3 Cash-Cow Monthly Dividend Stocks to Buy and Forget

Most dividend stocks pay quarterly, but monthly dividend stocks turn every thirty days into a payday. The number of payouts per year is very attractive since these dividends compound better than quarterly or annual dividends. Not only that, but monthly dividend stocks also give you extra income you can rely on if you lose your primary source of income. Quarterly dividend stocks do the same, but getting a paycheck monthly helps much more.

Monthly dividend stocks have historically delivered steadier total returns as each distribution can be reinvested earlier or redirected earlier into other opportunities in the market. The types of companies that pay monthly are usually real estate investment trusts (REITs) or companies linked to lending. They may look risky if you’ve lived through 2008, but the industry has learned a lot since then, and no recession is a 1:1 copy of the one before. The regulations are much stricter, so they’re likely to keep performing during the next downturn.

Here are three cash-cow monthly dividend stocks you can buy and forget:

Realty Income (O)

Realty Income (NYSE:O) recently declared its 659th consecutive monthly dividend at $0.2685 a share, which comes to a forward yield of 5.73%. O stock is quite stable and has a beta of 0.8 (5-year monthly), and while many people would stay out of it because it is a REIT, you should look deeper into the business before making a decision.

The portfolio holds more than 15,000 single‑tenant properties leased to Walgreens (NASDAQ:WBA), Dollar General (NYSE:DG), Walmart (NYSE:WMT), and other essential retailers under long-term contracts. All of these companies are recession-resistant, and even if they face challenges, missing payments on the properties where their businesses operate would be a last resort.

Occupancy was at 98.5% in Q1, and the average remaining lease term is about 9.1 years. However, the market has punished almost every REIT during the rate‑hike cycle. Realty Income is no exception. The shares are 13.2% below the 52‑week high and 29% below the 2019 peak.

Adjusted funds from operations (AFFO) matter more than earnings for REITs because they add depreciation back into the calculation. Realty Income posted $4.19 in AFFO per share in 2024, up 4.8% year-over-year. The dividend constituted only 74.6% of that cash. As such, there’s plenty of room for more hikes going forward.

STAG Industrial (STAG)

STAG Industrial (NYSE:STAG) is an industrial REIT that pays dividends monthly. It pays $0.1242 per share every month, and that amounts to a dividend yield of 4.27%. The dividend constitutes only 50.8% of the company’s adjusted AFFO.

STAG controls 597 buildings across 41 states that total about 117.6 million square feet. Management reported total portfolio occupancy of 95.9% and operating‑portfolio occupancy of 96.8% as of March 31, 2025.

The macro picture has rarely looked better for warehouse landlords, since the current administration is looking to boost manufacturing. The hard data is also cooperating with a recovery as e-commerce is continuing to get better, and it could account for 40% of all new warehouse demand by the end of the year.

STAG stock is still down by 23% from its highs, and it is down 6.5% in the past six months. However, it has started to recover recently and is up 6.3% in just the past month. If the rate-cut cycle continues and tariffs are reduced, the stock could climb to $40 or more. The price-to-FFO of 14 is near the industry median when it comes to REITs, but the company’s growth should land it a higher premium.

Its 3-year FCF growth rate is at 24.3%, which is better than 90.13% of REITs. Analysts also see future EPS growth (minus non-recurring assets) at 16.8% annually, and revenue growth for the rest of this decade at 11% annually.

Main Street Capital (MAIN)

Main Street Capital (NYSE:MAIN) is an internally managed business‑development company (BDC). It has increased its regular monthly payout every year since the Great Recession, and it also gives out supplemental dividends twice a year.

A BDC is a closed‑end investment fund that channels capital to small and midsize firms. MAIN targets “lower middle market” companies with $10 million to $150 million of annual revenue, and it typically structures a deal with a senior secured loan that floats over SOFR plus a modest slice of equity. The floating‑rate coupon resets quickly when the Federal Reserve moves, so net investment income (NII) surges during a hiking cycle.

The stock has been thriving and has outperformed most other BDCs because it lends at floating rates to smaller U.S. businesses. It also gets low‑cost loans through the Small Business Investment Company (SBIC) program, and it has added a fee‑generating asset‑management arm.

MAIN stock is up 82.15% in the past five years and currently has a dividend yield of 5.28%. The 5-year performance is mainly due to higher interest rates helping lending companies.

It trades at 10 times earnings, whereas it has historically traded at 12 times earnings. This is for a good reason, since we are in a rate-cut cycle. If you think interest rates are going to be held up or even go higher due to tariffs, this could be a good bet. Otherwise, I’d look into the other two stocks on this list.

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