Monthly dividend stocks can be an attractive investment option for those seeking stable income. Monthly dividends allow investors to receive more frequent payments than stocks which pay quarterly or semi-annual dividend payouts.
At the same time, stocks with low P/E ratios can offer attractive returns if their valuation multiples expand. And when a low P/E stock also has a high dividend yield, investors get ‘paid to wait’ for the valuation multiple to increase.
These 3 undervalued monthly dividend stocks have high yields.
Canadian Apartment Properties REIT (CDPYF)
Canadian Apartment Properties Real Estate Investment Trust is Canada’s largest publicly traded residential REIT. The company completed its initial public offering in 1997. As of September 30th, 2025, CDPYF owned approximately 45,000 residential apartment suites and townhomes. Most of these apartment suites are in Canada, with the portfolio heavily concentrated in Ontario, British Columbia, and
Quebec.
The company’s Canadian portfolio enjoys exceptionally high occupancy, ending Q3 2025 with a 97.8% occupancy rate. CDPYF’s remaining suites are in the Netherlands. These were 90.8% occupied to close out Q3 2025. In the first half of 2025, the company strategically disposed of 1.2 billion CAD of properties in Canada and the Netherlands. These deals were completed at prices at or above previously reported IFRS fair values at the time of negotiation. The proceeds from these dispositions are being used to acquire recently constructed mid-market rental properties at prices that are meaningfully below replacement cost, as well as unit repurchases.
On November 6th, CDPYF released its earnings report for the third quarter. The company’s operating revenue in native currency declined by 10.7% over the year-ago period to 252.3 million CAD in the quarter. Diluted FFO per unit edged 0.6% higher over the year-ago period to 0.663 CAD for the quarter. Adjusting for currency translation, CDPYF’s diluted FFO per unit decreased by 1.9% year-over-year to $0.47 in the quarter.
Since 2015, CDPYF has logged approximately 4% annual FFO per unit growth. In the years ahead, we think similar FFO per unit growth (3.5%) will occur through 2030, on an expected 2025 base of $1.80. This is because the company has more than tripled the footprint of recently constructed rental properties in its portfolio over the last five years (5% versus 18%). The company expects to continue buying recently constructed rental buildings with strong pricing per square foot at valuations significantly below replacement cost.
Horizon Technology Finance Corp. (HRZN)
Horizon Technology Finance Corp. is a BDC that provides venture capital to small and medium–sized companies in the technology, life sciences, and healthcare–IT sectors. The company has generated attractive risk–adjusted returns through directly originated senior secured loans and additional capital appreciation through warrants.
On October 28th, 2025, Horizon announced its Q3 results. For the quarter, total investment income rose 6.9% year-over-year to $26.3 million, driven primarily by higher fee and interest income on investments from the debt portfolio. The company’s dollar-weighted annualized yield on average debt investments in Q3 of 2025 and Q3 of 2024 was 18.6% and 15.9%, respectively.
Net investment income per share (IIS) remained flat year-over-year at $0.32. Net asset value (NAV) per share improved to $7.12, up from $6.75 in the prior quarter, but this was down from $9.12 in the prior year. Horizon’s undistributed spillover income stood at $0.93 per share at quarter-end, maintaining a strong income cushion to support future dividends.
Horizon’s investment results have been quite stable over the years, despite many of its peers in the sector suffering due to the oversupply of cheap financing. Lower market rates caused BDCs to keep refinancing their loan assets at gradually lower rates up until recently, damaging their investment results. However, Horizon’s niche operations that require more unusual expertise in industries like biotech have maintained their higher ROIs amid a lack of cheap loans for such risky sectors, including early-stage tech companies. As its successful due diligence record has made possible, the company has maintained quite stable dividends, paid out monthly, providing smooth capital returns to its investors.
Horizon’s dividend remained well-covered in recent years, including during the COVID-19 pandemic. Still, we estimate that a dividend cut could occur based on its ongoing performance. Regardless, the BDC’s competitive advantage lies in its team’s expertise to identify the most promising companies in risky sectors, which requires professional knowledge and experience beyond finance. So far, this perk has stood solid, as the company’s results have outperformed the rest of its peers, many of which were forced to cut their dividends due to increased market pressure.
Gladstone Commercial Corp. (GOOD)
Gladstone Commercial Corporation is a real estate investment trust, or REIT, that specializes in single-tenant and anchored multi-tenant net leased industrial and office properties across the United States. It targets primary and secondary markets that possess favorable economic growth trends, growing populations, strong employment, and robust growth trends.
The trust’s stated goal is to pay shareholders monthly distributions, which it has done for more than 17 consecutive years. Gladstone owns over 100 properties in 24 states that are leased to about 100 unique tenants.
Gladstone posted third quarter earnings on November 4th, 2025, and results were mixed. The trust posted FFO-per-share of 35 cents, which was three cents light of estimates. Revenue was $40.84 million, beating expectations narrowly. For the nine months, FFO was $1.02 per share.
Same-store lease revenue was up 3.1% year-over-year in the nine-month period ending in September, which was due to an increase in recovery revenue from property expenses, as well as higher rental rates. Gladstone sold 4.4 million shares of common stock under its at-the-money program, raising net proceeds of $61 million. It now has $6 million in cash and $63 million in available liquidity.
The dividend remains flat at $1.20 per share annually. Gladstone’s portfolio is 99.1% occupied, the highest level since the first quarter of 2019, and the weighted average lease term is 7.5 years.
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