Looking for the top 10 highest paying monthly dividend stocks? Your search ends here – these are our personal picks in 2024 for steady payouts and a solid yield:
- Ellington Financial Inc. (EFC)
- Apple Hospitality REIT (APLE)
- AGNC Investment (AGNC)
- EPR Properties (EPR)
- Prospect Capital (PSEC)
- Orchid Island Capital (ORC)
- Stellus Capital (SCM)
- Modiv Industrial (MDV)
- Dynex Capital (DX)
- Gladstone Capital (GLAD)
We’ve chosen to highlight these stocks after careful analysis through the best stock picking app, VectorVest. They are an excellent choice for anyone wondering how to invest in dividend stocks for passive income or where to put retirement money after retirement with strong market capitalization and a safe yield.
Learn more about how our stock trading system works below and how it can streamline your investment strategy, whether you’re looking for the best blue chip dividend stocks or falling knife stocks!
Overview of Monthly Dividend Stocks
Let’s start with the basics – what are dividend stocks that pay monthly? We need to first take a step back and define dividend-paying stocks in general. These represent shares in companies that return a portion of their profits to shareholders on a regular basis.
So, how often do dividend stocks pay? Typically in the form of quarterly or annual dividend payouts. However, monthly dividends provide a consistent cash flow, which can be especially helpful for retirees and others who rely on investment income to cover day-to-day expenses. This type of investment allows for easier budgeting and financial planning due to the predictability of the income.
Companies that pay dividends monthly typically include real estate investment trusts (REITs), business development companies (BDCs), and certain closed-end funds. These entities often operate in stable industries with regular cash flows which enables them to distribute earnings to shareholders frequently.
You may be wondering…are dividend stocks worth it? Absolutely. Not only are you getting regular payouts in the form of dividends, but you can also see capital appreciation through stock price appreciation.
That being said, let’s get into the top 10 highest paying monthly dividend stocks below.
The Top 10 Highest Paying Monthly Dividend Stocks in 2024
There are tons of companies you can invest in that pay a monthly dividend, but we’re here to narrow your focus on just the best of the best. There are two main reasons we chose these 10 companies:
- They are among the highest dividend stocks in 2024.
- They are reliable companies for long-term capital appreciation.
Just keep in mind that what is considered the highest monthly dividend paying stocks may evolve over time. Companies cut or even suspend dividends, while others will raise theirs.
So, it’s worth taking the time to learn how to pick a stock yourself going forward so that you can keep your stock portfolio updated with the top opportunities at any given time.
We’ll show you how you can use our stock advisory services to streamline this process in just a bit. First, here are the top 10 highest-paying dividend stocks monthly as of 2024:
Apple Hospitality REIT (APLE): Dividend Yield of 6.5%
Apple Hospitality REIT manages a vast portfolio of hotel properties across the strongest, most consistent markets in the U.S. With 225 hotels and nearly 30,000 guest rooms, its focus on prominent brands like Marriott, Hilton, and Hyatt ensures high occupancy and consistent revenue.
The firm’s strategy of operating in economically resilient areas has paid off over the years, and the most recent quarterly earnings performance showed an increase in Revenue per Available Room (RevPAR) and Average Daily Rate (ADR).
AGNC Investment (AGNC): Dividend Yield of 15.1%
AGNC Investment also operates as a mortgage REIT, offering investors exposure to residential mortgage pass-through securities primarily backed by government-sponsored entities. This structure is seen as more secure than typical private-sector equivalents.
The firm oversees a portfolio valued at $60.2 billion and maintains leverage of 7.0x tangible net book value. Through a balance of aggressive yet strategic management of high-yield assets coupled with an ability to deliver comprehensive income, we believe AGNC is capable of sustaining its impressive dividend yield of 15.1%.
Ellington Financial Inc. (EFC): Dividend Yield of 13.3%
Ellington Financial specializes in a diverse array of financial assets, including residential mortgage-backed securities and various debt instruments.
In Q4 2023, the firm reported solid gross interest income of $98.7 million. Much of this performance can be attributed to its focused approach to managing high-quality mortgage assets and effective risk management practices.
With a reliable dividend payout and a high yield of 13.3%, this is a strong candidate for investors seeking substantial monthly income from their investments.
EPR Properties (EPR): Dividend Yield of 8.3%
EPR Properties focuses on niche market segments such as entertainment, recreation, and education-related facilities. It’s not like other REITs we referenced above, though.
Despite a slight downturn in year-over-year revenue, EPR’s specialized investment approach allows it to capitalize on unique market opportunities that traditional REITs may overlook.
The trust’s consistent funds from operations (FFO) reflect its operational efficiency and strategic tenant selection, providing a solid foundation for its dividend payments. It manages over $7 billion in investments across 44 states, so it’s well-diversified, too.
Prospect Capital (PSEC): Dividend Yield of 13.8%
Prospect Capital is a business development company that provides diversified funding solutions to middle-market companies across a range of industries.
Despite a slight dip in net investment income, Prospect maintains a strong total investment income thanks to stringent screening and investment processes. The company’s focus on senior loans and mezzanine debt positions it well to manage risk while providing high returns to shareholders through dividends on a monthly basis.
Orchid Island Capital (ORC): Dividend Yield of 16.8%
Orchid Island Capital invests in residential mortgage-backed securities and performs well through its nuanced understanding of mortgage markets.
The company made a strategic shift towards higher coupon securities in 2023. This move enhanced its economic net interest spread and ultimately led to a solid quarterly performance which featured a 2% increase in book value.
This suggests that Orchid’s proactive asset management strategy and ability to navigate the complex mortgage investment field supports the longevity of its high dividend yield.
Stellus Capital (SCM): Dividend Yield of 11.3%
Stellus Capital is a business development company that offers tailored financing solutions to middle-market companies, very similar to Prospect Capital.
Its diversified investment approach has yielded a loan portfolio with an impressive 11.3% yield as of last fiscal year. Despite a slight revenue miss in the latest earnings results, the company beat adjusted net investment income estimates, showing an ability to manage risk and capitalize on high-yield opportunities effectively.
Stellus Capital’s strong operational framework and strategic market positioning make it a valuable pick for investors seeking the highest paying monthly dividend stocks.
Modiv Industrial (MDV): Dividend Yield of 7.7%
Modiv Industrial’s focus on essential real estate properties has positioned it well within the commercial sector. Despite facing higher interest expenses, the company managed a 23% year-over-year increase in revenues for Q4 2023.
While some key metrics like AFFO saw a decline due to rising interest rates, Modiv’s proactive financial strategies and solid property fundamentals provide a stable foundation for maintaining its dividend payments.
In this sense, MDV isn’t just one of the highest monthly dividend-paying stocks, it’s also one of the best safe dividend stocks for retirement!
Dynex Capital (DX): Dividend Yield of 9%
Dynex Capital uses a strategic leverage approach to invest in both commercial and residential mortgage-backed securities. Its diversified investment base in agency and non-agency MBS allows the company to avoid risks associated with market fluctuations.
Dynex is poised to benefit from potential interest rate cuts given the current outlook, which will only strengthen its portfolio performance and support the longevity of its high dividend yield.
Because the company has showcased an ability to adapt time and time again, it’s a promising choice for investors aiming to capitalize on the real estate financing market through monthly payouts.
Gladstone Capital (GLAD): Dividend Yield of 9.2%
Bringing in the rear on our list of the highest paying monthly dividend stocks, we have Gladstone Capital, another BDC that invests in high-growth, small to mid-sized companies, primarily through high-interest loans.
With an expected revenue growth of 6.2% in the next fiscal year, GLAD is well-positioned to benefit from its investments as these companies mature or go public.
It’s required to distribute at least 90% of its after-tax income as dividends, which is why the company has managed to maintain a high dividend yield. It’s an attractive option for dividend investors looking for regular income streams from a diversified financial sector portfolio.
Should You Invest in Stocks That Pay Monthly Dividends?
Now that you’re aware of all the highest monthly dividend-paying stocks, it’s time to figure out if this is the right stock investment strategy for you. So, are monthly dividend stocks worth it?
Pros of Monthly Dividend Stocks:
- Steady Income Stream: They provide predictable and regular income for retirees and others who rely on their investment portfolio for living expenses. Regular cash flow makes financial planning easier and can help cover monthly expenditures without needing to sell assets.
- Compounding Benefits: Reinvesting dividends more frequently can potentially increase the compound growth of your investment portfolio. This can accelerate wealth accumulation over time, especially for those who do not need the cash for present-day expenses and can reinvest it into additional shares.
- Potential for Diversification: As you’ve seen, monthly dividend stocks are found in sectors like real estate (REITs) and finance (BDCs). This can provide exposure to different industry sectors, diversifying your investment portfolio and reducing risk.
Cons of Monthly Dividend Stocks:
- Lower Growth Potential: Companies that pay dividends monthly typically have less capital to put back into their business, potentially limiting growth compared to companies that retain more of their earnings. This lowers the capital appreciation of the stock itself.
- Tax Implications: Dividend income is taxable, and receiving it more frequently could complicate your tax situation. However, this can be offset through a strategic tax strategy.
- Quality and Sustainability Concerns: Some monthly dividend stocks might not have a strong enough business model to sustain payouts, especially if they engage in higher payout ratios or debt-financed dividends. Scrutinize the financial health and payout policies of these companies to avoid investing in a stock that cuts its dividend.
You can learn more about choosing between dividend vs growth stocks in our blog if you’d like, but our opinion is that yes – the highest paying monthly dividend stocks can certainly be worth it for the right investor. We’ll share some tips on building a stock portfolio with these stocks below.
Getting Started Investing in the Highest-Paying Monthly Dividend Stocks
If you decide that you’re ready to get started investing in the highest monthly dividend-paying stocks, great! Here are some tips to point you in the right direction and leave you feeling confident in your next steps.
Researching Stocks
Even though we’ve given you a list of the top 10 highest paying monthly dividend stocks, it’s still worth taking the time to do your own research.
Evaluate each company’s dividend yield, payment history, and financial health. Look for stocks that not only offer high dividends but also have strong fundamentals. We have tips on how to do fundamental analysis of stocks, or better yet, how to combine fundamental and technical analysis in our blog to set you up for success.
Utilize free stock research sites (we have a list of the best stock research sites in our blog), investor reports, and market analysis tools to assess company performance and market sentiment.
Pay special attention to the payout ratio and free cash flow, as these indicators can provide a clearer picture of the sustainability of the dividends.
Portfolio Allocation
Whether you’re investing for present-day income or preparing your retirement asset allocation, it’s important that you take the time to plan out how much of your portfolio will consist of dividend stocks.
This will depend on your financial goals, risk tolerance, and investment timeline. A balanced portfolio often includes a mix of high-yield stocks and growth stocks to ensure both income and capital appreciation.
Reinvesting
The real power of dividend stocks comes from reinvesting profits back into your portfolio, resulting in compounded growth over time. Setting up a dividend reinvestment plan (DRIP) allows you to automatically purchase additional shares of the stock when the dividend is paid.
Risk Management
Diversify your investments across various sectors and companies to mitigate the risk associated with any single investment. Stay up to date on market conditions and economic factors that could impact your investments, and be prepared to adjust your portfolio as needed.
Regularly review your investment choices to ensure they continue to meet your income needs and growth expectations. Just because these are the highest-paying dividend stocks monthly right now, doesn’t mean they will be a few months from now! Be ready to offload poor performers and replace them with higher-quality investments.
Simplify the Process of Trading the Highest Monthly Dividend-Paying Stocks With VectorVest!
There’s clearly a lot that goes into how to analyze a stock before buying, and managing your positions over time as situations evolve can be a time-consuming process itself. Wouldn’t it be nice if you could earn better returns on autopilot? With our stock analysis software, you can!
VectorVest simplifies your trading strategy by delivering clear, actionable insights in just 3 simple ratings: relative value (RV), relative safety (RS), and relative timing (RT). each sits on a scale of 0.00-2.00 with 1.00 being the average, allowing for quick and easy interpretation.
The best part? You’re given a buy, sell, or hold recommendation for every single one of the 16,000+ stocks the system tracks! This eliminates any stress or uncertainty from your decision-making.
Plus, you never have to worry about finding the highest-paying dividend stocks monthly with the best stock analysis app. You don’t have to waste your time with complex stock indicators, either.
Just pull up the top stock picks on any given day – whether you’re searching for dividend stocks or the most volatile stocks, undervalued stocks, the best beginner stocks, or even aggressive stocks to buy now.
Learning how to retire on dividends doesn’t have to be complicated. Simplify your strategy with the best investment apps for beginners and veterans alike at VectorVest. Get a free stock analysis today and see how much easier your life can be!
Final Thoughts on the Highest-Paying Dividend Stocks Monthly
Investing in the highest-paying monthly dividend stocks is a practical way to generate regular income and benefit from compounding returns through reinvestment.
We’ve unveiled our top 10 picks for the time being, and we’ve shown you how to find your own opportunities going forward. At this point, the only thing left to do is put what you’ve learned into practice!
Our blog has additional resources on how to invest in blue chip stocks, buying the dip, cutting losses, best time frame for swing trading, technical analysis vs fundamental analysis, best day of the week to buy stocks, trading stocks on the weekend, what is the advantage of investing early for retirement, and more.
But whether you are looking for the best stock app for Android or iPhone stocks app, remember that VectorVest can save you time and stress while empowering you to win more trades. Try our system today and see firsthand how it can streamline your decision-making!
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