2 Solid Passive Income Stocks That Paid Dividends Monthly

You can buy a bunch of stocks that pay quarterly dividends and set it up in such a way that you get monthly dividends. For instance, you can buy one stock that pays in January, another stock that pays in February, and a third stock that pays in March. If each of these corporations pays dividends every three months, you’ll receive dividends each month.

That sounds great, but it’s also complicated. Luckily, you can receive monthly dividends without carefully reviewing the dividend payment schedules of a bunch of different companies. 

Some dividend stocks distribute dividends to their investors each month. These publicly traded corporations offer reliable passive income that you can use to cover monthly expenses. 

Main Street Capital (MAIN)

Main Street Capital (NYSE:MAIN | MAIN Price Prediction) offers a dividend yield of just below 5%. The yield used to be higher, but a 37% gain over the past year has made it a little smaller. It’s still a higher yield than what you’ll find from most dividend stocks, and Main Street Capital offers monthly distributions.

The investment firm has 193 cumulative investments that combine for $8.0 billion in capital under management. The company’s emphasis on lower middle market companies gives it less correlation to the broader debt and equity markets. Its investments are scattered across the United States, but most of them are in northern and midwest states. 

Main Street Capital breaks down its sector exposure in a recent fact sheet. The Professional Services segment has 8% of Main Street Capital’s total assets. Machinery also consists of 8% of Main Street Capital’s total portfolio. The Software & Services sector makes up 7% of the firm’s investments.

The 37% gain over the past year is a bit of an outlier. Main Street Capital normally remains steady and doesn’t endure as much volatility as the broader stock market.

Stag Industrial (STAG)

Stag Industrial (NYSE:STAG) is another publicly traded corporation that offers a monthly dividend. The real estate investment trust has a 4.25% yield, and shares are up by 7% over the past five years. The gains are a bit more respectable if you include dividend payouts and reinvestments, but it offers lower volatility than many assets.

The REIT invests in storage facilities, warehouses, and distribution centers. Its customers include logistics companies, automotive companies, and e-commerce giants. It’s hard for these tenants to leave Stag Industrials since the REIT gives them a home base to serve their customers. That’s why the company achieved a 96.5% occupation rate in Q4 2024. It also acquired 15 buildings and sold two of its properties, demonstrating an expanding footprint. 

Stag Industrial is the type of stock that you can buy and forget. It has a solid business model that produces high cash flow. The stock’s recent correction presents a buy-the-dip opportunity for investors who want passive income without as much volatility.