Regular income from shares with monthly dividends

As an investor, you benefit from a predictable and regular additional income through shares with a monthly dividend. Depending on the entry price, double-digit returns are even possible. This creates constant liquidity and accelerates the compound interest effect. In this article you will find an overview of the most important shares with monthly dividends, practical implementation strategies and additional sources of income such as covered calls or managed accounts.

Why shares with a monthly dividend are so attractive

Shares with monthly dividends offer investors a constant cash flow and provide a predictable cash flow with immediate income. As an investor, you benefit from the following points: 

• Dividend yieldMany companies offer double-digit dividend yields in addition to potential share price gains
• Compound interest effectMonthly payments allow for earlier reinvestment than is the case with annual dividends.
• DiversificationThe selection of monthly dividend payers covers many sectors, such as REITs, energy or credit financiers.
• Tax advantagesMany REITs, such as Realty Income, distribute almost the entire profit on a tax-privileged basis.

Faster adaptation and shorter investments possible

Another - albeit small - advantage is the Improved monitoring for titles with a monthly dividend. This is because a profit distribution is by no means guaranteed and a company can suspend payment at any time if necessary. 

Investors can pay out monthly recognize more quickly when the dividend fails to materialize. Typical "dividend hunters" will sell the shares in such a case and look for other securities. For securities that pay annually, it may take a while before you learn of a suspended profit participation. 

The company's Executive Board proposes to the shareholders at the Annual General Meeting whether a dividend should be paid out and how much it should be. They almost always approve the proposal and payment is often made on the same day. 

Further advantages at a glance:

• Short-term strategyIf you only stay invested for a few weeks or months, you benefit immediately.
• Compound interest effect: Monthly distributions mean that capital can be reinvested more frequently and asset accumulation can be accelerated slightly.
• Psychological advantageRegular returns motivate you to continue investing and remain disciplined.

What you need to look out for in shares with a monthly dividend

Regardless of whether a share pays monthly, quarterly, semi-annual or annual dividends, you must make sure that it is a worthwhile investment! This is because the basic risk of shares always remains, regardless of the payment interval. 

Therefore, before purchasing Comprehensive analysis of the company's key figures required. As dividend stocks are almost always longer-term investments, you should pay particular attention to the future prospects of the company and the respective industry. 

What you should also pay attention to:

• Substance instead of appearanceA high dividend looks attractive, but without a viable business model, there is a risk of share price losses that quickly exceed payouts.
• Sustainability countsUnprofitable companies or those without clear prospects are not a sound investment despite high dividends.
• No guaranteeMonthly dividends are also voluntary, as they could theoretically be reduced or completely canceled at any time.
• Long-term history scoresStability in the distribution over many years speaks for the quality and continuity of the company.

Also pay attention to the Cost trap when buying of the security: If your broker charges a substantial percentage of the order amount, the position in your portfolio will already be in the red at the start. It can then take quite a long time for this disadvantage to be offset by profit distributions and price gains. 

In practice: How you can receive monthly dividends with shares

Monthly dividends are an attractive target for many investors and there are various ways to earn them.

Your options at a glance:

• Split up yourselfDistribute dividends evenly over months when received.
• Combine distribution datesSelect shares with staggered payment dates.
• Covered calls: Generate monthly income by selling options.
• Managed AccountsUse strategies from experts that are designed for cash flow.

1. divide up independently

The simplest way to receive monthly dividends from your shares: Simply divide the amounts yourself! As soon as the profit distribution for a share arrives in your securities account, you can simply divide the amount by twelve (for annual payouts), six (semi-annual) or three (quarterly). 

As different companies also issue their profit participation on different dates, splitting can be comparatively much work especially if you have numerous positions in your portfolio! 

However, it's still easier than picking specific stocks with monthly dividends. Our tip: At the beginning of the year, simply divide the profit distributions from the previous year by twelve. You already have a good overview of how much dividend your shares have yielded per month. 

2. select shares in such a way that a monthly dividend is generated

Another very simple method of earning monthly dividends: Buy several shares whose dividends are paid out at different times. If company A pays out in January, company B in February, company C in March, etc., it is also possible to generate even income. 

As the companies themselves set the date for the annual general meeting and dividend payment, it is possible to find suitable securities. With a quarterly profit distribution, you can realize this plan with just three securities. 

3rd alternative: Covered calls

Would you like to use your shares to generate additional monthly income? Then the Options strategy of the Covered calls be suitable for you! With this approach sell a call option on shares that are already in your portfolio. 

Such an option constitutes a binding contract with which you guarantee the buyer the right to sell the securities at the end of the term at the agreed price ("strike"). However, the buyer can decide for himself whether he wishes to exercise this right, whereas you as the seller have no right of choice. 

Further criteria for covered calls:

• Advantage for the buyerHe only exercises the option if the price is higher than the agreed price.
• No exercise at low priceIf the price remains below this level, nothing happens and the option simply expires.
• Your premium remainsYou receive a premium for each option and keep it in any case.
• Earn money without sellingIf the option is not exercised, you keep the share and the premium.

4. "Real" shares with monthly dividends

Although it is considered rather unusual, there are some companies that pay a monthly dividend. They often even advertise this peculiarity in order to attract investors. 

A monthly dividend can be found in the financial sector, mining or the energy sector, for example. A particularly large number of securities come from the REIT sectorReal estate trusts are required by law to distribute almost all of their profits anyway, so monthly payments can make perfect sense. 

To give you a better impression, we have presented some shares with monthly dividends below. 

Shares with monthly dividends: These 12 companies pay out reliably

Below we present 12 interesting shares with monthly dividends. We are neither advocating for nor against an investment. These are merely examples as inspiration for further research and consideration. 

Company	ISIN	Dividend yield 2024	Brief description
ARMOUR Residential REIT	US0423155078	16,6 %	US REIT, invests in government-backed residential mortgages, high distribution, but susceptible to fluctuations.
EPR Properties	US26884U1097	8,3 %	REIT for leisure and adventure properties such as cinemas, golf courses and theme parks.
Main Street Capital	US56035L1044	6,2 %	Investment company, grants loans to SMEs, stable monthly dividend.
Realty Income	US7561091049	5,8 %	International REIT for retail real estate, known as "The Monthly Dividend Company".
STAG Industrial	US85254J1025	4,5 %	REIT for industrial and logistics real estate in the USA, monthly distribution since 2014.
Freehold royalties	CA3565001086	8,4 %	Canadian license company for oil and gas production, high but fluctuating dividend yield.
Gladstone Commercial	US3765361080	9,3 %	US commercial real estate REIT, stable monthly dividend, focus on industry and trade.
Northland Power	CA6665111002	6,7 %	Canadian utility for renewable energies (wind, solar, gas), monthly dividend.
Prospect Capital Corporation	US74348T1025	15,5 %	US investment company, very high distribution, focus on corporate loans and refinancing.
PennantPark Floating Rate	US70806A1060	10,4 %	US corporate financier, mainly grants variable-rate loans, high monthly dividend.
LTC Properties	US5021751020	6,7 %	US REIT for senior and nursing care real estate, monthly distribution, stable history.
SL Green Realty	US78440X1019	5,0 %	US REIT for high-quality office real estate in New York, monthly dividend for over 25 years.

1. ARMOUR Residential REIT (ISIN: US0423155078)

ARMOUR Residential REIT is one of the highest-yielding monthly payers on the market. The US REIT focuses on residential mortgages that are backed by government agencies. This structure generates predictable income, but the price performance is often unstable. 

The dividend yield is an impressive 16.6%. For the REIT segment, this figure should be regarded as an exception. However, due to the strong dependence on the current interest rate, the price fluctuates significantly. If you can accept this volatility, you will receive an above-average monthly source of income with government-backed securities.

• Dividend yield16.6 percent.
• business model: Invests in government-backed residential mortgages.
• Risk warningHigh returns go hand in hand with high volatility.

2 EPR Properties (EPR)

As a REIT, EPR Properties specializes in experience-oriented properties. This is a niche segment with a special character. The portfolio includes cinema complexes, golf courses, waterslide parks and even educational facilities. With a current dividend yield of 8.3 percent, you benefit directly from the leisure sector. 

Even though the sector is cyclical, EPR impresses with its good diversification and solid tenancies. Investors who want to invest outside of traditional residential or office real estate will find a thematically exciting investment with a stable distribution here.

• DistributionStable monthly dividend with sector reference.
• Dividend yield8.3 percent.
• Investment focus: Leisure and adventure properties such as cinemas, golf courses and theme parks.

3 Main Street Capital (MAIN)

Main Street Capital is an established investment company that provides debt and equity capital to medium-sized US companies. The business model provides a combination of stability and growth potential. 

The monthly dividend was 6.2% in 2024. Main Street also scores points with its broad diversification and long-term investments. This creates stable sources of income that provide a solid basis for regular payouts. 

• Distribution profileMonthly, constant and solidly structured.
• Dividend yield6.2 percent.
• Business divisionInvestment company with a focus on medium-sized companies.

4. realty income (O)

The Realty Income share is regarded by investors as a particularly reliable dividend payer. The company invests primarily in retail properties. The focus is also on supermarkets, pharmacies and DIY stores. The dividend was 5.8% in 2024 and has not only remained stable for decades, but has also been regularly increased. 

The portfolio is geographically diversified and geared towards long-term tenant relationships. Realty Income stands for stability and predictable cash flows. Income-oriented investors in particular, such as pensioners, appreciate the exceptional continuity of this REIT.

• PortfolioRetail properties with long-term leases.
• Dividend yield5.8 percent.
• Special featureKnown as "The Monthly Dividend Company".

5 Stag Industrial Inc (STAG) 

STAG Industrial focuses on a fast-growing market segment: industrial and logistics space. The company owns over 500 properties in the USA, with tenants from the e-commerce, logistics and manufacturing sectors. In 2024, the share generated a dividend yield of 4.5 percent. 

Investors have been enjoying the reliable dividends, which are distributed monthly, for over ten years. The stable demand for warehouse space, which is primarily generated by online retail, ensures constant income. At the same time, the broadly diversified real estate portfolio offers a certain degree of protection against regional market weaknesses. 

• Distribution historyMonthly dividends since 2014.
• Dividend yield4.5 percent.
• Focus: Warehouse and logistics real estate in the USA.

6 Freehold Royalties Ltd (FRU)

Freehold Royalties is not a traditional producer, but earns its money through license fees for oil and gas deposits. The business model enables high margins because the company does not have to operate its own production facilities. The dividend yield is currently 8.4% and is paid out monthly. 

The major advantage is the simplicity of the business model, while the disadvantage is the dependence on oil and gas prices. If the commodities market fluctuates strongly, this can quickly affect the company's cash flow. For investors with an understanding of energy cycles, Freehold could be an attractive source of income with an above-average payout.

• Special featureHigh payout, but dependent on the commodities market.
• Dividend yield8.4 percent.
• business modelLicensing for oil and gas production.

7 Gladstone Commercial (GOOD)

The Gladstone Commercial share belongs to the REIT category with a clear focus on commercial real estate. The company primarily leases office and industrial space to tenants in economically stable regions of the USA. The monthly dividend amounted to 9.3 percent in 2024. 

If you as an investor prefer physical investments with regular income, you could find a well-positioned real estate investment with a strong distribution here. This diversification ensures stable income even in economically uncertain phases.

• Dividend yield9.3 percent.
• Asset classCommercial real estate in the USA.
• Tenant structureIndustrial and commercial companies with long-term contracts.

8th Northland Power (NPI)

Northland Power is one of the leading private electricity producers in Canada. The company places particular emphasis on sustainable energy sources. This share with a monthly dividend operates wind farms, solar fields and environmentally friendly gas-fired power plants and has long-term contracts (PPAs). 

Among other things, the long-term business relationships enabled a dividend yield of 6.7% in 2024. At the same time, Northland offers access to a sustainable market segment of vital importance. Here, a potentially high-yield investment can be combined with an ecological focus.

• Dividend yield6.7 percent.
• FocusRenewable energies such as wind, solar and gas.
• PayoutMonthly dividend from long-term electricity contracts.

9 Prospect Capital Corporation (PSEC)

Another share with a monthly dividend is Prospect Capital. The dividend yield reached double digits in 2024. Investors who were invested for the entire year generated an exceptional 15.5%.

Prospect Capital is an American investment company that focuses on corporate loans and financing. 

• Distribution profileVery high return with potentially increased risk.
• Dividend yield15.5 percent.
• Core businessCorporate financing and lending.

10 PennantPark Floating Rate Capital Ltd (PFLT)

PennantPark Floating Rate Capital focuses on financing medium-sized companies. However, with the striking difference that the loans granted have variable interest rates. 

This is an advantage in an environment of rising key interest rates, as income automatically increases with it. In 2024, a dividend yield of 10.4% was achieved, which is paid out over 12 months. 

• Dividend yield10.4 percent.
• Source of incomeVariable-rate corporate loans.
• Market behavior: Profits from rising interest rates.

11. LTC Properties Inc (LTC)

The public limited company LTC Properties invests in nursing homes, assisted living and healthcare centers. This market offers long-term growth potential due to demographic change. The dividend yield for 2024 is 6.7%.

The management relies on long-term rental agreements with the operators of the facilities. The company also has a reliable dividend history. Particularly in uncertain stock market phases, healthcare properties are considered a crisis-proof anchor by experienced investors. By investing in LTC Properties, you could build up a solid portfolio with monthly dividends. 

• Dividend historyMonthly distribution with a stable history.
• Dividend yield6.7 percent.
• Asset class: Senior and nursing care real estate in the USA.

12 SL Green Realty Corp (SLG)

SL Green Realty invests in central business properties in New York City. The focus is on high-quality office buildings. Investors have benefited from an impressive dividend continuity of over 25 years. The dividend yield was 5.0% throughout 2024 and was paid out every month. 

• Dividend yield5.0 percent.
• PortfolioHigh-quality office real estate in Manhattan.
• Distribution history: Over 25 years of monthly dividends.

Conclusion: Do you invest in shares with a monthly dividend for additional income? 

Shares that pay a monthly dividendare not the rule, but nevertheless abundantly available. Among the real estate investment trusts (REITs) in particular, there are many securities that distribute their profit participation in twelve payments over the year. 

The monthly income is Particularly pleasant and motivating and therefore a target for many investors. If there are no suitable stocks for you among the shares with a monthly dividend, you have the following options several alternatives are available. 

If your aim is to achieve an additional return on your equity portfolio, you can Covered calls form a suitable financial instrument. With these options generate income from your shares. Also a Managed Account offers exciting, regular earning opportunities for your capital.