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Investing in the stock market is a great way to build long-term wealth. However, with countless approaches available, navigating the world of investing can feel overwhelming. One method that stands out for its income generation is dividend investing.

Dividend stocks can provide investors with steady, reliable paychecks. Not only that, but these companies have also consistently outperformed their non-dividend-paying peers over long periods.

A comprehensive study conducted by Hartford Funds revealed that, during a 50-year span ended in 2023, dividend-paying stocks delivered an impressive annual return of 9.17%. Non-dividend payers delivered 4.27% by comparison. Furthermore, dividend stocks are less volatile than their counterparts, making them an appealing choice for those seeking stability alongside growth.

Many dividend-paying companies distribute their earnings quarterly. However, for those who prefer more frequent paydays, some stocks pay dividends monthly, providing more regular cash flow. If you're considering diving into the world of dividend investing, here are three high-yield stocks that pay you monthly.

Agree Realty: 4.1% dividend yield

Agree Realty (NYSE: ADC) owns and manages stand-alone retail properties, including grocery stores, home improvement stores, tire and auto service centers, and dollar stores, to name a few.

The real estate investing trust (REIT) is a good dividend payer because it leases to high-quality tenants (nearly 70% have investment-grade ratings) that could better weather economic downturns. As of the third quarter, 99.6% of its properties were leased, with a weighted average remaining lease term of 7.9 years.

Some of Agree Realty's largest tenants at the end of last year include Walmart, Tractor Supply, Dollar General, Best Buy, and CVS. The company also does a good job diversifying its customer base. No single tenant makes up more than 6.1% of its annualized base rent.

The past few years have been tough for real estate operators, as rising interest rates have increased their costs of financing. Despite this, Agree Realty continues to grow steadily and build on its solid foundation. In 2024, the company invested $524.9 million across 144 properties, which should help provide it with years of steady rental income.

Agree Realty has a strong balance sheet, and its use of leverage is low, compared to its peers. It also has a reasonable payout ratio, at 73% of its adjusted funds from operations (FFO), which should give investors confidence it can continue to deliver its monthly dividend.

Realty Income: 5.5% dividend yield

With a 53-year track record in the commercial real estate industry, Realty Income (NYSE: O) has consistently demonstrated strong cash-flow generation, making it an appealing choice for those seeking dependable returns.

Realty Income boasts a diverse portfolio of more than 15,450 properties spanning the U.S., U.K., and Spain. With tenants like Dollar General, 7-Eleven, Walgreens, FedEx, and CVS, investors can feel confident in the strength and reliability of its clientele and its cash-generating ability.

At the heart of Realty Income's business is its use of triple-net leases. This structure means tenants are responsible for property taxes, maintenance, and insurance, allowing Realty Income to offer lower rents while ensuring steady cash flow that results in a reliable, predictable income stream for income-focused investors.

However, as with any investment, it's important to consider the risks. Realty Income's focus on retail properties -- which are 91% of its portfolio -- is something to keep an eye on. The REIT addresses this risk by diversifying its client base across industries that could weather downturns.

Grocery stores represent 10.2% of its annualized rent, followed by convenience stores (9.4%) and dollar stores (6.6%). Its largest tenant, Dollar General, accounts for only 3.4% of its annual rent, reducing its reliance on any single client.

Realty Income offers an attractive blend of stability and growth potential with a well-diversified, resilient portfolio poised to generate consistent income for years to come.

Stag Industrial: 3.9% dividend yield

Stag Industrial (NYSE: STAG) is a go-to in the burgeoning realm of U.S. industrial properties. The company has amassed a portfolio of buildings in 41 states, predominantly warehouses and distribution centers.

Catering to the thriving industrial sector, Stag boasts a diverse array of tenants, with Amazon leading the pack, contributing 3% to its annual base rental revenue. Other top tenants include Soho Studio, Eastern Metal Supply, American Tire Distributors, and Tempur Sealy International.

Since its public debut in 2011, Stag has gone from owning just 93 properties to 573, establishing itself as a powerhouse in the U.S. industrial-property landscape. Its strategic focus on warehousing and distribution centers has positioned the company at the forefront of the booming industry, poised for continued success.

Stag is well-prepared to capitalize on promising long-term trends. A recent report from Grand View Research projects that the global warehousing and distribution market will grow at a compound annual rate of 8% through 2030.

Since its initial public offering (IPO), Stag Industrial has proven to be a solid investment choice providing excellent growth. It has a reasonable payout ratio of 60% of FFO and is well-equipped to continue delivering for investors.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $23,657!*
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Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 4, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Best Buy, FedEx, Realty Income, and Walmart. The Motley Fool recommends CVS Health, Stag Industrial, and Tractor Supply. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.