Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. The more passive income can help cover rising costs, the better, making it easier for investors to set aside money for future needs as they prepare to enjoy retirement. Dependable recurring dividends from quality, high-yield stocks are a recipe for success, especially when those dividends are paid monthly.
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 those obligations.
We screened our 24/7 Wall Street research database for high-quality companies rated Buy by major Wall Street firms that pay monthly dividends. Five seem like great ideas for Baby Boomer passive income-oriented investors seeking upside appreciation.
Why do we cover monthly dividend stocks?
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
AGNC Investment
AGNC Investment Corp. (NASDAQ: AGNC) provides private capital to the U.S. housing market. This company has paid solid monthly dividends for years. It provides private capital to the United States housing market, enhancing liquidity in the residential real estate mortgage markets and, in turn, facilitating home ownership in the United States.
The company invests primarily in agency residential mortgage-backed securities (agency RMBS) on a leveraged basis.
These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations for which a U.S. government-sponsored enterprise guarantees the principal and interest payments.
AGNC buys debt from the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Together, Fannie Mae and Freddie Mac are known as the GSEs, or Government-Sponsored Enterprises. Alternatively, AGNC may purchase debt from a U.S. government agency, such as the Government National Mortgage Association (Ginnie Mae).
Wells Fargo has an Overweight rating with a $10 target price.
Apple Hospitality REIT
Apple Hospitality REIT Inc. (NYSE: APLE) owns one of the largest portfolios of upscale, select-service hotels in the United States. It is a publicly traded real estate investment trust (REIT) 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, as well as one property leased to third parties.
Its hotel portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
Its 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.
Bank of America has a Buy rating with a $15 target price.
EPR Properties
This REIT invests in some of the most popular entertainment companies. EPR Properties (NYSE: EPR) is a leading experiential net-lease real estate investment trust, specializing in select enduring experiential properties within the real estate industry. It operates through two segments.
The Experiential segment consists of approximately:
- 157 theater properties
- 58 eat and play properties
- 24 attraction properties
- 11 ski properties
- Four experiential lodging properties
- One gaming property
- One cultural property
- 22 fitness and wellness properties
The company’s Education segment consists of property types, including 59 early childhood education center properties and nine private school properties.
EPR Properties’ investment portfolio includes ownership of and long-term mortgages on experiential and educational properties. The company has investments in approximately 44 states. All the company’s owned single-tenant properties are leased under long-term, triple-net leases.
Stifel has a Buy rating to go with a huge $65 target price.
Main Street Capital
Main Street Capital Corp. (NASDAQ: MAIN) has helped over 200 private companies grow or transition by providing flexible private equity and debt capital solutions. This stock 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 in size than its lower middle market portfolio companies. It also creates majority and minority equity.
Royal Bank of Canada has a Buy rating with a $52 price target, which has been hit.
Realty Income
This REIT invests in freestanding, single-tenant commercial properties. It is an ideal stock for growth and income investors seeking a safer, contrarian investment for the remainder of 2025. Realty Income Corp. (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.
The company acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients.
It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries.
The company owns or holds interests in approximately 15,621 properties in:
- All 50 United States
- The United Kingdom
- France
- Germany
- Ireland
- Italy
- Portugal
- Spain
With clients doing business in 89 industries, its property types include retail, industrial, gaming, and others, such as agriculture and office.
Its primary industry concentrations include:
- Grocery stores
- Convenience stores
- Dollar stores
- Drug stores
- Home improvement stores
- Restaurants
- Quick service
UBS has a Buy rating with a $62 price objective.
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