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Everyone loves the idea of monthly income from their portfolio. You buy a few high-yield names, collect the dividends, sip coffee, and watch the cash roll in.

Except… in real life, the wrong income portfolio is like a wobbly IKEA bookshelf. It looks good for a few months, then collapses the moment the market sneezes.

So let’s talk about how to build a monthly income portfolio in 2025 that actually holds up — without chasing dangerous yields that will have you crying into your dividend statement.

Step 1: Focus on Quality Over Flashy Yield

The key to surviving 2025 is avoiding “yield traps” - stocks that dangle double-digit payouts but fund them with magic beans. When those payouts get cut, your share price usually follows them right off a cliff.

Instead, go for companies with sustainable business models, healthy balance sheets, and predictable cash flows. Yes, this means your starting yield might be lower. But if your goal is monthly income that survives more than a few quarters, that’s the trade you want.

Step 2: Build a Core With Reliable Monthly Payers

Here are a couple solid monthly-paying REITs from The REIT Forum’s coverage list:

• Realty Income (O) – The gold standard for monthly dividends. Over 25 years of monthly payments, with a conservative payout ratio and a fortress balance sheet. Boring? Sure. But boring pays the bills.
• Agree Realty (ADC) – A net lease REIT with a clean balance sheet and strong tenant roster. Another dependable monthly payer for the core of your portfolio.

Step 3: Layer in Preferred Shares for Stability

Preferred shares are like the quiet, dependable friend who always shows up on time. They don’t have the excitement of common stock, but they can give you a steady 6–8% yield with far less drama.

A couple of examples from our coverage:

• AGNC Investment Corp. – Series G Preferred (AGNCN) – Solid yield, fixed-to-floating structure, and coverage from a leading mortgage REIT.
• Annaly Capital – Series F Preferred (NLY-F) – Another fixed-to-floating option with a strong record of payouts.

These work beautifully for monthly income stability, especially when paired with your REITs.
Step 4: Add a BDC for an Income Boost

Business Development Companies can offer higher yields if you pick carefully. The wrong BDC can be a landmine, but the right one can juice your monthly cash flow without blowing up your portfolio.

One of our favorites:

• Main Street Capital (MAIN) – One of the most conservative BDCs out there, with a history of steady monthly dividends and occasional specials. If you must have extra yield, this is where to get it.

Step 5: (Optional) Sprinkle in Tech Exposure

Your monthly income portfolio doesn’t need tech, but let’s be honest — some readers get FOMO when they see (TSLA) , (NVDA) , (AAPL) , and the rest ripping higher.

If you want exposure to the big names without betting on individual stocks, consider a low-cost tech ETF like:

• Vanguard Information Technology ETF (VGT) – Expense ratio just 0.10%, broad exposure to the sector, and top holdings in Apple, Microsoft, Nvidia, and others. No, it’s not a monthly payer, but it adds growth ballast to your income plan.

Why This Portfolio Works in 2025

• Steady monthly cash flow from REITs, preferreds, and MAIN.
• Lower volatility than chasing every high-yield stock on the internet.
• Diversification into growth (via tech ETF) without compromising the income stream.
• Active monitoring from The REIT Forum — we actually track these companies and adjust positions when the risk/reward shifts.

The Bottom Line

A monthly income portfolio in 2025 isn’t about buying the highest yield you can find. It’s about buying the highest yield you can keep.

We’ve been through enough cycles to know what works and what blows up. This plan gives you stability, income, and enough growth to keep pace with inflation — without losing sleep every time the market dips.

If you want the full portfolio strategy, trade alerts, and in-depth analysis of every name on this list (plus dozens more), check out The REIT Forum. We track the winners, dodge the traps, and help you keep your portfolio standing tall all year long.

Join The REIT Forum by Colorado Wealth Management Fund, trusted by over 60,000 investors for expert analysis on REITs, BDCs, and preferred shares. 

This article was compiled by my assistant. If there are any mistakes, blame him - I certainly will.

Disclosure: I have a position in O. I may frequently trade in the preferred shares of any mortgage REIT and occasionally in the common shares.