From 24/7 Wall St. · Chris Lange · · 1m 40s
3 Monthly Dividend Stocks for Retirement
Retirement funds could benefit from these three monthly dividend stocks with steady payouts.
In brief
Retirement funds could benefit from these three monthly dividend stocks with steady payouts. Realty Income, Agree Realty, and Main Street Capital offer monthly dividends with strong coverage and consistent increases for retirement income. Originally reported by 24/7 Wall St..
Realty Income: 116 Straight Quarterly Raises
Realty Income has raised its monthly dividend 136 times since its 1994 NYSE listing.
“The latest monthly payment is $0.2715, up from $0.264 at the start of last year.”
Agree Realty: Monthly Raises Backed by 69% Payout
Agree Realty raised its monthly dividend to $0.271 from $0.267, with steady payments since 2021.
“The monthly payment has never dropped since switching to monthly payouts in 2021.”
Main Street Capital: Monthly Income Plus Bonuses
Main Street Capital pays a regular monthly dividend of $0.265 with supplemental dividends up to $1.20 per share.
“The Board declared a $0.30 supplemental, the 21st consecutive quarterly supplemental dividend.”
Dividend Safety Metrics
Realty Income uses 73% of AFFO guidance, Agree Realty uses 69% of AFFO, and Main Street Capital covers its payout with net investment income.
“Chief executive Sumit Roy said the 'AFFO payout ratio, it’s amongst the lowest it has been in the history of Realty Income.'”
Bull Case: Scale and Consistency
Realty Income's scale and long history of increases support its dividend growth, with 98.8% occupancy and strong tenant quality.
“Realty Income invested $2.6 billion in Q3 at a 6.8% initial cash yield and earned a leverage-neutral spread of about 170 bps.”
Risk Factors for Each Stock
Interest rates, earnings volatility, and debt levels pose risks to all three dividend stocks.
“If borrowing costs rise further, the spread that funds future raises gets thinner.”
Monthly Checks Built to Last
All three stocks pay monthly, have raised payouts within the past year, and show no recent cuts.
“Agree Realty has the safest coverage at a 69% AFFO payout.”
Why These Stocks Work for Retirement
Retirees benefit from steady monthly payments with minimal timing issues for retirement expenses.
“The regular monthly payment rose from $0.25 in early 2025 to today’s level.”
Dividend Payout Details
Realty Income: $3.258 annualized dividend at $59.29 share price, 5.5% yield. Agree Realty: $3.252 annualized dividend at $69.92 share price, 4.7% yield. Main Street Capital: $3.18 annualized dividend at $57 share price, 5.6% yield.
What Happens Next
Main Street Capital plans to propose an additional supplemental dividend payable in March 2027.
“Management also 'currently anticipate[s] proposing an additional significant supplemental dividend payable in March 2027.'”
The big picture
Realty Income, Agree Realty, and Main Street Capital offer monthly dividends with strong coverage and consistent increases for retirement income.
