One of the best ways to establish reliable income is to invest in growth stocks that pay monthly dividends.

If you rely on dividend stocks for a steady income stream, then these may be better than a stock that pays a reliable quarterly dividend.

Growth stocks that pay monthly dividends make it easy to bring in some passive income. If you are reinvesting those payouts instead of spending the cash for living expenses, then a monthly dividend payout can help you grow your portfolio a little faster than having to wait until the end of a quarter to get your payout.

Using my free Dividend Grader tool, I’ve identified seven highly rated growth stocks that pay monthly dividends. If you are looking for reliable passive income, this list is for you.

PermRock Royalty Trust (PRT)

PermRock Royalty Trust (NYSE:PRT) is a grantor trust based in Delaware that owns 80% net profits interest in oil and natural gas properties in the Permian Basin of west Texas. A majority of the properties in the trust are owned by Boaz Energy, which also holds 10% of PRT.

As a grantor trust, PermRock can’t grow the size of the trust – it can’t acquire additional properties or get involved in any other businesses.

It’s also interesting to know that technically, you aren’t buying shares of PRT when you buy it on the New York Stock Exchange. Instead, you’re buying units of beneficial interest.

PRT units are down 5% in price over the last year, but investors are likely more interested in the monthly dividend. The payout changes each month, but usually you’re looking at a monthly payment of between 8 cents and 10 cents per unit. At today’s price, that’s a payout ratio of nearly 11%.

PRT currently has an “A” rating in the Dividend Grader.

Stellus Capital Investment (SCM)

Based in Houston, Stellus Capital Investment (NYSE:SCM) makes money by investing in private middle-market companies that usually have somewhere between $5 million and $50 million of earnings before earnings, taxes, depreciation and amortization (EBITDA).

It frequently provides financing for companies that are completing mergers and acquisitions. It currently has more than 80 active investments, with roughly $2.8 billion in assets under management.

Its investments include some well-known companies such as low-carb foot company Atkins, orthopedic footwear company Dr. Scholl’s and toy company KidKraft.

SCM stock is up 3% over the last year and has a monthly dividend ratio of 11%. It has an “A” rating in the Dividend Grader.

Sabine Royalty Trust (SBR)

Sabine Royalty Trust (NYSE:SBR) owns oil and gas properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma and Texas.

As a royalty trust, SBR allows investors to profit from the income from the oil and gas holdings. And like PermRock, Sabine’s formation as a royalty trust means that it can offer greater dividends than a traditional stock because the distributions aren’t considered to be taxable events.

Volatility in the oil and gas industries has been good for SBR stock. A barrel of oil is still more than $80 – not as high as it was last year, but still more than 30% higher than it was in January 2021. And Russia’s invasion of Ukraine continues to affect natural gas prices, as Russia is withholding its gas from Europe in retaliation for Western sanctions.

SBR stock is up 70% over the last year – and if that wasn’t enough, it pays a dividend yield of more than 9.5%. SBR stock has an “A” rating in the Dividend Grader.

Cross Timbers Royalty Trust (CRT)

Much like the other royalty trusts on this list, Cross Timbers Royalty Trust (NYSE:CRT) is benefiting from higher oil and natural gas prices. The trust has interests in gas properties in the San Juan Basin of northwestern New Mexico, and oil-producing properties in Texas and Oklahoma.

One advantage to royalty trusts CRT is that the company is profiting on established, operational wells. It’s not engaged in the exploration, so investors don’t have to worry about expensive operations to look for new deposits. On the downside, once the oil and gas in a royalty trust’s holdings are depleted, then the trust usually dissolves.

CRT is up 94% over the last 12 months and has a dividend yield of 8.1%. It has an “A” rating in the Dividend Grader.

Permian Basin Royalty Trust (PBT)

Even if you’re not a hardcore oil and gas trader, you’ve probably heard of the Permian Basin, from which Permian Basin Royalty Trust (NYSE:PBT) derives its name.

The Permian Basin spans from western Texas to southeast New Mexico and contains a massive oil reserve. Drillers started pulling oil out of the Permian Basin in 1920, and thus far have recovered more than 30 billion barrels of oil. Experts believe there is still another 20 billion barrels remaining there.

The Permian Basin Royalty Trust is one of the largest royalty trusts in the U.S., with a market capitalization currently of $1.17 billion. Not surprisingly, it’s been a solid performer with the unit price going up more than 84% over the last year.

PBT currently has a dividend yield of only 1.75%, and its monthly dividend fluctuates wildly. But it is a solid monthly dividend stock and has an “A” rating in the Dividend Grader.

Broadmark Realty Capital (BRMK)

Broadmark Realty Capital (NYSE:BRMK) is a real estate investment firm that finances projects done by real estate developers, operators and owners.

It’s involved in a variety of real estate sectors, including commercial, retail, office, industrial, self-storage, hospitality, student housing and senior housing. It’s financed projects in more than 30 U.S. states.

The stock is coming off a bad year as real estate prices dropped, and high inflation continues to trigger fears of a downturn. BRMK stock is down 53% over the last year. However, there’s some indication that the firm is turning things around – Broadmark managed to show a gain of 15% in the last month.

However, the dividend yield is more than enough to make you forget about the recent stock performance. BRMK stock has a dividend yield of 17%, and it carries a “B” rating in the Dividend Grader.

Fortitude Gold Corp. (FTCO)

Fortitude Gold Corp. (OTCMTKS:FTCO) has 100% interest in five gold properties in Nevada. It mined 41,231 gold ounces in 2022, which topped the high end of its annual production target of 40,000 gold ounces.

The Isabella Pearl mine provided 100% of the company’s gold production in 2022, a fact that bodes well for the company’s prospects. CEO Jason Reid said the company will continue to operate the Isabella Pearl mine this year while developing other properties for future production. The company also appears to be on sound financial footing, with $41 million in cash on hand and no debt.

Even though the price of gold dropped in 2022, FTCO stock managed to stay flat over the last 12 months. It also provides a strong dividend yield of 7.3%. FTCO stock has a “B” rating in the Dividend Grader.

On the date of publication, Louis Navellier had a long position in SBR, CRT and PBT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.