Over the long term, dividends make up a big chunk of total stock markets returns. And for investors who need consistent passive income, dividend stocks are one of the best investment opportunities. When you buy monthly dividend stocks, you can collect cash every single month.

But there are not many companies that pay monthly dividends. For most, quarterly is the standard. That’s why I’ve put together this special list of dividend stocks. With it, you’ll be able to set up a steady stream of income…

monthly dividend stocks calendar with income piling up

Top 6 Monthly Dividend Stocks in 2022

To make the cut, paying monthly dividends was just the first hurdle. Then, I dug into each business to determine its financial health and growth potential. Overall, the stocks below give ownership in great businesses.

  • Realty Income (NYSE: O)
  • Main Street Capital (NYSE: MAIN)
  • Shaw Communications (NYSE: SJR)
  • Stag Industrial (NYSE: STAG)
  • Global Water Resources (Nasdaq: GWRS)
  • Gladstone Land (Nasdaq: LAND).

Below, you’ll find a better breakdown of each company. And if you’re looking for other dividend investing opportunities, check out our other dividend stocks research.

Monthly Dividend Company Highlights

Realty Income has a 4.8% dividend yield. It owns about 5,000 properties, most of which are single-tenant retail. You can find these properties in almost every U.S. state. This provides some diversification benefit.

The company leases its properties out to clients in a wide range of industries, as well. This also adds diversification benefit and another layer of stability. And this consistent rent income makes Realty Income’s monthly dividend a pretty safe bet going forward.

Main Street Capital has an 7.25% dividend yield. The company is an investment firm that deals in equity and debt financing. Since its start in the mid-1990s, it’s worked with more than 200 companies.

The finance industry continues to develop and grow. And Main Street Capital is positioned to continue bringing in revenue. Its wide range of services has helped make it one of the top monthly dividend stocks around.

Shaw Communications has a 3.7% dividend yield. To support this healthy yield, Shaw is one of the largest cable companies in Canada. It provides internet, television and phone services in Alberta, British Columbia, Manitoba, Saskatchewan and Ontario.

Shaw Communications has a big landline phone business and has also expanded to wireless. It acquired Wind Mobile in 2016 and is upgrading those services. This should help the company continue to pay its monthly dividends as it grows and modernizes its business.

STAG Industrial has a 4.9% dividend yield. The company is a real estate investment trust (REIT). And that structure requires it to pay out 90% of its income to shareholders. So that keeps the dividends flowing.

STAG Industrial focuses on warehouse and distribution buildings. And most of its rental revenue comes from Midwestern and Eastern U.S. cities. The company has done well as shipping has increased with the shutdowns.

Global Water Resources has a 2.4% dividend yield. The company owns, operates and manages water, wastewater and recycled water utilities. Primarily, you’ll find these around Phoenix, Arizona. As the company has limited geographical reach and isn’t too big, it has a market cap of just under $300 million…

But utility companies like this can still be a great source of income. They often have government-controlled barriers to entry. This limits competition and keeps cash flowing into Global Water Resources’ – as well as investors’ – hands.

Gladstone Land has a 2.7% dividend yield. And to pay its monthly dividend, Gladstone works with agricultural real estate. It owns and leases farmland. This provides a reliable source of cashflow.

As of last year, Gladstone Land owned over 100 farms comprising more than 87,000 total acres. You can find these properties across 10 states in the U.S., and this provides some geographical diversification. Overall, farmland can be a great income investment. And over time, land appreciates in value. In the words of Mark Twain… “Buy land, they’re not making it anymore.”

How to Maximize Your Income by Reinvesting

To increase your income from these top monthly dividend stocks, you can reinvest the dividends. By putting those earning back to work, your future dividends climb. To see the power of compounding, you can check out our free investment calculator.

And as always, make sure to base all investment decisions on your own research and due diligence.