Undervalued Monthly Dividend Stocks with High Yield and Strong Income Stability: A Deep Dive into CDPYF, HRZN, and GOOD

In an era of economic uncertainty and persistently low interest rates, income-focused investors are increasingly drawn to equities that combine high yields with durable cash flow. The challenge lies in identifying companies that not only offer attractive returns but also demonstrate resilience in volatile markets. This article examines three such candidates-Canadian Apartment Properties REIT (CDPYF), Horizon Technology Finance Corp. (HRZN), and Gladstone Commercial Corp. (GOOD)-which stand out for their robust dividend yields, stable operations, and strategic reinvestment frameworks.

Canadian Apartment Properties REIT (CDPYF): A Pillar of Residential Stability

Canadian Apartment Properties REIT (CDPYF) has long been a cornerstone of the high-yield REIT sector. As of December 2025, the stock offered a forward dividend yield of 3.9%, supported by a declared dividend of $0.1292 per share. Its portfolio of over 45,000 residential units, with 97.8% occupancy in Canada and 90.8% in the Netherlands, underscores its ability to generate consistent cash flow.

What sets CDPYF apart is its disciplined capital recycling strategy. In 2025, the company disposed of $1.2 billion CAD in properties to acquire newly constructed mid-market rental units at prices below replacement cost. These acquisitions now constitute 18% of its total portfolio, up from 5% five years ago. This approach not only enhances asset quality but also positions the REIT to benefit from long-term demographic trends favoring urban rental housing.

Financially, CDPYF reported diluted FFO per unit of $0.663 CAD in Q3 2025, a 0.6% year-over-year increase. While operating revenue declined by 10.7% in native currency, management remains confident in achieving 3.5% annual FFO per unit growth through 2030. For long-term investors, the REIT's strategic focus on value-add acquisitions and high occupancy rates provides a compelling case for sustained income generation.

Horizon Technology Finance Corp. (HRZN): Leveraging High-Yield Debt with Discipline

Horizon Technology Finance Corp. (HRZN) operates as a business development company (BDC) specializing in financing small and medium-sized technology and healthcare IT firms. As of January 2026, the stock offered a staggering forward dividend yield of 19.94%, based on a $1.32 annual dividend and a stock price of $6.61. This yield is underpinned by a 18.6% annualized yield on debt investments, with total investment income rising 6.9% year-over-year to $26.3 million in Q3 2025.

HRZN's income stability stems from its focus on secured lending and its disciplined underwriting standards. The company's net asset value (NAV) per share increased to $7.12 as of Q3 2025, reflecting strong portfolio performance. While its NAV has experienced volatility, HRZN maintains a strong income cushion, with net investment income per share flat at $0.32 year-over-year.

A key advantage for income investors is HRZN's dividend reinvestment plan (DRIP), which allows shareholders to automatically reinvest dividends into additional shares. This feature enhances compounding potential, particularly for investors seeking to scale their positions in a high-yield vehicle. However, investors should remain mindful of the risks inherent in BDCs, including interest rate sensitivity and credit risk.

Gladstone Commercial Corp. (GOOD): Industrial Leasing with Long-Term Security

Gladstone Commercial Corp. (GOOD) owns a portfolio of 100+ single-tenant and anchored multi-tenant properties across the U.S., with 99.1% occupancy as of November 2025. The company's focus on long-term leases-averaging 7.5 years-provides a stable income stream, even in economic downturns. Its annual dividend of $1.20 per share, or $0.30 per quarter, has remained unchanged, reflecting confidence in its cash flow resilience.

GOOD's strategic reinvestment efforts in 2025 further bolster its appeal. The company sold a non-core industrial property for $3.0 million and acquired a six-facility industrial portfolio for $54.8 million at a 9.53% cap rate. These transactions highlight its ability to recycle capital into high-quality assets. Additionally, GOOD expanded its credit facility to $600 million and issued $23.0 million in common stock under its ATM program, enhancing liquidity.

Financially, GOOD reported Core FFO of $0.35 per diluted share in Q3 2025, despite a decline in net income to $1.0 million for the quarter. The company's 3.1% year-over-year increase in same-store lease revenue, driven by higher rental rates, underscores its pricing power in a recovering industrial real estate market. For investors prioritizing income stability and capital preservation, GOOD's conservative leverage and long lease durations make it a standout choice.

Conclusion: Balancing Yield, Stability, and Growth

The three stocks analyzed-CDPYF, HRZN, and GOOD-each offer unique advantages for income-focused investors. CDPYF's residential portfolio and capital recycling strategy provide a foundation for steady cash flow, while HRZN's high-yield debt investments and DRIP program cater to those seeking aggressive compounding. GOOD, with its industrial leasing model and long-term lease terms, offers a hedge against economic volatility.

However, as with any investment, risks must be carefully considered. CDPYF faces challenges from currency fluctuations and interest rate sensitivity, HRZN's BDC structure exposes it to credit risk, and GOOD's reliance on industrial demand could be impacted by sector-specific downturns. For those who can tolerate these risks, these three companies represent a compelling blend of high yield, durable income, and strategic reinvestment potential.