Updated on March 2nd, 2023 by Bob Ciura
Spreadsheet data updated daily
Monthly dividend stocks are securities that pay a dividend every month instead of quarterly or annually. More frequent dividend payments mean a smoother income stream for investors.
This article includes:
- A free spreadsheet on all 86 monthly dividend stocks
- Links to detailed stand-alone analysis on all 86 monthly dividend stocks
- Several other resources to help you invest in monthly dividend securities for steady income
You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:
The downloadable Monthly Dividend Stocks Spreadsheet above contains the following for each stock that pays monthly dividends:
- Dividend yield
- Name and ticker
- Market cap
- Payout ratio
Note: We strive to maintain an accurate list of all monthly dividend payers. There’s no universal source we are aware of for monthly dividend stocks; we curate this list manually. If you know of any stocks that pay monthly dividends that are not on our list, please email email@example.com.
This article also includes our top 5 ranked monthly dividend stocks today, according to expected five-year annual returns.
We have excluded oil and gas royalty trusts due to their high risks. These high risks make them less attractive for income investors, in our view.
Table of Contents
- How to Use the Monthly Dividend Stocks Spreadsheet to Find Dividend Investment Ideas
- The 5 Best Monthly Dividend Stocks
#5: Gladstone Commercial Corp. (GOOD)
#4: Ellington Financial (EFC)
#3: AGNC Investment Corporation (AGNC)
#2: ARMOUR Residential REIT (ARR)
#1: SL Green Realty (SLG)
- Detailed Analysis on All Monthly Dividend Stocks
- Performance Through February 2023
- Why Monthly Dividends Matter
- The Dangers of Investing in Monthly Dividend Stocks
- Final Thoughts
Having the list of monthly dividend stocks along with metrics that matter is a great way to begin creating a monthly passive income stream.
High-yielding monthly dividend payers have a unique mix of characteristics that make them especially suitable for investors seeking current income.
Keep reading this article to learn more about investing in monthly dividend stocks.
How to Use the Monthly Dividend Stocks Sheet to Find Dividend Investment Ideas
For investors that use their dividend stock portfolios to generate passive monthly income, one of the main concerns is the sustainability of the company’s dividend.
A dividend cut indicates one of two things:
- The business isn’t performing well enough to sustain a dividend
- Management is no longer interested in rewarding shareholders with dividends
Either of these should be considered an automatic sign to sell a dividend stock.
Of the two reasons listed above, #1 is more likely to happen. Thus, it is very important to continually monitor the financial feasibility of a company’s dividend.
This is best evaluated by using the payout ratio. The payout ratio is a mathematical expression that shows what percentage of a company’s earnings is distributed to shareholders as dividend payments. A very high payout ratio could indicate that a company’s dividend is in danger of being reduced or eliminated completely.
For readers unfamiliar with Microsoft Excel, this section will show you how to list the stocks in the spreadsheet in order of decreasing payout ratio.
Step 1: Download the monthly dividend stocks excel sheet at the link above.
Step 2: Highlight columns A through H, and go to “Data”, then “Filter”.
Step 3: Click on the ‘filter’ icon at the top of the payout ratio column.
Step 4: Filter the high dividend stocks spreadsheet in descending order by payout ratio. This will list the stocks with lower (safer) payout ratios at the top.
The 5 Best Monthly Dividend Stocks
The following companies represent our top 5 monthly dividend stocks right now. Stocks were selected based on their projected total annual returns over the next five years.
Monthly Dividend Stock #5: Gladstone Commercial (GOOD)
- 5-year expected annual returns: 14.7%
Gladstone Commercial Corporation is a real estate investment trust, or REIT, that specializes in single-tenant and anchored multi-tenant net leased industrial and office properties across the U.S. The trust targets primary and secondary markets that possess favorable economic growth trends, growing populations, strong employment, and robust growth trends.
The trust’s stated goal is to pay shareholders monthly distributions, which it has done for more than 17 consecutive years. Gladstone owns over 100 properties in 24 states that are leased to about 100 unique tenants.
Gladstone reported third quarter earnings on November 7th, 2022, and results were better than expected on both the top and bottom lines. FFO-per-share came to 43 cents, which was four cents better than expected. Revenue was up 16% year-over-year to $39.8 million, which was $3 million better than estimates.
The REIT collected 100% of cash rents in the quarter. Gladstone also acquired four fully occupied industrial properties for $46 million, comprising about 362k square feet of rented space, at a weighted average cap rate of 7.26%.
In addition, three properties were sold for $28 million. Total expenses were $37.5 million, up sharply from $27.8 million a year ago. The REIT renewed 167,566 square feet of remaining lease terms ranging from 5.3 to 6.2 years at two properties. Same store rents are expected to continue to rise at about 2% annually in the coming years, according to guidance.
Click here to download our most recent Sure Analysis report on GOOD (preview of page 1 of 3 shown below):
Monthly Dividend Stock #4: Ellington Financial (EFC)
- 5-year expected annual returns: 15.0%
Ellington Financial Inc. acquires and manages mortgage, consumer, corporate, and other related financial assets in the United States. The company acquires and manages residential mortgage–backed securities (RMBS) backed by prime jumbo, Alt–A, manufactured housing, and subprime residential mortgage loans.
Additionally, it manages RMBS, for which the U.S. government guarantees the principal and interest payments. It also provides collateralized loan obligations, mortgage–related and non–mortgage–related derivatives, equity investments in mortgage originators and other strategic investments.
Source: Investor Presentation
On November 7th, 2022, Ellington Financial reported its Q3 results for the period ending September 30th, 2022. Due to the company’s business model, Ellington doesn’t report any revenues. Instead, it records only income. Interest income came in at $66.8 million, 29.5% higher quarter-over-quarter. Adjusted (previously referred to as “core”) earnings-pershare came in at $0.44, three cents higher versus Q3-2021, driven by higher interest income and a lesser growth in total expenses.
The company’s improving results were driven primarily by a larger residential transition loan portfolio at higher rates, partially offset by opportunistic sales, paydowns, and mark-to-market losses elsewhere in the credit portfolio. Ellington’s book value per share declined from $16.22 to $15.22 during the last three months, with its dividend exceeding the underlying earnings.
Click here to download our most recent Sure Analysis report on EFC (preview of page 1 of 3 shown below):
Monthly Dividend Stock #3: AGNC Investment Corporation (AGNC)
- 5-year expected annual returns: 16.6%
American Capital Agency Corp was founded in 2008, and is a mortgage real estate investment trust that invests primarily in agency mortgage-backed securities (or MBS) on a leveraged basis.
The firm’s asset portfolio is comprised of residential mortgage pass-through securities, collateralized mortgage obligations (or CMO), and non-agency MBS. Many of these are guaranteed by government sponsored enterprises.
The majority of American Capital’s investments are fixed rate agency MBS. Most of these are MBS with a 30-year maturity period. AGNC derives nearly all its revenue in the form of interest income. It currently generates $1.2 billion in annual net revenue.
Source: Investor Presentation
AGNC reported its Q4 2022 results on Jan. 30, 2023. The company generated $1.17 in comprehensive income per common share, comprised of: $0.93 net income per common share, $0.24 other comprehensive income (“OCI”) per common share on investments marked-to-market through OCI, and $0.74 net spread and dollar roll income per common share, excluding estimated “catch-up” premium amortization cost.
This result includes $0.11 per common share of dollar roll income associated with the Company’s $19.0 billion average net long position in Agency mortgage-backed securities (“MBS”) in the “to-be-announced” (“TBA”) market, and excludes $(0.01) per common share of estimated “catch-up” premium amortization cost due to change in projected constant prepayment rate (“CPR”) estimates.
The company reported $9.84 tangible net book value per common share as of December 31, 2022, which increased $0.76 per common share, or 8.4%, from $9.08 per common share as of September 30, 2022..
Click here to download our most recent Sure Analysis report on AGNC (preview of page 1 of 3 shown below):
Monthly Dividend Stock #2: ARMOUR Residential REIT (ARR)
- 5-year expected annual returns: 19.9%
ARMOUR is a mortgage REIT that invests primarily in residential mortgage–backed securities that are guaranteed or issued by a United States government entity including Fannie Mae, Freddie Mac and Ginnie Mae.
Source: Investor Presentation
ARMOUR reported Q4 results on February 15th, 2023. It generated comprehensive income available to common stockholders of $39.5 million or $0.27 per common share. Net interest income of $11.6 million and net interest margin of 2.59% were up 38 basis points from the prior quarter.
Distributable Earnings available to common stockholders was $38.8 million, which represents $0.27 per common share. It raised $174.2 million of capital by issuing 30,721,405 shares of common stock at $5.67 net proceeds per share, after fees and expenses, through an at the market offering program. The company repurchased 449,700 shares of common stock, at an average cost of $5.01 per share, pursuant to existing authorization.
Click here to download our most recent Sure Analysis report on ARMOUR Residential REIT (ARR) (preview of page 1 of 3 shown below):
Monthly Dividend Stock #1: SL Green Realty (SLG)
- 5-year expected annual returns: 20.3%
SL Green Realty Corp was formed in 1980. It is an integrated real estate investment trust (REIT) that is focused on acquiring, managing, and maximizing the value of Manhattan commercial properties.
It is Manhattan’s largest office landlord, and currently owns 61 buildings totaling 33 million square feet.
Source: Investor Presentation
In late January, SLG reported (1/25/2023) financial results for the fourth quarter of fiscal 2022. Its same-store net operating income rose 3.3% over the prior year’s quarter but its occupancy rate dipped sequentially from 92.1% to 91.2%.
Given also the negative effect of some assets sales, its funds from operations (FFO) per share decreased -3% over the prior year’s quarter, from $1.52 to $1.47. The REIT missed the analysts’ consensus by $0.01.
Click here to download our most recent Sure Analysis report on SLG (preview of page 1 of 3 shown below):
Detailed Analysis On All of The Monthly Dividend Stocks
You can see detailed analysis on monthly dividend securities we cover by clicking the links below. We’ve included our most recent Sure Analysis Research Database report update in brackets as well, where applicable.
- Agree Realty (ADC) | [See Newest Sure Analysis Report]
- AGNC Investment (AGNC) | [See Newest Sure Analysis Report]
- Atrium Mortgage Investment Corporation (AMIVF)
- Apple Hospitality REIT, Inc. (APLE) | See Newest Sure Analysis Report
- ARMOUR Residential REIT (ARR) | [See Newest Sure Analysis Report]
- A&W Revenue Royalties Income Fund (AWRRF)
- Badger Infrastructure Solutions (BADFF)
- Banco Bradesco S.A. (BBD) | [See Newest Sure Analysis Report]
- Diversified Royalty Corp. (BEVFF)
- Boston Pizza Royalties Income Fund (BPZZF)
- Bridgemarq Real Estate Services (BREUF)
- Broadmark Realty Capital (BRMK) | [See Newest Sure Analysis Report]
- BSR Real Estate Investment Trust (BSRTF)
- Canadian Apartment Properties REIT (CDPYF)
- ChemTrade Logistics Income Fund (CGIFF)
- Chesswood Group Limited (CHWWF)
- Chatham Lodging (CLDT)* | [See Newest Sure Analysis Report]
- Choice Properties REIT (PPRQF) | [See Newest Sure Analysis Report]
- Cross Timbers Royalty Trust (CRT) | [See Newest Sure Analysis Report]
- CT Real Estate Investment Trust (CTRRF)
- SmartCentres Real Estate Investment Trust (CWYUF)
- Dream Industrial REIT (DREUF) | [See Newest Sure Analysis Report]
- Dream Office REIT (DRETF) | [See Newest Sure Analysis Report]
- Dynex Capital (DX) | [See Newest Sure Analysis Report]
- Ellington Residential Mortgage REIT (EARN) | [See Newest Sure Analysis Report]
- Ellington Financial (EFC) | [See Newest Sure Analysis Report]
- EPR Properties (EPR) | [See Newest Sure Analysis Report]
- Exchange Income Corporation (EIFZF) | [See Newest Sure Analysis Report]
- Extendicare Inc. (EXETF)
- Flagship Communities REIT (FLGMF)
- First National Financial Corporation (FNLIF)
- Freehold Royalties Ltd. (FRHLF)
- Firm Capital Property Trust (FRMUF)
- Fortitude Gold (FTCO) | [See Newest Sure Analysis Report]
- Generation Income Properties (GIPR) | [See Newest Sure Analysis Report]
- Gladstone Capital Corporation (GLAD) | [See Newest Sure Analysis Report]
- Gladstone Commercial Corporation (GOOD) | [See Newest Sure Analysis Report]
- Gladstone Investment Corporation (GAIN) | [See Newest Sure Analysis Report]
- Gladstone Land Corporation (LAND) | [See Newest Sure Analysis Report]
- Global Water Resources (GWRS) | [See Newest Sure Analysis Report]
- Granite Real Estate Investment Trust (GRP.U)** | [Historical Reports]
- H&R Real Estate Investment Trust (HRUFF)
- Horizon Technology Finance (HRZN) | [See Newest Sure Analysis Report]
- Hugoton Royalty Trust (HGTXU) | [See Newest Sure Analysis Report]
- Itaú Unibanco (ITUB) | [See Newest Sure Analysis Report]
- Keyera Corp. (KEYUF)
- The Keg Royalties Income Fund (KRIUF)
- LTC Properties (LTC) | [See Newest Sure Analysis Report]
- Sienna Senior Living (LWSCF)
- Main Street Capital (MAIN) | [See Newest Sure Analysis Report]
- Modiv Inc. (MDV)
- Mullen Group Ltd. (MLLGF)
- Northland Power Inc. (NPIFF)
- NorthWest Healthcare Properties REIT (NWHUF)
- Orchid Island Capital (ORC) | [See Newest Sure Analysis Report]
- Oxford Square Capital (OXSQ) | [See Newest Sure Analysis Report]
- Permian Basin Royalty Trust (PBT) | [See Newest Sure Analysis Report]
- Phillips Edison & Company (PECO) | [See Newest Sure Analysis Report]
- Pennant Park Floating Rate (PFLT) | [See Newest Sure Analysis Report]
- Peyto Exploration & Development Corp. (PEYUF)
- Pine Cliff Energy Ltd. (PIFYF)
- Primaris REIT (PMREF)
- Paramount Resources Ltd. (PRMRF)
- PermRock Royalty Trust (PRT) | [See Newest Sure Analysis Report]
- Prospect Capital Corporation (PSEC) | [See Newest Sure Analysis Report]
- Permianville Royalty Trust (PVL)
- Pizza Pizza Royalty Corp. (PZRIF)
- Realty Income (O) | [See Newest Sure Analysis Report]
- RioCan Real Estate Investment Trust (RIOCF)
- Richards Packaging Income Fund (RPKIF)
- Sabine Royalty Trust (SBR) | [See Newest Sure Analysis Report]
- Stellus Capital Investment Corp. (SCM) | [See Newest Sure Analysis Report]
- Savaria Corp. (SISXF)
- San Juan Basin Royalty Trust (SJT) | [See Newest Sure Analysis Report]
- Shaw Communications (SJR) | [See Newest Sure Analysis Report]
- SL Green Realty Corp. (SLG) | [See Newest Sure Analysis Report]
- SLR Investment Corp. (SLRC) | [See Newest Sure Analysis Report]
- Whitecap Resources Inc. (SPGYF)
- Slate Grocery REIT (SRRTF)
- Stag Industrial (STAG) | [See Newest Sure Analysis Report]
- Superior Plus (SUUIF) | [See Newest Sure Analysis Report]
- Timbercreek Financial Corp. (TBCRF)
- Tamarack Valley Energy (TNEYF)
- TransAlta Renewables (TRSWF) | [See Newest Sure Analysis Report]
- U.S. Global Investors (GROW) | [See Newest Sure Analysis Report]
- Whitestone REIT (WSR) | [See Newest Sure Analysis Report]
Note 1: The asterisk (*) denotes a stock that has suspended its dividend. As a result, we have not included the stock in our annual Monthly Dividend Stock In Focus Series. We will resume coverage when and if the company in question resumes paying dividends.
Note 2: The double asterisk (**) denotes a security that is not included by our data provider and is therefore excluded from our Sure Analysis research database despite being a monthly paying dividend stock.
As we do not have coverage of every monthly dividend stock, they are not all included in the list above. Note that most of these businesses are either small or mid-cap companies.
You will not see any S&P 500 stocks in this list – it is predominantly populated by members of the Russell 2000 Index or various international stock market indices.
Based on the list above, the bulk of monthly dividend paying securities are REITs and BDCs.
Performance Through February 2023
In February 2023, a basket of the 86 monthly dividend stocks above (excluding SJT) generated negative total returns of -4.5%. For comparison, the Russell 2000 ETF (IWM) generated total returns of -1.7% for the month.
Notes: Data for performance is from Ycharts. Canadian company performance may be in the company’s home currency. Year-to-date performance does have survivorship bias as some securities have been excluded as they eliminated their dividends.
Monthly dividend stocks under-performed in February. We will update our performance section monthly to track future monthly dividend stock returns.
In February 2023, the 3 best-performing monthly dividend stocks (including dividends) were:
- Broadmark Realty (BRMK), up 17.4%
- Flagship Communities REIT (FLGMF), up 15.9%
- Generation Income Properties (GIPR), up 14.5%
The 3 worst-performing monthly dividend stocks (including dividends) in February were:
- Cross Timbers Royalty Trust (CRT), down 35.6%
- Gladstone Commercial (GOOD), down 19.0%
- SL Green Realty (SLG), down 16.6%
Why Monthly Dividends Matter
Monthly dividend payments are beneficial for one group of investors in particular – retirees who rely on dividend stocks for income.
With that said, monthly dividend stocks are better under all circumstances (everything else being equal), because they allow for returns to be compounded on a more frequent basis. More frequent compounding results in better total returns, particularly over long periods of time.
Consider the following performance comparison:
Over the long run, monthly compounding generates slightly higher returns over quarterly compounding. Every little bit helps.
With that said, it might not be practical to manually re-invest dividend payments on a monthly basis. It is more feasible to combine monthly dividend stocks with a dividend reinvestment plan to dollar cost average into your favorite dividend stocks.
The last benefit of monthly dividend stocks is that they allow investors to have – on average – more cash on hand to make opportunistic purchases. A monthly dividend payment is more likely to put cash in your account when you need it versus a quarterly dividend.
Case-in-point: Investors who bought a broad basket of stocks at the bottom of the 2008-2009 financial crisis are likely sitting on triple-digit total returns from those purchases today.
The Dangers of Investing In Monthly Dividend Stocks
Monthly dividend stocks have characteristics that make them appealing to do-it-yourself investors looking for a steady stream of income. Typically, these are retirees and people planning for retirement.
Investors should note many monthly dividend stocks are highly speculative. On average, monthly dividend stocks tend to have elevated payout ratios. An elevated payout ratio means there’s less margin for error to continue paying the dividend if business results suffer a temporary (or permanent) decline.
As a result, we have real concerns that many monthly dividend payers will not be able to continue paying rising dividends in the event of a recession.
Additionally, a high payout ratio means that a company is retaining little money to invest for future growth. This can lead management teams to aggressively leverage their balance sheet, fueling growth with debt. High debt and a high payout ratio is perhaps the most dangerous combination around for a potential future dividend reduction.
With that said, there are a handful of high-quality monthly dividend payers around. Chief among them is Realty Income (O). Realty Income has paid increasing dividends (on an annual basis) every year since 1994.
The Realty Income example shows that there are high-quality monthly dividend payers around, but they are the exception rather than the norm. We suggest investors do ample due diligence before buying into any monthly dividend payer.
Financial freedom is achieved when your passive investment income exceeds your expenses. But the sequence and timing of your passive income investment payments can matter.
Monthly payments make matching portfolio income with expenses easier. Most personal expenses recur monthly whereas most dividend stocks pay quarterly. Investing in monthly dividend stocks matches the frequency of portfolio income payments with the normal frequency of personal expenses.
Additionally, many monthly dividend payers offer investors high yields. The combination of a monthly dividend payment and a high yield should be especially appealing to income investors.
But not all monthly dividend payers offer the safety that income investors need. A monthly dividend is better than a quarterly dividend, but not if that monthly dividend is reduced soon after you invest. The high payout ratios and shorter histories of most monthly dividend securities mean they tend to have elevated risk levels.
Because of this, we advise investors to look for high-quality monthly dividend payers with reasonable payout ratios, trading at fair or better prices.
If you are interested in finding more high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:
- The Dividend Aristocrats: S&P 500 stocks with 25+ years of consecutive dividend increases.
- The 20 Highest Yielding Dividend Aristocrats
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 48 stocks with 50+ years of consecutive dividend increases.
- The 20 Highest Yielding Dividend Kings
- The Dividend Achievers List: a group of stocks with 10+ years of consecutive dividend increases.
- The Dividend Champions List: stocks that have increased their dividends for 25+ consecutive years.
Note: Not all Dividend Champions are Dividend Aristocrats because Dividend Aristocrats have additional requirements like being in The S&P 500.
- The Dividend Contenders List: 10-24 consecutive years of dividend increases.
- The Dividend Challengers List: 5-9 consecutive years of dividend increases.
- The 20 Highest Yielding Monthly Dividend Stocks
- The High Dividend Stocks List: high dividend stocks are suited for investors that need income now (as opposed to growth later) by listing stocks with 5%+ dividend yields.