Last updated: July 25, 2019
Most investors are accustomed to receiving quarterly payouts from their dividend-paying securities, but there are opportunities to generate current income on a more frequent basis: monthly dividend stocks.
There are more than 700 securities that follow a monthly payout schedule and warrant a closer look from yield-seeking investors. Monthly dividend securities provide risk-adjusted returns and diversification benefits that can boost your portfolio over the long haul.
Stay up to date with the highest-yielding stocks and their latest ex-dividend dates on our High Dividend Stocks by Yield page.
Reliable Monthly Dividend Plays
For the purpose of this article, we are only focussing on common stocks, ADRs, REITs, royalty trusts and MLPs.
To ensure a reliable track record, we have only considered stocks with at least 5 years of consecutive dividend payouts. We have also screened out firms with a market capitalization of less than $250 million to make sure they have sizable operations to generate cash flows and support the monthly payouts. The stocks in the list have at least 3.5% of annualized dividend yield.
Below we present the list of top 12 reliable stocks, sorted by descending dividend yields.
| Tickers | Name | Security Type | Market Cap ($ Bn) * | Div Yield * | Payout Ratio | Dividend Growth Years | Annualized Payout ($) |
|---|---|---|---|---|---|---|---|
| ORC | Orchid Island Capital Inc. | REIT | 0.38 | 14.18% | 64.40% | 0 | 0.96 |
| AGNC | AGNC Investment Corp. | REIT | 9.37 | 11.02% | 78.70% | 0 | 1.92 |
| ARR | ARMOUR Residential REIT Inc. | REIT | 1.11 | 10.90% | 83.30% | 0 | 2.04 |
| PBT | Permian Basin Royalty Trust | Royalty Trust | 0.26 | 9.65% | 100% | 2 | 0.48 |
| CLDT | Chatham Lodging Trust | REIT | 0.87 | 7.06% | 68.80% | 0 | 1.32 |
| GOOD | Gladstone Commercial | Common Equity | 0.67 | 7.05% | 94.30% | 0 | 1.50 |
| EPR | EPR Properties | REIT | 5.68 | 5.99% | 74.50% | 8 | 4.50 |
| MAIN | Main Street Capital Corp. | Common Equity | 2.61 | 5.91% | 97.20% | 8 | 2.46 |
| LTC | LTC Properties | REIT | 1.86 | 4.93% | 75.70% | 0 | 2.28 |
| STAG | STAG Industrial, Inc. | REIT | 3.81 | 4.72% | 79.90% | 8 | 1.43 |
| SBR | Sabine Royalty Trust | Royalty Trust | 0.67 | 4.58% | 100% | 2 | 2.12 |
| O | Realty Income Corp. | REIT | 21.93 | 3.92% | 85.50% | 23 | 2.72 |
The following graph shows how the monthly payout of the 12 stocks varied in the recent past.
The Bottom Line
Income investors have a lot to gain by incorporating monthly dividend plays in their portfolio. Consistent dividend growers provide stability and steady growth over the long haul, helping you create a more risk-adjusted portfolio. To find more of the best monthly dividends stocks, check out our entire list of monthly dividend stocks.
Check out our Best Dividend Stocks page.
