Published on: 2025-04-23 Updated on: 2025-10-15
Unlike quarterly payers, these companies distribute dividends every month, an advantage for retirees, income-focused investors, and anyone who values steady cash flow.
As of October 2025, high inflation and uneven global growth have driven investors toward reliable dividend payers that combine attractive yields with strong fundamentals.
A monthly dividend stock is a stock that pays dividends every month instead of the usual quarterly schedule, providing investors with a steady and predictable cash flow.
These stocks are often found in sectors like REITs, business development companies (BDCs), and certain ETFs or closed-end funds. Monthly dividends allow for faster reinvestment and compounding, which can enhance portfolio growth over time.
While they can offer attractive yields, investors should consider risks such as dividend cuts during financial stress and sensitivity to economic cycles. Overall, monthly dividend stocks are particularly appealing for income-focused investors seeking regular payouts.
Below are the 10 best monthly dividend stocks to buy in 2025, chosen for their track record, payout stability, and financial health.
| # | Company | Latest Declared Monthly Dividend | Forward Dividend Yield (Annual) |
|---|---|---|---|
| 1 | Armour Residential REIT (ARR) | $0.08 / month | 18.26% |
| 2 | AGNC Investment Corp. (AGNC) | $0.12 / month | 14.41% |
| 3 | Capital Southwest Corporation (CSWC) | $0.57 quarterly (≈ $0.19 monthly equivalent) | 11.48% |
| 4 | Ellington Financial (EFC) | $0.13 / month | 11.43% |
| 5 | Apple Hospitality REIT (APLE) | $0.08 / month | 8.28% |
| 6 | LTC Properties (LTC) | $0.19 / month | 6.65% |
| 7 | EPR Properties (EPR) | $0.295 / month | 6.42% |
| 8 | SL Green Realty (SLG) | $0.25 / month | 5.52% |
| 9 | Realty Income (O) | $0.2695 / month | 5.49% |
| 10 | Main Street Capital (MAIN) | $0.255 / month | ≈ 5.0% |
1. Armour Residential REIT (ARR)
Yield: 18.26%
One of the highest-yielding REITs today, Armour invests in agency-backed mortgage securities. Its income potential is enormous, but investors should note that returns are highly sensitive to interest-rate volatility.
2. AGNC Investment Corp. (AGNC)
Yield: 14.41%
AGNC is a core pick for monthly income seekers. Backed by government-guaranteed mortgage assets, it has maintained its $0.12 monthly dividend through 2025 with remarkable consistency.
3. Capital Southwest Corporation (CSWC)
Yield: 11.48%
CSWC blends a strong base payout with recurring supplemental distributions, effectively giving investors monthly income. Its disciplined credit portfolio supports durable cash flow.
4. Ellington Financial (EFC)
Yield: 11.43%
EFC maintains an attractive balance between yield and stability. Its diversified credit investments and interest-rate hedging have helped sustain its $0.13 monthly dividend through turbulent markets.
5. Apple Hospitality REIT (APLE)
Yield: 8.28%
Apple Hospitality continues to benefit from steady travel recovery and occupancy growth. Its $0.08 monthly dividend is well-covered by improving hotel cash flows and disciplined debt management.
6. LTC Properties (LTC)
Yield: 6.65%
LTC focuses on healthcare and senior living properties. The trust’s conservative balance sheet and reliable tenants have supported a stable $0.19 monthly payout.
7. EPR Properties (EPR)
Yield: 6.42%
EPR’s portfolio of entertainment and leisure properties, like theaters and resorts offers a unique income stream. Strong post-pandemic cash flow recovery supports its $0.295 monthly dividend.
8. SL Green Realty (SLG)
Yield: 5.52%
Despite headwinds in the office sector, SL Green maintains a monthly dividend of $0.25. Its deep Manhattan footprint and improving occupancy rates hint at a gradual recovery story.
9. Realty Income (O)
Yield: 5.49%
Realty Income remains the standard-bearer for consistent monthly dividends. With over 15,000 global properties and decades of payout growth, it’s a defensive anchor for income portfolios.
10. Main Street Capital (MAIN)
Yield: ≈5.0%
Main Street Capital provides steady monthly income backed by strong portfolio earnings. Occasional supplemental dividends further enhance long-term total return potential.
Consistent Cash Flow: Monthly payments align with personal expenses, ideal for retirees and income planners.
Faster Compounding: Frequent payouts allow reinvestment sooner, accelerating portfolio growth.
Reduced Volatility: Regular income can cushion portfolio drawdowns during market turbulence.
When evaluating dividend stocks, focus on sustainability and long-term consistency rather than just headline yields.
Dividend Stability: Check that payouts are supported by consistent earnings and a healthy payout ratio. Avoid companies that fund dividends through excessive borrowing.
Growth Track Record: Prefer firms with a steady history of dividend increases, it reflects strong cash flow and disciplined capital management.
Balance Sheet Strength: Low debt and stable cash reserves are key indicators of resilience, especially during downturns.
Sector Exposure: Be mindful of industries sensitive to interest rates or economic cycles, such as mortgage REITs or energy stocks.
Valuation and Yield Balance: Extremely high yields can signal financial stress. A moderate, sustainable yield often provides better long-term results.
Depends. Monthly dividend stocks provide more frequent income and smoother cash flow, but the overall annual yield can be similar. They’re ideal for investors who rely on consistent monthly payouts.
Not always. Extremely high yields can indicate financial instability or declining stock prices. It’s crucial to check payout ratios and company fundamentals before investing.
Yes. Many brokers offer dividend reinvestment plans (DRIPs), allowing investors to automatically reinvest dividends into additional shares, compounding returns over time.
Real estate investment trusts (REITs), business development companies (BDCs), and mortgage REITs dominate the monthly dividend space, offering higher yields but varying risk levels.
Generally, no. Dividends, whether monthly or quarterly are typically taxed at the same rate based on your local tax laws. Always confirm with a tax adviser for your jurisdiction.
The best monthly dividend stocks in 2025 combine reliability, attractive yields, and solid financial discipline. They offer investors a mix of consistent income, capital stability, and long-term growth potential, making them valuable additions to a diversified income portfolio.
As always, perform due diligence, align choices with your risk tolerance, and consult a licensed financial advisor before investing.
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.
