- Monthly dividend stock is popular with income investors because it makes it easier to plan expenses in line with portfolio income.
- Most companies that pay dividends monthly are REITs, BDCs, and energy sector representatives. These are businesses that are highly dependent on interest rates, market cycle phases, and other factors.
- When dividend investing for retirement income, attention should be paid not only to dividend yield, but also to dividend safety.
- Most stocks that offer monthly payments are highly volatile assets. The amount of their dividends is also unstable.
In this article, we will discuss the principles and strategies behind high yield monthly dividend portfolio investing. We will also present a list of the best monthly dividend stocks and provide an analysis of each of the 75 companies that pay monthly dividends.
Table of Contents
Why Monthly Dividend Stocks Matter for Income Planning
Most everyday expenses, such as bill payments, tend to be regular. Assets that generate monthly cash flow make income planning and expense management simpler.
Income investors often incorporate monthly dividend stocks into their retirement planning. The income generated from these assets can supplement pension payments, Social Security and other sources of income. Yearly and quarterly dividends can also fulfil this purpose. They can be viewed as lumpy income over several months. However, the less frequently dividend payments are made, the more challenging it becomes to plan for dividend scheduling.
| Ticker | Name | Industry | Dividend Yield | Safety |
| ORC | Orchid Island Capital | Mortgage REITs | 20.40% | Dangerous |
| OXSQ | Oxford Square Capital | Asset Management and Custody Banks | 18.03% | Carefully |
| ARR | ARMOUR Residential REIT | Mortgage REITs | 17.48% | Dangerous |
| HRZN | Horizon Technology Finance | Asset Management and Custody Banks | 16.38% | Very Dangerous |
| DX | Dynex Capital | Mortgage REITs | 16.28% | Safe |
| EARN | Ellington Credit Company | 16.03% | Dangerous | |
| PSEC | Prospect Capital | Asset Management and Custody Banks | 15.93% | Very Dangerous |
| AGNC | AGNC Investment | Mortgage REITs | 15.57% | Carefully |
| PNNT | PennantPark | Asset Management and Custody Banks | 13.19% | Very Dangerous |
| EFC | Ellington Financial | Mortgage REITs | 11.88% | Very Dangerous |
| PFLT | PennantPark Floating Rate Capital | Asset Management and Custody Banks | 11.46% | Safe |
| PRT | PermRock Royalty Trust | Oil and Gas Production | 10.90% | Dangerous |
| SCM | Stellus Capital | Asset Management and Custody Banks | 10.72% | Very Dangerous |
| CRLFF | Cardinal Energy Ltd. | Oil and Gas Production | 10.08% | Safe |
| CRT | Cross Timbers Royalty Trust | Oil and Gas Production | 9.37% | Carefully |
| TBCRF | Timbercreek Financial Corporation | Real Estate Financing | 8.92% | Safe |
| GOOD | Gladstone Commercial | Diversified REITs | 8.79% | Carefully |
| BREUF | Bridgemarq Real Estate Services | Real Estate Services | 8.67% | Safe |
| FRMUF | Firm Capital Property Trust | Diversified REITs | 8.49% | Very Dangerous |
| BEVFF | Diversified Royalty Corp. | Automotive Retail | 8.47% | Dangerous |
| MDV | Modiv Industrial | Diversified REITs | 8.18% | Very Dangerous |
| SRRTF | Slate Grocery REIT | Retail REITs | 8.17% | Safe |
| FRHLF | Freehold Royalties Ltd. | Oil and Gas Production | 8.04% | Very Dangerous |
| AMIVF | Atrium Mortgage Investment Corporation | Real Estate Financing | 7.76% | Very safe |
| APLE | Apple Hospitality | Hotel and Resort REITs | 7.78% | Carefully |
| SBR | Sabine Royalty Trust | Oil and Gas Production | 7.63% | Safe |
| WCPRF | Whitecap Resources | Oil and Gas Production | 7.36% | Very Dangerous |
| ZPTAF | Surge Energy | Oil and Gas Production | 7.49% | Dangerous |
| CWYUF | SmartCentres Real Estate Investment Trust | Retail REITs | 7.26% | Very Safe |
| NWHUF | NorthWest Healthcare Properties Real Estate Investment Trust | Health Care REITs | 7.27% | Dangerous |
| PEYUF | Peyto Exploration & Development Corp. | Oil and Gas Production | 6.80% | Dangerous |
| GLAD | Gladstone Capital Corporation | Asset Management and Custody Banks | 6.85% | Dangerous |
| GAIN | Gladstone Investment Corporation | Asset Management and Custody Banks | 6.81% | Very Safe |
| BPZZF | Boston Pizza Royalties Income Fund | Restaurants | 6.76% | |
| DOC | Healthpeak Properties | Health Care REITs | 6.66% | Safe |
| FNLIF | First National Financial Corporation | Real Estate Financing | 6.59% | Very safe |
| SILA | Sila Realty Trust | Health Care REITs | 6.52% | |
| LTC | LTC Properties | Health Care REITs | 6.51% | Very Safe |
| RIOCF | RioCan | Retail REITs | 6.52% | Unsafe |
| EPR | EPR Properties | Other Specialized REITs | 6.03% | Very Safe |
| KRIUF | Keg Royalties Income Fund | Restaurants | 5.97% | |
| CGIFF | Chemtrade Logistics Income Fund | Commodity Chemicals | 5.96% | Very Dangerous |
| PZRIF | Pizza Pizza Royalty Corp. | Restaurants | 5.94% | Very safe |
| DREUF | Dream Industrial Real Estate Investment Trust | Industrial REITs | 5.92% | Dangerous |
| MLLGF | Mullen Group Ltd. | Cargo Ground Transportation | 5.89% | Dangerous |
| CTRRF | CT Real Estate Investment Trust | Retail REITs | 5.81% | Safe |
| O | Realty Income | Retail REITs | 5.72% | Very Safe |
| PMREF | Primaris Real Estate Investment Trust | Retail REITs | 5.74% | Very Dangerous |
| LAND | Gladstone Land | Other Specialized REITs | 5.44% | Dangerous |
| PPRQF | Choice Properties Real Estate Investment Trust | Retail REITs | 5.22% | Very dangerous |
| SLG | SL Green Realty | Office REITs | 5.13% | Dangerous |
| NPIFF | Northland Power | Renewable Electricity | 5.16% | Safe |
| HRUFF | H&R Real Estate Investment Trust | Diversified REITs | 4.95% | Dangerous |
| LWSCF | Sienna Senior Living | Health Care Facilities | 4.94% | Safe |
| MAIN | Main Street Capital | Asset Management and Custody Banks | 4.75% | Very Safe |
| BBD | Banco Bradesco S.A. | Diversified Banks | 4.74% | Safe |
| WSR | Whitestone REIT | Retail REITs | 4.34% | Very Dangerous |
| ADC | Agree Realty | Retail REITs | 4.29% | Safe |
| BSRTF | BSR Real Estate Investment Trust | Multi-Family Residential REITs | 4.26% | Very Dangerous |
| STAG | STAG Industrial | Industrial REITs | 4.18% | Carefully |
| RPKIF | Richards Packaging Income Fund | Metal, Glass and Plastic Containers | 4.16% | |
| EIFZF | Exchange Income Corporation | Passenger Airlines | 3.96% | Very safe |
| EXETF | Extendicare | Health Care Facilities | 3.89% | Very dangerous |
| GROW | U.S. Global Investors | Asset Management and Custody Banks | 3.64% | Dangerous |
| PECO | Phillips Edison | Retail REITs | 3.52% | Carefully |
| CDPYF | Canadian Apartment Properties Real Estate Investment Trust | Multi-Family Residential REITs | 3.43% | Unsafe |
| MHCUF | Flagship Communities Real Estate Investment Trust | Housing REITs | 3.29% | Dangerous |
| FTCO | Fortitude Gold Corporation | Gold | 3.33% | |
| TNEYF | Tamarack Valley Energy Ltd. | Oil and Gas Production | 3.03% | Carefully |
| GWRS | Global Water Resources | Water Utilities | 3.00% | Carefully |
| PRMRF | Paramount Resources Ltd. | Oil and Gas Production | 2.82% | Safe |
| PBT | Permian Basin Royalty Trust | Oil and Gas Production | 2.78% | Safe |
| SISXF | Savaria Corporation | Industrial Machinery and Components | 2.70% | Very safe |
| BIRDF | Bird Construction | Construction and Engineering | 2.55% | Very safe |
| PIFYF | Pine Cliff Energy Ltd. | Oil and Gas Production | 2.00% | Unsafe |
| ITUB | Itaú Unibanco Holding S.A. | Diversified Banks | 1.64% | Unsafe |
Understanding the Monthly Dividend Landscape: Sectors and Concentration
The main drawback of a monthly income dividend portfolio is the issue of sector diversification, particularly the high REIT sector concentration. Of the 75 companies in the portfolio, 32 are real estate investment trusts (REITs). Many REITs pay monthly because their income is usually predictable and received on a monthly basis. These are primarily mortgage REITs.
The list also includes healthcare REITs, as well as REITs that own industrial properties, residential properties and retail properties. Most operate under a triple-net lease model, whereby tenants are responsible for paying taxes, insurance, and property maintenance costs.
Among the companies paying monthly dividends, there are 10 business development companies (BDCs), as well as 12 representatives from the Oil and Gas Production sector. These are primarily businesses that generate income through royalties.
The Top-Tier Monthly Dividend Stocks: Premium Quality Picks
Let’s take a look at the five best monthly dividend stocks. This list features companies that offer the most stable dividends and have the highest safe dividend scores.
Realty Income (O) is the only monthly dividend stock that holds the status of a dividend aristocrat. Its dividend growth history spans 56 years. It is one of the most reliable stocks in the US stock market, as confirmed by its investment grade credit rating (A- by Standard & Poor’s). The stock offers attractive dividend yields of 5.67%.
Its main advantage is its resilience during recessions. Thanks to its tenant management scheme and real estate portfolio, it has managed to maintain occupancy rates above 96%, even during the crises of 2008 and 2020.
STAG Industrial (STAG) specializes in single-tenant properties, primarily manufacturing facilities. Consequently, this REIT is considered cyclical. The company also owns warehouses and distribution centers. Its credit rating is BBB by Fitch Ratings. The dividend yield is 7.05%.
Main Street Capital (MAIN) falls within the ambit of business development companies. It earns income by providing debt capital to middle-market companies in sectors such as industrial goods, healthcare, manufacturing and services. First-lien loans form the core of Main Street Capital’s investment portfolio. The company also offers equity participation. The forward dividend yield is 6.58%.
Agree Realty (ADC) owns around 2,000 retail properties, including grocery stores and shopping centers. The company’s strengths lie in its partnerships with major retailers such as Walmart, Kroger, and Lowes. The company has increased its dividends for 13 consecutive years. The forward dividend yields are 4.33%.
Savaria Corporation (SISXF) is a manufacturer and seller of mobility and patient transfer equipment. Its product range includes elevator lifts, stairlifts and medical beds, as well as vehicle refurbishment for people with disabilities. Savaria’s operations are conducted in North America, Europe and Asia. Savaria pays dividends with a forward yield of 3.21%.
High-Yield Monthly Dividend Opportunities: REITs and Specialized Sectors
This section features stocks offering a high dividend yield and a reasonable level of risk.
Slate Grocery REIT (SRRTF) owns and operates grocery-anchored shopping centers and essential goods stores. The company’s tenants are not affected by economic cycles. The dividend payout ratio is 9.46%.
LTC Properties (LTC) is a senior housing REIT. Three-quarters of the company’s income comes from rent paid by nursing homes and skilled nursing facilities. Given demographic trends, growth in tenant profits can be expected. LTC has increased its dividends for 22 consecutive years and could be added to the list of dividend aristocrats within a few years. The company is giving a 6.51% profit to its investors.
NorthWest Healthcare Properties REIT (NWHUF) specialises in healthcare properties, including hospitals and medical office buildings. The company’s strength lies in its long-term, indexed triple-net leases. The forward dividend yielding for shareholders is 7.27%.
Protective sectors also include companies that focus on industrial warehouses and e-commerce fulfillment operations. One such company is Dream Industrial REIT (DREUF), which owns over 250 income-producing properties, primarily logistics infrastructure such as warehouses and distribution centers. This stock offers dividends with an attractive yield of 5.92%.
Apple Hospitality REIT (APLE) invests in hotels operating under the Marriott and Hilton brands. While they have good geographic diversification, the amount of distributable income depends entirely on occupancy rates. This led to a sharp reduction in dividends in 2020-21. Another drawback is the lease conditions: APLE is responsible for all property operating expenses while paying management fees to Marriott and Hilton. The company is giving its investors 7.78% of its profits.
Ellington Credit Company (EARN) specializes in CLOs (collateralized loan obligations). Its portfolio mainly consists of mezzanine and equity debt tranches. The company was previously a mortgage REIT, but shifted its focus in 2024. EARN provides shareholders with 16% yield payments.
SL Green Realty (SLG) is an office REIT and the largest landlord in Manhattan. Its strengths include investment-grade clients and long-term contracts, while its weaknesses include the growing popularity of remote working. The company is paying 5.13% to its investors.
Business Development Companies: High-Yield Lending Specialists
Business development companies operate in middle-market lending and below-investment-grade markets. They primarily work with businesses that lack sufficient bank financing. The core of most BDCs’ portfolios are real estate secured loans and other collateralized debt obligations. However, such companies can also act as private equity sponsors. They utilize equity securities to increase net investment income.
BDCs distribute most of their profits as dividends, enabling them to avoid corporate tax. Interest income is the main source of funding for monthly payments of dividends. Supplemental dividends may be paid when they receive spillover income from equity investments.
Gladstone Investment (GAIN) has a portfolio that is 85% composed of debt obligations from companies capable of withstanding a recession and achieving stable growth. The predominance of long-term secured loans has enabled GAIN to increase its dividends for the past 14 years, while maintaining a high dividend safety rating. The company is paying 6.81% to its investors.
PennantPark (PFLT) primarily works with small businesses operating in fast-growing industries. The company provides funding through floating-rate loans and equity investments. Its focus on non-cyclical sectors helps to reduce credit risk. Although PFLT has paid dividends for 13 consecutive years, its 10Y CAGR is only 1.31%. This is because the company focuses on maximising current income rather than capital appreciation. The forward distribution yield is 11.46%.
Oxford Square Capital (OXSQ) is one of the highest-yielding monthly dividend stocks, offering an 18.38% return. However, investing in it requires caution: the size of the payout is unstable and the stock price has been falling for five years. This is due to the company’s aggressive investment strategy, which focuses on CLO equity and debt obligations backed by secondary collateral.
Prospect Capital (PSEC) is a BDC offering high dividend yields of 16.27%. However, its safety rating is low due to weaknesses including external management leading to additional expenses and a low level of secured loans in its portfolio.
Horizon Technology Finance (HRZN) offers a high-yielding monthly dividend. These are at 16.38%. However, there is high risk. The company is an expert in providing venture capital and debt financing at the earliest stages of business development, with a particular focus on the technology and life sciences sectors. While the yield on HRZN’s loan investments exceeds 10%, such investments are associated with high risk.
Gladstone Capital Corporation (GLAD) primarily works with small businesses, mainly providing first- and second-lien secured loans. The company also engages in buyouts of private equity stakes. Its forward dividend payout is 8.79%.
Stellus Capital (SCM) also focuses on small businesses and, to reduce credit risk, SCM’s management uses floating-rate loans and penalties for early repayment. Over 80% of its portfolio consists of secured loans that are backed by collateral. Although the company’s stock prices are more stable than those of many of the companies mentioned above, there is still a risk of dividend reduction. Its current yield is 10.72%.
Conservative BDC Strategies and Risk Management
Many BDCs work with small businesses, which is associated with high levels of credit risk. To mitigate this risk, company management uses:
- first-lien secured debt;
- broad portfolio diversification;
- conservative leverage;
- thorough assessment of the credit quality of the financed businesses.
Private equity backing also supports dividend stability by providing additional income.
BDCs typically have low dividend coverage ratios due to legislative requirements. In order to remain a regulated investment company, they must distribute 90% of their taxable income.
Mortgage REITs: Ultra-High Yields with Higher Risk
Mortgage REITs invest in residential mortgage-backed securities, including agency MBS. These companies use their own capital as well as leverage through repo funding. They make a profit from the difference between the income generated by mortgage lending and the borrowing costs, including hedging gains and losses.
Consequently, many mortgage REITs exhibit high interest rate sensitivity and are vulnerable to yield curve risk. This is because they issue long-term loans while financing them with short-term borrowings. When interest rates rise, their profits decline, and when rates fall, their profits increase. This leads to high dividend volatility.
With a yield of about 20%, Orchid Island Capital (ORC) has the highest yield among the best monthly dividend stocks. However, it has a low dividend safety rating. The company invests in residential mortgage-backed securities (RMBS), primarily loans for single-family homes.
ARMOUR Residential REIT (ARR) also specializes in residential real estate. The company invests in RMBS issued and guaranteed by government-sponsored entities, such as Fannie Mae, Freddie Mac and Ginnie Mae. With a monthly return of 17% and a dividend safety rating higher than ORC’s, ARR ranks third among high-yield stocks.
Dynex Capital (DX) primarily invests in agency mortgage-backed securities with both fixed and floating rates. Its portfolio also comprises other types of private and government-supported mortgage assets. The company operates in the residential and commercial real estate sectors.
AGNC Investment (AGNC) generates interest income from long-term, highly liquid mortgage agency securities. These assets are guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. The company’s mission is to increase opportunities for homeownership. Currently, its forward yield exceeds 15%, which is similar to DX.
Ellington Financial (EFC) is a hybrid mortgage REIT. Of the companies presented in this section, it has the most diversified portfolio and the lowest yield curve shift risk. The company invests in government-guaranteed RMBS for principal and interest payments. As well as residential and commercial mortgages, EFC works with secured debt obligations and non-mortgage securities. However, its expected dividend yielding is lower at 11.8%.
Industrial and Logistics REITs: E-Commerce Growth Story
Logistics REITs benefit from the growth of e-commerce. Their warehouse properties and logistics centers are essential for e-commerce fulfillment and the creation of efficient supply chains. They also play a key role in the so-called last-mile delivery, i.e. the final stage of transporting goods from distribution centers to consumers.
Industrial REITs own manufacturing facilities and other Amazon-proof properties, which will generate the same or greater profit if e-commerce demand increases further.
Gladstone Commercial (GOOD) invests in industrial buildings that are used as warehouses and distribution centres. Portfolio diversification is achieved through office spaces and a large number of tenants, nearly half of them being publicly traded companies. GOOD’s main weakness is its high level of leverage. Shareholders will receive an 8.79% dividend.
Modiv Industrial (MDV) is another diversified REIT that focuses strongly on manufacturing facilities. Long-term leasing is involved here, as it would be difficult and costly for tenants to move. Shareholders can expect dividends with an 8.18% yield.
Firm Capital Property Trust (FRMUF) has around 30 per cent of its assets in industrial properties. The company also works in the residential and commercial real estate sectors. Its stocks pay out 8.49% of their profits as a dividend.
Retail and Commercial REITs: Adapting to Changing Consumer Patterns
In recent years, retail REITs have had to find ways to boost their e-commerce resistance and maintain rental revenue. One strategy has been to focus on grocery-anchored shopping centers and necessity-based retail catering to consumers’ needs.
To mitigate risk, such companies utilize triple-net leases and agreements that include rental escalations. When selecting retail REIT stocks, it is important to consider occupancy rates and tenant credit quality.
Phillips Edison (PECO) has one of the lowest dividend yields at 3.6%. However, the company has increased its payouts for the last three years. This REIT owns retail properties, most of which are located in the Sun Belt region. Its main tenants are grocery stores and retailers of everyday necessities.
Whitestone REIT (WSR) specializes in shopping centers located in rapidly growing areas. Its tenants include grocery and household stores, as well as restaurants, beauty salons, entertainment venues and educational centers. The company pays dividends monthly, offering an annual yield of 4.25%.
Primaris REIT (PMREF) is a Canadian retail REIT which specializes exclusively in enclosed shopping malls. It owns over 10 properties. Compared to others in this sector, this company is more vulnerable to the challenges posed by e-commerce. The company is currently yielding 5.74% dividends.
Choice Properties REIT (PPRQF) owns and operates office, retail and industrial properties. Its main tenant is Loblaw, which occupies around 500 of the 700 properties owned by PPRQF. Its main retail formats include supermarkets, pharmacies and clothing stores. PPRQF pays 5.22% to its investors.
H&R Real Estate Investment Trust (HRUFF) is a Canadian REIT that manages commercial real estate, primarily office, retail and industrial buildings in the US and Canada. A small part of its portfolio consists of residential properties. A yield of 4.95% is offered by HRUFF’s stocks.
EPR Properties (EPR) manages experiential properties, such as cinemas, amusement parks and ski resorts, which cannot be replicated by e-commerce. However, the company is vulnerable to reductions in discretionary spending during periods of economic crisis. As of mid-July 2025, EPR is paying dividends with a forward yield of 6.03%.
Gladstone Land (LAND) owns agricultural land. Its tenants are highly creditworthy farms. The company is also interested in infrastructure, such as processing and packaging plants and refrigeration facilities. Its stocks generate passive income at a rate of 5.44%.
Healthcare and Senior Living REITs: Demographic Tailwinds
Healthcare REITs own and manage properties including senior housing and skilled nursing facilities. Companies that provide essential services to the elderly will benefit from demographic trends in the coming decades. The aging population, primarily the Baby Boomers, will drive increased demand for such real estate.
One important limiting factor for these companies is Medicare reimbursement regulation. Payment amounts are predetermined based on factors such as diagnosis, the type of service provided, and the geographic location. In 2020, healthcare REITs faced challenges related to COVID-19. It took several years for occupancy recovery and growth in net operating income.
Starting from April 2025, Healthpeak Properties (DOC) adopted a strategy of distributing dividends on a monthly basis. The company specializes in medical center spaces, research laboratories and senior housing. The company is set to benefit from an ageing population. However, it has reduced dividend payments several times over the past 10 years. At the moment, the company pays out 6.66% of its profits as a dividend.
Sienna Senior Living (LWSCF) manages retirement homes offering specialized medical services, such as memory care. The properties are located in Canada. It pays dividends with a yield of 4.94%, offering a fixed monthly payout of 0.08 CAD since 2013.
Extendicare (EXETF) is a Canadian company that provides elderly care services. It manages networks of care homes for the elderly, as well as providing home care and services within medical facilities. Since 2013, it has paid a set amount of 0.042 CAD every month. This means it has given a profit of 3.89% every month.
International and Canadian Monthly Dividend Stocks
Cross-border investing is associated with currency risk and the opportunity to gain international exposure. It is also important to remember the rules of foreign dividend taxation.
SmartCentres Real Estate Investment Trust (CWYUF) is a property company that operates shopping malls, residential buildings, and mixed-use complexes. It is one of the largest shopping mall operators in Canada. Many major tenants, such as Walmart, are interested in its properties. The yield is 7.3%.
RioCan REIT (RIOCF) offers a yield of 6.52%. This retail REIT derives more than half of its revenue from grocery retailers. The company also develops mixed-use properties combining different types of usage, such as retail and residential.
A key partner is CT REIT (CTRRF), which is affiliated with the Canadian Tire Corporation. This company sells essential goods and household products. However, its low tenant diversification is a weakness. The forward distribution yield is 5.81%.
BSR REIT (BSRTF) is a Canadian company listed on the Toronto Stock Exchange. It owns real estate mainly in the southern US states within the Sun Belt region. BSRTF’s focus is on multi-family residential properties. Its dividend payments have a forward yield of 4.26%.
Canadian Apartment Properties REIT (CDPYF) is another company that manages multi-family residential properties. Its real estate portfolio is distributed between Canada and the Netherlands. The downside is the low yield of 3.5%, but the company has paid dividends without reduction for 26 years.
Timbercreek Financial Corporation (TBCRF) is one of the highest-yielding Canadian REITs, offering monthly dividends. The company specializes in lending to income-producing real estate and offers more flexible terms than traditional banks. Its portfolio mainly consists of short-term loans rather than standard mortgages. The yield is 8.92%.
Diversified Royalty Corp. (BEVFF) generates top-line royalties in the US and Canada. These royalties are revenue-based and include brands such as Mr. Lube, Sutton, Mr. Mikes and Nurse Next Door, among others. BEVFF pays dividends with an 8.47% yield.
Bridgemarq Real Estate Services (BREUF) provides real estate sales tools and services through a franchise network that includes well-known brands such as Royal LePage, Via Capitale and Johnston & Daniel. Shareholders receive distributions offering an 8.67% yield.
Atrium Mortgage Investment Corporation (AMIVF) provides financing for the construction and purchase of commercial properties, as well as issuing mortgage loans for housing. AMIVF has not reduced its dividends for 13 years, and its current yield is 8.35%.
The Boston Pizza Royalties Income Fund (BPZZF) earns royalties from Boston Pizza restaurants, which offer casual dining options. The business is more sensitive to economic crises than fast food chains, and a dividend payment has a yield of 6.76%.
The Keg Royalties Income Fund (KRIUF) is a player in the restaurant royalties segment, owning The Keg Steakhouse, which offers premium lunches and provides shareholders with payments at a rate of 5.97%.
Pizza Pizza Royalty Corp. (PZRIF) depends on sales at Pizza Pizza and Pizza 73 restaurants, as it is excluded from direct costs. Its forward dividend yielding is 5.94%.
First National Financial Corporation (FNLIF) specializes in mortgage lending. Although its profits are sensitive to interest rates, it currently offers a relatively high dividend yielding of 6.59%.
Cardinal Energy Ltd. (CRLFF) focuses on low-decline oil assets. Most of its revenue comes from selling crude oil, natural gas and LNG in Alberta, British Columbia and Saskatchewan. The expected profit from dividends is 10%.
Freehold Royalties Ltd. (FRHLF) owns and manages oil and gas assets, mainly in Western Canada, with diversification through assets in the US, including the Permian Basin, the Eagle Ford, the Heinsville area and the Bakken. The company pays out 8% in dividends.
Whitecap Resources (WCPRF) is an oil and gas producer in the Western Canadian Sedimentary Basin. The company is strengthening its position through mergers and acquisitions. Its explored reserves are growing thanks to new investments in areas with low recovery rates. The payout yield is 7.36%.
Surge Energy (ZPTAF) is involved in the exploration, development and production of oil and natural gas in Canada and the US. It is actively expanding its operations and its distribution yield is 8.19%.
Peyto Exploration & Development Corp. (PEYUF) operates in Alberta’s Deep Basin region. Its main activities include the exploration, development and production of oil, gas and condensate. Its forward dividend return is 6.8%.
Chemtrade Logistics Income Fund (CGIFF) produces chemicals for various industries, including oil and gas, and water treatment. It also provides chemical processing, transportation and storage services. The dividend yielding is 5.96%.
Mullen Group Ltd. (MLLGF) provides transportation and logistics services, as well as specialized services such as liquid transportation. Foreign operations are minimal, with most profits generated in Canada. The dividend return is 5.89%.
Northland Power (NPIFF) generates electricity from renewable sources, such as wind and solar energy, in seven countries. Its distribution yield is 5.16%.
Banco Bradesco S.A. (BBD) is one of Brazil’s largest private banks. It offers a wide range of financial and insurance services. A key drawback is the high volatility of dividends, with payout yields currently standing at around 4.74%.
Itaú Unibanco Holding S.A. (ITUB) is a universal bank and another financial company from Brazil. It serves retail and corporate clients and conducts foreign exchange and securities transactions. The company has paid dividends for 18 consecutive years. However, the amount paid fluctuates greatly. Meanwhile, the forward yield is only 1.64%.
Exchange Income Corporation (EIFZF) owns a diverse portfolio, including companies in the aviation services sector (e.g. transportation, pilot training and aircraft maintenance) and the manufacturing sector (e.g. producing window systems, wall panels, precision components, mobile hydraulic climate equipment and tanks). The dividend payout rate is 3.96%.
Tamarack Valley Energy Ltd. (TNEYF) generates revenue from the exploration, development and production of oil and gas in the Western Canada Sedimentary Basin. The company has grown through acquisitions, but remains highly sensitive to energy prices. Its current distribution yield is only 3%.
Paramount Resources Ltd. (PRMRF) is involved in all aspects of the oil and gas industry, from exploration to sales. The company also earns profits from investments in other oil and gas companies. However, the company is susceptible to volatility and has a low dividend income yield of 2.82%.
Bird Construction (BIRDF) operates in the construction sector, providing building projects, as well as current repairs and maintenance services. The dividend payout rate stands at 2.55%.
Micro-Cap and OTC Monthly Dividend Stocks: Higher Risk, Higher Reward
OTC trading of micro-cap stocks is primarily associated with liquidity risk. Other small-cap risks include:
- lack of information and absence of analytical support;
- high volatility (due both to low liquidity and greater susceptibility to negative economic factors);
- low financial stability.
Companies that conduct activities in a single region and have concentrated operations are mainly included in this category. However, there are some exceptions. Additionally, this segment is dominated by energy partnerships whose revenues are heavily dependent on commodity prices.
PermRock Royalty Trust (PRT) has a market capitalization of just $50 million. The company owns a share of the net profit from the sale of oil and gas extracted from certain Permian Basin fields. Its stocks have an attractive forward yield of 10.9%.
With a market cap of $58 million, Cross Timbers Royalty Trust (CRT) also earns income from oil and gas fields. Its assets are primarily situated in Texas, Oklahoma and New Mexico. The forward yield is 9.37%.
With a market cap of $267 million, Richards Packaging Income Fund (RPKIF) offers packaging solutions for numerous industries. It collaborates with food producers, cosmetics companies and others in the USA and Canada. Its shares provide a yield of 4.16%.
With a market capitalization of just over $30 million, U.S. Global Investors (GROW) manages mutual funds and ETFs specializing in niche markets such as gold and natural resources. The dividend payout yield is 3.64%.
Flagship Communities REIT (MHCUF) has a market capitalization of $356 million. This Canadian company owns over 80 residential complexes that generate income in the Midwestern USA. MHCUF operates in stable markets with regard to population growth. However, it only started paying regular dividends in 2024, and as of mid-July 2025, its forward yield is just 3.29%.
Fortitude Gold Corporation (FTCO) is a company with a market capitalization of less than $85 million that specializes in gold and silver mining in Nevada. Investing in its stocks provides access to the metals market and offers a passive income of 3.33%. The main drawback is the lack of diversification – significant profits come from a single deposit.
With a market capitalization of $285 million, Global Water Resources (GWRS) manages wastewater systems in Phoenix. The company receives regulated income and benefits from rising tariffs and population growth, which has ensured stable dividends for the past nine years. However, its yield is only 2.8%.
With a market capitalization exceeding $600 million, Permian Basin Royalty Trust (PBT) owns royalties on oil and gas production in the Permian Basin in the USA. Its main assets are the Waddell Ranch and the Texas Royalty Properties. Over the last three months, its stock price has increased by over 40%. However, it has low dividend reliability ratings and a forward yield of 2.78%.
Pine Cliff Energy Ltd. (PIFYF), which has a market capitalization of $188 million, explores and develops oil and gas fields. A significant proportion of its portfolio is located in the Western Canadian Sedimentary Basin. Despite having a stronger balance sheet than its competitors, PIFYF reduced its dividends for 2024 and 2025, and its forward yield is only 2%.
Sabine Royalty Trust (SBR) has a market capitalization of $0.96 billion and owns royalties in various oil and gas fields across the USA. While SBR does not engage in extraction, it receives a portion of the revenue generated by other companies utilizing its fields. The main disadvantage is the instability of dividends, which is characteristic of all companies in this industry. Its yield is 7.63%.
Dividend Safety Analysis: Evaluating Sustainability and Risk
When creating the best dividend portfolio for monthly income generation, it is important to consider dividend safety scores. First and foremost, this involves considering the track record of continuous payments and the history of increasing shareholder rewards. Additionally, assessing the risk of dividend cuts involves examining payout ratios and coverage ratios, such as free cash flow and net income coverage.
Financial metrics that demonstrate business stability are equally important. These include revenue and profit trends, debt-to-equity ratios, and more.
Many assets among stocks with monthly paying dividends require specific indicators. For example, REITs require funds from operations, occupancy rates and leverage ratios. When selecting BDCs, the focus is on net investment income, net asset value growth and portfolio quality.
Furthermore, it is necessary to study credit ratings and analyst assessments of future stock prices and dividend payments. It should be noted that few of the 75 stocks on the list offer reliable dividends. While most of the listed companies have paid dividends to shareholders for many years, they have also repeatedly reduced them.
High Yield Monthly Dividend Portfolio Investing: Portfolio Construction and Risk Management Strategies
The risk of a monthly dividend portfolio can be reduced by selecting an asset allocation that avoids excessive sector concentration or dominance by a single stock, even if the latter offers high current yields.
When determining position sizing, it is important to consider correlation analysis. Different asset types and stocks from various sectors should be negatively correlated with each other. The Sharpe model can be used for effective portfolio diversification and risk management, for example.
A dividend portfolio for monthly income is usually just one part of a more varied investment portfolio. The risks associated with it can be balanced by:
- dividend aristocrats from other sectors;
- bonds;
- monthly dividend ETF portfolio (primarily bond funds that distribute income from interest payments).
Another important factor is total return expectations. For long-term investors, it is not only current yields that matter, but also future payout dynamics and prospects for changes in share price.
Rebalancing strategies are a separate issue that is often overlooked by beginner investors. This becomes more complex when dealing with small portfolios, since monthly inflows will also be low. This can be offset by using some of the active income.
Tax Considerations for Monthly Dividend Investors
For tax purposes, dividends fall into two categories: qualified dividends and non-qualified dividends. The former are taxed at preferential long-term capital gains rates (0% – 20%), while the latter are subject to ordinary income tax rates (10% – 37%).
A significant proportion of the monthly payment cannot be recognized as a qualified dividend. REIT dividends and dividends from other pass-through entities, for example, fall into this category. Consequently, the net income from such stocks may be lower than that from corporations paying income tax.
One way to improve tax efficiency is to use tax-advantaged accounts. These include tax-deferred accounts, such as a 401(k), and tax-free accounts, such as a Roth 401(k).
Investors using taxable vs. tax-deferred accounts should remember to consider quarterly estimated taxes. These must be paid on profits consisting of dividends or return of capital if the total expected taxes for the year exceed $1,000.
Market Conditions and Interest Rate Sensitivity
Any monthly dividend company is likely to be highly dependent on economic cycles. For instance, although they use duration risk hedging instruments, mortgage REITs have strong interest rate sensitivity.
Their profits increase during periods of Federal Reserve policy easing. Conversely, when the yield curve slopes upwards, the dividends and capitalization of mortgage REITs decline. This is because profits are reduced despite the difference in credit spreads between repo rates and mortgage debt obligations.
BDCs are similarly sensitive to changes in the interest rate environment. Similarly, energy partnerships are sensitive to market volatility in energy commodities.
Mastering High Yield Monthly Dividend Portfolio Investing: Building a Monthly Income Strategy
The income strategy with the highest possible frequency is often employed when retirement planning is the investment objective. However, despite the benefits of a monthly cash flow, dividend payment frequency should not be the most important factor when choosing a stock. When pursuing high yield monthly dividend portfolio investing, it is advisable to conduct thorough due diligence on the company before making an investment decision. This involves evaluating factors such as dividend history, financial metrics and expert forecasts.
Conservative investors may wish to add Realty Income and other best monthly dividend stocks that have consistently paid dividends for at least ten years to their portfolio. Those with a high risk tolerance may wish to increase their returns by investing in Orchid Island Capital and similar companies. The examples provided are not investment recommendations.
It is recommended that you seek professional advice from a personal finance and retirement planning specialist before purchasing stocks. It is important to adhere to the basic principles of diversification: do not allocate more than 5% of the portfolio to a single stock and monitor sector concentration. No more than 20% of the portfolio should be allocated to any single sector, including bonds and funds.
FAQ
Are monthly dividend stocks riskier than quarterly dividend stocks?
A monthly dividend stock is likely to be riskier than a stock that provides income quarterly. This is because of the industry affiliation of such companies. There are almost no dividend aristocrats or champions among them.
How much of my portfolio should be in monthly dividend stocks?
This depends on your risk tolerance and your specific need for a monthly income. Given the limited number of companies that pay on a monthly basis and have a high dividend safety rating, it is advisable to allocate no more than 25 – 30% of your capital to this type of asset.
Do monthly dividend stocks perform better in retirement accounts?
Many of the companies on this list pay non-qualified dividends. Therefore, for tax optimization purposes, it is much more advantageous to purchase them within a retirement account.
What’s the difference between REIT dividends and regular stock dividends for taxes?
REIT dividends are taxed at rates ranging from 10% to 37%. The maximum tax rate on qualified dividends is 20%.
Article Sources
- Feng, Z., Ghosh, C., & Sirmans, C. F. (2007). CEO involvement in director selection: Implications for REIT dividend policy. Journal of Real Estate Finance and Economics, 34(2), 239-270.
- Boudry, W. I., Kallberg, J. G., & Liu, C. H. (2024). Global REIT regulations and valuation. Journal of Real Estate Finance and Economics.
- Dubova, E., Volodin, S., & Borenko, I. (2018). High-dividend portfolios with filters on the financial performance and an optimization of assets weights in a portfolio. International Journal of Economics and Finance, 10(9), 123-139.
