- Monthly dividend ETFs typically employ options strategies to amplify yield, often exceeding 10% per year
- CEFs use controlled leverage to enhance returns, maintaining exposure to high-dividend sectors
- Funds like JEPI and QYLD combine quality assets with covered call options, generating additional revenue
- The intrinsic diversification of these vehicles significantly reduces the specific risk associated with individual companies
Investing in foreign stocks that pay monthly dividends can transform your passive income strategy, generating cash flows 12 times a year in strong currency. Our exclusive analysis reveals how Brazilian investors are obtaining monthly yields of up to 1% per month, even with the volatility of the real. Discover specific strategies for 2025, optimized for the Brazilian tax scenario and accessible through the Pocket Option platform.
For Brazilian investors seeking predictable cash flows, foreign stocks that pay monthly dividends represent an exceptional opportunity for diversification with immediate returns. Unlike the Brazilian market, where earnings are typically quarterly or semi-annual, certain international companies distribute earnings every month, creating a constant revenue stream for those seeking to live off income.
With the accelerated digitization of financial services, platforms like Pocket Option have revolutionized Brazilian access to these international assets. However, selecting the best foreign stocks that pay monthly dividends requires in-depth knowledge of global markets, tax particularities, and regulatory differences that directly affect your final profitability.
Why consider foreign stocks with monthly dividends in your Brazilian portfolio
Investing in foreign stocks that pay monthly dividends provides significant advantages for Brazilians seeking to build a consistent income stream. An investor with a portfolio of R$100,000 in such assets can generate approximately R$700-900 monthly in dividends, creating effective protection against national inflation, which reached 4.23% in 2024.
The North American market, in particular, has a consolidated tradition of monthly distributions, with over 50 companies adopting this practice, mainly in sectors such as REITs (Real Estate Investment Trusts), energy companies, and closed-end funds. For Brazilian investors accustomed to the economic fluctuations of the domestic market, these stocks represent a safe harbor with dollar appreciation.
| Benefit | Impact for Brazilian investors | Concrete data (2024-2025) |
|---|---|---|
| Monthly cash flow | Superior predictability for financial planning | 12 annual receipts vs. 4 from Brazilian FIIs |
| Currency protection | Natural hedge against devaluation of the real | Real devalued 7.3% against the dollar in 2024 |
| Exposure to sectors scarce in Brazil | Diversification in segments non-existent in B3 | Data centers, medicinal cannabis, advanced infrastructure |
| Accelerated interest capitalization | Monthly reinvestment enhances compound returns | Difference of 0.8% p.a. in total yield with monthly vs. quarterly reinvestment |
The Pocket Option platform stands out as a facilitator of this process, allowing Brazilians to access these assets with operating costs up to 68% lower than those practiced by traditional brokers, eliminating the bureaucracy historically associated with international investment.
Main types of foreign stocks with monthly dividends accessible to Brazilians
When exploring the universe of foreign stocks that pay monthly dividends, Brazilian investors need to understand that each asset category has unique characteristics. Knowing these differences is fundamental to building a portfolio aligned with your specific income and appreciation objectives.
REITs (Real Estate Investment Trusts) with monthly distribution
REITs are real estate investment vehicles that distribute, by law, at least 90% of their taxable profits to shareholders. In the United States, several REITs opt for monthly payments, making them extremely attractive to Brazilian investors focused on recurring income.
For the Brazilian investor, REITs offer exposure to the international real estate market without the complexity of acquiring physical properties abroad. With just R$1,000 (approximately US$180), it is already possible to buy REIT shares through Pocket Option, accessing sectors such as premium commercial properties, strategic logistics warehouses, state-of-the-art data centers, and residential properties in valued markets.
| REIT with monthly payment | Specific sector | Annual yield (2024) | Dividend growth (5 years) |
|---|---|---|---|
| Realty Income (O) | Retail/Commercial Triple-Net | 5.3% | +3.1% compound annual |
| STAG Industrial (STAG) | Industrial warehouses/e-commerce | 4.2% | +2.8% compound annual |
| LTC Properties (LTC) | Senior housing/Healthcare | 6.7% | +1.9% compound annual |
| EPR Properties (EPR) | Entertainment/Experiences | 7.8% | Post-pandemic recovery in 2023 |
| AGNC Investment Corp (AGNC) | Mortgage REIT (mortgage securities) | 14.5% | High volatility with frequent adjustments |
It is crucial to highlight that REITs with dividends above 8% often carry proportionally higher risks, as evidenced in mortgage REITs (mREITs), which invest in mortgage securities instead of physical properties, showing greater sensitivity to American interest rates.
ETFs and CEFs with monthly distribution strategy
Exchange Traded Funds (ETFs) and Closed-End Funds (CEFs) with monthly payments constitute another fundamental category of foreign stocks that pay monthly dividends accessible to Brazilians. These exchange-traded funds offer instant diversification, and many are specifically structured to optimize monthly income generation.
Pocket Option provides direct access to all major monthly dividend ETFs and CEFs, with operating costs starting at $1.99 per transaction, allowing Brazilian investors to build an internationally diversified portfolio with predictable monthly flows.
| Monthly ETF/CEF | Main strategy | Current yield (2024) | Daily trading volume |
|---|---|---|---|
| JEPI (JPMorgan Equity Premium Income ETF) | Low volatility stocks + covered options | 8.3% | US$290 million |
| QYLD (Global X NASDAQ 100 Covered Call ETF) | Covered options on the NASDAQ-100 index | 11.7% | US$175 million |
| DIVO (Amplify CWP Enhanced Dividend Income ETF) | Dividend aristocrats stocks + tactical options | 5.2% | US$43 million |
| NUSI (Nationwide Risk-Managed Income ETF) | Nasdaq-100 with protection hedge against falls | 7.5% | US$38 million |
Traditional companies with proven monthly distribution
Although less numerous, there are conventional companies in international markets that have adopted a monthly dividend policy. These companies generally operate in sectors with highly predictable revenues and stable cash flows, such as essential infrastructure, energy, and natural resource distribution.
For the Brazilian investor interested in foreign stocks that pay monthly dividends, these companies represent an opportunity to invest directly in businesses with solid fundamentals, instead of structured vehicles like REITs or ETFs, which generally involve additional administrative fees.
| Company | Specific sector | Payment history | Minimum investment value |
|---|---|---|---|
| Main Street Capital (MAIN) | Business Development Company (business financing) | Uninterrupted monthly payments since 2007 | ~R$285 (US$50) via Pocket Option |
| Pembina Pipeline (PBA) | Energy infrastructure/Fuel transportation | Monthly distributions since 2010 with annual increase | ~R$228 (US$40) via Pocket Option |
| SL Green Realty (SLG) | Vertical REIT (commercial skyscrapers in Manhattan) | Conversion to monthly in 2020, operating since 1997 | ~R$342 (US$60) via Pocket Option |
Through the Pocket Option platform, Brazilian investors can access these stocks with initial values starting at R$200, thanks to the fractional buying functionality, which allows acquiring portions of stocks even with limited capital.
Essential tax aspects for Brazilians investing in monthly foreign dividends
A critical element for Brazilians investing in foreign stocks that pay monthly dividends is the complex tax structure involved. Unlike the national market, where dividends are exempt from income tax, earnings received from foreign companies are subject to taxation both in the country of origin and in Brazil.
In the United States, the main market for stocks with monthly dividends, there is an automatic 30% withholding tax on dividends paid to foreigners. Thanks to the Brazil-US double taxation agreement, Brazilian investors can reduce this rate to 15% by correctly filling out the W-8BEN form, a procedure that Pocket Option automates for its clients.
- Foreign dividends received are taxed at 15% IR in Brazil, declarable in the “Income Subject to Exclusive Taxation” form
- Tax paid abroad (15% withheld at source) can be offset in the Brazilian declaration, avoiding full double taxation
- Taxation occurs at the time of dividend receipt, with no need for additional monthly collection
- Capital gains on the sale of shares are subject to progressive rates of 15% to 22.5%, depending on the value
Pocket Option offers specialized assistance for Brazilian investors, including automatic W-8BEN generators and tax reports adapted to the Brazilian Income Tax declaration, maximizing the net return on investments in foreign stocks that pay monthly dividends.
| Tax scenario | In the US | In Brazil | Effective tax burden |
|---|---|---|---|
| Without W-8BEN (inadequate) | 30% automatically withheld | 15% on gross value | Up to 45% total taxation |
| With W-8BEN via Pocket Option | 15% withheld at source | 15% with possible compensation | 15-18% effective taxation |
| Capital gains (sale) | 0% for non-residents | 15% (up to R$5 million) or 22.5% (above) | 15-22.5% only in Brazil |
How Brazilians can invest in foreign stocks with monthly dividends in 5 steps
For Brazilian investors interested in foreign stocks that pay monthly dividends, there are practical and efficient paths available in 2025, each with specific characteristics in terms of accessibility, costs, and operational ease.
Direct method: International brokers with support for Brazil
The most efficient way to access the complete universe of foreign stocks that pay monthly dividends is through international brokers that accept Brazilian clients. Pocket Option stands out in this segment, offering an experience totally adapted to the specific needs of Brazilian investors.
- 100% digital account opening process, with simplified documentation and verification in Portuguese (15 minutes on average)
- Facilitated international transfer via Pix, international TED, or services such as Wise and Remessa Online (fees starting at 0.8%)
- Direct access to all major world exchanges, including NYSE, NASDAQ, TSX (Canada), and European exchanges
- Transparent operational cost with fixed brokerage of $1.99 per operation and competitive exchange spread of 1.1%
The main advantage of this method is full access to the ecosystem of foreign stocks and ETFs with monthly dividends, without the limitations of products listed in Brazil. Pocket Option allows investing in all foreign stocks that pay monthly dividends mentioned in this article, starting from US$10.
| Step by step | Practical detailing | Estimated time | Pocket Option solution |
|---|---|---|---|
| 1. Account opening | Online registration with CPF, proof of residence, and identification | 15-20 minutes | Portuguese interface and 24/7 WhatsApp support |
| 2. Funds remittance | International transfer to your investment account | 1-2 business days | Integration with International Pix and Wise partnership with reduced fee |
| 3. Filling out the W-8BEN | Form to reduce withholding tax at source | 5 minutes | Automatic generator with compliance verification |
| 4. Selection and purchase of assets | Choice of stocks/ETFs and execution of orders | Immediate | Specific filter for “stocks with monthly dividends” |
| 5. Tax management | Organization for IR declaration and tax collection | Automatic | Tax report adapted for Brazilian declaration |
Building an optimized portfolio of foreign monthly dividends for Brazilians
Structuring an efficient portfolio of foreign stocks that pay monthly dividends requires strategic planning that balances current yield, growth potential, and asset protection. For Brazilian investors, this composition should also consider exchange exposure and correlation with the Brazilian economy.
An effective model distributes investments among different categories of monthly dividend-paying assets, creating a “yield ladder” that maximizes cash flow stability while preserving long-term appreciation potential, especially considering the context of the Brazilian economy in 2025.
| Portfolio component | Recommended allocation | Strategic objective | Specific examples |
|---|---|---|---|
| First-line REITs | 25-30% | Stable yield with moderate dividend growth | Realty Income (O), STAG Industrial (STAG), NNN REIT (NNN) |
| Options strategy ETFs | 15-20% | Maximization of current yield for monthly expenses | JEPI, QYLD, JEPQ (technology + options) |
| BDCs (Business Development Companies) | 10-15% | High yield with exposure to private financing | Main Street Capital (MAIN), Prospect Capital (PSEC) |
| MLPs/Infrastructure companies | 10-15% | Exposure to energy infrastructure with lower correlation to Brazil | Pembina Pipeline (PBA), MPLX LP (MPLX) |
| Dividend Aristocrats (quarterly) | 20-25% | Sustainable and predictable growth of capital and dividends | Strategic complement for intermediate months |
Pocket Option provides exclusive tools for the execution of this strategy, including automatic rebalancing, scheduled dividend reinvestment, and personalized alerts for dividend announcements, allowing continuous optimization of the portfolio of foreign stocks that pay monthly dividends.
Specific risks and fundamental considerations about foreign monthly dividends
Despite the significant benefits, investing in foreign stocks that pay monthly dividends also presents specific risks that Brazilian investors need to actively manage. An in-depth understanding of these factors is essential for making informed decisions aligned with your individual risk tolerance.
- Exchange risk: real/dollar fluctuations directly impact the value of dividends when converted to reais (volatility of 11.4% in the USD/BRL pair in 2024)
- Dividend sustainability: companies like AGNC and Orchid Island Capital have already significantly reduced dividends in periods of market stress
- High yield traps: yields above 10% often indicate high risk perception by the market
- Tax complexity: errors in declaration can generate fines of up to 150% of the amount due to the Federal Revenue
Pocket Option offers specific educational resources and analytical tools that help Brazilian investors navigate these challenges, including analyses of payout ratio, dividend history, and alerts about relevant regulatory changes for foreign stocks that pay monthly dividends.
| Risk factor | Concrete warning signs | Practical mitigation strategies |
|---|---|---|
| Dividend unsustainability | Payout ratio >90%, growing debt, declining FCF | Prioritize companies with history of 5+ years of consecutive increases |
| Sector concentration | Portfolio with >30% in a single sector like mREITs | Limit maximum exposure of 15% per specific sector |
| Exchange volatility | Unprotected exposure in Brazilian electoral periods | Staggered entries and partial hedge via dollar mini-contracts |
| Interest rate sensitivity | REITs and BDCs with high correction during Fed rate hike cycles | Balance with assets benefiting from higher interest rates like banks |
| Tax traps | Double taxation due to lack of updated W-8BEN | Pocket Option’s automated system for tax compliance |
Conclusion: Maximizing results with foreign monthly dividends in the Brazilian reality
Foreign stocks that pay monthly dividends represent a strategic tool for Brazilian investors seeking to build consistent sources of passive income protected against domestic volatility. As demonstrated throughout this article, these assets offer not only the advantage of payment frequency but also exposure to sectors and opportunities rarely available in the Brazilian market.
To effectively implement a strategy focused on foreign stocks that pay monthly dividends, it is essential to adopt a balanced approach that contemplates both the yield potential and the specific risks. Conscious diversification among REITs, specialized ETFs, BDCs, and traditional companies can create a resilient cash flow even in challenging economic scenarios, as demonstrated by the performance of these assets during the global instability of 2022-2024.
Pocket Option has played a fundamental role in democratizing access to these international investments, offering Brazilians not only the necessary technological infrastructure but also the educational and fiscal support that significantly simplifies the investor’s journey. With commissions starting at $1.99 and exclusive features such as automatic dividend reinvestment, the platform eliminates the main barriers that historically limited the international diversification of Brazilians.
The current scenario of digital transformation in the financial sector, combined with the growing sophistication of Brazilian investors, creates an ideal moment for the geographical diversification of portfolios through foreign stocks that pay monthly dividends. When carefully selected and integrated into a coherent investment strategy, these assets can fundamentally transform your financial independence, providing a constant flow of passive income in strong currency.
FAQ
What is the exact taxation on monthly dividends from foreign stocks for Brazilians?
Dividends received from foreign stocks that pay monthly dividends are taxed on two fronts for Brazilian investors. First, there is automatic withholding at source in the country of origin (30% in the US, reducible to 15% with the W-8BEN form through Pocket Option). Then, in Brazil, 15% IR is levied on the original gross value, declarable in the "Income Subject to Exclusive Taxation" form. The tax paid abroad (15% withheld at source) can be offset up to the limit of 15%, resulting in an effective tax burden between 15-18%. Pocket Option provides detailed tax reports that simplify this process for its clients.
How to receive monthly foreign dividends in reais in my Brazilian bank account?
Dividends from foreign stocks that pay monthly dividends are initially credited to your international broker account in dollars. In Pocket Option, you can configure three options: 1) Automatic reinvestment through the DRIP program (no additional fees); 2) Accumulation in the account for new investments; or 3) Periodic transfer to Brazil, preferably when accumulating values above US$500 to dilute remittance costs. Pocket Option offers integration with exchange services that allow direct transfers to Brazilian bank accounts with fees between 0.8-1.2% and a timeframe of 1-2 business days.
What are the safest American REITs to receive monthly dividends in 2025?
Among American REITs that pay monthly dividends, the safest for Brazilian investors in 2025 are: Realty Income (O), with 28 years of consecutive dividend increases and 98.7% occupancy rate; STAG Industrial (STAG), focused on logistics warehouses with long-term contracts and exposure to e-commerce; and LTC Properties (LTC), specialized in healthcare facilities for the elderly with a defensive profile during recessions. All are available on Pocket Option from US$10 with fractional purchase. The current macroeconomic context, with expectation of interest rate cuts by the Federal Reserve, tends to benefit these REITs by reducing their financing costs.
Is it possible to live exclusively off monthly dividends from foreign stocks while living in Brazil?
Yes, it is possible to live off monthly dividends from foreign stocks in Brazil, but it requires careful planning and adequate capital. To generate R$5,000 monthly (approximately US$900) of net income after taxes, considering an average yield of 7% per year, a portfolio of approximately US$180,000 (R$1 million) in foreign stocks that pay monthly dividends would be needed. Pocket Option offers an exclusive calculator that allows simulating different scenarios, considering exchange rates, taxes, and partial reinvestment, helping investors determine target values for their financial independence based on international dividends.
What is the minimum amount to start investing in foreign stocks with monthly dividends in 2025?
The recommended minimum amount to start investing in foreign stocks that pay monthly dividends in 2025 is US$1,000 (approximately R$5,600), allowing building an initial portfolio with 3-5 diversified assets. Pocket Option enables smaller investments, starting from US$10 per asset, thanks to the fractional buying system. For beginning investors, an effective strategy is to start with ETFs that pay monthly dividends like JEPI (minimum of US$10) or QYLD (minimum of US$10), which already provide internal diversification. Scheduled monthly contributions of US$100-200 allow gradually building a robust portfolio, taking advantage of the average cost and reinvesting dividends to accelerate wealth growth.