Whenever we speak of the Nasdaq Composite Index, the first thing that comes to mind is the large valuations, big tech companies, and stable cash flow. This also means steady passive income, but what if we told you there are companies that pay monthly dividends? Nasdaq Composite has stocks that pay monthly dividends, making them ideal for those seeking regular passive income.
AGNC Investment Corp. (NASDAQ: AGNC | AGNC Price Prediction) and Phillips Edison (NASDAQ:PECO) are two monthly dividend stocks with a high yield and strong fundamentals to support the payout. Let’s take a look at them.
ANGC Investment Corporation
AGNC Investment Corporation is a real estate investment trust (REIT) that invests in agency pass-through securities and mortgage obligations that are guaranteed by the U.S. government agency. The REIT has a juicy dividend yield of 14.30% and is exchanging hands for $10. The stock is up 8.5% in 2025 and is close to the 52-week high of $10.63.
Located in Bethesda, MD, the company exclusively invests in US government agency mortgage securities like Fannie Mae and Freddie Mac. Additionally, it uses leverage through repurchase agreements to protect the portfolio assets and enhance returns. AGNC is one of the popular REITs in operation and distributes at least 90% of its profits as dividends to shareholders. The company announced a monthly dividend of $0.12 and has a payout ratio of 93.51%.
Since the REIT is not subject to management, overhead, and liability costs, it has more capital to grow the portfolio of assets. While the fund offers a high return, it also carries a risk element. Leverage boosts returns in strong market conditions, but it also has a negative impact when the market is down.
For the third quarter, it reported a revenue of $836 million, a $0.72 net income per share, and a portfolio of $90.8 billion, beating expectations. Its net interest income stood at $148 million.
AGNC has regularly paid dividends since its inception in 2008, and the dividend amounts vary based on its profit. The company is growing its portfolio, and this could mean steady dividend income for the coming months. As its asset value improves, the REIT will see high prices and a higher yield.
Phillips Edison & Company
Phillips Edison is an REIT that operates in the shopping center segment. While it might look like an uncertain market today, the company owns grocery-focused properties. Hence, no matter the economic climate, the segment is very defensive. Phillips Edison has a yield of 3.75% and pays monthly dividends. It has a payout ratio of 48.02%, and the REIT has increased dividends for the past 3 consecutive years.
Its portfolio consists of about 300 properties, located across 31 states. It has a high occupancy rate and has seen an improvement in leases this year as compared to 2024. The stock is down 6.10% in 2025 despite the recent revenue beat in the third quarter.
The REIT reported core funds from operations of $90.6 million and an occupancy rate of 97.6%. Its full-year gross acquisition guidance ranges between $350 million and $450 million. Its net income stood at $0.20 per diluted share. It ended the quarter with $5.8 million of cash and cash equivalents.
Following the impressive results, the management has increased guidance for 2025 and expects the net income per share of $0.62 – $0.65, up from the previous guidance of $0.61 – $0.64. The business is operationally strong, and the dividends are growing fast.
PECO is a highly attractive stock available at a discount. The market is overlooking its potential to drive dividend growth. The excellent fundamentals and its presence across the grocery segment make it a winner in the REIT segment.
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