UK Monthly Dividend Stocks to Watch [2026 Guide]
UK monthly dividend stocks are relatively niche compared to the more common dividend frequency of quarterly payouts. However, there are a few options available - primarily via UK investment trusts with monthly dividends, UK-domiciled funds and ETFs that are accessible to UK investors, and global alternatives like US-listed REITS (Real Estate Investment Trusts).
In this article, we will highlight a few monthly dividend vehicles available to most UK investors, compare them with more traditional quarterly payers, and examine the risks and opportunities heading and 2026.
It's important to note that dividend payouts can change over time and a company could stop paying them abruptly. This material is for informational purposes only and not financial advice. Consult a financial advisor before making investment decisions.
How do Monthly Dividend Stocks Work?
To understand how monthly dividend stocks work, we first need to understand what a dividend is. A dividend is a share of company earnings that is paid to the company’s stockholders. Not all companies will pay dividends and the ones that do will pay biannually, quarterly or monthly.
Monthly dividend stocks represent companies that pay dividends every month instead of the more common quarterly schedule. This higher dividend frequency may provide some investors with potential cash flow from their investments.
Dividends are approved by the company’s board of directors who also announce when the dividend will be paid and the amount. Each dividend payment follows a set timeline which includes a declaration date, ex-dividend date, record date, and payment date. The ex-dividend date is for investors as this is the date the investor must own shares before, in order to receive that month’s dividend.
Compared with the more typical dividend frequency of a quarterly payment, monthly dividends may help in compounding as these dividends can be reinvested sooner. Income investors may choose to receive the dividend as a form of income, whereas capital growth investors may choose to reinvest the dividend to buy more shares.
As most dividends are considered to be 'qualified dividends' there is likely to be a tax liability depending on your individual circumstances and geographical region. Do your own due diligence and speak to a tax advisor.
Monthly Dividend Stocks and ETFs Available to UK Investors
Below is a list of the top 9 monthly dividend stocks and ETFs (exchange-traded funds). How did we choose this list? First, we checked to ensure each company pays a monthly dividend. We also checked that each company's share price is available to purchase from the Admirals Invest.MT5 account which collects dividend payments for you.
Sources: HL Shares, TipRanks, DividendMax, Dividend Yields on 15 October 2025. Past performance is not a reliable indicator of future results.
ARMOUR Residential REIT
- Industry: Mortgage REITs
- Ticker: ARR
- Country: US
- Dividend Yield: 8.02%
ARMOUR Residential REIT is a real estate investment trust. It is a US-based dividend income option that can also act as a UK monthly dividend stock for a portfolio. It pays dividends monthly, unlike typical quarterly dividend frequency schedules.
TwentyFourSelect Monthly Income Fund
- Industry: Fixed Income, Credit Securities
- Ticker: SMIF
- Country: UK
- Dividend Yield: 7.92%
The TwentyFour Select Monthly Income Fund is one of the few UK investment trusts with monthly dividends. It focuses on diversified fixed-income securities such as corporate and asset-backed bonds.
Global XSuperDividend UCITS ETF
- Industry: Equity Securities
- Ticker: SDIP
- Country: UK
- Dividend Yield: 11.75%
The Global X SuperDividend UCITS ETF aims to provide high-yield monthly income through a globally diversified basket of dividend-paying equities. Structured as a UCITS ETF, it’s accessible to UK investors as it's listed on the London Stock Exchange.
Apple Hospitality REIT
- Industry: Hotel and Resort REITs
- Ticker: APLE
- Country: US
- Dividend Yield: 8.43%
Apple Hospitality REIT is a real estate investment trust that owns one of the largest portfolios of upscale hotels in the United States, including 96 Marriott-branded hotels, 199 Hilton-branded hotels and 4 Hyatt-branded hotels.
iShares J.P. Morgan USD EM Bond ETF
- Industry: Emerging Market Bonds
- Ticker: IEMB
- Country: UK
- Dividend Yield: 5.69%
The iShares J.P. Morgan USD Emerging Market Bond fund aims to provide diversified exposure to emerging market bonds issued in US dollars and consists of a mixture of government and corporate bonds.
Realty Income
- Industry: Retail REITs
- Ticker: O
- Country: US
- Dividend Yield: 5.51%
Realty Income is a real estate investment trust that primarily invests in and owns 11,288 commercial properties in the United Kingdom, United States and Spain, such as Walgreens, 7-Eleven, Dollar General, Sainsbury’s, LA Fitness and many others.
JPMorgan USD Ultra-Short Income UCITS ETF
- Industry: Fixed Income
- Ticker: JPTS
- Country: UK
- Dividend Yield: 4.76%
The JPMorgan USD Ultra-Short Income UCITS ETF is a monthly income fund which aims to invest in short-term, high-quality bonds to reduce volatility while maintaining liquidity.
Agree Realty Corp
- Industry: Retail REITs
- Ticker: ADC
- Country: US
- Dividend Yield: 4.23%
Agree Realty Corp is a real estate investment trust that focuses on the development and acquisition of net lease retail properties throughout the United States and includes tenants such as Best Buy, Autozone, Dollar General, Home Depot and many others.
Gladstone Land Corp
- Industry: Specialized REITs
- Ticker: LAND.US
- Country: US
- Dividend Yield: 6.05%
Gladstone Land Corp is an agriculture real estate investment trust, owning and leasing farmland across the United States.
Evaluating Monthly Dividend Stock Sustainability
Assessing the sustainability of monthly dividend payments is essential for managing a long-term portfolio but can be difficult to do. One helpful tool is the dividend payout ratio analysis. A high ratio may indicate that a company is distributing too much of its earnings which increases the chance of future dividend cuts. The dividend coverage ratio may also help gauge whether earnings or cash flow can support ongoing payments.
Investors should keep an eye on potential dividend yield traps. This is where unusually high yields may signal financial issues rather than growth opportunities. As dividend yields tend to rise when a stock price falls, it can result investing into troubled companies.
Reviewing dividend consistency metrics, such as the company's dividend payment history is key, although past performance does not guarantee future performance. It's also important to keep track of cash flow strength to support dividend payments, and sector-specific risks. Ultimately, while a company may pay monthly dividends now, it could stop paying them altogether in the future.
Are Monthly Dividend Stocks UK a Good Investment?
Monthly dividend stocks may provide additional revenue opportunities for UK investors, compared to quarterly dividend paying stocks. When embarking upon a monthly dividend portfolio construction it's important to exercise proper risk and portfolio management as a company may change its dividend payout in the future.
Some stocks and funds may also offer inflation-protected monthly income. For example, real estate investment trusts may receive steady rents regardless of increasing or decreasing inflation. While some investors may focus on stocks and funds that offer dividend growth investing in the UK, it's also important to take into consideration that a monthly dividend stock price may not grow over time but may still continue to payout a monthly dividend.
✅ Pros
- May provide consistent, inflation-protected monthly income potential.
- May enhance compounding through more frequent reinvestment.
❌ Cons
- Fewer UK-listed monthly dividend options compared to quarterly payers.
- Some funds trade off growth for yield, reducing total return potential.
- Higher yields may mask underlying risks in niche sectors.
How to Invest in Monthly Dividend Stocks & ETFs
With Admirals, UK investors can invest in over 4,000 stocks and ETFs from around the world. UK stock and ETF commissions start at 0.1% of the trade value and have a 1 GBP minimum commissions per transaction. Learn more on the Admirals Contract Specification page.
To start investing:
- Open an account with Admirals by completing the onboarding process.
- Deposit real funds in your account unless you are using virtual funds from a demo account.
- Open the stock trading software provided by Admirals which is a web version or desktop version of MetaTrader 5.
- Choose your instruments. Select from thousands of dividend stocks and ETFs from all over the world.
- Invest and start collecting dividend payments.
FAQs on Monthly Dividend Stocks
Which UK company pays the highest dividend?
As of October 2025, Legal & General leads the FTSE 100 list of stocks with the highest dividend yield of approximately 9.0%, however this will change over time.
What are the monthly dividend options for UK investors?
UK investors have access to a limited but growing range of monthly dividend options, mainly through London-listed international ETFs and UK investment trusts. Some examples include the TwentyFour Select Monthly Income Fund (SMIF), Global X SuperDividend UCITS ETF, and JPMorgan USD Ultra-Short Income UCITS ETF.
How do I evaluate dividend sustainability?
To assess dividend reliability, check the dividend payout ratio analysis and the dividend coverage ratio. These metrics reveal whether earnings or cash flow can support dividend payouts. However, there are no guarantees, and a company may decide to stop paying dividends abruptly.
What are the tax implications of monthly dividends in the UK?
Dividend tax treatment varies depending on your individual circumstances and geographical residency. Qualified dividends may be liable for tax, such as income tax, so you should consult a financial advisor or tax expert to understand your liabilities.
Continue Reading:
- Dividend Investing Guide
- Top Dividend ETFs
- Top UK Stocks for Dividends
- Top 10 Penny Stocks UK
- Top 20 Biggest Companies in the UK
Sources:
¹ https://www.dividenddata.co.uk/monthly-dividends.py
³ https://www.dividend.com/monthly-income-from-monthly-dividend-stocks-etfs-and-funds
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