Best Monthly Dividend Stocks and ETFs to Build Passive Income in 2025

Monthly dividend stocks and ETFs offer a powerful way to create a predictable income stream in 2025. Unlike standard quarterly or annual dividends, they deliver cash flow every month, making budgeting easier and reinvesting more seamless.

Whether you’re looking for individual dividend-paying stocks or diversified ETFs, this guide walks you through the best options, their yields, risks, and how to use them for sustainable passive income.

Read Also: How to Invest in the Stock Market: A Simple Beginner’s Guide

Monthly Dividend Stocks 2025 – Top Performers

According to NerdWallet, the highest-yielding monthly dividend stocks currently include Armour Residential REIT (ARR) with a 18.84 % forward yield, AGNC Investment Corp. at 14.98 %, Ellington Financial (EFC) at 11.34 %, and Realty Income (O) around 5.59 %.

Healthpeak Properties (DOC) recently switched from quarterly to monthly dividends, gaining attention as a healthcare REIT paying monthly in 2025.

High Yield Monthly Dividends – What’s Available

SoFi highlights some of the top high-yield stocks as of August 2025: Orchid Island Capital (ORC) at 20.69 %, Armour Residential REIT (ARR) 17.66%, Dynex Capital (DX) 16.25%, AGNC 15.27%, Prospect Capital (PSEC) 14.96%.

These yields are notably higher than average, but investors must consider sustainability and payout ratios when evaluating risk.

Monthly Dividend ETFs For Steady Income

Among ETFs that pay monthly, Global X SuperDividend ETF (SDIV) offers a distribution yield close to 9.84 %, holds the top 100 highest-dividend equities globally, and has been paying monthly for 13 years  .

The U.S.-focused counterpart, Global X SuperDividend U.S. ETF (DIV), pays about 6.73 % yield with a low-volatility emphasis and monthly payouts for over 11 years.

Read Also: How to Buy US Stocks

Dividend Stock List – Reliable Monthly Payers

Among well-known monthly dividend stocks, Realty Income (O) stands out with a 5.6 % yield, a long history of reliability, and stable NNN-leased commercial real estate assets.

NerdWallet further lists companies like EPR Properties (EPR), LTC Properties (LTC), SL Green Realty Corp. (SLG), and Apple Hospitality REIT (APLE) among notable monthly payers.

Monthly Dividend REITs And Passive Income Stocks

REITs dominate the list of stable monthly dividend payers. AGNC, APLE, Realty Income, EPR, LTC, and STAG Industrial have been highlighted for regular monthly distributions.

These REITs often distribute most of their earnings and offer both income and potential inflation protection, though sensitivity to interest rates is a key risk to monitor.

Final Thought

Monthly dividend stocks and ETFs offer a steady, actionable path to generating passive income throughout 2025. High yields—from individual REITs like ARR and ORC to diversified ETFs like SDIV—can be compelling, especially with the compounding potential of frequent payouts.

But yield alone doesn’t justify risk. Careful due diligence on sustainability, payout history, and market exposure is essential. Combining dependable monthly payers like Realty Income with selective high-yield names and ETFs can form a balanced, income-generating portfolio.

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FAQs

What are the best monthly dividend stocks in 2025?

NerdWallet cites top yielders like Armour Residential REIT, AGNC, Ellington Financial, and Realty Income.

Which ETFs pay monthly dividends?

Key ETFs include Global X SuperDividend ETF (SDIV) at ~9.8 % yield and Global X SuperDividend U.S. ETF (DIV) around 6.7%.

Are REITs good for monthly income?

Yes. REITs like Realty Income, AGNC, EPR, and LTC are known for regular monthly dividends and can support steady income with inflation hedge benefits.

Why are monthly dividends appealing?

Monthly payouts enable smoother budgeting, faster compounding, and more frequent reinvestments—potentially improving long-term return.

What risks come with high-yield monthly stocks and ETFs?

High yields may signal financial strain. Some funds like SDIV have seen principal erosion despite high payouts. Sustainability and risk exposure must be assessed carefully.