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Ask a Fool: Do Any Stocks Pay Dividends Monthly?

By Matthew Frankel, CFP® – Sep 20, 2019 at 12:00PM

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Quarterly dividend payments are more common, but there are some options if you need more frequent income.

Q: I'm retiring this year and will rely on my stock portfolio for a good percentage of my income. I was wondering if there are any retiree-friendly stocks that pay monthly dividends, as this would be far more convenient for income purposes?

Of the approximately 5,250 stocks you can invest in that are listed on the Nasdaq and NYSE, about 2,700, or just over half, pay dividends. Among the dividend-paying stocks, the majority make quarterly payments to shareholders, but it might surprise you to learn that there are more than 300 stocks that make monthly payments to shareholders.

To be fair, many of the monthly payers aren't exactly what I'd call retiree-friendly stocks. For example, there are a lot of mortgage real estate investment trusts (REITs) on the list, as well as a bunch of income funds that have high yields but tend to be rather volatile.

But there are some great companies that choose to pay their dividends monthly. To name one example, Realty Income (O -2.31%) is a rock-solid REIT that yields nearly 4% and makes monthly distributions. A few other strong REITs, including EPR Properties (EPR 1.69%) and Stag Industrial (STAG -1.93%), could also be worth a look for income-seeking retirees.

There are also some conservative income funds with monthly dividends, but make sure you read the prospectus and understand the risks before choosing one. Alternatively, you could opt for quarterly dividend payers with varying payout schedules in order to create a more frequent income stream.

The bottom line is that there are monthly dividend stocks that can help you create a more convenient income stream without taking on too much risk, so you don't have to settle for income every three months if you don't want to.

Matthew Frankel, CFP owns shares of O. The Motley Fool owns shares of and recommends STAG. The Motley Fool has a disclosure policy.

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Stocks Mentioned

EPR Properties Stock Quote
EPR Properties
$36.66 (1.69%) $0.61
Realty Income Corporation Stock Quote
Realty Income Corporation
$59.49 (-2.31%) $-1.41
STAG Industrial, Inc. Stock Quote
STAG Industrial, Inc.
$28.41 (-1.93%) $0.56

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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