Passive income is characterized by its ability to generate revenue without 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. Payments for mortgages, rent, utilities, 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 quality companies rated Buy at major Wall Street firms that paid monthly dividends. Five seem like great ideas for Baby Boomer passive income-oriented investors seeking upside appreciation. All are rated Buy at the top Wall Street firms we cover.
Why do we cover monthly dividend stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to 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%).
Agree Realty
Agree Realty Corp. (NYSE: ADC) is an $8 billion+ industry leader in the acquisition and development of properties net leased to retailers. This mid-cap stock offers a reliable 4.13% dividend and strong upside potential. Agree Realty is a publicly traded real estate investment trust (REIT) that acquires and develops properties net-leased to industry-leading, omnichannel retail tenants.
The company’s assets are held by, and all its operations are conducted directly or indirectly through, the operating partnership of which the company is the sole general partner.
Its portfolio comprises over 2,370 properties in 50 states, totaling approximately 48.8 million square feet of gross leasable area. The company’s portfolio of properties is located in:
- Texas
- Ohio
- Florida
- Michigan
- Illinois
- North Carolina
- New Jersey
- California
- New York
- Georgia
- Virginia
- Connecticut
- Wisconsin
Agree Realty tenants include these companies and more:
- Walmart
- Dollar General
- Tractor Supply
- Best Buy
- Dollar Tree
- TJX Companies,
- O’Reilly Auto Parts
- CVS
- Kroger
- Lowe’s
- Hobby Lobby
- Burlington
- Sherwin-Williams
- Sunbelt Rentals
- Wawa
- Home Depot
- TBC Corporation
- Gerber Collision
Wells Fargo has an Overweight rating with an $83 price target.
Apple Hospitality REIT
This REIT owns one of the largest portfolios of upscale, select-service hotels in the United States. Apple Hospitality REIT Inc. (NYSE: APLE) is a publicly traded REIT that pays a solid 8.25% monthly dividend and stands out in the market for its unique offering.
The company comprises 224 hotels with more than 30,066 guest rooms across 87 markets in 37 states, plus one property leased to third parties. Its hotel portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels. 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, and Michigan.
Baird has an Outperform rating with a $13 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 REIT specializing in select enduring experiential properties, and it pays a 6.76% dividend. The company 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 comprises property types, including 59 early childhood education centers and nine private schools.
The 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 of its owned single-tenant properties are leased under long-term, triple-net leases.
Raymond James has a Strong Buy rating with a $62 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 among Wall Street analysts, and it comes with a substantial 4.96% 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 options within its lower-middle-market portfolio. Main Street Capital typically invests in lower-middle-market companies with annual revenues between $10 million and $150 million. Its 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.
Citizens JMP has a Market Outperform rating with a $70 target price.
Realty Income
Realty Income Corp. (NYSE: O) is a REIT that invests in free-standing, single-tenant commercial properties. This is an ideal stock for growth and income investors looking for a safer, contrarian idea for 2026. With a 5.48% dividend, Realty Income is an S&P 500 company that provides stockholders with dependable monthly income.
The company acquires and manages freestanding commercial properties that generate rental income 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 other types, such as agriculture and office. Its primary industry concentrations include:
- Grocery stores
- Convenience stores
- Dollar stores
- Drug stores
- Home improvement stores
- Restaurants
- Quick service
Royal Bank of Canada has an Outperform rating and a $62 target price.
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