10 U.S. stocks that pay monthly dividends to watch in 2025
High-yielding monthly dividend stocks can be a powerful way to build passive income with your portfolio. We've done the hard work for you and listed 10 U.S. stocks that pay attractive monthly dividends.
While the consistency of monthly dividends can be lucrative, it’s important to remember that all investing involves risk. Unlike interest payments, companies are not obligated to pay dividends, meaning payouts might halt if the business runs into trouble.
In addition, many firms paying monthly dividends qualify as Real Estate Investment Trusts (REITs) or Business Development Companies (BDCs), offering significant corporate tax advantages. If the tax rules change, these companies might have to lower their payouts.
With those caveats out of the way, let’s explore some of the leading U.S. stocks paying monthly dividends.
Top 10 monthly dividend stocks from the U.S.
Company Name | Ticker | Share Price | 1Y Return | Market Capitalisation | Dividend Yield |
|---|---|---|---|---|---|
AGNC Investment Corp | US$10.02 | +2.04% | US$9.0B | 14.37% | |
Gladstone Investment Corp | US$13.08 | -6.64% | US$479.9M | 12.69% | |
Ellington Financial | US$13.06 | +14.46% | US$1.2B | 11.94% | |
Main Street Capital Corp | US$55.76 | +21.16% | US$4.9B | 7.53% | |
Apple Hospitality REIT | US$13.70 | -18.36% | US$3.3B | 7.37% | |
EPR Properties | US$52.01 | +22.35% | US$3.9B | 6.81% | |
LTC Properties | US$35.73 | +10.93% | US$1.6B | 6.38% | |
Realty Income Corp | US$56.71 | +6.82% | US$49.6B | 5.59% | |
SL Green | US$57.60 | +14.38% | US$4.0B | 5.36% | |
STAG Industrial | US$36.37 | -4.64% | US$6.6B | 4.10% |
Data as of 11 March 2025. Source: Stake, Google.
*The list of dividend-paying stocks is listed in order of highest dividend yield. When deciding what stocks to feature, we analyse the company's financials, recent news and earnings, upcoming dividends and payout frequency.
Watch these 10 U.S. stocks that pay dividends monthly
1. AGNC Investment Corp. ($AGNC)
AGNC Investment Corp. is a mortgage real estate investment trust (REIT) that primarily invests in agency mortgage-backed securities (MBS). The company generates income from the spread between its borrowing costs and the yield on its MBS investments.
AGNC focuses on residential mortgages guaranteed by U.S. government-sponsored entities like Fannie Mae and Freddie Mac. The company aims to provide attractive risk-adjusted returns through active management of its MBS portfolio.
Currently, AGNC has a compelling monthly dividend yield of 14.37%.
2. Gladstone Investment Corporation ($GAIN)
Gladstone Investment Corporation is a business development company (BDC) that specialises in providing debt and equity financing to lower middle-market companies. Businesses use this capital to support acquisitions, expand operations, or recapitalise their balance sheet.
GAIN generates income from returns on its investment portfolio and distributes monthly dividends to its shareholders. The firm’s current dividend yield is 12.69%.
3. Ellington Financial ($EFC)
Like AGNC, Ellington Financial is a REIT focused on the MBS market. At times, however, Ellington’s portfolio may also hold other financial assets, such as consumer loans. This wider remit allows Ellington to pursue income-generating strategies across more asset classes.
Ellington has a strong history of regularly distributing monthly dividends. The firm’s current dividend yield is 11.94%.
4. Main Street Capital Corporation ($MAIN)
Main Street Capital is another BDC, competing with firms like Gladstone to provide financing to middle-market companies. Based in Texas, $MAIN focuses on providing access to capital outside of Wall Street, as the company name reflects.
MAIN’s diversified investment approach spans various industries and focuses on private debt investments, which can generate consistent income and potential capital appreciation. The firm’s monthly dividend yield is 7.53%.
5. Apple Hospitality REIT ($APLE)
Apple Hospitality is a REIT focused on the hotel and lodging niche. The company owns a portfolio of over 220 upscale, select-service hotels.
Apple’s properties are affiliated with recognised hotel brands and are located in markets across the United States. Like most hospitality firms, APLE generates the bulk of its revenue from room rentals and other hotel amenities.
The company’s monthly dividend yield is 7.37%.
6. EPR Properties ($EPR)
EPR Properties is a niche REIT focusing on ‘experiential properties.’ While this is a broad category, it includes assets like movie theatres, ski resorts, and theme parks. Notably, EPR also owns several educational properties.
EPR aims to generate stable lease income by focusing on properties that provide unique experiences and are difficult to replicate, positioning itself as a specialised player.
The company pays a consistent monthly dividend and has a yield of 6.81%.
🆚 Compare STAG vs EPR stock comparison→
7. LTC Properties ($LTC)
LTC Properties is another speciality REIT, this time focusing on long-term care properties. Currently, the company’s portfolio is half senior housing and half skilled nursing facilities.
LTC uses a variety of sophisticated financial strategies to acquire assets at attractive prices while generating consistent revenues. These strategies include triple net leases, sale & leaseback transactions, and preferred equity deals.
$LTC pays a regular monthly dividend and has a yield of 6.38%.
8. Realty Income Corporation ($O)
Realty Income is a REIT that focuses on the tried-and-true area of commercial real estate. The company’s portfolio centres on retail properties but spans dozens of industries.
Realty Income takes pride in its monthly dividend payment, even calling itself ‘The Monthly Dividend Company.’ This should give investors confidence that management will seek to maintain consistent payouts.
The firm’s current dividend yield is 5.59%.
Check out our list of the best U.S. REITs dividend stocks where Realty Income Corp is also featured.
🆚 Compare O vs STAG stock comparison→
9. SL Green ($SLG)
Although SL Green flies under the radar, the company is a major player in one of the most lucrative real estate markets in the world: Manhattan office space. As a REIT, SL Green owns a portfolio spanning some of New York’s most iconic locations, including Park Avenue and Madison Avenue.
SL Green has a history of monthly dividend payouts, and the firm’s relatively larger size should offer investors more stability.
The stock’s current dividend yield is 5.36%.
10. Stag Industrial, Inc. ($STAG)
Stag Industrial is a REIT that focuses on the acquisition and operation of single-tenant industrial properties. The company’s portfolio includes warehouses, distribution centres, and light manufacturing facilities across the United States.
While industrial real estate isn’t as flashy as office or residential, the leasing revenue can be lucrative and stable.
STAG pays out much of its income to shareholders in a regular monthly dividend, with a current yield of 4.10%.
How to invest in monthly dividend stocks
To earn these consistent monthly dividends, you’ll need to use an investment platform with access to Wall St. Follow our step-by-step guide below:
1. Find a stock investing platform
To invest in monthly dividend stocks, find an investing platform that offers access to exchanges like the NYSE and Nasdaq. There are several share investing platforms available, of which Stake is one.
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2. Fund your account
Next, open an account by completing an application with your personal and financial details. You’ll then need to fund your account with a bank transfer, debit card, or even Apple/Google Pay.
3. Search for the asset
Find the company name or ticker symbol. Always conduct your own research to ensure that the investment is suited to your risk tolerance and financial goals.
4. Set a market or limit order and buy the shares
You can buy stock almost instantly at the current price by using a market order during the trading day. Alternatively, enter a limit order to purchase your stock when it reaches a specific price. Consider dollar cost averaging to spread out your risk, which involves buying at consistent intervals.
5. Monitor your investment
Once you own the security, monitor its performance over time. Check your portfolio regularly to ensure that the company’s dividend payouts remain aligned with your financial goals.
Is it a good strategy to buy stocks that pay dividends each month?
Investing in dividend stocks can be a good strategy for many investors, but it ultimately depends on your financial goals, risk tolerance, and investment preferences.
As with any investment strategy, it's crucial to conduct thorough research and consider your individual circumstances, goals, & risk tolerance.
Here are all the key points to consider:
Things to consider before investing in monthly dividend stocks
Income generation | These types of stocks can provide a consistent stream of income, making them attractive for investors seeking regular cash flow. If you're looking to supplement your income or rely on dividends for living expenses, monthly recurring dividend stocks can be beneficial. |
Dividend growth | Some companies increase their dividends over time, allowing investors to benefit from growing payouts. These companies often have a track record of stable earnings and a commitment to returning profits to shareholders. Dividend growth stocks can provide both income and the potential for capital appreciation. |
Long-term stability | Dividend-paying companies are often well-established and financially stable. They tend to be more resilient during market downturns, as their regular cash flow can help cushion the impact of market volatility. Dividends can add an element of stability to your investment earnings. |
Reinvestment opportunities | Dividends can be reinvested to purchase more shares, compounding your investment over time and potentially accelerating your long-term returns. |
Risk tolerance | Dividend stocks are still subject to market risks, but their regular payouts can help buffer this price fluctuation. If you have a low tolerance for market volatility or prefer a more conservative approach, these stocks may align with your risk profile. |
Income tax implications | Dividends are generally taxable, so you need to consider the tax implications of investing in these types of companies. Different tax rules apply depending on your jurisdiction and the type of account (e.g., taxable brokerage account vs. tax-advantaged retirement account). |
Growth potential | Some companies reinvest their earnings into expanding their operations rather than paying dividends. If you're seeking significant capital appreciation or prefer companies focused on growth, you might prefer non-dividend-paying stocks or other investment strategies. |
Diversification | It's important to maintain a diversified investment portfolio. Relying solely on dividend stocks may lead to overexposure to specific sectors or industries. Ensure you diversify across different asset classes and consider your overall investment objectives. |
What monthly dividend ETFs are available to invest in?
There are several monthly dividend ETFs available for investors to consider. Remember that some of these funds use derivative-enhanced strategies to enhance income, so ensure you research the potential risks before investing:
- Global X SuperDividend® REIT ETF ($SRET): SRET is an exchange-traded fund that focuses on real estate investment trusts (REITs) with high dividend yields. It seeks to provide exposure to a global portfolio of REITs that offer attractive income potential. The ETF follows the Solactive Global SuperDividend REIT Index and has a 30-day yield of 8.81%.
- Global X SuperDividend® ETF ($SDIV): SDIV is similar to its sister fund SRET, but focuses on companies across various sectors. This can offer superior industry diversification as opposed to focusing purely on real estate. SDIV tracks the Solactive Global SuperDividend Index and has a 30-day yield of 9.76%.
- JPMorgan Equity Premium Income ETF ($JEPI): JEPI is an ETF that seeks to provide exposure to equity securities while generating an options-enhanced dividend yield. The fund employs a strategy that involves writing covered call options on a portion of its portfolio to increase the yield. JEPI aims to track the CBOE S&P 500 Dividend Aristocrats BuyWrite Index and has a 30-day yield of 7.19%.
💡Related: Are these the best ASX dividend stocks?→
💡Related: Top 10 Dividend ETFs on ASX→
Monthly dividend U.S. stocks FAQs
Whether or not investing in monthly dividend stocks is a good strategy depends on your investment goals, risk tolerance and investment time horizon.
For investors looking for stable companies that offer a consistent and predictable return stream, dividend stocks could be suitable. On the other hand, investors who want companies to reinvest their earnings to maximise business growth and capital appreciation may not benefit from dividend payments.
It’s also worth keeping in mind that monthly dividend payments are less common than quarterly dividend payments. If you’re searching for dividend-paying stocks in general, you’ll find more companies paying out income just four times per year.
Finding monthly dividend stocks under $5 can be challenging, as most stocks with low prices may not offer monthly dividends.
However, one option could be Oxford Square Capital Corp ($OSXQ), which currently has a share price of US$2.69.
$OXSQ is a BDC providing financing to smaller firms and has a dividend yield of 15.61%.
In addition to Oxford Square, here are two more examples of monthly dividend stocks with prices currently under US$10:
- PennantPark Investment Corporation ($PNNT) is a BDC primarily focused on providing lending opportunities to support private equity sponsors. The firm’s stock trades at $6.99, making it an affordable way to access monthly dividends. PennantPark currently has a dividend yield of 13.73%.
- Prospect Capital Corporation ($PSEC) is a BDC with a portfolio comprising senior debt securities. The firm’s stock trades at $4.30 and has a dividend yield of 12.56% with monthly payouts.
Disclaimer
The information contained above does not constitute financial product advice nor a recommendation to invest in any of the securities listed. Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation and particular needs. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.
Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.
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