25 Highest-Paying Monthly Dividend Stocks

On May 7th, the company reported first-quarter 2020 results. Distributable net investment income fell 6% year-over-year. On a per-share basis, distributable NII fell 10% to $0.61 per share, although this exceeded the $0.57 per share expected by analysts. These financial instruments generate cash flow based on residential loans such as mortgages, subprime, and home-equity loans. Additionally, it manages RMBS, for which the U.S. government guarantees the principal and interest payments.

It has increased its dividend at a 5% compounded annual rate over the past decade. At present, the S&P 500 index offers an annual dividend yield of 1.29% which is close to a multi-year low. Therefore, market participants searching recession proof stocks for steady income need to be selective in terms of market segments and shares to find juicy yields. You can screen for stocks that pay dividends on many financial sites, as well as on your online broker’s website.

It has beaten the S&P 500 by an average of 4.6 percentage points per year over the last 10 years. The stock is trading close to its all-time high, and has outperformed the S&P 500 by a massive average of 26 percentage points per year over the last 10 years. The stock is off its 52-week high, but it’s still outperformed the S&P 500 by an average of seven percentage points per year over the last decade. For reference, the S&P 500 has averaged 12.2% yearly returns over the last decade. The best recession-proof stocks can withstand high inflation and rising interest rates that threaten to push the economy into a downturn in 2023. Senior living properties face less pressure from the labor shortage and lingering virus fears in that the tenants are generally younger and live independently without medical care.

But investing directly in individual dividend stocks maximizes the benefit of an equity that pays an attractive dividend. LTC Properties (LTC, $32.73) is another one of the traditional REITs found on this list of the best monthly dividend stocks. It’s not the raw yield we’re looking for here, but rather income consistency and growth.

Types of Dividend Stock Payouts

An excellent reference to use for these companies is the Dividend Aristocrat list. These companies have paid and increased dividends yearly for at least 25 years straight. For example, if you buy ten shares from a company that pays $0.50 in quarterly dividends per share of stock, you’ll earn $5 in dividends every quarter for a total of $20 in dividend earnings during one year. This is a simplified example, but you can earn money from investments outside of the appreciation in stock value with a dividend-paying stock. With the stock market suffering significant losses in 2022, many investors wonder where and how to invest in 2023. By investing in dividend-paying stocks, you not only limit potential downside risk but also increase returns.

• It also provides collateralized loan obligations, mortgage-related and non-mortgage-related derivatives, equity investments in mortgage originators and other strategic investments.
• Despite the cost of funding rising as well, Gladstone has managed to increase its yield spreads.
• Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K.
• This is part of why the company can make the regular monthly payment and sustain it.
• Her passion is for options trading based on technical analysis of fundamentally strong companies.
• The best dividend stocks provide investors with dependable income over the long term.

The report also concluded that dividends remain more stable than earnings when markets fall into a recession. When it comes to monthly dividend stocks, Realty Income is the clear leader. It bills itself as The Monthly Dividend Company, having paid more than 635 consecutive monthly dividends as of May 2023. The last benefit of monthly dividend stocks is that they allow investors to have – on average – more cash on hand to make opportunistic purchases. A monthly dividend payment is more likely to put cash in your account when you need it versus a quarterly dividend.

Monthly Dividend Stock #18: Prospect Capital

Shaw currently pays an annualized dividend payout of $1.182 per share in Canadian dollars; in U.S. dollars, the stock has a current annual dividend payout of $0.84 per share. Shaw withdrew its full-year guidance after reporting second-quarter earnings, but importantly the company maintained its monthly dividend. The company is raising cash to get it through the coronavirus crisis, including a debt raise of $500 million in Canadian dollars. In addition, we expect 2% annual distributable net investment income growth. Based on expected NII-per-share of $2, Main Street trades for a price-to-NII ratio of 16. If the stock reaches a price-to-NII ratio of 13.5 in five years, it would result in an annualized drag of -3.3% on annual returns.

Modiv is Real Estate Investment Trust, which, as its name suggests, aims to pay Monthly DIVidends to its shareholders. With the average S&P 500 yield hovering around 1.5%, investors can generate much more income with high-yield stocks. Discover dividend stocks matching your investment objectives with our advanced screening tools. Fidelity cites Mid-America Apartment Communities (MAA) as “a REIT that focuses on ownership, development, and management of apartment communities” in that area and Mid-Atlantic states. Its dividend yield is 3.52%, according to Morningstar Direct. Some categories of persistent dividend payers even have nicknames.

• If a company is paying a dividend but does not have a reliable income stream, there is the risk that the dividend will be cut or even canceled.
• Helpful articles on different dividend investing options and how to best save, invest, and spend your hard-earned money.
• CEFs contain stocks and bonds which lowers risk by reducing exposure to either asset class.
• This increase was further bundled with a higher cash distribution yield from OXSQ’s CLO equity investments, which grew from 15.3% to 18.4% sequentially.

However, there are a select group of companies that have a monthly payout schedule or issue dividends on an annual schedule. In this article, we’ll review what a dividend is and why companies offer them. Or, use the table below to quickly jump to analysis on any of the top 10 best monthly dividend stocks as ranked by expected total returns.

Monthly Dividend Stock #16: LTC Properties

Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. The company generated a net income of $48.4 million, or 30 cents per diluted share, compared to $22.4 million, or 15 cents per diluted share, a year ago. Core FFO stood at $88.1 million, up from $70.7 million in the prior-year quarter. In addition, cash available for distribution increased 32% YOY to $72.4 million.

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A good starting point for picking dividend stocks is to decide how much income you need. You can expect Social Security to cover 33% of your retirement income needs, according to  J.P. Your https://bigbostrade.com/ savings, investments and any pension you get will have to provide about $70,500. This article focused on that third option—investing in individual stocks with attractive dividends.

In early August, SBR reported (8/4/23) financial results for the second quarter of fiscal 2023. Sales of oil rose 4% but sales of gas decreased -22% over the prior year’s quarter due to the timing of cash receipts. In addition, the average realized prices of oil and gas moderated off blowout levels in last year’s period amid the onset of the Ukrainian crisis. There are various ways to compare the dividends offered by different companies.

Prospect Capital

These stocks aren’t necessarily the best dividend stocks by sector, but they can be reliable payers and a cornerstone of an income investment portfolio. However, not all of them are worth an investor’s consideration. Some don’t make the cut because of a below-average dividend yield or slow dividend growth. Meanwhile, others are at a higher risk of reducing their dividends if market conditions deteriorate. This is because many fixed income investors rely on regular income from their investments to help pay the bills.

When you deposit $100, we’ll add an additional $100 to your account. The more companies you find that meet this schedule, the higher the potential dividend you can collect. SL Green is another REIT and the largest office landlord in New York City.

Most recently, Realty Income announced a monthly dividend of $0.236 per share, which represents an annualized dividend of $2.83 and a forward dividend yield of 3.946% as of market close on November 8, 2021. Retirees and other income investors should take a look at monthly dividend stocks. Some companies make annual or semi-annual dividend payments, which is oftentimes seen in European stocks. For U.S.-based companies, quarterly dividend payments are the norm. Monthly dividend stocks are a group of equity investments that trade like stocks and pay monthly dividends. These stocks provide a more regular payment and, in many cases, a superior payout to ordinary equity investments.