10 Best Monthly Dividend Stocks to Buy in 2025

Monthly dividend stocks are increasingly popular among investors seeking regular income and greater financial stability. Unlike quarterly payers, these stocks distribute dividends every month, making them especially attractive for retirees, income-focused investors, and anyone looking to smooth out cash flow.

As we move through 2025, market volatility and economic uncertainty have only heightened the appeal of reliable, income-generating investments.

Below, we highlight the 10 best monthly dividend stocks to buy in 2025, selected for their yield, consistency, and overall financial health.

Best Monthly Dividend Stocks to Buy in 2025

1. Realty Income Corp. (O)

• Yield: 5.6%

• Sector: Real Estate – Retail REITs

Known as “The Monthly Dividend Company,” Realty Income is a stalwart in the world of monthly payers. With an uninterrupted dividend streak spanning 56 years, it owns over 15,000 retail-focused properties and boasts a resilient tenant base. Its conservative management and A- credit rating make it a top choice for dependable monthly income.

2. Main Street Capital (MAIN)

• Yield: 5.3%

• Sector: Financials – Business Development Company

Main Street Capital is an internally managed BDC with a 17-year history of never cutting its regular monthly dividend. Its diversified portfolio of high-yield loans and prudent risk management have earned it a BBB- credit rating and a reputation for dividend safety, even through recessions.

3. AGNC Investment Corp. (AGNC)

• Yield: 15.1%

• Sector: Real Estate – Mortgage REIT

AGNC is one of the highest-yielding monthly dividend stocks, investing primarily in agency mortgage-backed securities. While its yield is eye-catching, investors should be aware that mortgage REITs can be sensitive to interest rate changes and market volatility.

4. STAG Industrial (STAG)

• Yield: 4.1%

• Sector: Real Estate – Industrial REITs

STAG Industrial owns over 500 industrial properties, focusing on warehouses and distribution centres. Its diversified tenant base and prudent financial management have enabled it to grow its monthly dividend every year since going public in 2011.

5. Gladstone Commercial (GOOD)

• Yield: 7.99%

• Sector: Real Estate – Diversified REIT

Gladstone Commercial is a diversified REIT with a focus on office and industrial properties. With a long track record of monthly dividends and a yield near 8%, it appeals to income investors, though its exposure to office real estate warrants monitoring.

6. Apple Hospitality REIT (APLE)

• Yield: 7.46%

• Sector: Real Estate – Hotel REITs

Apple Hospitality REIT owns a large portfolio of hotel properties across the US. Despite the cyclical nature of hospitality, APLE has maintained a strong dividend yield, supported by a recovery in travel and steady occupancy rates.

7. Ellington Financial (EFC)

• Yield: 11.73%

• Sector: Financials – Mortgage REIT

Ellington Financial invests in a mix of residential and commercial mortgage loans. Its double-digit yield is supported by a diversified portfolio, but like other mortgage REITs, it carries higher risk in volatile interest rate environments.

8. EPR Properties (EPR)

• Yield: 6.63%

• Sector: Real Estate – Specialty REITs

EPR Properties focuses on experiential real estate, including cinemas, amusement parks, and educational facilities. Its unique portfolio and attractive yield make it a compelling choice for those seeking monthly income and diversification.

9. LTC Properties (LTC)

• Yield: 6.40%

• Sector: Real Estate – Healthcare REITs

LTC Properties specialises in senior housing and healthcare facilities. Its stable tenant base and focus on essential services have helped it maintain a solid monthly dividend, even during challenging market conditions.

10. Orchid Island Capital (ORC)

• Yield: 19.21%

• Sector: Real Estate – Mortgage REIT

Orchid Island Capital boasts the highest yield on this list, investing in residential mortgage-backed securities. While the yield is extremely high, it comes with elevated risk, and dividend cuts are possible if market conditions deteriorate.

What Makes Monthly Dividend Stocks Appealing?

• Consistent Income: Monthly payouts can help cover regular expenses and provide peace of mind, especially for retirees.

• Compounding Opportunities: More frequent dividends allow for faster reinvestment, potentially accelerating portfolio growth.

• Smoother Cash Flow: Monthly dividends reduce the wait between payments compared to quarterly or annual payers.

Key Considerations Before Investing

• Dividend Safety: High yields can be tempting, but always assess whether the dividend is sustainable. Look for companies with strong balance sheets and a history of stable or growing payouts.

• Sector Risks: Many monthly dividend stocks are REITs or BDCs, which can be sensitive to economic cycles and interest rate changes.

• Diversification: Don't concentrate your portfolio in a single sector. Spread your investments across different industries and asset types to manage risk.

Conclusion

The 10 best monthly dividend stocks to buy in 2025 offer a blend of attractive yields, reliable payouts, and diversified exposure across sectors. Whether you're seeking steady income or a way to compound returns, these stocks can play a valuable role in your investment strategy.

As always, do your own research, consider your risk tolerance, and consult a financial adviser before making investment decisions.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.