Investing in dividend-paying stocks is a popular strategy for individuals who are seeking stable, predictable income with the potential for long-term growth. Among the different types of dividend stocks, monthly dividend stocks are especially appealing because they provide regular cash flow, often compared favorably with fixed income products like bonds or CDs. But the question remains: Which company gives the highest dividend every month?
In this article, we delve into the world of monthly dividend stocks. We will explore the top companies with a history of paying regular monthly dividends, break down the industries represented in these high-income generators, and offer insight to help investors make informed decisions. Whether you’re a retiree looking for steady income or an aggressive investor aiming for compounding returns, understanding the dynamics of monthly dividend payers is essential.
Why Monthly Dividends Matter
While most publicly traded companies in the U.S. pay quarterly dividends, there are numerous stocks (and more commonly, trusts, funds, and REITs) that distribute monthly. Monthly dividends have several distinct advantages:
- Better Cash Flow Management: Monthly dividends allow investors better control over monthly expenses, similar to a paycheck.
- Opportunities for Faster Compounding: Reinvesting monthly provides more frequent opportunities to compound gains compared to quarterly reinvestment.
- Less Volatility in Income: Monthly income streams offer greater stability in retirement planning and income-dependent strategies.
These reasons make monthly dividend payers an attractive option, especially for income-focused portfolios.
The Best Monthly Dividend Stocks
The stocks and funds listed below are known for providing high dividend yields and have a consistent history of monthly distributions. These aren’t traditional capital-heavy corporations, but rather structured entities like REITs, Business Development Companies (BDCs), or YieldCos — all of which are built for income generation.
1. Gladstone Capital Corporation (GLAD)
Gladstone Capital operates as a BDC investing in small and mid-sized companies through secured debt and equity financing. In recent years, GLAD has consistently paid monthly dividends.
- Dividend Yield: ≈ 10.9%
- Last Dividend (as of 2024): $0.078 per share monthly
- Dividend Stability: GLAD maintains a stable NAV and covers dividends from net investment income. However, caution is advised due to the nature of private company lending.
2. LTC Properties, Inc. (LTC)
LTC Properties is a publicly traded healthcare-focused REIT. It owns a diversified portfolio of long-term care and seniors housing properties. LTC offers a favorable mix of yield, stability, and monthly payments.
- Dividend Yield: ≈ 5.9%
- Last Dividend: Around $0.107 per share monthly
- Dividend Record: LTC has increased dividends for over 20 consecutive years — rare among monthly dividend stocks.
3. Stag Industrial, Inc. (STAG)
STAG Industrial is a REIT specializing in single-tenant industrial real estate. Their long-term leases with high-credit tenants support steady cash flows, allowing for consistent monthly dividends.
- Dividend Yield: 4.3%
- Last Monthly Payout: $0.125 per share
- REIT Structure: STAG benefits from consistent rent collections across diverse geographic locations, making monthly payments reliable.
4. Pembina Pipeline Corporation (PBA) [US Listing]
Pembina, listed on U.S. exchanges as PBA, is a Canadian-based infrastructure company owning a network of pipelines and storage facilities. While foreign dividends might attract more tax considerations, the reliability and yield are notable.
- Dividend Yield: Around 4.5%
- Last Dividend: ~$0.172 per share monthly
- Geographic Advantage: Pembina serves North America’s most critical energy corridors, ensuring dependable revenue.
5. EPR Properties (EPR)
EPR Properties is an experiential Net Lease REIT, meaning it leases properties tied to leisure and entertainment, including theaters and theme parks. It offers notable monthly payouts.
- Dividend Yield: ~6.5%
- Last Monthly Pay: $0.31 per share
- Recovery in Travel: Post-pandemic trends show improving cash flows in experiential REITs, including EPR.
Monthly Dividend Funds You Should Consider
Not everyone wants to pick individual stocks, especially if income reliability, diversification, and professional management are priorities. In response, many ETFs and closed-end funds focus specifically on monthly dividend generation.
1. REIT Income Fundamentals ETF (UBR)
UBR provides exposure across high-quality U.S. equity REITs and offers monthly payouts with solid yields.
- Dividend Yield: ~6.0%
- Top Holdings: Equity Residential, Prologis Inc., Digital Realty Trust
- Expense Ratio: 0.41%
2. Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund (PSF)
This closed-end fund invests in preferred securities and offers both income and potential for capital gains.
- Yield: Over 7.5%
- Monthly Distribution: ~$0.123 per share
- Tax Efficiency: Tax-advantaged structure enhances net income for shareholders.
3. John Hancock Preferred Income Fund II (HPF)
Another closed-end fund focusing on preferred equity for steady monthly income.
- Dividend Yield: Approximately 7.1%
- Distribution Type: Monthly
- Risk Consideration: May trade at discount/premium; review performance regularly.
High-Yield Monthly Dividend Stocks in Focus
Beyond BDCs and REITs, there are master limited partnerships (MLPs) and other structured entities that pay monthly dividends. These provide some of the highest current yields but come with additional tax forms and sometimes higher risk.
1. GasLog Partners LP (GLOP)
GasLog Partners, now known as Logiq Transport Solutions, was previously an MLP operating in LNG maritime logistics.
- Last Yield (Historical): ~6.0-8.0%
- Payout Frequency: Monthly
2. Global Medical REIT Inc. (GMRE)
Focused on Class A medical real estate, this REIT has gained popularity with monthly dividends and rising demand for healthcare buildings.
- Yield: ~7.0%
- Dividend per Share: $0.083 monthly
3. Prospect Capital Corporation (PSEC)
Prospect Capital is a BDC with a history of paying monthly dividends, often seen as a high-yield option.
- Yield: ~11.5%
- Dividend per Share (as of 2024): ~$0.075 monthly
- Caution: Has had NAV fluctuations and may include return of capital in some payments.
Understanding Monthly Dividend Taxation and Considerations
Qualified vs. Ordinary Dividends
Most monthly dividends are reported as ordinary income for U.S. tax purposes, unless they qualify as “Qualified Dividends.” REIT dividends, for example, typically do not qualify and are often taxed at the investor’s marginal rate.
1099-DIV and Reporting
Investors will receive a Form 1099-DIV listing how much they received in dividends and how much was classified as:
- Ordinary dividends
- Qualified dividends
- Non-dividend distributions (i.e., return of capital)
Foreign Dividends and Withholding Taxes
Stocks like Pembina (PBA) or Canadian REITs often come with withholding taxes. Investors can typically reclaim a portion through the foreign tax credit form on their U.S. returns.
Benchmarking Risk Versus Dividend Yield
What’s a Safe Monthly Dividend Yield?
While high yields are tempting, they must be assessed for sustainability. A yield above 8% isn’t uncommon among BDCs and REITs, but such cases need scrutiny: are the dividends supported by steady earnings, or is the company dipping into capital or issuing new shares to support the payments?
Key Metrics to Watch
| Metric | Description | What to Look For |
|---|---|---|
| Funds From Operations (FFO) | Commonly used for REITs to gauge real estate cash flow | Should cover monthly dividends consistently |
| Net Investment Income (NII) | Used by BDCs and preferred funds for assessing income coverage | NII should exceed dividend payout |
| Payout Ratio | Percentage of earnings paid out as dividends | Prefer below 90% for safety |
Diversify Your Monthly Passive Income
No single stock or fund pays the highest dividend reliably forever. Instead, building a diversified portfolio that includes monthly, quarterly, and annual dividend payers allows you to optimize income and mitigate sector-specific risk. Consider splitting investments across:
- REITs for real estate income
- BDCs for private credit exposure
- Preferred ETFs for hybrid equity-income gains
- Closed-end funds for enhanced yield
This approach maintains stability while keeping the door open for growth, as reinvested monthly income can accelerate compounding.
Conclusion: Which Company Actually Pays the Highest Monthly Dividend?
The question of which company gives the highest dividend every month can’t always be answered with a single ticker. Among the leading contenders as of 2024 are:
- Prospect Capital (PSEC): High yield (~11.5%) but with potential uncertainty in NAV and income coverage.
- Global Medical REIT (GMRE): Competitive yields (~7%) with healthcare demand tailwinds.
- LTC Properties (LTC): Offers a compelling blend of yield (~5.9%), growth, and monthly reliability.
However, while some offer higher payouts, their stability, risk exposure, and tax implications should be carefully examined. Monthly dividends create a rhythm that investors love, but high performance requires thoughtful portfolio construction.
Final Thoughts
If you’re aiming to build a powerful income-generating portfolio, focus on quality companies and funds that can maintain their monthly promises through market cycles. It’s also advisable to consult with a financial advisor or tax professional, particularly regarding specific structures like REITs and MLPs, which come with unique IRS reporting.
By combining research, risk assessment, and strategic reinvestment, investors can confidently pursue high-yielding monthly dividend opportunities that align with both their current income needs and long-term financial goals.
Ultimately, “highest dividend” isn’t the only criteria — sustainability, diversification, and income quality are just as important.
Which companies offer monthly dividends?
Several companies and investment vehicles provide investors with the opportunity to receive dividends on a monthly basis. These primarily include Real Estate Investment Trusts (REITs), Business Development Companies (BDCs), and certain exchange-traded funds (ETFs) structured to pay out monthly. While most public companies issue dividends quarterly, those that aim to generate steady income for investors often choose monthly distributions to offer more predictable cash flow. Notable examples of companies that have historically paid monthly dividends include Realty Income Corporation, Stag Industrial, and LTC Properties, all of which are REITs focused on commercial real estate.
Monthly dividend payers are particularly attractive to retirees and income-focused investors who desire regular payments rather than quarterly lump sums. It’s important to note that while individual stocks that pay monthly are relatively rare, investors can achieve monthly payout schedules by investing in a diversified portfolio of dividend-paying securities and strategically staggering their distributions. Additionally, some brokerage platforms now offer dividend-reinvestment plans (DRiPs) or tools that allow investors to simulate monthly income from quarterly dividend stocks by managing cash flow across multiple holdings.
Why do most companies pay dividends quarterly instead of monthly?
The quarterly payout schedule is standard among most publicly traded companies due to the administrative and financial reporting cycles they follow. Companies typically align their dividend policies with their financial reporting periods, which are quarterly, making it more efficient to distribute earnings after completing each quarter’s financial statements and assessing overall performance. This allows management and boards of directors to make informed decisions about the distribution of profits based on updated company performance metrics.
Moreover, paying monthly dividends can create operational complexity and place pressure on a company to maintain consistent cash flow every single month, which may not always be feasible. Quarterly dividends provide a buffer that allows companies to manage short-term fluctuations in earnings without compromising their ability to maintain a stable dividend. It also reduces transaction costs associated with processing payouts and aligns with the broader rhythms of corporate finance and investor expectations.
Are monthly dividend stocks reliable for steady income?
Monthly dividend stocks can be a reliable source of steady income, especially for investors who depend on regular cash flow to meet living expenses. Companies that adopt monthly dividend schedules, such as REITs and BDCs, typically structure their business operations to generate consistent and stable revenue streams. Since these entities are required by law to distribute a significant portion of their taxable income to avoid corporate taxes, they tend to maintain predictable payout patterns that can support income-focused investment strategies.
However, investors should not rely solely on the frequency of dividend payments as a sign of reliability. The key factors to assess are the company’s financial health, payout ratio, earnings consistency, and dividend history. A company paying monthly dividends can still cut or eliminate them if its fundamentals deteriorate. Therefore, conducting thorough due diligence and diversifying across different sectors and asset types can help ensure a more secure income stream.
What are the tax implications of receiving monthly dividends?
The tax treatment of monthly dividends depends on whether the dividends are classified as qualified or non-qualified by the IRS. Qualified dividends benefit from lower capital gains tax rates, while non-qualified, or ordinary, dividends are taxed at an investor’s regular income tax rate. This distinction applies regardless of the payment frequency, meaning monthly dividends are taxed under the same rules as quarterly or annual dividends.
Investors receiving monthly dividends must also keep accurate records and report dividend income throughout the year for tax purposes. Using a brokerage that provides year-end tax summaries and automatically tracks dividend income can help streamline this process. Additionally, holding dividend-paying investments in tax-deferred accounts like IRAs can delay taxation, while placing them in Roth IRAs may eliminate tax liability altogether under certain qualifying conditions.
Are there ETFs or REITs that pay monthly dividends?
Yes, there are both ETFs and REITs that pay monthly dividends, offering investors a convenient way to receive consistent income without having to manage individual stocks. Several dividend-focused ETFs have been designed specifically to provide monthly payouts by compiling portfolios of high-yield dividend stocks or income-producing fixed income assets. For REITs, due to their obligation to return a large portion of earnings to shareholders, some choose to distribute dividends monthly to maintain shareholder appeal and investor satisfaction.
Examples of ETFs offering monthly dividends include the Global X SuperDividend ETF (SDIV) and the InnovatorPreferred ETF (PFD), which aggregate high-yield global or preferred stock dividends into monthly distributions. On the REIT side, companies like Realty Income Corporation (“The Monthly Dividend Company”) have built their brand around regular monthly payouts. These funds and REITs can be ideal for investors looking to simplify their income portfolios while benefiting from professional management and diversification.
How can I build a portfolio that generates monthly dividend income?
To build a monthly dividend-generating portfolio, investors can combine a mix of individual monthly dividend stocks, ETFs, and REITs across various sectors to ensure diversification and reduce risk. By investing in companies and funds that each pays dividends on different months or coordinating staggered quarterly dividends, investors can simulate monthly income streams. Using a dividend calendar to track payment schedules can assist in aligning distributions to be consistent across each month of the year.
Additionally, it’s essential to maintain a long-term investment strategy that balances growth, income, and risk. Investors should focus on selecting companies with strong financial positions, consistent earnings, and sustainable payout ratios to ensure dividends are maintained. Reinvesting dividends during early stages of portfolio building can help compound returns over time, while gradually transitioning into a full monthly income stream as the portfolio matures and generates sufficient cash flow.
Can you live off monthly dividend income alone?
It is possible to live off monthly dividend income, but this depends heavily on the size of the investment portfolio, the average dividend yield, and the investor’s monthly expenses. To replace a typical retirement income solely through dividends, an individual may need a substantial portfolio because even with high-yield investments, returns must cover both principal and the necessary withdrawal rate. This makes it more feasible for long-term investors who have built diversified portfolios over decades of saving and reinvesting.
Furthermore, living off dividends requires a focus on portfolio sustainability and risk management. A passive income strategy should account for inflation, market volatility, and potential dividend cuts. By selecting a diversified mix of dividend-paying equities, ETFs, and REITs, and implementing a systematic withdrawal plan, investors can increase the likelihood of maintaining steady, long-term income. Professional financial advice is often recommended to ensure a realistic and secure path toward financial independence through dividends.