10 U.S. stocks that pay monthly dividends
Many investors wish to have monthly passive income through dividend investing. This can be achievable by finding companies that pay dividends on a monthly cycle. We've done the hard work for you here and listed 10 U.S. stocks that pay monthly dividends.
Finding companies that pay dividends monthly may seem like a no-brainer, so you think to yourself "Why isn't this a strategy that every investor follows?".
It's no secret that generating recurring passive income is a solid opportunity but some of the companies with a regular payout cycle can be more niche and therefore more risky. For those who are looking for consistent monthly income from their investments, this list of monthly dividend stocks is a great place to start.
Top 10 monthly dividend stocks from the U.S.
Year to Date
Realty Income Corporation
Main Street Capital Corporation
Stag Industrial, Inc.
Pembina Pipeline Corp
Apple Hospitality REIT, Inc.
AGNC Investment Corp.
Gladstone Investment Corporation
Reaves Utility Income Fund
Data as of 16 May 2023.
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Watch these 10 U.S. stocks that pay dividends monthly
1. Realty Income Corporation ($O)
Market Capitalisation: US$40.83b
Dividend yield: 4.94%
Stock price (as of 16/05/2023): US$60.70
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 77% / 23%
Realty Income is a real estate investment trust (REIT) that owns and leases commercial properties. With a focus on retail properties, it has a diverse portfolio spanning various industries. The company's unique selling proposition is its monthly dividend payment, which has earned it the nickname "The Monthly Dividend Company." Realty Income primarily enters long-term net lease agreements, providing stable cash flow and potential rental escalations over time.
🆚 Compare O vs STAG stock comparison→
2. Main Street Capital Corporation ($MAIN)
Market Capitalisation: US$3.16b
Dividend yield: 6.83%
Stock price (as of 16/05/2023): US$39.31
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 72% / 28%
Main Street Capital is a business development company (BDC) that provides customised debt and equity financing solutions to lower middle-market companies. It aims to support growth, acquisitions, recapitalisations, and other corporate purposes. MAIN has a diversified investment approach across various industries and focuses on private debt investments, which can generate consistent income and potential capital appreciation.
3. Stag Industrial, Inc. ($STAG)
Market Capitalisation: US$6.22b
Dividend yield: 4.22%
Stock price (as of 16/05/2023): US$34.66
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 66% / 34%
Stag Industrial is a REIT that focuses on the acquisition and operation of single-tenant industrial properties. Its portfolio includes warehouses, distribution centres, and light manufacturing facilities across the United States. STAG aims to generate stable and growing rental income by leasing to tenants in diverse industries and locations. The company's strategy is to provide long-term, triple-net leases, where tenants are responsible for property expenses, resulting in more predictable income and cash flow.
🆚 Compare STAG vs EPR stock comparison→
4. Pembina Pipeline Corporation ($PBA)
Market Capitalisation: US$23.43b
Dividend yield: 6.09%
Stock price (as of 16/05/2023): US$31.47
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 48% / 52%
Pembina Pipeline is an energy infrastructure company that owns and operates pipelines and facilities for the transportation and storage of oil and gas. The company's pipeline network spans across key energy-producing regions in North America, providing a critical link between producers and end-users. PBA aims to generate stable cash flows from long-term contracts and fee-based services, contributing to its ability to pay monthly dividends.
5. EPR Properties ($EPR)
Market Capitalisation: US$3.16b
Dividend yield: 7.87%
Stock price (as of 16/05/2023): US$41.89
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 75% / 25%
EPR Properties is a REIT that invests in properties in the entertainment, recreation, and education sectors. Its portfolio includes movie theatres, recreational facilities, charter schools, and experiential real estate assets. EPR aims to generate stable rental income by leasing to tenants in these sectors and focuses on properties that provide unique experiences and are difficult to replicate, positioning itself as a specialised player within the broader REIT market.
6. Apple Hospitality REIT, Inc. ($APLE)
Market Capitalisation: US$3.50b
Dividend yield: 6.27%
Stock price (as of 16/05/2023): US$15.32
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 76% / 24%
Apple Hospitality REIT is a lodging REIT that owns and operates a portfolio of upscale, select-service hotels. Its properties are affiliated with recognised hotel brands and are located in markets across the United States. APLE focuses on providing comfortable accommodations and excellent customer service to attract both business and leisure travellers, aiming to generate revenue from room rentals and other hotel amenities.
7. AGNC Investment Corp. ($AGNC)
Market Capitalisation: US$5.36b
Dividend yield: 15.79%
Stock price (as of 16/05/2023): US$9.02
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 70% / 30%
AGNC Investment Corp. is a mortgage REIT that primarily invests in agency mortgage-backed securities (MBS). It generates income from the interest spread between its borrowing costs and the yield on its MBS investments. AGNC focuses on residential mortgage securities guaranteed by government-sponsored entities like Fannie Mae and Freddie Mac. The company aims to provide attractive risk-adjusted returns through a disciplined investment approach and active management of its MBS portfolio.
8. Whitestone REIT ($WSR)
Market Capitalisation: US$410m
Dividend yield: 5.67%
Stock price (as of 16/05/2023): US$8.32
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 73% / 27%
Whitestone REIT is a REIT that owns and operates community-centred properties in major markets across the United States. Its properties are primarily neighbourhood and community shopping centres that serve local businesses and communities. WSR aims to create vibrant retail destinations by curating a mix of tenants that cater to the needs of the surrounding neighbourhoods. The company focuses on fostering long-term tenant relationships and driving foot traffic to its properties.
9. Gladstone Investment Corporation ($GAIN)
Market Capitalisation: US$431m
Dividend yield: 7.37%
Stock price (as of 16/05/2023): US$12.87
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 50% / 50%
Gladstone Investment Corporation is a business development company (BDC) that specialises in providing debt and equity financing to lower middle-market companies. It focuses on supporting acquisitions, growth capital, and recapitalisation. GAIN aims to generate income from its investment portfolio and distributes monthly dividends to its shareholders.
10. Reaves Utility Income Fund ($UTG)
Market Capitalisation: US$2.05b
Dividend yield: 6.71%
Stock price (as of 16/05/2023): US$28.12
Stake Platform Bought / Sold (1 Jan 2023 - 16 May 2023): 86% / 14%
Reaves Utility Income Fund is a closed-end fund that invests in companies within the utility sector. The fund primarily focuses on investing in electric, gas, and water utilities, as well as other energy-related companies. UTG aims to provide a high level of after-tax income and capital appreciation. It pays monthly dividends to its shareholders, reflecting the income generated by its utility investments.
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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, consider your individual circumstances, your goals and risk tolerance. Here are all the key points to consider:
Things to consider before investing in monthly dividend stocks
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 reoccuring dividend stocks can be beneficial.
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.
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 provide a sense of stability to your investment portfolio.
Dividends can be reinvested to purchase more shares, compounding your investment over time and potentially accelerating your long-term returns.
Dividend stocks are still subject to market risks, and their prices can fluctuate. 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, tax-advantaged retirement account).
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 may consider non-dividend-paying stocks or other investment strategies.
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. Here are three examples:
- 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. The fund aims to pay monthly dividends to investors, making it suitable for those seeking regular income.
- Global X SuperDividend® ETF ($SDIV): SDIV is an exchange-traded fund that focuses on high dividend-yielding global companies across various sectors. The ETF seeks to provide exposure to a diversified portfolio of 100 equally weighted companies with strong dividend track records. It follows the Solactive Global SuperDividend Index. The fund aims to pay dividends each month to its shareholders, making it suitable for those looking for steady income from their investments.
- JPMorgan Equity Premium Income ETF ($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 enhance the yield potential. JEPI aims to track the CBOE S&P 500 Dividend Aristocrats BuyWrite Index. This ETF generally pays dividends on a monthly basis, providing investors with regular income potential.
Monthly dividend U.S. stocks FAQs
What monthly dividend stocks under $5 are there?
Finding monthly dividend stocks under $5 can be challenging, as most stocks with low prices may not offer monthly dividends. However, Chimera Investment Corporation is an example of a stock that has historically paid monthly dividends and is currently under $5 (as of 16 May 2023).
Chimera Investment Corporation ($CIM) is a real estate investment trust (REIT) that invests in residential mortgage-backed securities, real estate-related securities, and various other asset classes. CIM has paid monthly dividends in the past, primarily generated from the interest income earned from its investment portfolio.
What monthly dividend stocks under $10 are there?
Monthly dividend stocks are still hard to find under $10, but there are more companies to choose from. Here are two examples:
- Gladstone Capital Corporation ($GLAD): Gladstone Capital Corporation is a BDC that invests in debt and equity securities of small and medium-sized businesses. The company provides financing solutions to support growth, acquisitions, and recapitalisations. GLAD aims to generate income from its investment activities and distributes monthly dividends to its shareholders.
- MFA Financial, Inc. ($MFA): MFA Financial is a real estate investment trust (REIT) that primarily invests in residential mortgage-backed securities. The company also acquires mortgage loans and other real estate-related assets. MFA generates income from the interest and principal payments on its mortgage investments. The company has a history of paying monthly dividends to its shareholders. While the stock price of MFA has fluctuated, it has had periods where it traded below $10 (as of 16 May 2023 the MFA share price is US$10.24).
This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing.
Stella is a markets analyst and writer with almost a decade of investing experience. With a Masters in Accounting from the University of Sydney, she specialises in financial statement analysis and financial modelling. Previously, she worked as an equity analyst at Australian finance start-up, Simply Wall St, where she took charge of the market insights newsletter sent out to over a million subscribers. At Stake, Stella has been key to producing the weekly Wrap articles and social media content.