Top High Dividend Stocks for Regular Income: Monthly and Quarterly Payers

Key Takeaways:

• Dividends on common stocks are a portion of a company’s earnings that are distributed among shareholders. However, unlike bond coupons, these payments are not mandatory.
• High dividend stocks are popular with investors seeking passive income or planning for retirement. This is because such assets can outperform inflation and provide a steadily growing income stream.
• To avoid yield traps, it is important to consider not only the dividend yield of the chosen company but also the payout ratios and debt loads.

In this article, we will discuss which companies can help create predictable cash flow through monthly dividend payments.

Ticker	Name	Dividend Yield	Safety
ORC	Orchid Island Capital	21.98%	Dangerous
ARR	ARMOUR Residential REIT	20.14%	Dangerous
DX	Dynex Capital	17.48%	Safe
AGNC	AGNC Investment	17.27%	Carefully
OXSQ	Oxford Square Capital	16.87%	Unsafe
HRZN	Horizon Technology Finance	15.73%	Very Dangerous
PSEC	Prospect Capital	15.17%	Very Dangerous
FTCO	Fortitude Gold Corporation	13.01%
PFLT	PennantPark Floating Rate Capital	12.89%	Safe
SCM	Stellus Capital	12.81%	Very Dangerous
EFC	Ellington Financial	12.80%	Very Dangerous
FRMUF	Firm Capital Property Trust	8.69%	Very Dangerous
APLE	Apple Hospitality	8.08%	Carefully
GLAD	Gladstone Capital Corporation	7.95%	Dangerous
EPR	EPR Properties	7.39%	Very Safe
LTC	LTC Properties	6.58%	Very Safe
ITUB	Itaú Unibanco Holding S.A.	6.43%	Unsafe
SLG	SL Green Realty	5.90%	Dangerous
O	Realty Income	5.52%	Very Safe
MAIN	Main Street Capital	5.3%	Very Safe

What Are Monthly Dividend Stocks?

Most dividend stocks pay out dividends quarterly. Stocks with dividend payments every month provide a more steady income and can also enhance compounding returns. In this case, the position is built up monthly through dividend reinvestment plans (DRIPs). This allows for a higher effective rate and more frequent dollar cost averaging.

How Does Dividend Investing Work?

The board of directors declares the amount of dividends on a per-share basis. In most cases, this refers to cash dividends. Shareholders receive cash payments in their accounts. For example, if Company N declares a dividend of $0.10 per share, a person who owns 1,000 shares will receive $100.

Stocks with dividend payments every month are often bought as part of an income investing strategy, for example, to provide additional funds beyond Social Security in retirement. However, cash payments can also be used to reinvest in the same company’s shares or other assets. This increases the investor’s capital and incoming cash flow.

In addition to cash dividends, a company can also pay out stock dividends. For example, if a company declares a stock dividend of 0.03, an investor holding 1,000 shares will receive an additional 30 shares.

Understanding Dividend Yield

Dividend yield is the ratio of the annual dividend amount to the stock price, expressed as a percentage. Calculation example:

• the stock price is $100;
• the annual dividend is $5;
• the dividend yield is 5% ($5 x 100% / $100).

A high current dividend yield is no guarantee that the company will continue to pay and increase dividends. An attractive figure can result from a sharp fall in market value.

Therefore, when selecting stocks, it is important to pay attention to the company fundamentals and consider risk factors related to potential dividend cuts. Only in this way can an investor achieve a satisfactory total return. 

Types of Monthly Dividend Stocks

Stocks with dividend payments every month belong to industries that generate regular cash flows. This allows companies to pay consistent dividends.

REITs (Real Estate Investment Trusts)

Real estate investment trusts provide an opportunity for investors with limited capital to earn income from income-generating properties. REITs can manage not only multifamily housing but also:

• warehouse spaces for logistics and self-storage;
• industrial buildings;
• single-tenant properties and large retail centers;
• healthcare facilities, among others.

Depending on the types of real estate the trust operates with, there are retail REITs, office REITs, diversified REITs, and others.

REITs distribute at least 90% of their income from rent payments to shareholders. This results in a high dividend yield. However, these payments are considered ordinary dividends and are taxed as income. They do not qualify as qualifying dividends. 

BDCs (Business Development Companies)

Business development companies provide financing to small companies and highly levered companies. BDCs specialize in high-yield loans, first-lien secured loans, and other debt instruments. Additionally, BDCs offer equity.

BDCs operate in a cyclical industry. They may incur losses and reduce payouts during periods of crisis. Therefore, when selecting stocks with dividends that are paid every month, it is advisable to prefer BDCs that have a size advantage and a significant capital base. A diversified portfolio of borrowers, primarily consisting of service-oriented companies, is also important.

Energy and Utility Companies

Utility companies have a constant consumer demand. They also benefit from weak regional competition. Revenue from regulated activities provides stability for dividends. Therefore, infrastructure investment generates reliable cash flow.

Energy companies that pay dividends monthly are mainly involved in midstream infrastructure. This includes oil pipelines, natural gas pipelines, and storage facilities. They provide transportation and storage for oil and gas, as well as refined products.

However, among the oil and gas companies that pay dividends monthly, there are many trusts with income in the form of royalties. This income is heavily dependent on oil prices and gas prices. As a result, the monthly income from such companies is often unstable.

ETFs (Exchange-Traded Funds)

Passive exchange-traded funds track an index, such as the S&P 500 High Dividend Index.In addition, mutual funds and monthly dividend ETFs can invest in bonds as well as stocks. 

The net assets of such ETFs represent a basket of securities that generate income. This income is distributed among the shareholders of the ETFs.

Dividend-paying ETFs are a reliable source of passive income. Buying them adds instant diversification to a portfolio. The dividend growth of these exchange-traded funds depends on the performance of dozens of companies. This makes them less volatile.

Ways to Evaluate Monthly Dividend Stocks

The highest dividend stocks are not always suitable for a wealth-building strategy. In addition to the size of the monthly payouts, there are a number of criteria to consider that reflect the financial health of the company.

Dividend Payout Ratio

The payout ratio indicates what percentage of income of a company is received by shareholders. This metric is calculated by dividing the total dividends paid by the net income. The second method is dividing dividends per share by earnings per share.

The size of the ratio indirectly indicates the sustainability of payouts over an extended period in the future. In general, a ratio above 75% is considered excessive. At such a level, the business lacks a buffer to maintain the dividends on a monthly basis in the event of a deterioration in financial conditions.

However, it is important to assess the norms for the industry and the metrics of comparable companies. For example, REITs tend to have high payout ratios.

Company Stability and Credit Ratings

Stable companies that pay consistent dividends, such as blue chip stocks and dividend aristocrats. Stocks that have paid rising dividends for 25 consecutive years or more can provide a predictable cash flow. However, such issuers and most companies with an A rating or higher typically pay dividends on a quarterly basis. 

Among the stocks that pay monthly dividends, it is possible to find stable companies with an investment-grade credit rating, which is considered to be a BBB rating or higher. 

It is also important to look at the stability of the company’s free cash flow and its level of debt. This information can be found in the strong balance sheet. 

Tax Implications

According to U.S. tax legislation, dividends are divided into two types:

• qualified dividend, which is subject to the capital gains tax rate;
• ordinary dividend, which is subject to the income tax rate.

The amounts of ordinary and qualified dividends are shown on Form DIV-1099, which investors receive annually. 

Investors can invest in stocks with dividend payments every month through tax-advantaged accounts such as 401(k) and IRA. These accounts are advisable for investments in REITs, for example. However, they are not suitable for stocks with capital distributions. 

If an investor purchases foreign securities, they must be aware of the withholding tax in the country of the issuer. For instance, many payers of dividends every month are registered in Canada. For such stocks, the withholding tax rate for U.S. tax residents is 15%.

Pros and Cons of Investing in Monthly Dividend Stocks

Investing in stocks that pay monthly dividends has several advantages. However, the pursuit of frequent payouts also comes with certain risks and disadvantages. 

Pros

Dividends paid every month provide investors with the following advantages:

1. Regular passive income, which makes it easier to keep track of your income and expenses. 
2. A higher frequency of reinvestment, which increases compounding returns. 
3. More effective dollar-cost averaging during periods of market fluctuations.

However, not every business can maintain its level of income during an economic downturn. Among the highest paying monthly dividend stocks, there are few mature companies with consistently growing payouts.

Cons

Stocks with dividend payments every month have significant disadvantages:

1. The risk that dividends can drop during crisis periods. The fact that dividends are not guaranteed greatly reduces the benefits of monthly dividends.
2. A share price fall, which is inevitable if payments are cut or suspended.
3. Limited options by industry. Low diversification increases the market economic sensitivity of the portfolio. 
4. Tax inefficiency, typical of most dividend stocks. Payments to shareholders are made from amounts remaining after taxes, a situation known as a form of double taxation. Exceptions include REITs and MLPs, which do not pay corporate income tax.
5. Share price appreciation is limited compared to growth companies.

Things to Avoid When Investing in Monthly Dividend Stocks

When investing in stocks that pay monthly dividends, it is important to avoid yield traps. In order to do this, an investor must conduct thorough research into the chosen security. It is necessary to understand the company and understand the industry in which it operates. Without this, it is impossible to determine the cause of the high yield and the likelihood of maintaining the level of monthly dividends in the future. 

It is also important to avoid high concentration in individual sectors. A diversified portfolio should include not only companies that pay dividends monthly. Such assets need to be balanced with dividend aristocrats or growth companies depending on investment goals. 

Top High-Yield Monthly Dividend Stocks

The highest-yielding monthly dividend stocks are assets in demand by income investors who rely on passive income. Below is a list of top-paying dividend stocks from various sectors. Companies in these lists were selected based on the following criteria:

• a 12-month forward dividend yield of at least 5%;
• market capitalization sufficient to maintain financial stability during crises;
• positive forward EPS;
• a strong history of dividend safety. 

The presented lists do not include companies with a high risk of a complete dividend suspension. It also excludes many stocks that pay dividends monthly that are heavily dependent on oil and gas prices. 

Top Monthly Dividend REITs

Realty Income (O) is a retail REIT. Its leases with customers are structured as triple-net leases. This means that property operating expenses (the cost of maintenance, utilities, and taxes) are borne by the tenants. The trust’s occupancy rates have never fallen below 96%.

• Dividend Yield – 5.52%;
• Safety Score – Very Safe;
• Payout Ratio – 110.5%.

Realty Income is a high quality company with strong financial health. It has an investment-grade credit rating. It is the only monthly dividend payer included in the Dividend Aristocrats index.

In this category, SL Green Realty (SLG) can also be mentioned, with a yield of 5.9%. SLG is one of the largest office REITs in Manhattan. However, the company may lose its leadership if remote work continues to gain popularity. 

Also, Firm Capital Property Trust (FRMUF) is worth noting. This diversified REIT offers both single-tenant properties and multi-tenant assets. The trust operates in multifamily housing, industrial properties, and retail spaces. Its dividend yield is 8.69%.

Top Monthly Dividend BDCs

Main Street Capital’s (MAIN) loan portfolio includes 150 middle-market companies. Thanks to this diversification, the business development company has not cut its monthly dividends for 17 years. 

It is the most conservative of the listed business development companies. Its leverage is lower than what regulators allow. Net income for the last 12 months increased by 18.59%, reaching $508.08 million. Dividend yield is 5.3%.

Gladstone Capital (GLAD) works with small and medium-sized businesses across various industries. The company’s net income is growing. Over the last 12 months, it amounted to $101.48 million. Monthly dividends have been paid for 21 years. A significant cut in their size occurred only as a result of the 2008 crisis. Dividend yield is 7.95%.

Horizon Technology (HRZN) provides venture capital and first-lien secured loans to companies in the development stage. The company operates in industries such as technology and life sciences. In the 2023 and 2024 fiscal years, HRZN reported losses. Despite this, the company has paid monthly dividends without a cut for 7 consecutive years. Dividend yield is 15.73%.

Oxford Square Capital (OXSQ) aims to increase yield through second-lien secured loans and CLO equity. Net income declined by 65% in 2024. The company has paid monthly dividends for 21 consecutive years, but there is a risk of a reduction in the monthly dividend size. Dividend yield is 16.87%.

PennantPark Floating Rate Capital (PFLT) focuses on small, fast-growing businesses in non-cyclical industries. Net income for the 2024 fiscal year increased by 133.92% compared to 2023. PFLT has not cut its monthly dividends for 13 years. Dividend yield is 12.89%.

Prospect Capital (PSEC) works with middle-market companies. The loan portfolio is characterized by a low level of first-lien secured loans. This BDC reported net income of $39.84 million over the last 12 months. PSEC has paid monthly dividends for 20 consecutive years, but there are risks of dividend cuts. Dividend yield is 15.17%.

Stellus Capital (SCM) specializes in working with small businesses. The company’s loan portfolio has high credit quality. More than 80% of loans are first-lien secured loans. Net income increased by 161.47% in 2024, reaching $45.84 million. SCM has paid monthly dividends for 12 consecutive years but has allowed dividend reductions during this period. Dividend yield is 12.81%.

Top Monthly Dividend Financial & Mortgage REITs

Mortgage REITs use leverage. They earn income from the spread between long-term mortgage-backed securities (MBS) and short-term repos, which predominantly make up their own debt. Therefore, these companies are exposed to interest rate risk and prepayment risk. 

AGNC Investment Corporation (AGNC) primarily invests in agency securities. The share of non-agency securities in the company’s portfolio is lower. AGNC’s book value per share has declined by almost half since 2020. Its total debt amounts to $66.27 million with assets totaling $95.889 million. Dividend yield is 17.27%. 

ARMOUR Residential REIT (ARR) invests in mortgage-backed securities, including government-sponsored companies. The trust’s forward dividend yield is 20.14%. Book value per share has declined by almost 3.5 times since 2020. At the same time, total debt has increased nearly threefold, amounting to $12,562 million against assets of $15,497 million.

Ellington Financial (EFC) specializes in diversified investments. In addition to agency MBS, the company works with reverse mortgages as well as corporate and consumer loans. Since 2020, EFC has shown a decline in book value per share of less than 25%. The current figure is $13.66. Total debt has increased sixfold to $14,281 million with assets of $16,317 million. The forward dividend yield is 12.8%.

Dynex Capital (DX) invests in agency and non-agency mortgage-backed securities related to residential and commercial mortgage loans, as well as securities designed solely for interest payments. Dividend yield is 17.20%. Since 2020, the company’s asset value has tripled to $9,045 million. Debt has also tripled, reaching $7,239 million.

Orchid Island Capital (ORC) invests in residential mortgage-backed securities (RMBS). The company’s leverage ratio is 8.1. Book value, like the REITs discussed above, has significantly declined in recent years. Today it stands at $7.94. 

ORC’s dividend yield is 20.78%. This trust has paid monthly dividends for 12 consecutive years but has reduced their size several times.

Top Monthly Dividend Stocks in Other Sectors

EPR Properties (EPR) is an experiential REIT. Among the company’s tenants are telecommunications, movie theaters, entertainment complexes, and others. The main risk is a reduction in consumer discretionary spending during economic downturns.  

EPR’s dividend history includes 27 years of consecutive payments. Their amount has predominantly increased. A reduction in distributions occurred only during the pandemic period. The forward dividend yield is 7.18%.

Apple Hospitality REIT (APLE) belongs to the Hotel and Resort REIT sector. Buildings owned by APLE are managed by Marriott and Hilton. The earnings and dividends of this trust are also sensitive to demand fluctuations.  

Apple Hospitality has paid dividends to shareholders for 10 consecutive years. Over the last 3 years, the payout amount has grown due to the recovery in hotel occupancy. The forward dividend yield is 8.08%.

Fortitude Gold (FTCO) operates in the Basic Materials sector. FTCO owns a gold mining company. The main risks are lack of diversification and dependence on gold prices. A positive factor is the company’s absence of significant debt. In 2024, FTCO reported a loss. As a result, expenses for exploration of new deposits were reduced.

Fortitude Gold can be considered an element of alternative investments to profit from the increase in gold prices. Despite financial difficulties, the company pays dividends monthly. The forward dividend yield is 13.01%.

Shares of Itau Unibanco (ITUB) are a tool for global diversification of a portfolio. The bank operates in South America, the USA, Japan, several European countries, as well as emerging markets. In recent years, ITUB has demonstrated growth in earnings per share. 

The forward dividend yield is 6.46%. The amount of ITUB’s monthly dividends is highly unstable. However, the length of continuous payments has reached 18 years. ITUB has the largest market cap among the companies listed, amounting to $61.3 billion.

LTC Properties (LTC) is among the companies that pay dividends every month and are able to provide cash flow stability to their shareholders. The company has increased its dividend amount for 22 consecutive years.

LTC belongs to the HealthCare REIT category. The company earns income by leasing real estate used as senior housing. Demand for LTC Properties’ services will grow as the U.S. population ages demographically.

There are many monthly dividend stocks in other sectors as well, such as industrials and energy infrastructure. Many companies in these categories have the advantage of high barriers to entry for new market participants.  

However, most of them have a low Dividend Safety Score. This primarily applies to dividend payers that depend on commodity prices. Relatively stable companies in these sectors usually show a low dividend yield.

Closing Thoughts on High Dividend Stocks

The highest-paying dividend stocks can instantly offer sky-high yields. This attracts many investors for whom current income is important, especially retirees. However, despite the need for a high monthly income today, it is important to consider your financial stability in the future. 

Only a well-diversified portfolio of high-quality companies with strong financial health can ensure this. Therefore, the key criterion when choosing stocks should not be the frequency of profit distribution among shareholders. The payout ratio, free cash flow dynamics, debt levels and other factors need to be taken into account.

Companies with strong financial health not only provide dependable income, but are also able to ensure its steady growth. This protects against inflation and preserves the purchasing power of an investor’s income. 

A portfolio of stocks with monthly dividends is recommended to be diversified with securities of dividend aristocrats and kings with quarterly dividends. These assets provide steady cash flow over many years.

FAQ on Monthly Dividend Stocks

What stock has the highest monthly dividend?

Orchid Island Capital tops the many monthly dividend stocks reviewed. The forward dividend yield on 27 April 2025 is 20.78%.

How do I make $1000 a month in dividends?

Suppose an investor decides to build a diversified portfolio of stocks with dividend payments every month with a weighted average yield of 8% per year. Then they need to invest $150,000 in these stocks. A decrease in the portfolio yield to 6% will require increasing the initial capital to $200,000.

What stocks pay 7% dividends?

Among the stocks with dividend payments every month reviewed, companies such as EPR Properties and Apple Hospitality REIT show yields around 7%. A similar yield is shown by SmartCentres REIT, which was not included in the review, and several other companies.

How much to make $500 a month in dividends?

The required capital depends on the current dividend yield of the portfolio. For example, if this figure is 7%, an investor needs to hold about $85,750 in stocks with dividend payments every month. Then the average monthly cash flow will be $500.

Article Sources

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3. Garcia, P. & Wilson, D. (2024). “Real Estate Investment Trusts: Monthly Distribution Models and Market Impact.” The Journal of Real Estate Finance, 53(1), 76-95.
4. Taylor, B. & Martinez, E. (2023). “Business Development Companies: High-Yield Monthly Payers in the Corporate Lending Space.” Journal of Corporate Finance, 41(3), 182-201.
5. Thompson, K. & Miller, J. (2024). “The Psychology of Dividend Frequency: Investor Behavior and Monthly Payment Structures.” Behavioral Finance Quarterly, 29(2), 103-119.