3 Top High-Yield Stocks to Buy in July to Collect Passive Dividend Income Every Single Month

Buying high-yielding dividend stocks is an easy way to generate some extra income. Several companies pay their investors each month, which provides them with recurring streams of passive dividend income.

EPR Properties (NYSE: EPR), Realty Income (NYSE: O), and Main Street Capital (NYSE: MAIN) stand out because they pay high-yielding monthly dividends. Here's why they're great income stocks to buy this July to collect a dividend check every single month.

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A monthly dividend experience

EPR Properties is a real estate investment trust (REIT) focused on experiential real estate. It owns movie theaters, eat-and-play venues, casinos, fitness and wellness facilities, attractions, and other properties. The REIT leases these properties to companies that operate the experiences. Those leases provide EPR Properties with very stable cash flow to pay dividends.

The REIT pays investors $0.295 per share in dividends each month, or $3.54 annually. That's a more than 6% yield on its recent share price. EPR will pay its next monthly dividend on July 15 to those who own shares at the end of June. Investors who purchase shares in July will get paid their first monthly dividend in mid-August.

EPR pays out about 70% of its stable cash flow in dividends. That enables it to retain some cash to invest in new experiential properties. That helps support its plan to invest $200 million to $300 million into new properties this year. At that rate, it can grow its cash flow per share by around 3% to 4% annually, which should support a similar annual dividend growth rate. It raised its payout by 3.5% earlier this year.

Delivering dependable income every month

Realty Income calls itself The Monthly Dividend Stock. The REIT's stated mission is to invest in places that deliver dependable monthly dividends that increase over time. It has certainly done that over the years. The REIT has raised its dividend payment 131 times since its public market listing in 1994.

The diversified REIT, engaging in retail, industrial, gaming, and other properties, will pay its next monthly dividend on July 15 to those who own shares by the end of July 1. That payment of $0.269 per share is up 0.2% from the prior monthly level. That brings its new annualized dividend rate to $3.228 per share, giving Realty Income a roughly 5.5% dividend yield.

Realty Income pays out about 75% of its stable cash flow in dividends. That enables it to retain lots of cash to invest in new income-generating properties. It has a long growth runway, considering that there is about $14 trillion in commercial real estate in the U.S. and Europe across its targeted investment verticals.

A monthly income stream and more

Main Street Capital is a business development company (BDC). It provides debt and equity capital to lower middle market companies, meaning those with annual revenue between $10 million and $150 million. It will also lend money to larger companies.

The company's capital solutions business model generates recurring income. The BDC pays out a portion of its income to investors each month. It will make its next payment of $0.255 per share on July 15 to those who own shares by July 8. At its current annualized rate of $3.06 per share, Main Street Capital has more than a 5% dividend yield.

The company routinely increases its monthly dividend rate. It's up 2% from its average rate last quarter and 4.1% from the year-ago level. In addition, Main Street Capital will pay supplemental cash dividends to ensure it reaches its required payout level. Like REITs, BDCs must distribute 90% of their taxable income to shareholders each year to comply with IRS regulations. It recently paid a $0.30-per-share dividend in June. Main Street Capital has been paying a $0.30-per-share supplemental dividend each quarter for the past year and a half. That has pushed its yield up over 8%.

Easy ways to start generating monthly passive income

EPR Properties, Realty Income, and Main Street Capital pay high-yielding monthly dividends that should steadily grow. That makes them ideal dividend stocks to buy if you seek recurring passive income. You can buy shares this July and immediately start collecting passive income each month to help supplement your other income sources.

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Matt DiLallo has positions in EPR Properties, Main Street Capital, and Realty Income. The Motley Fool has positions in and recommends EPR Properties and Realty Income. The Motley Fool has a disclosure policy.