📅 The Top 4 Monthly Dividend Stocks!
4 Dividends Stocks That Can Pay Your Rent 📊
The most passive form of income is dividend income.
The only way to make it even better?
When that dividend income hits your account every single month.
And right now, not including funds or ETFs-
There are only 94 stocks that currently pay monthly dividends.
Today, we will be reviewing the top monthly dividend stocks.
💸 Creating Monthly Dividends
There’s no doubt, the easiest way to generate monthly dividends is to buy stocks that pay monthly.
But did you know you can create your own stream of monthly dividends?
Most stocks pay quarterly dividends, meaning there are three main payout schedules:
Schedule 1: Jan / Apr / Jul / Oct
Schedule 2: Feb / May / Aug / Nov
Schedule 3: Mar / Jun / Sep / Dec
By picking stocks with staggered payout schedules, you can create your own monthly stream of income.
However, I certainly wouldn’t select stocks solely based on this alone.
📊 Sector Breakdown
There are 94 stocks that pay monthly.
48 of them are REITs-
Meaning 51% of all monthly dividend payers are REITs, with financials and energy also making up a meaningful portion.
REITs being the majority actually makes a lot of sense when you consider the business model.
Most REITs own income-producing real estate and collect rent every single month.
And because their income comes in monthly, they’re able to pass that income through to investors in the form of stable, recurring monthly dividends.
⚠️ The Truth
Many monthly dividend stocks are underperformers.
In fact, around 35 of the 94 monthly have seen negative returns in the last year.
The reality for monthly dividend stocks is the same for any stock:
We should be looking for stocks that are growing their dividend payments.
These are the exact type of stocks that historically have outperformed.
Why?
Because in order to grow dividends over long periods of time, the dividend growth must be backed by growing earnings.
📋 The Full List
Below you can see the full list of monthly dividend payers for 2026.
As a reminder, no ETFs or funds were included on the list.
You can always access the list of monthly dividend stocks and other features by going to the Dividendology Database.
You can also download the above sheet here:
Now let’s review just a few of the top monthly dividend payers.
4. 💰 Capital Southwest (CSWC)
In the last 5 years, Capital Southwest is up only 1%.
However, that is a bit misleading, as Capital Southwest is a BDC, meaning the majority of their returns come in the form of dividends.
In fact, this BDC has actually outperformed the S&P 500 over the past 5 years!
Capital Southwest is one of the higher-quality income BDCs focused on the lower middle market, lending to businesses that are often overlooked by large banks.
This is where one of their advantages comes from:
Less competition leads to higher lending spreads (~6%+)
Higher lending spreads leads to more stable net investment income (NII)
Consistent NII leads to high and more stable dividends
The company currently yields 11.61%.
Unlike many high-yield BDCs, CSWC is internally managed, which helps keep costs lower, margins high, and means incentives are aligned with management and shareholders.
CSWC’s portfolio continued to expand in Q4 2025, growing from 126 to 132 companies and surpassing $2.0B in total fair value, while maintaining a conservative structure with ~90% first-lien investments-
Which means most of its loans are first in line to be repaid if a borrower runs into trouble, reducing risk.
While much of the BDC market has pulled back due to over exposure to software companies and declining interest rates-
CSWC has continued to hold value, and still even trades at a slight premium due to its quality.
It currently trades slightly below its 3 year average P/TBVPS.
3. 🏢 Realty Income (O)
A list of top monthly dividend stocks would be incomplete without Realty Income.
Especially considering they call themselves ‘The Monthly Dividend Company’.
Realty Income is a triple-net lease REIT focused primarily on retail and industrial properties, where tenants cover taxes, insurance, and maintenance, creating highly predictable cash flow.
Portfolio occupancy remains extremely high at 98.9%, highlighting the stability of its tenant base.
The dividend remains one of the safest for REITs:
Yield 5.18%+
~75% AFFO payout ratio
Consistent annual dividend growth
With AFFO per share continually growing, it’s easy to see why the dividend will continue to grow in the future.
The biggest headwind going forward is interest rates.
With the FED holding rates steady this past week, the market now has a high degree of uncertainty as to where rates will end the year.
Lower rates would reduce its cost of capital and make its dividend more attractive relative to bonds.
On the flip side, higher rates make Realty Income’s dividend less attractive.
Either way, Realty Income continues to provide stable, predictable income with modest upside.
Now, let’s look at the top 2: