Dividend stocks are one way to generate long-term wealth, but if you’re hungry for more, consider investing in monthly dividend stocks. While many make quarterly payments, there are several companies that make monthly payments, making them suitable for investors seeking passive income. If you want to receive a paycheck each month, here are three monthly dividend stocks for passive income. They have strong foundations and the ability to sustain the dividends for passive income.
Realty Income
Realty Income (NYSE:O | O Price Prediction) is a real estate investment trust (REIT) and is the largest net lease REIT that focuses on single-tenant retail assets. Through a net lease, Realty Income manages to keep the operating costs at a minimum since the tenant is required to pay for the operating costs. The REIT owns over 15,500 properties across various geographical locations and is steadily expanding the portfolio.
It owns single-tenant retail properties, warehouses, industrial assets, and other properties such as data centers, and casinos. While retail properties make up a large part of the portfolio, there are others that continue to drive revenue. Realty Income is known as a “monthly dividend stock” and it is backed by 112 quarterly dividend increases.
The REIT has a yield of 5.6%, and it has grown dividends by 4% in the past three decades. While the dividend growth is slow, the company has never cut dividends. It is actively expanding in Europe and is a major industry player. It has a top-notch balance sheet with a dividend payout ratio of 75%. The REIT pays an annual dividend of $3.24 per share. Realty Income is an ideal long-term buy for passive income investors.
Main Street Capital
Main Street Capital (NYSE:MAIN) is a business development company that provides equity and debt capital to lower-middle-market companies. They generate dividend income and interest through the investments. The company pays a portion of the recurring income at a steady rate. It has a yield of 5.14%, and the stock is exchanging hands for $60.69. It has a lower middle market portfolio of $2 billion in investments across 86 companies and increased private loan commitments in the fourth quarter by $387.1 million.
Main Street Capital also pays supplemental quarterly dividends through the excess earnings. It aims to increase the dividends while also making larger supplemental payments as it grows the investment portfolio. It has a payout ratio of 75.19% and has raised the dividends for 18 years. In 2025, it paid 4 special dividends.
As a business development company (BDC), Main Street Capital needs to distribute 90% of the income to remain in compliance with the regulations. The company has never reduced the monthly dividend and has raised the payment by 4% in the past year. When adding the supplemental dividend payments, its annualized yield comes to 7.2%.
EPR Properties
EPR Properties (NYSE:EPR) is another high-yield REIT that invests in experiential real estate like movie theaters. The REIT suffered during the pandemic but has recovered over the past year. It leases properties back to the operating companies under long-term net leases. It pays monthly dividends and has a yield of 6.50% and is exchanging hands for $54.47. The REIT has a payout ratio of 69.02% and a 5-year dividend growth rate of 18.37%.
Its conservative payout ratio allows the REIT to invest in portfolio expansion. It is working on expanding the portfolio through acquisition of experiential properties and development funding. The management has committed $100 million for the development and redevelopment of projects over the next 15 months.
Its third-quarter results were in line with expectations. EPR Properties posted an adjusted funds from operations of $1.37 per share, and the revenue came in at $182 million. The property operating expenses were $14.5 million, while the investment spending was $54.5 million. Its current investment rate will support its annual growth and sustain dividends.
EPR is a highly undervalued stock with ample upside potential.
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