Many income-oriented investors prefer stocks that pay monthly dividends rather than quarterly dividends. You pay your bills monthly. Why not have a monthly cash flow as well to even out your finances?
Two of the best monthly dividend payers are Gladstone Land (LAND 0.64%) and Realty Income (O +1.91%). Both are real estate investment trusts (REITs), an asset class known for paying above-average dividends. Tax law requires REITs to pay at least 90% of their net income in dividends.
An added bonus of the two real estate companies is their stability, especially in times of economic uncertainty. Realty Income performs well in downturns because many of its tenants are retailers focused on basic needs, such as 7-Eleven and Dollar General stores, as well as CVS and Walgreens pharmacies. Gladstone is inherently stable because its tenants grow the crops you eat, a need that is growing as the world population increases.
Here are the best reasons to buy each stock.
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Gladstone Land: Farmland is a great inflation hedge
Gladstone Land owns and leases farmland, which has historically been a reliable hedge against inflation. The supply of arable land is steadily decreasing, thanks to urban expansion, while global food demand continues to rise. Gladstone specializes in leasing acreage for fresh produce, such as fruits, vegetables, and nuts, rather than commodity crops like corn or soy. The demand for fresh groceries remains high, and Gladstone is sheltered from global commodity price shocks.
More than half of Gladstone's parcels are in California, where irrigated cropland has increased in value by 260% over the past 25 years. It has properties in 14 states, which gives it diversification in case of drought or other weather factors.
NASDAQ: LAND
Key Data Points
Gladstone pays out a dividend that yields around 6% annually at its current share price, and that dividend is delivered monthly. Gladstone has increased its dividend for 11 consecutive years, and raised it 35 times over the past 45 quarters, for a total increase of 55.7%. One concern, albeit a temporary one, is that its adjusted funds from operations (AFFO) payout ratio in the first quarter was 184.2%. Some of its clients, feeling a credit pinch, have switched to cash-based accounting, meaning their payments won't come until the fourth quarter.
In Q1, the company reported adjusted funds from operations of $0.076 per share, up 35.1% year over year. Revenue fell 1.5% over the same period last year, to $16.5 million. Gladstone's occupancy levels are consistently high, at 94.9% in fiscal 2026's Q1. The company has strengthened its finances and reduced its total debt by 13.4% year over year in Q1.
Realty Income's strong balance sheet
Realty Income is one of only a handful of U.S. REITs to command a premier A-/A3 investment-grade credit rating. This high rating is a competitive advantage, giving it access to cheap capital even in restrictive credit environments.
Realty Income recently formed a strategic partnership with Apollo Global Management, securing a $1 billion investment backed by institutional private capital. This deep pool of liquidity allows the company to aggressively fund its massive pipeline -- recently raising its full-year 2026 investment guidance to $9.5 billion.
In Q1, Realty Income reported AFFO per share of $1.13, up 6.6% year over year. Revenue was $1.55 billion, up 12% over the same period a year ago.
NYSE: O
Key Data Points
Realty Income provides a monthly dividend, with a current yield of around 5.3%. It has also increased its dividend for 114 consecutive quarters and for 31 consecutive years. Its dividends are also well-covered, with a 71.7% AFFO payout ratio.
The company owns 15,500 properties located in all 50 U.S. states, the United Kingdom, and eight other European countries, and 98.9% of those properties were occupied as of the end of Q1.
That diversity, spread across multiple tenants, industries, and geographies, insulates the company against downturns. When older leases expired during the quarter, Realty Income re-leased those spaces at a 103.4% rent recapture rate, demonstrating strong pricing power and the structural health of its underlying real estate.
A relatively easy choice
Gladstone has a more enticing dividend yield, but it currently isn't as well-covered as Realty Income's. While both stocks have low volatility, over the past five years, Realty Income's monthly beta is only 0.76, compared to 1.07 for Gladstone.
Realty Income also has a longer track record of dividend increases. Combined with lower volatility, it is the clear winner of the two.
