Passive income is revenue generated 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. Additional passive income can help cover rising costs, making it easier for investors to set aside funds for future needs as they prepare for 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, utilities, cell phone and internet bills, trash collection, and groceries are due each month. A steady stream of passive monthly income can help meet those obligations.
We screened our 24/7 Wall Street research database for the safest 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 and dependable dividends.
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%).
Realty Income
Realty Income is a real estate investment trust that has paid monthly dividends consistently for over 55 years. It owns over 15,000 properties leased primarily to defensive retailers. This is an ideal stock for growth and income investors seeking a safer contrarian idea for the rest of 2026, with a 5.21% dividend yield. Realty Income Corporation (NYSE: O) is an S&P 500 company that 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 operating in 89 industries, its property types include retail, industrial, gaming, and other categories such as agriculture and office.
Its primary industry concentrations include:
- Grocery stores
- Convenience stores
- Dollar stores
- Drug stores
- Home improvement stores
- Restaurants
- Quick service
Deutsche Bank has a Buy rating with a $69 target price.
Main Street Capital
Main Street Capital has helped over 200 private companies grow or transition by providing flexible private equity and debt capital solutions. This company is a favorite across Wall Street and offers a substantial 4.89% monthly dividend. Main Street Capital Corporation (NASDAQ: MAIN) is a business development company with a strong history of monthly dividends and relatively conservative lending practices.
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.
The firm’s middle-market debt investments are in businesses generally larger than its lower middle-market portfolio companies. It also creates majority and minority equity.
Royal Bank of Canada has an Outperform rating with a $66 target price.
Stag Industrial
This industrial REIT focuses on single-tenant industrial properties and maintains a consistent monthly dividend policy at 3.80%, targeting properties with strong fundamentals. Stag Industrial Inc. (NYSE: STAG) is a real estate investment trust (REIT) focused on the acquisition, ownership, and operation of industrial properties throughout the United States.
STAG owns industrial properties, such as warehouses, with a 97% occupancy rate. Its diversified tenant base (no tenant >4% of rent) and moderate leverage (BBB credit rating) mitigate risk. While more cyclical than retail REITs, STAG’s focus on e-commerce-driven logistics supports growth, and it has raised its dividend annually since going public in 2011.
Its platform is designed to identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial property types and tenants through the principled application of its proprietary risk assessment model; to provide growth through sophisticated industrial operations and an attractive opportunity set; and to capitalize on its business appropriately given the characteristics of its assets.
The Company’s portfolio consists of approximately 590 buildings across 41 states, totaling approximately 116.6 million rentable square feet. It owns all of its properties and conducts all of its business substantially through STAG Industrial Operating Partnership, L.P. (Operating Partnership).
Evercore ISI has an Outperform rating with a $42 target.
Agree Realty Corporation
Agree Realty is an $ 8+ billion industry leader in the acquisition & development of properties net-leased to retailers. This mid-cap stock offers a reliable 4.13% dividend and strong upside potential. Agree Realty Corporation (NYSE: ADC) is a publicly traded real estate investment trust that acquires and develops properties net-leased to industry-leading, omnichannel retail tenants.
The Company’s assets are held by, and all of its operations are conducted directly or indirectly through, the operating partnership of which the Company is the sole general partner.
Agree Realty owns over 2,370 single-tenant retail properties leased to investment-grade retailers, including Walmart and CVS. Its diversified portfolio, with no tenant accounting for more than 8% of rent, and its focus on e-commerce-resistant sectors like grocery and home improvement, ensure resilience. A BBB+ credit rating and strong dividend coverage support its reliability.
Its portfolio comprises over 2,370 properties in 50 states, totaling approximately 48.8 million square feet of gross leasable area (GLA). The company’s portfolio of properties is located in:
- Texas
- Ohio
- Florida
- Michigan
- Illinois
- North Carolina
- New Jersey
- Pennsylvania
- 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 a $83 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 and pays a 6.28% dividend
The Company operates through two segments:
- Experiential
- Education.
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 59 early childhood education centers and nine private schools.
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 the Company’s owned single-tenant properties are leased on long-term, triple-net terms.
Raymond James has a Strong Buy rating with a $62 target price objective.
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