Owning dividend stocks is a great way to generate passive income. While most companies pay dividends quarterly, a few make monthly dividend payments. That makes them even more ideal for passive income since that recurring cash flow aligns with expenses. 

Three excellent monthly dividend stocks are AGNC Investment (NASDAQ: AGNC), Realty Income (NYSE: O), and Stag Industrial (NYSE: STAG). Here's why a few Fool.com contributors believe they're great options for generating passive income. 

Brent Nyitray (AGNC Investment): AGNC Investment is a mortgage real estate investment trust (REIT) that focuses on buying mortgage-backed securities, which are guaranteed by the U.S. government. Unlike the typical REIT, which focuses on property development and leasing, mortgage REITs don't buy real properties. They buy real estate debt -- in other words, mortgages. If you recently bought a house and used a mortgage guaranteed by Fannie Mae or Freddie Mac, chances are it ended up in a mortgage backed security, which could be owned by a mortgage REIT like AGNC Investment. 

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Source Fool.com