Many investors seek solid passive income from quality dividend stocks. Passive income is a steady stream of unearned income that does not require active traditional work. Shared ideas for earning passive income include investments such as dividend stocks, bonds, and mutual funds, as well as real estate and additional income-producing side hustles. According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.
A monthly check from your stock portfolio makes sense for most people with bills and expenses due every 30 days, especially in a world where prices are consistently rising. Items such as mortgage payments, rent, utility bills, cell phone and internet bills, trash collection, and even grocery bills are always due each month. A steady stream of passive monthly income can be a huge help in meeting these obligations.
We screened our 24/7 Wall Street research database for high-quality stocks rated Buy by major Wall Street firms that pay monthly dividends. Four seem like great ideas for passive income-oriented investors seeking upside appreciation.
Why do we cover ultra-high-yield monthly income stocks?
Most stocks pay quarterly dividends, which is fine for many shareholders who reinvest dividends. However, many investors rely on dividends as part of a passive income stream, and getting a monthly dividend payout is more beneficial. Typically, real estate investment trusts, business development companies, and closed-end funds are among the investment vehicles that pay distributions monthly.
Apple Hospitality REIT
Apple Hospitality REIT Inc. (NYSE: APLE | APLE Price Prediction) owns one of the largest portfolios of upscale, select-service hotels in the United States. It is a publicly traded real estate investment trust that pays a solid monthly dividend and distinguishes itself in the market with its unique offerings.
The company comprises 224 hotels with more than 30,066 guest rooms in 87 markets throughout 37 states and one property leased to third parties.
Its hotel portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
The company’s hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:
- Hilton Garden Inn
- Hampton
- Courtyard
- Residence Inn
- Homewood Suites
- SpringHill Suites
- Fairfield
- Home2 Suites
- TownePlace Suites
- AC Hotels
- Hyatt Place
- Marriott
- Embassy Suites
- Aloft
- Hyatt House
Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.
Gladstone Commercial
Trading under $20 with a massive monthly dividend, this is a classic passive income home run. Gladstone Commercial Corp. (NASDAQ: GOOD) is a real estate investment trust. The company is focused on acquiring, owning, and operating net-leased industrial and office properties across the United States.
It conducts substantially all its business activities through an Umbrella Partnership Real Estate Investment Trust structure, by which all its properties are held, directly or indirectly, by Gladstone Commercial Limited Partnership (the Operating Partnership).
Gladstone Commercial has about 135 properties, totaling 16.9 million square feet of rentable space, located in 27 states. Its properties are geographically diversified, and its tenants encompass a cross-section of business sectors, ranging in size from small to large private and public companies.
The company’s properties are in various states, including:
- Pennsylvania
- Texas
- Florida
- Ohio
- Georgia,
- North Carolina
- Alabama
- Colorado
Main Street Capital
Main Street Capital Corp. (NASDAQ: MAIN) has helped over 200 private companies grow or transition through the provision of flexible private equity and debt capital solutions. This company is a favorite across Wall Street and offers a substantial dividend. Main Street Capital 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 ranging from $10 million to $150 million.
The firm’s middle market debt investments are in businesses that are generally larger than its lower middle market portfolio companies. It also creates majority and minority equity.
Stellus Capital
Stellus Capital Investment Corp. (NYSE: SCM) is a business development company that specializes in investing in private, middle-market companies. With a massive monthly dividend and trading near a 52-week high, this stock could break out in 2025. Stellus Capital is an externally managed, closed-end, non-diversified management investment company that operates as a business development company.
The company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments in middle-market companies.
It seeks to achieve its investment objective by originating and investing primarily in private United States middle-market companies (typically those with $5.0 million to $50.0 million of earnings before interest, taxes, depreciation and amortization (EBITDA)) through first lien, second lien, unitranche, and unsecured debt financing, with corresponding equity co-investments.
Stellus Capital focuses on a variety of industry sectors, including:
- Business services
- General industrial
- Government services
- Healthcare
- Software
- Specialty finance
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