Dividend Stocks to Invest in for Monthly Passive Income
What if stocks could pay you just for buying and holding, no selling, no stressing? If you’ve ever wanted to get paid just for holding the right shares, think of dividends like a payday without clocking in, your stocks are literally working for you.
So if you’re building your portfolio with the purpose of recurring revenue this year, dividend stocks should be at the top of your watchlist. The key is understanding that this isn’t about buying and hoping, it’s about knowing how dividend stocks work, identifying the ones paying monthly, and selecting tickers that offer the highest yield without compromising growth.
Let’s break it all down and get you aligned with the stocks that pay you to hold them, as this might be your favorite kind of payout yet.
How Dividend Stocks Work (In Real Terms)
Dividends are derived from a company’s profits paid to shareholders (think of them as a return of a portion of a company’s earnings to investors), usually in cash. These payouts are typically issued quarterly, but some elite tickers deposit every single month, turning your portfolio into a stream of cash flow. When you reinvest those dividends (DRIP), it compounds your growth faster than sitting on capital gains alone.
Dividend Stocks Paying Monthly
Monthly dividend stocks are gold for anyone looking to build consistent income. Names like Realty Income (O) and STAG Industrial (STAG) offer that frequency and long-term reliability. Some view these as not just stocks, but as cash-flow strategies. Monthly payers make it easier to forecast your income and reinvest with rhythm.
Dividend Growth Stocks That Actually Scale
While high yield initially grabs attention, one of the best benefits of investing is that dividend growth stocks increase their payout year-after-year. Think Microsoft (MSFT) or Visa (V), they don’t offer the highest yields today, but they consistently raise dividends, giving you more buying power over time without touching your overall principal.
Dividend Stocks With the Highest Yield (And Real Staying Power)
Often times, when people talk about returns, they may unknowingly skip over the part that matters most, the quality behind the numbers. For the most part, everybody wants high yield, but not all yield is built equal. In all honesty, some high-yield stocks are traps. The key is to find dividend stocks with the highest yield and a track record of not cutting dividends. Look into energy companies like Enterprise Products Partners (EPD) or financials like AGNC Investment Corp (AGNC). Both pay strong yields, but more importantly, they’ve been around long enough to show sustainability over time.
Some of the Best Dividend Stock ETF’s to Invest In
If the goal is steady cash flow without micromanaging every position, diversification becomes the move. With that in mind, ETF’s let you hold a collective of income-generating stocks with one trade. If you’re looking for some of the best, high-quality dividend stock ETF’s, check out:
VYM (Vanguard High Dividend Yield ETF) – Low-cost, diversified, and consistent.
VIG (Vanguard Dividend Appreciation ETF) – Focuses on U.S. companies with a consistent 10+ year history of increasing dividends. It’s not built for high yield, but for steady, long-term growth and capital strength (think blue-chip stability).
DGRO (iShares Core Dividend Growth ETF) – Tracks companies with a sustainable dividend payout ratio and strong earnings growth. It filters out high-debt, risky plays, which keeps your dividend stream favorable and more sustainable over time.
Essentially, these ETF’s lower your individual risk and still bring in consistent income.
Which Dividend Stocks Pay the Most Right Now?
Right now, Altria (MO), Lumen Technologies (LUMN), and OneMain Holdings (OMF) are offering some of the highest yields in the market, some pushing beyond 8%–9%. But again, the key is to balance that yield with stability. Ask yourself: Is this company profitable? Does it have a track record of stable or growing dividends?
Dividend Stocks and ETF’s to Watch
Remember, consistent income doesn’t come from hype, it comes from holdings designed to perform. If you're building for cash flow and portfolio strength, here’s a shortlist of dividend stocks and ETF’s that are already doing the heavy lifting:
JEPI (JPMorgan Equity Premium Income ETF) – This ETF pays monthly and uses a covered call strategy to generate income, even in sideways markets. It’s one of the most popular choices for traders who want passive income without chasing risky individual stocks. JEPI brings yield and downside protection.
Dividend Yield: 7.79%
Payout Frequency: Monthly
SCHD (Schwab U.S. Dividend Equity ETF) – Built on prime dividend sustainability. SCHD is the blueprint for quality. With exposure to top-tier U.S. companies that have a strong history of paying and growing dividends, this ETF is perfect if you want long-term stability, strong fundamentals, and quarterly income that compounds over time.
Dividend Yield: 4.03%
Payout Frequency: Quarterly
SKT (Tanger Factory Outlet Centers) – SKT is a real estate play that offers solid dividend potential through quarterly payouts. It’s a REIT with staying power, benefiting from the ongoing demand for discount retail and physical shopping experiences. Plus, it recovered well from 2020 data lows.
Dividend Yield: 3.75%
Payout Frequency: Quarterly
AVGO (Broadcom Inc.) – AVGO is a dividend growth power move. It’s not just a semiconductor giant, it’s a cash-flow engine. With strong fundamentals, massive free cash flow, and consistent dividend increases, AVGO fits perfectly into a portfolio focused on growing monthly income year after year.
Dividend Yield: 1.03%
Payout Frequency: Quarterly
MAIN (Main Street Capital Corporation) – MAIN is a monthly dividend stock that investors love for its reliability. As a business development company (BDC), it invests in small to mid-sized U.S. businesses and pays income back to shareholders. MAIN’s monthly payouts and bonus dividends make it a strong pick for anyone serious about stacking passive income.
Dividend Yield: 5.53%
Payout Frequency: Monthly
Be sure to check out this video to learn more about these dividend favorites: Power Play Dividends for Passive Income.
A Dedicated Dividend Portfolio
What to include in a dividend-only portfolio:
• High-yield sectors: Utilities, REITs, telecoms, and consumer staples.
• Dividend aristocrats/kings: Companies with 25–50+ years of dividend increases.
• Monthly payers if you want regular income.
• ETF exposure: For hands-off diversification.
*Bonus Setup
For dividend growth + high yield split, break your dividend portfolio into:
• Dividend Growth: Companies that raise dividends yearly (helps beat inflation).
• High Yield: For immediate income, but more risk.
This kind of focused approach gives you clarity and long-term flexibility. It’s not mandatory, but if you’re serious about building income and tracking performance, a separate portfolio is definitely a smart way to organize your wealth strategy.
Overall Strategy
So the question may remain: What are some dividend stocks to invest in right now? The answer, a blend. Anchor with dividend growth stocks for long-term strength, add in a few high-yield dividend stocks paying monthly, and keep some exposure through a dividend stock ETF. This way, you’re not leaning on just one sector or stock, you’re building layered income that scales.
Writer’s Note
✨ Hi everyone, I hope you enjoyed this post. First, I want to say thank you for all the continued love and support! As always, I’m here to help you build income streams within the stock market that make sense. When you’re intentional with your portfolio, dividend income becomes more than passive, it becomes strategic. From what dividend stocks to invest in, to knowing which pay the most, the goal isn’t just returns. It’s reliable income, consistent growth, and ownership with purpose.
If this breakdown on high-paying dividend stocks and ETF’s has you thinking bigger, you’re in the right space.
Inside our private trading community, we take it further: real-time breakdowns, curated watchlists, and strategy-first mentorship that helps you apply this knowledge, not just read it. If you want a full dividend tracker spreadsheet or my personal list of tickers, connect with me by joining our Discord community. I’m all about helping you build wealth the smart way.
Additionally, I’m integral in knowing this isn’t just education, it’s execution. Our VIP Apprenticeship is where traders commit to structure, accountability, and making six figures with purpose. We focus on the moves that matter, skip the noise, and build portfolios that pay out.
If you’re serious about trading with confidence and building passive income that grows, this is where your next level begins.
—Star 🤍