One of These Monthly Dividend Stocks Could Explode Higher This Year

Quarterly dividends are a thing of the past. If you’re investing for passive income and want your money to work for you, it is time to start looking for monthly dividend stocks. Several companies reward investors with monthly dividends and no, you do not have to take additional risk to enjoy this income. Here are three monthly dividend stocks worth considering; one could explode higher this year. 

Realty Income

Realty Income (NYSE:O) is a real estate investment trust (REIT) with a strong financial profile and a history of steadily increasing dividends. The monthly dividend allows investors to align it with their monthly expenditures. Realty Income owns over 15,600 rental properties across Europe and the U.S., which are leased to clients across 90 industries. The company generates lease income, which has become a steady source of revenue. 

Realty Income has an attractive dividend yield of 5.65%, significantly higher than S&P’s 1.5%. The company pays over 70% of its adjusted FFO in the form of dividends and it still has the space to grow dividends. The management retains the excess free cash to reinvest in the business. 

It has declared 660 monthly dividends since inception and never reduced its payment. Many of us cannot invest in real estate and this is where REITs make a difference. Realty Income has a lot of room to expand the portfolio in the coming years and could see higher FFO once the economy improves.  It has the financial strength to invest billions into new properties every year and the new additions could increase the income, and the dividends. 

Exchanging hands for $57.18, O stock is up 8.71% in 2025 and it could keep moving higher in 2025. The company is financially stable, has an attractive dividend yield, and is the best way to enjoy indirect exposure to the real estate industry. 

Main Street Capital

Another monthly dividend stock, Main Street Capital (NYSE:MAIN) is an asset manager known for refinancing, management buyouts, and industry consolidation across different industries. The company enjoys a dividend yield of 5.27% and the stock is exchanging hands for $58.08, up 16.86% in 12 months. 

Main Street Capital has increased its monthly payouts each year since the recession and also pays supplemental dividends. It focuses on the lower middle market companies with a revenue of $10 million to $150 million and has a senior secured loan deal. This allows the company to see a higher net investment income whenever there is an interest rate hike. 

In the latest earnings results, the company reported an EPS of $1.01 per share and revenue of $137.05 million. Its return on equity was 13.02%. Several hedge funds have acquired a position in the company during the first quarter. Spire Wealth Management acquired a position worth $40,000 while Financial Network Wealth Advisors LLC acquired a position worth $39,000. 

MAIN stock has soared over 80% in five years and has been thriving in the high interest rate cycle. If you believe that interest rates will go higher due to tariffs, MAIN could be a strong bet. It gives investors the cushion of a recurring passive income with a monthly dividend of $0.255 per share. The company recently declared a $0.30 per share supplemental dividend to ensure it reaches the 90% dividend payout level. 

EPR properties

EPR Properties (NYSE:EPR) has an attractive yield of 6.07%. It is another REIT that pays monthly dividends and invests in movie theaters, amusement parks, ski resorts, and other entertainment properties. The company did cut dividends and was briefly suspended during the early pandemic days. However, now that the economy is rebounding and entertainment properties are attracting visitors, ERP Properties has the potential to explode higher this year. 

The company recently paid out a dividend of $0.295 per share, annualized, it comes to $3.54. EPR Properties has invested $37.7 million in the first quarter to expand its portfolio of real estate. The REIT is exchanging hands for $58.30 and is up 32% year-to-date and 41% in 12 months. Most of its leases are triple net, ensuring steady rental income and a cushion for investors. 

Its quarterly results were strong with funds from operations at $1.22 and a revenue of $177.23 million, up 3.1% year-over-year. The REIT held $20.6 billion in cash and only had $105 million outstanding at the end of the first quarter. 

The REIT invests in some of the most popular entertainment companies and is an industry leader today. It invests across 44 states and has a total of $6.7 billion in investments. Stifel has upgraded its outlook for the stock with an average price target of $62 and a buy rating. 

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