Key Points

• The Social Security cost of living adjustment for 2025 will be 2.5%.
• The increase will equal about $50 per month for participants.
• Baby Boomers may want to check with a qualified financial advisor to see if they will generate enough passive income. Click here to find out how. 

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.

A study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

After a few years of big increases in Social Security payouts, the cost of living adjustment (COLA) for 2025 will be a small 2.5%. That compares to a 5.9% increase in 2022,  a staggering 8.7% in 2023 and 3.2% in 2024. The massive drop-off over the past few years reflects declining inflation numbers that peaked at 9.1% in the summer of 2021. The sad reality for many seniors is that 2.5% doesn’t adequately demonstrate the rising costs for many.

We decided to screen our 24/7 Wall Street monthly dividend research database, looking for quality companies that offer safe and dependable dividends that can help bridge the income gap for many. We found five incredible stocks that pay dividends each month and offer solid total return potential. Top Wall Street firms that we cover rate all of them at Buy.

Why do we cover dividend stocks?

Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort. That makes it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Apple Hospitality REIT

Apple Hospitality REIT Inc. (NYSE: APLE) is a publicly traded real estate investment trust that pays a solid 6.82% dividend and stands out in the market with its unique offering.

Despite its name, it’s not affiliated with the technology giant. However, it offers a solid total return potential, owning one of the largest and most diverse portfolios of upscale, room-focused hotels in the United States.

Apple Hospitality’s portfolio comprises 220 hotels with over 28,900 guest rooms in 87 markets throughout 37 states and one property leased to third parties.

Concentrated on industry-leading brands, the company’s hotel portfolio comprises:

• 97 Marriott-branded hotels
• 119 Hilton-branded hotels
• Four Hyatt-branded hotels

Main Street Capital

This company is a favorite across Wall Street and offers a solid 7.98% dividend. Main Street Capital Corp. (NASDAQ: MAIN) is a private equity firm that provides equity capital to lower-middle market companies.

The firm also provides debt capital to middle-market companies for:

• Acquisitions
• Management buyouts
• Growth financings
• Recapitalizations
• Refinancing

The firm seeks to partner with entrepreneurs, business owners, and management teams and generally provides “one-stop” financing alternatives within its lower middle market portfolio.

Main Street Capital typically invests in lower middle market companies with annual revenues between $10 million and $150 million.

The firm’s middle market debt investments are in businesses generally more significant in size than its lower middle market portfolio companies. It also makes majority and minority equity investments.

Realty Income

This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2024 that pays a whopping 5.12% dividend. Realty Income Corp. (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.

The company is structured as a REIT. Its monthly dividends are supported by the cash flow from over 15,540 real estate properties (including properties acquired in the Spirit merger in January 2024) owned under long-term lease agreements with commercial tenants.

The company has declared 644 consecutive common stock monthly dividends throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.

STAG Industrial

This strong industrial real estate investment trust play offers solid upside potential and a 4% monthly dividend. STAG Industrial Inc. (NYSE: STAG) focuses on acquiring, owning, and operating industrial properties throughout the United States. The company’s platform is designed to:

• Identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial real estate markets, industries, and tenants through the conscientious application of our proprietary risk assessment model
• Provide growth through sophisticated industrial operation and an attractive opportunity set
• Capitalize the business appropriately, given the characteristics of the current assets.

As of December 31, 2023, the company owned 569 buildings in 41 states with approximately 112.3 million rentable square feet, consisting of 493 warehouse/distribution buildings, 70 light manufacturing buildings, one flex/office building, and five Value Portfolio buildings.

In addition, STAG Industrial’s buildings were approximately 98.2% leased, with no single tenant accounting for approximately 2.9% of total annualized base rental revenue and no single industry accounting for more than 11.0% of total annualized base rental revenue.

SL Green Realty

This is a leading large-cap office REIT that top Wall Street analysts prefer now. It offers a solid 4.45% monthly dividend. SL Green Realty Group (NYSE: SLG) is Manhattan’s largest office landlord. This fully integrated REIT focuses primarily on acquiring, managing, and maximizing the value of Manhattan commercial properties.

As of June 30, 2024, SL Green held interests in 55 buildings totaling 31.8 million square feet. This included ownership interests in 28.1 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.

Five Dependable High-Yield Dividend Stocks Baby Boomers Can Always Count On

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