3 Investments That Cut You a Check Each Month

Most income-generating stocks pay quarterly dividends. That might suit most investors, but some people -- including retirees who want their investments to pay their bills consistently -- might prefer monthly dividend payments.

So today, let's examine three reliable investments that cut you a check each month: Realty Income (NYSE: O), Main Street Capital (NYSE: MAIN), and the JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI). I own all three of these tickers, and I think they'll be reliable sources of monthly income as fears of higher tariffs and inflation rattle the broader markets.

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Realty Income

Realty Income is one of the world's largest retail real estate investment trusts (REITs) with approximately 15,600 properties in its portfolio. Its biggest tenants include Dollar General, Dollar Tree, Walgreens Boots Alliance, and 7-Eleven.

Its business model is simple: It buys properties, rents them out, and splits that rental income with its investors. As a REIT, the company must pay out at least 90% of its pretax profits as dividends to maintain a favorable tax rate.

Realty Income has kept its occupancy rate above 96% ever since its initial public offering (IPO) in 1994, even as some of its tenants struggled with store closures during economic downturns. It has raised its payout 130 times since its public debut, it pays those dividends monthly, and it currently has a high forward dividend yield of 5.7%.

From 2014 to 2024, Realty Income's adjusted funds from operations (AFFO) per share had a steady compound annual growth rate (CAGR) of 5%. For 2025, it expects its AFFO per share to grow 1% to 2% to between $4.22 and $4.88 -- which will easily cover its forward annual dividend of $3.22.

At $56, it trades at just 13 times this year's AFFO estimate. That high yield and low valuation should limit its downside potential in this wobbly market.

Main Street Capital

Main Street Capital is a business development company (BDC) that provides direct loans to "middle market" companies with annual revenue between $10 million and $150 million.

Traditional banks are often reluctant to approve new loans to these smaller companies, since they're considered riskier borrowers. Hence, they can struggle to attract more funding from venture capital firms and other private investors.

BDCs fill that gap by offering higher-interest loans to those companies. Like REITs, BDCs also need to pay out at least 90% of their taxable income as dividends. Main Street has paid consistent monthly dividends since its IPO in 2007, and it's raised its annual payout over the past four years. It pays a forward dividend yield of 7.4%.

Main Street Capital's business model might seem risky, but it has spread its flexible debt and equity solutions across 190 cumulative investments. From 2014 to 2024, its net investment income per share had a CAGR of 6%.

For 2025, analysts expect that figure to dip 1% to $4.01 per share as interest rates decline; that is lower than its forward annual dividend rate of $4.20 per share. That high payout ratio might force it to slightly reduce its dividend, which often ebbs and flows with interest rate swings.

But at $56, Main Street trades at just 14 times this year's net investment income per share. That low valuation makes it a cheap and relatively safe way to earn some extra income.

JPMorgan Equity Premium Income ETF

Lastly, high-yield covered call exchange-traded funds (ETFs) are a compelling choice for investors who expect the market to trade sideways for the foreseeable future. These ETFs collect premiums by repeatedly writing covered calls on their own underlying stocks, which consistently boosts their yields as long as those positions don't appreciate too much and get called away.

One of the simplest ways to profit from that strategy is to invest in the JPMorgan Equity Premium Income ETF, which holds a diverse portfolio of 130 stocks and writes monthly calls on the S&P 500. Instead of directly writing covered calls, it uses equity-linked notes (ELNs), which allows it to execute that strategy at a more tax-efficient rate.

The ETF charges a low expense ratio of 0.35% and pays a 30-day SEC yield of 7.2%. As of this writing, it trades only slightly above its net asset value (NAV) of $56.65. Its share price probably won't increase significantly over the next year, but it should consistently pay its high yield on a monthly basis even if the market stalls out.

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Leo Sun has positions in JPMorgan Equity Premium Income ETF, Main Street Capital, and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.