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. Passive income can help cover rising costs, making it easier for investors to set aside money for future needs as they prepare or enter 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 like mortgage payments, 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 and Gen X passive income-oriented investors seeking upside appreciation. With the potential for solid total return to help fight the current sticky inflation, these are solid ideas now.
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 (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 3.96% 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 focuses on necessity-based retail tenants, which provide stability across economic cycles.
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, Dollar General, and Home Depot. It has a strong dividend safety profile and an investment-grade balance sheet. Importantly, 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. Plus, for investors concerned with investment safety, its BBB+ credit rating and strong dividend coverage support its reliability.
Its portfolio comprises approximately 48.8 million square feet of gross leasable area 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:
- 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
- Gerber Collision
Raymond James has a Strong Buy rating and a $90 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 pays a 6.59% dividend. EPR recently increased its monthly dividend by 5.1% and expects FFO per share growth of more than 5% in 2026, supporting continued dividend increases.
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 59 early childhood education centers and nine private schools.
EPR’s 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 on long-term, triple-net terms.
Raymond James has an Outperform rating with a $60 target price objective.
Realty Income
Realty Income (NYSE: O) is a REIT that has paid monthly dividends consistently for 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 5.09% dividend yield. The S&P 500 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. Widely considered the gold standard of monthly dividend stocks, Realty Income has been paying dividends since 1969. It has paid 667 consecutive monthly dividends as of early 2026 and increased its dividend 132 times since its 1994 IPO.
The company owns or holds interests in approximately 15,621 properties in all 50 states:
- 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
UBS has a Buy rating with a $72 target price.
Main Street Capital
Main Street Capital (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 5.37% monthly dividend. This business development company has a strong history of monthly dividends and relatively conservative lending practices. The firm holds a BBB− investment-grade credit rating and has much less debt than regulators allow, making it one of the few monthly dividend stocks to earn a “Safe” Dividend Safety Score.
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 that are generally larger than those of 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.
LTC Properties
This healthcare REIT specializes in seniors housing and skilled nursing facilities, providing exposure to the growing healthcare real estate sector and offering a rich 5.79% monthly dividend yield. LTC Properties (NYSE: LTC) invests in senior housing and healthcare properties through sale-leasebacks, mortgage financing, joint ventures, construction financing, and structured finance solutions, including preferred equity and mezzanine lending.
LTC is backed by one of the most compelling long-term trends in real estate. The senior housing sector faces a substantial supply shortfall at current development rates. That gap is only going to widen as the Baby Boomer generation continues to age into retirement and assisted living. That structural demand makes LTC’s property portfolio increasingly valuable over time. The slightly elevated yield reflects the reality that healthcare REITs carry some regulatory risk, but few sectors can match the long-term growth fundamentals of an aging population.
It invests in various properties, including:
- Skilled nursing centers, which provide restorative, rehabilitative, and nursing care
- Assisted living facilities, which serve people who require assistance with activities of daily living
- Independent living facilities, also known as retirement communities or senior apartments, offer a community and numerous levels of service, such as laundry, housekeeping, dining options/meal plans, exercise and wellness programs, transportation, social, cultural, and recreational activities, on-site security, and others
- Memory care facilities that offer specialized options for people with Alzheimer’s disease and other forms of dementia
Citizens has a Market Outperform rating with a $43 target price.
Top Gaining Stocks
Top Losing Stocks