Want to Collect Some Extra Income Each Month? Buy These 2 Top High-Yield Dividend Stocks.

Most dividend stocks make quarterly payments. That can make it more challenging for those seeking to align their income with their monthly expenses. You'd need to do a bit more work to build a portfolio of companies with staggered dividend payment schedules so that you can generate enough income each month to help cover some of your expenses.

However, some companies make it easy to align your income with your expenses by paying monthly dividends. Realty Income (NYSE: O) and Agree Realty (NYSE: ADC) are two of the best monthly dividend stocks. They also pay high-yielding dividends, which allows investors to generate more income each month.

Realty Income also goes by the name The Monthly Dividend Company. It has certainly been that over the years. The real estate investment trust (REIT) has declared 655 consecutive monthly dividends throughout its history. It has raised its dividend 128 times since its public market listing in 1994, including for the past 109 quarters in a row. The REIT has grown its payout at a 4.2% compound annual rate over the past 30 years. Its dividend currently yields 5.8%, which is well above the S&P 500's 1.2% yield. At that rate, every $100 invested in the REIT could produce $5.80 of dividend income each year, compared with just $1.20 if invested in an S&P 500 index fund.

The REIT owns a diversified portfolio of net lease properties. Those leases provide very stable rental income because tenants cover all operating expenses, including routine maintenance, building insurance, and real estate taxes. It currently owns over 15,450 properties leased to more than 1,550 clients in 90 industries across the U.S. and Europe. It gets 79.4% of its rent from retail tenants, 14.4% from industrial properties, 3.2% from gaming facilities, and 2.9% from other properties, including data centers.

Realty Income has steadily expanded its portfolio over the years. It buys properties in sale-leaseback transactions with owner-operators, acquires portfolios from investors, merges with other REITs, and invests in build-to-suit projects. Last year, it closed its $9.3 billion merger with fellow REIT Spirit Realty and invested more than $3.5 billion into other property investments.

The REIT has a strong financial profile, which gives it lots of flexibility to continue making acquisitions. It also recently launched a private market fund management platform to tap into a large source of acquisition funding. Future acquisitions should grow its rental income, enabling it to continue increasing its high-yielding monthly dividend.