In this article, we will take a look at some of the best dividend stocks that pay monthly dividends.
The majority of dividend-paying stocks distribute payouts on a quarterly basis, or every three months. However, companies that provide dividends on a monthly schedule are much less common. Those that do typically prioritize rewarding shareholders and offer a consistent income stream.
Real estate investment trusts (REITs) are among the few that pay monthly dividends. These investment vehicles trade like stocks, allowing investors to gain exposure to large-scale commercial real estate projects. To maintain their tax-advantaged status, REITs are required to distribute at least 90% of their taxable income to shareholders, which exempts them from corporate income tax. In general, REITs provide attractive yields, portfolio diversification, and liquidity while also serving as a defensive investment option that can remain resilient during economic downturns.
Regardless of payout frequency, dividend stocks have remained a popular choice among investors. In 2024, dividends remained strong, even though the Dividend Aristocrats Index underperformed the broader market. Throughout the year, US companies consistently maintained or increased their dividend distributions. In addition, several leading tech firms initiated dividend payments, reinforcing the idea that businesses can prioritize both growth and shareholder returns.
By the end of September 2024, roughly 80% of companies in the broader market were paying dividends—a figure that has remained relatively stable over the past decade. Notably, the technology sector accounted for nearly 24% of dividend-paying firms, up from just 13% a decade ago. Other sectors, including healthcare and industrials, also saw an increase in the number of companies offering dividends. This wider distribution of dividend-paying firms has provided income-focused investors with greater access to high-growth and innovative businesses. Given these trends, analysts remain optimistic about dividend stock performance heading into 2025.
Also read: 10 Best Bank Dividend Stocks To Buy Right Now
Historical data consistently indicates that dividend-paying stocks have outperformed other asset classes throughout different market cycles. According to a report from T. Rowe Price, dividends have contributed nearly one-third of total equity returns for US stocks since 1926. Between 1980 and 2019—a period characterized by falling interest rates—dividends accounted for 75% of the broader market’s returns.
The report also emphasized that dividends become particularly valuable in low-interest-rate environments, providing a reliable income stream when other fixed-income investments are less attractive. Once companies initiate dividend payments, they rarely discontinue them, and many tend to increase their payouts over time. Offering dividends can also make a stock more attractive to investors, potentially driving up its value.
Analysts point out that, historically, dividend growth has been closely tied to earnings expansion. With strong earnings recorded last year, expectations for 2025 are even more optimistic. Goldman Sachs projects an 11% rise in earnings per share for the year, improving from an estimated 8% increase in 2024. As a result, dividends are expected to grow by 7%, compared to a 6% uptick in the previous year.
Ohsung Kwon, a US equity strategist at BofA Securities, holds an even more bullish view, predicting a 12% increase in dividends this year, driven by accelerating earnings growth. From 1936 to 2012, dividends made up roughly 40% of the market’s total return. However, over the past decade, their contribution has dropped to just 16%, according to a late 2024 research note from BofA Securities. Looking ahead, Kwon expects dividends to play a more substantial role in total returns compared to the previous ten years. Given this, we will take a look at some of the best dividend stocks that pay monthly dividends.
Photo by nick chong on Unsplash
Our Methodology:
For this list, we reviewed a list of companies providing monthly dividends to their shareholders. Among these, we specifically chose businesses with robust dividend practices, consistently maintaining their payouts across multiple years. The majority of these selected companies operate within the Real Estate Investment Trust (REIT) sector, as they are required to allocate 90% of their income towards dividends. From that list, we picked 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s Q3 2024 database of 900 hedge funds and their holdings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
12. Gladstone Land Corporation (NASDAQ:LAND)
Number of Hedge Fund Holders: 5
Gladstone Land Corporation (NASDAQ:LAND) is an American real estate investment trust company, based in Virginia. The company owns and acquires farmlands and farm-related products. It prioritizes fresh produce farms as they pose lower risks compared to commodity crops. These farms typically have more reliable water access, face less exposure to price fluctuations, rely less on government subsidies and tariffs, incur lower storage costs, and generate higher rental income. Since the start of 2025, the stock has surged by over 8%.
Gladstone Land Corporation (NASDAQ:LAND) delivered strong performance in the third quarter of 2024, driven by increased property values and rental income from its annual row crop farms in California and Florida. However, some permanent crop farms in the western regions faced challenges due to lower crop prices, higher input costs, and water availability concerns. To address these issues, the company implemented a new leasing strategy, providing tenants with a cash allowance to cover expenses in exchange for a larger share of gross crop proceeds. Although designed as a temporary measure, this approach is seen as the most effective solution, given the farms’ history of strong yields, reliable crop insurance, and improving crop prices.
On January 16, Gladstone Land Corporation (NASDAQ:LAND) declared a monthly dividend of $0.0467 per share, which was in line with its previous dividend. The company has consistently returned value to shareholders, distributing monthly dividends for 141 consecutive months. Over the past 39 years, the company has increased its payouts 35 times, demonstrating a strong commitment to dividend growth. With a dividend yield of 4.80%, as of February 13, LAND is one of the best dividend stocks on our list.
11. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Fund Holders: 7
Main Street Capital Corporation (NYSE:MAIN) is an American business development company that provides customized debt and equity financing to lower-middle-market companies and debt capital to middle-market companies. The stock has delivered strong returns in the past 12 months, surging by over 37%. The company maintains strong cost efficiency, reflected in its annualized Operating Expenses to Assets Ratio of 1.3%. This metric, which tracks non-interest operating costs as a percentage of average total assets, remained steady both for the quarter and the twelve-month period ending September 30, 2024.
In the third quarter of 2024, Main Street Capital Corporation (NYSE:MAIN) recorded $136.8 million in total investment income, marking an 11% increase from the previous year. It allocated $51.6 million toward its lower middle market (LMM) portfolio, which included an $11.2 million investment in a newly added LMM portfolio company. Meanwhile, Main Street Capital maintained a strong liquidity position, with cash and cash equivalents growing to $84.4 million by quarter-end, up from $60 million in December 2023.
Main Street Capital Corporation (NYSE:MAIN) currently offers a monthly dividend of $0.245 per share and has a dividend yield of 4.93%, as of February 13. The company has consistently rewarded shareholders with supplemental payouts. In its third-quarter earnings report, the company announced a $0.30 per share supplemental dividend, marking the thirteenth consecutive quarter of additional distributions. This is alongside eight increases to its regular monthly dividends since the fourth quarter of 2021, reinforcing its commitment to steady dividend growth.
10. Ellington Financial Inc. (NYSE:EFC)
Number of Hedge Fund Holders: 9
Ellington Financial Inc. (NYSE:EFC) is a Connecticut-based specialty finance company that acquires and manages a range of financial assets, including those related to mortgages, consumers, corporations, and other financial sectors. In the third quarter of 2024, the company strengthened its investment portfolio by utilizing its solid balance sheet to expand its high-yield loan assets. The company experienced a 26% growth across various loan categories, including non-QM loans, residential transition loans, commercial mortgage bridge loans, HELOCs, and closed-end second-lien loans. This expansion resulted in a modest increase in leverage, while the company scaled back its Agency portfolio and set aside capital for future investment opportunities.
Ellington Financial Inc. (NYSE:EFC)’s aims to generate attractive, risk-adjusted returns for its shareholders by investing in opportunities that offer a balanced reward relative to their risks. The company maintained a strong cash position, reinforcing its ability to sustain steady dividend payments. By the end of the quarter, cash and cash equivalents totaled nearly $218 million, rising from $198.5 million at the end of June 2024. In addition, total assets expanded to approximately $16 billion, up from $15.3 billion in the same period the previous year.
On February 10, Ellington Financial Inc. (NYSE:EFC) declared a monthly dividend of $0.13 per share, which fell in line with its previous dividend. The company has maintained its dividends for 15 consecutive years, which makes EFC one of the best dividend stocks on our list. The stock supports an attractive dividend yield of 12.11%, as of February 13.
9. Orchid Island Capital, Inc. (NYSE:ORC)
Number of Hedge Fund Holders: 11
Orchid Island Capital, Inc. (NYSE:ORC) is a Florida-based specialty finance company. Since the start of 2025, the stock has surged by nearly 9%. The company remains optimistic about future investment prospects, anticipating that attractive opportunities will continue to arise. It expects total returns to improve if the Federal Reserve eases monetary policy, particularly if banks expand their involvement in the Agency RMBS market. However, even without these developments, the current investment landscape remains favorable, with hedged net interest spreads offering strong support for maintaining dividend levels.
In the fourth quarter of 2024, Orchid Island Capital, Inc. (NYSE:ORC) reported a net interest income of $8.14 million and its net income came in at $5.6 million. Despite high interest rates and the weak performance of the Agency RMBS asset class during the quarter, the company achieved a 0.6% total return in the fourth quarter of 2024. This result was driven by dividends of $0.36 per share, which offset a $0.31 decline in book value. In comparison, the company recorded a 2.1% return in the third quarter, benefiting from a market rally following the start of the Federal Reserve’s easing cycle. For the full year ending December 31, 2024, Orchid delivered a total return of 4.73%, a notable improvement from the negative 8.63% return recorded in 2023.
On February 12, Orchid Island Capital, Inc. (NYSE:ORC) declared a monthly dividend of $0.12 per share, which was consistent with its previous dividend. As of February 13, the stock offers a dividend yield of 16.8%. Since its initial public offering in 2013, the company has consistently distributed monthly dividends. In its first year, it paid out a total of over $4.6 million in dividends, with this figure rising to more than $81 million by the close of 2023. Over the years, Orchid Island Capital has returned approximately $658 million to shareholders through dividend payments, which makes it one of the best dividend stocks on our list.
8. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 13
LTC Properties, Inc. (NYSE:LTC) is a California-based real estate investment trust company that invests in senior housing and healthcare facilities through sale-leasebacks. In the third quarter of 2024, the company reported revenue of $55.7 million, reflecting a 13% increase from the same period in the previous year. This growth was fueled by earnings from previously transitioned portfolios, higher income from loan originations, funding for construction loans in 2024, and increased rental income. However, a decline in revenue from property sales partially offset these gains.
In addition, as previously announced, LTC Properties, Inc. (NYSE:LTC) allocated $26.1 million toward a mortgage loan to finance the construction of a 116-unit senior living community in Illinois, which will offer independent living, assisted living, and memory care services. The borrower has already contributed $12.3 million in equity to commence construction, with the full loan amount expected to be drawn by early 2025.
LTC Properties, Inc. (NYSE:LTC), one of the best dividend stocks, reported solid cash flow performance during the quarter. As of the end of September, its cash and cash equivalents had risen to over $35 million, up from $20.2 million at the end of 2023. This strong financial position has enabled the company to sustain its monthly dividend payments since 2005, continuing its long-standing practice of quarterly distributions that began in 1992. The company’s monthly dividend comes in at $0.19 per share for a dividend yield of 6.6%, as recorded on February 13.
7. Phillips Edison & Company, Inc. (NASDAQ:PECO)
Number of Hedge Fund Holders: 18
Phillips Edison & Company, Inc. (NASDAQ:PECO) ranks seventh on our list of the best dividend stocks that pay monthly dividends. The real estate investment trust company owns and develops shopping centers throughout the country. The company reported strong earnings in the fourth quarter of 2024, generating revenues of over $173 million, which showed a 12% growth from the same period last year. It reported a strong leased portfolio occupancy rate of 97.7%, with same-center leased portfolio occupancy slightly higher at 97.8%. Leased inline occupancy saw year-over-year growth, reaching 95.0%, while same-center leased inline occupancy remained steady at 94.9%. Over the course of the year, the company expanded its portfolio by acquiring fourteen shopping centers and four land parcels for a total investment of $305.7 million. Looking ahead, its full-year 2025 gross acquisitions are expected to range between $350 million and $450 million.
Phillips Edison & Company, Inc. (NASDAQ:PECO) demonstrated a solid cash position. By the end of 2024, the company had total liquidity of approximately $747.6 million. This included $8.6 million in cash, cash equivalents, and restricted cash, along with $738.9 million in available borrowing capacity on its $800 million revolving credit facility.
Phillips Edison & Company, Inc. (NASDAQ:PECO) initiated its dividend policy in 2021 and has paid regular dividends to shareholders since then. It currently offers a monthly dividend of $0.1025 per share and has a dividend yield of 3.3%, as of February 13. According to Insider Monkey’s database of Q3 2024, 18 hedge funds held stakes in PECO, up from 14 in the previous quarter.
6. Apple Hospitality REIT, Inc. (NYSE:APLE)
Number of Hedge Fund Holders: 19
Apple Hospitality REIT, Inc. (NYSE:APLE) is a Virginia-based real estate investment trust company that mainly operates in hotel properties across the US. In 2024, the company took a strategic approach to capital allocation and portfolio management. Between January and October, it acquired two hotels for $196 million, sold three properties for $41 million, and repurchased 2.4 million shares for $35 million. In addition, the company entered agreements to sell four more hotels for approximately $31 million. These transactions highlight the company’s focus on optimizing its portfolio and efficiently managing capital.
In the third quarter of 2024, business travel demand continued its gradual recovery, while leisure travel remained strong, contributing to stable operations across the portfolio. Apple Hospitality REIT, Inc. (NYSE:APLE) reported a nearly 1% year-over-year increase in RevPAR for its Comparable Hotels. Preliminary figures for October indicated occupancy levels approaching 80%, alongside further growth in the average daily rate (ADR). The company generated $378.8 million in revenue for the quarter, up 5.75% from the previous year, while operating income increased by 2% to $77.7 million.
Apple Hospitality REIT, Inc. (NYSE:APLE) has drawn investor attention for its reliable dividend payments. Since 2008, the company has maintained a steady distribution history and has occasionally offered additional payouts to shareholders. At present, it pays a monthly dividend of $0.08 per share for a dividend yield of 6.27%, as of February 13.
5. EPR Properties (NYSE:EPR)
Number of Hedge Fund Holders: 23
EPR Properties (NYSE:EPR) is an American real estate investment trust company, headquartered in Missouri. The company leases its properties to various entertainment and educational businesses, including amusement parks, movie theaters, and ski resorts, across the US and Canada. It is one of the best dividend stocks on our list as the company has been paying dividends to shareholders since its IPO in 1997. The company shifted its dividend policy to monthly payouts in 2013. It pays a monthly dividend of $0.285 per share and has a dividend yield of 7.02%, as recorded on February 13.
Analysts have expressed concerns about EPR Properties (NYSE:EPR)’s business model, as it is heavily focused on experiential assets. The challenges of owning properties tied to entertainment and group activities became evident during the coronavirus pandemic. As a result, the company reduced its dividend in 2020 and later suspended it entirely after reporting a substantial net loss of $156 million for the year. However, the dividend was reinstated in the latter half of 2021.
Although movie theater operators continue to face difficulties, EPR Properties (NYSE:EPR) has seen improved performance across its other tenant categories. Rent coverage for non-theater properties has strengthened from 1.9 times in 2019 to 2.1 times, reflecting a greater ability to cover property ownership costs. By the end of the third quarter of 2024, the company achieved a 99% occupancy rate. This was accomplished through the sale of vacant theater properties, the addition of more non-theater tenants in the experiential sector, and an expansion into education-related properties.
During the quarter, EPR Properties (NYSE:EPR) sold two theater properties and one early childhood education center, generating $8.7 million in net proceeds. The company maintained a strong cash position, closing the quarter with over $35.3 million in cash and nearly $5.7 billion in total assets.
4. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 23
Realty Income Corporation (NYSE:O), an American real estate investment trust company, invests in single-tenant commercial properties in the country. The company has encountered notable difficulties in recent years, largely driven by rising inflation and higher interest rates. These factors have put substantial pressure on real estate investment trusts (REITs), including Realty Income. Elevated interest rates have led to increased borrowing costs across the sector, diminishing the present value of future earnings and resulting in lower price-to-FFO (Funds From Operations) ratios.
Despite these headwinds, Realty Income Corporation (NYSE:O) maintains a strong financial position and possesses unique advantages that enable it to manage its interest obligations with ease. The REIT consistently increases its FFO per share annually and is currently trading at a valuation about 30% below its historical average. This discount suggests a potential upside of approximately 43% once interest rates begin to decline.
Realty Income Corporation (NYSE:O) currently offers a monthly dividend of $0.264 per share and has a dividend yield of 5.77%, as of February 13. A major strength of the company lies in its solid financial foundation, supported by an investment-grade balance sheet. Its significant scale enhances access to capital markets, enabling it to obtain favorable debt terms for expansion. In addition, the company has steadily raised its dividend payments since its public listing in 1994, which makes it one of the best dividend stocks.
3. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 24
AGNC Investment Corp. (NASDAQ:AGNC) is a Maryland-based real estate investment trust company that mainly invests in mortgage-backed securities, which function similarly to bonds. The company offers a compelling investment opportunity, though not without risks. Unlike traditional REITs that focus on owning and leasing properties, this mortgage REIT primarily invests in mortgage-backed securities, functioning similarly to a mutual fund. Its value is largely influenced by the performance of its mortgage securities portfolio. As of December 31, 2024, the company’s portfolio stood at $73.3 billion, comprising $65.5 billion in Agency MBS, $6.9 billion in net forward purchases and sales of Agency MBS in the “to-be-announced” (TBA) market, and $0.9 billion in credit risk transfer (CRT) and non-Agency securities, along with other mortgage-related investments.
Unlike REITs that generate income by owning and managing rental properties, AGNC Investment Corp. (NASDAQ:AGNC) invests in mortgage-backed securities, which are actively traded on a daily basis. The value of these investments is influenced by fluctuations in interest rates, as well as broader real estate market factors, including housing demand and loan repayment patterns.
AGNC Investment Corp. (NASDAQ:AGNC) has been making regular dividends to shareholders since its IPO in 2008 when it used to pay dividends on a quarterly basis. The company transitioned to a monthly dividend payment structure in 2014. Since going public through the fourth quarter of 2024, it has distributed a total of $14 billion in dividends to its shareholders. The company offers a monthly dividend of $0.12 per share and has a dividend yield of 13.95%, as of February 13.
2. STAG Industrial, Inc. (NASDAQ:STAG)
Number of Hedge Fund Holders: 26
STAG Industrial, Inc. (NASDAQ:STAG) has a diversified portfolio of industrial properties, including warehouses and light manufacturing facilities. In the fourth quarter of 2024, the company reported revenue of $199.3 million, which showed an 8.7% growth from the same period last year. It generated $139.2 million in Same Store Cash Net Operating Income (NOI), reflecting a 4.4% increase from the $133.4 million reported in the same period of 2023. Additionally, Cash Available for Distribution rose to $88.6 million, up 1.6% from $87.2 million in the fourth quarter of the previous year.
STAG Industrial, Inc. (NASDAQ:STAG), one of the best dividend stocks, acquired 15 buildings in Q4 2024, totaling 2.4 million square feet for $293.7 million, with a Cash Capitalization Rate of 6.2% and a Straight-Line Capitalization Rate of 6.9%. In addition, it sold two buildings covering 366,599 square feet for $29.4 million. As of December 31, 2024, the company reported an overall portfolio occupancy rate of 96.5%, while the Operating Portfolio reached 97.3%.
STAG Industrial, Inc. (NASDAQ:STAG)’s cash position remained stable as well. The company ended the quarter with over $36.2 million available in cash and cash equivalents, up from $20.7 million in the prior-year period. It currently offers a monthly dividend of $0.1242 per share, having raised it by 1% in January. The stock has a dividend yield of 4.21%, as recorded on February 13. It is one of the best dividend stocks on our list as the company has kept its dividends steady since 2011.
1. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 26
Agree Realty Corporation (NYSE:ADC) is a Michigan-based real estate investment trust company with a strong presence in the retail sector. The company’s portfolio includes major retailers such as Walmart, Tractor Supply, Dollar General, Best Buy, TJX, Dollar Tree, Lowe’s, and Kroger, which collectively contribute around one-third of its annual rental revenue. The remaining two-thirds come from a diverse mix of other well-established businesses.
Agree Realty Corporation (NYSE:ADC) reported revenues of $160.7 million in the fourth quarter of 2024, which showed an 11.5% growth from the same period last year. During the quarter, the company invested about $371 million in 127 retail net lease properties. For the period, net income per share attributable to common stockholders declined by 5.7%, reaching $0.41. However, Core Funds from Operations (Core FFO) per share increased by 3.5%, rising to $1.02.
Agree Realty Corporation (NYSE:ADC) is highly efficient, with tenants responsible for the majority of property-related operating expenses. Over the past decade, the company has experienced consistent growth, increasing its dividend by around 6% annually. Its portfolio has also expanded significantly, growing from 130 properties in 2013 to 2,370 properties by the end of 2024. Recognized as one of the best dividend stocks, Agree Realty has maintained continuous dividend payments since its IPO in 1994. Currently, it offers a monthly dividend of $0.253 per share for a dividend yield of 4.23%, as of February 13. The dividend accounts for about 74% of Core FFO per share and 73% of AFFO per share, respectively.
Overall Agree Realty Corporation (NYSE:ADC) ranks first on our list of the best dividend stocks that pay monthly dividends. While we acknowledge the potential for ADC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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