Several types of investment will produce a monthly income. There are exceptions, but most money market and bond funds pay a monthly dividend. Real estate investment trusts also commonly payout monthly. You can have the monthly dividends reinvested if you don’t need the income right now. With these types of investments you can expect to get between 2% and 6% annual return. The higher the percentage, the more risk there is for the underlying security to lose value in a down market. You can also find ETFs (Exchange Traded Funds), which offer a monthly dividend. With ETFs, you can buy and sell them during market hours like a stock. With mutual funds, you have to wait until the next day for the buy or sell transaction to complete. Monthly dividends make it easier to manage your cash flow when you are on a fixed income.