real estate businesses and a financial stock.
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3 Top Monthly Dividend Stocks To Buy In 2025
Source: YCharts.
1. Realty Income (O)
Business Overview
I’d be hard pressed to leave out the company that refers to itself as “the monthly dividend company.” Realty Income is one of largest and most successful real estate investment trusts, and that monthly payout has made it a favorite with yield-seeking investors for a long time. The company has more than 15,000 real estate properties, most of which are under long-term lease agreements with commercial owners.
Why Realty Income Is A Top Choice
Since coming public 30 years ago, Realty Income has increased its dividend more than 120 times, which helps qualify it for the S&P 500 Dividend Aristocrats Index. It is solidly profitable and is among the class of the REIT group.
During the company’s most recent earnings call, CEO Sumit Roy said, “Supported by improvements in the investment environment and solid operating results, we see a robust pipeline of opportunities. As a result, we’re pleased to increase our 2024 investment volume guidance to approximately $3.5 billion and raise the low-end of our AFFO per share guidance to a range of $4.17 to $4.21 per share, reflecting a 4.8% growth at the mid-point of the range. Looking ahead, Realty Income is pursuing a wide range of growth opportunities, including capital diversification initiatives to further enhance the reach and scale of our proven platform.”
2. STAG Industrial (STAG)
Business Overview
STAG is another REIT, which focuses on the industrial sector. Its portfolio includes more than 500 buildings in 40 states, including warehouses and light manufacturing facilities, and has an occupancy rate of 97%. It has grown over time from acquisitions, and has focused more in recent years on multi-tenant properties. During the third quarter STAG acquired six buildings in Massachusetts and Georgia for $113.0 million with an occupancy rate of 100.0% upon acquisition.
Why STAG Is A Top Choice
This is a much smaller company than Realty Income, with fewer than 100 employees. Its stock price has been easing since this past summer. However, this is a long-term focused article, and monthly dividends from companies of sufficient size and quality are tough to find. So this one makes the grade with me, given its longer-term history of growth and profitability. For investors who are in the monthly dividend mindset, that more than 4% annual dividend yield likely offsets intermittent price turbulence. That said, every investor has to decide for themselves just how much of a long term versus short term tradeoff they can accept in the pursuit of stable portfolio income.
3. Main Street Capital (MAIN)
Business Overview
The last one on my list is not a REIT, but a business development company stock. Houston-based Main Street Capital specialties in lending to lower middle market companies. They get the call when a business needs assistance with management buyouts, refinancing and other corporate financial adjustments. MAIN provides “one stop” financing for businesses such as air freight companies, auto component makers, healthcare equipment companies and a range of other types across a diverse set of industries which tend to be populated by smaller firms.
Why MAIN Is A Top Choice
This is another public company with only about 100 employees, which means that it is not likely overstaffed. Business development companies (BDCs) have done well in recent years, but can be cyclical, given the nature of their business. The nearly $3.00 per share annual dividend appears to be well-covered by the income the company generates, though a major recession could threaten that. Overall, the reward versus the risk seems above average here, and that monthly dividend certainly adds to the attractiveness.
Bottom Line
In the U.S. stock market, dividends typically mean receiving a payout every three months. However, for those who want to consider companies who dole out the cash a dozen times each year, these three are a good start for further research. The pickings are fairly slim in this area, but as with any investment decision, there are many angles from which to analyze and assess what is most comfortable for each investor.
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