While dividends are customarily paid to investors on a quarterly basis, some equities pay dividends monthly. Those who reinvest monthly dividends can grow their positions more quickly by using the cash to purchase additional shares of stock.

Alternatively, those who rely on this income for routine expenses can lean on monthly dividends to better keep up with the monthly bills. Investors of both ilks may wish to explore the following five notable monthly dividend-paying stocks. (Unless otherwise stated, all data is current as of August 14, 2019.)

Key Takeaways

  • The vast majority of dividend-paying stocks issue payments on a quarterly basis; however, some equities pay monthly dividends, if they can sustain the cash flow needed to support this activity.
  • Monthly dividends let investors purchase more shares of stock, or funnel the income towards routine expenses.
  • Marquis monthly dividend-paying companies include Realty Income Corporation (O), Shaw Communications Inc. (SJR), Pembina Pipeline Corporation (PBA), Gladstone Commercial Corporation (GOODO), Gladstone Investment Corporation (GAIN).

Realty Income Corporation

Realty Income Corporation (O) is a real estate investment trust (REIT) with some 5,900 rental properties, chiefly in the retail space. Since 1995, the company has been paying monthly dividends, supported by the cash flow generated by its property holdings, which are owned under long-term lease agreements with commercial tenants.

To date, the company has declared 589 consecutive common stock monthly dividends throughout its 50-year operating history and has increased dividends 102 times since first going public.

Shaw Communications Inc.

Canadian cable company Shaw Communications (SJR) has succeeded in growing its dividends for more than 10 years, thanks to its multiple business lines that include broadband Internet, Wi-Fi, digital phone services, and video services.

Although the company experienced cash flow troubles from 2013 through 2015, things turned positive in 2016, while net income has been up over a four-year span. While the highest stock price in the last ten years was just above $27, in November of 2014, it hit a low of $16.37 in February of 2016. Its share price has since leveled off to a respectable $19.08. Throughout all that time, the company has continued to issue attractive monthly payouts.

  • Average volume: 660,792
  • Market cap: $9.851 billion
  • P/E ratio (TTM): 257.84
  • EPS (TTM): $0.07
  • Dividend and yield: $0.90 (4.56%)

Pembina Pipeline Corporation

Pembina Pipeline (PBA) provides transportation and midstream services for the North American energy industry. Its three business silos include facilities, new ventures, and pipelines. While the company has a reliable monthly dividend payment history, it does not have the long track record of growing its dividends, commensurate with the other stocks featured on this list, partly because oil prices recently went through an extended slump.

Even so, the company has grown its dividend for the past five years and currently pays 5.09%.

  • Average volume: 469,989
  • Market cap: $18.555 billion
  • P/E ratio (TTM): 19.79
  • EPS (TTM): $1.83
  • Dividend and yield: $1.82 (4.98%)

Gladstone Commercial Corporation

Gladstone Commercial Corporation (GOODO), the second REIT featured on this list, operates net leased industrial and office properties, and has made regular monthly dividend payouts since 2005.

As of April 2019, Gladstone has paid 172 consecutive monthly cash distributions on its common stock. It likewise has paid 160 consecutive monthly cash distributions on its Series A Preferred Stock, 151 consecutive monthly cash distributions on its Series B Preferred Stock, and 36 consecutive monthly cash distributions on its Series D Preferred Stock.

Gladstone's share price has been remarkably consistent. While it dipped to a low of $7.70 in February 2009, since mid-2010, its share price has steadfastly hovered in the mid- to high-20s range.

  • Average volume: 1,475
  • Market cap: $660.41 million
  • P/E ratio (TTM): 1,247.73
  • EPS (TTM): $0.02
  • Dividend and yield: $1.88 (6.88%)

Gladstone Investment Corporation

Gladstone Investment (GAIN), which focuses on buyouts and recapitalizations of companies, has grown its dividend for over five years. This, coupled with rosy prospects for a robust buyout market moving forward, make this monthly income stock an attractive prospect for income-seeking investors.

  • Average volume: 128,850
  • Market cap: $373.52 million
  • P/E ratio (TTM): 6.75
  • EPS (TTM): $1.68
  • Dividend and Yield: $0.82 (7.08%)

Each company that issues a dividend has an ex-dividend date, and investors must own the stock before that date in order to receive the dividend.

The Bottom Line

While more frequent dividend payments mean smoother income streams, investors should choose their monthly dividend stocks only after conducting robust due diligence on a company's core fundamentals, and not solely because of its high monthly payout history.

Furthermore, investors should be aware that slashes in monthly dividends signal that a business isn’t performing well enough to sustain these payments, or that management may be shifting to a quarterly or annual dividend payment schedule.