Monthly Dividend Calculator

Plan consistent monthly income by combining dividend payment schedules.

Build Monthly Income

How much you want to receive each month
Blended yield of your holdings
What you have invested now
Investment Needed for Target$300,000
Current Monthly Income$167
Gap to Target$833
Additional Investment Needed$250,000
Progress to Monthly Goal 17%

Popular Monthly Dividend Payers

These stocks/ETFs pay dividends every month for consistent cash flow:

O
Realty Income 5.8% yield
REIT
MAIN
Main Street Capital 6.2% yield
BDC
JEPI
JPMorgan Equity Premium 7.2% yield
ETF
STAG
STAG Industrial 4.1% yield
REIT
AGNC
AGNC Investment 14.5% yield
mREIT
EPR
EPR Properties 7.8% yield
REIT

Building Monthly Income with Quarterly Payers

Most stocks pay quarterly. Stagger holdings to create monthly income:

Jan / Apr / Jul / Oct
JPM JNJ UNH PFE
Feb / May / Aug / Nov
AAPL MSFT HD DIS
Mar / Jun / Sep / Dec
KO PEP MCD WMT
Phin Smith
CREATED BY Phin Smith UPDATED
Based on 3 sources
Reviewed by Expert
1,220 people found this helpful

Table of Contents

Monthly Income Formula

Required Investment = (Monthly Income × 12) ÷ (Yield ÷ 100)

Example: For $1,000/month at 4% yield:

  • Annual income needed = $1,000 × 12 = $12,000
  • Investment required = $12,000 ÷ 0.04 = $300,000

Frequently Asked Questions

Are monthly dividend stocks better than quarterly?

Not necessarily better, just different. Monthly payers provide smoother cash flow but are concentrated in REITs and BDCs. Quarterly payers offer more diversification across sectors. A mix of both is often ideal.

Why do REITs pay monthly?

REITs collect rent monthly from tenants, so monthly dividends align with their cash flow. They're also required to distribute 90% of taxable income, making them natural income vehicles.

What's a realistic monthly income goal?

At 4% yield: $100K invested = $333/month, $500K = $1,667/month, $1M = $3,333/month. Higher yields (6-8%) can generate more but often carry more risk.

How do I track ex-dividend dates?

Use our Dividend Calendar to see upcoming payment dates, or check your broker's dividend schedule tool.

Building Reliable Monthly Dividend Income

Creating consistent monthly dividend income requires strategic portfolio construction. While most stocks pay quarterly dividends, combining investments with staggered payment schedules can produce income every month. This approach is particularly valuable for retirees, those pursuing financial independence, or anyone seeking passive income to cover regular expenses.

Several investment categories naturally provide monthly income: REITs like Realty Income (O), STAG Industrial, and AGNC pay monthly by design. Many covered call ETFs including JEPI, JEPQ, and DIVO distribute income monthly. Business Development Companies (BDCs) like Main Street Capital (MAIN) also offer monthly payments. Combining these with quarterly payers creates diversified, reliable income streams.

The key to sustainable monthly income is diversification across sectors, payment schedules, and income types. High yields can be attractive but may indicate elevated risk. This calculator helps you plan monthly income targets and determine the portfolio size needed to achieve your financial goals through dividend investing.

Sources

  1. Investopedia - Monthly Income Strategies

    Overview of building consistent monthly investment income.

  2. NAREIT - What is a REIT?

    Information on REITs and their dividend distribution requirements.

  3. Schwab - Generating Retirement Income

    Strategies for creating sustainable income from investments.