As investors look ahead to 2026, monthly dividend stocks remain a popular choice for generating consistent cash flow, especially in an environment of potential interest rate stability and economic uncertainty. These stocks, primarily real estate investment trusts (REITs) and business development companies (BDCs), pay dividends every month, helping to smooth out income streams for retirees and income-focused portfolios.
While yields can fluctuate, the following top 10 monthly payers stand out based on current yields, dividend reliability, payout ratios, and growth potential as of December 2025. Higher yields often come with increased risk, so diversification is key.
- Realty Income (O) – Known as “The Monthly Dividend Company,” this retail REIT boasts over 15,000 properties with high occupancy rates around 98%. Yield: ~5.6%. Strong track record of 132 consecutive dividend increases.
- Healthpeak Properties (DOC) – A healthcare REIT focused on medical offices and senior housing, benefiting from aging demographics. Switched to monthly payouts in 2025. Yield: ~6.8%.
- STAG Industrial (STAG) – Industrial warehouse REIT with steady rental growth from e-commerce demand. Yield: ~4.0%, emphasizing reliability over high yield.
- Agree Realty (ADC) – Single-tenant retail REIT with investment-grade tenants. Consistent performer with monthly payouts. Yield: ~4.5%.
- EPR Properties (EPR) – Experiential REIT owning theaters, entertainment venues, and attractions. Yield: ~6.4%, with recovery in post-pandemic demand.
- Main Street Capital (MAIN) – BDC providing financing to middle-market companies. Strong history of monthly dividends plus supplemental payouts. Yield: ~7.0%.
- LTC Properties (LTC) – Senior living and skilled nursing REIT. Yield: ~6.3%, supported by long-term demographic trends.
- Apple Hospitality REIT (APLE) – Hotel REIT with a portfolio of upscale properties. Yield: ~6.0%, poised for tourism recovery.
- Gladstone Commercial (GOOD) – Diversified commercial REIT. Yield: ~7.5%, higher risk but attractive for income seekers.
- Ares Capital (ARCC) – Leading BDC with a diversified loan portfolio. Yield: ~9.0%, balancing growth and high income.
These selections prioritize a mix of safety, growth potential, and yield sustainability heading into 2026. REITs must distribute at least 90% of taxable income as dividends, making them natural monthly payers. Investors should monitor interest rates, as lower rates could boost REIT valuations.
Always conduct due diligence, as past performance does not guarantee future results. Monthly dividends can enhance compounding when reinvested.
