Monthly dividend stocks offer investors a steady stream of income, making them an attractive option for those seeking regular cash flow.
These stocks provide payments more frequently than the typical quarterly dividend payouts, helping investors manage their finances better.
In 2024, some of the top high-yielding monthly dividend stocks include REITs and business development companies (BDCs), with yields ranging from 6% to over 14%.
Ellington Residential Mortgage REIT offers a yield of 14.2%, while companies like AGNC Investment Corp. and Horizon Technology Finance also provide substantial yields
Finding Lists Of High-Yield Monthly Dividend Stocks
For income investors seeking steady monthly dividends, finding reliable, high-yield stocks is critical. Resources like SureDividend’s list offer well rounded data on the top-performing monthly dividend stocks.
These stocks come from various sectors, including real estate, business development companies, and financial institutions.
Below are 20 of the highest-yielding monthly dividend stocks that offer consistent payouts and strong growth potential.
1. AGNC Investment Corp. (AGNC)
AGNC is a mortgage REIT focusing on residential mortgage-backed securities. With a forward yield of over 14%, AGNC is known for its high dividend and resilience in interest rate fluctuations.
The company’s strategy centers on leveraging low-cost capital to invest in mortgage-backed securities. Despite market volatility, AGNC consistently delivers impressive dividend returns.
2. Ellington Financial Inc. (EFC)
Offering a dividend yield of 12.33%, Ellington Financial specializes in mortgage-related assets. The company’s diversified portfolio includes residential and commercial loans, mortgage-backed securities, and real estate debt.
EFC’s disciplined risk management and hedging strategies make it a top choice for income investors looking for stability in an often volatile market.
3. Horizon Technology Finance Corp. (HRZN)
Horizon Technology Finance, a business development company (BDC), focuses on lending to technology and healthcare companies. HRZN provides a strong 11.6% yield and invests in senior secured loans, giving it a steady income stream from venture capital-backed companies.
This BDC benefits from a strong pipeline of investments and growing interest in the technology sector.
4. PennantPark Floating Rate Capital Ltd. (PFLT)
With a yield of 11.5%, PFLT provides capital to middle-market companies through floating-rate loans. The floating-rate structure helps PFLT maintain stable earnings even as interest rates rise. Its focus on first lien loans provides a margin of safety, while the diversified portfolio offers opportunities for consistent income.
5. Generation Income Properties Inc. (GIPR)
GIPR is a REIT that specializes in retail, office, and industrial properties, with a yield of 10.6%. The company’s focus on long-term leases with creditworthy tenants has allowed it to maintain high occupancy rates and steady cash flows. GIPR’s conservative investment strategy and growing property portfolio make it a reliable income source for dividend investors.
6. Fortitude Gold Corp. (FTCO)
FTCO, a gold mining company, boasts a 10.5% yield. Operating in Nevada, FTCO focuses on high-grade gold extraction, maintaining low production costs and high returns. Its commitment to monthly dividend payouts and financial discipline sets it apart from other junior gold producers, offering a unique opportunity for investors in the mining sector.
7. Gladstone Capital Corp. (GLAD)
As a BDC, GLAD invests in small to medium-sized businesses, offering a yield of 8.9%. With a portfolio composed primarily of debt investments, GLAD provides secured loans that generate consistent interest income. Its focus on conservative leverage and high-yield debt instruments makes it an attractive option for risk-averse income investors.
8. Stellus Capital Investment Corp. (SCM)
SCM is another BDC providing high-yield investments to private companies. With a dividend yield of 11.7%, Stellus focuses on senior and subordinated debt investments. The company’s disciplined investment process and focus on generating current income ensure that it remains a steady performer in the high-yield space.
9. Main Street Capital Corp. (MAIN)
MAIN delivers a yield of 5.75%, investing in equity and debt financing for lower-middle-market companies. Known for its consistent dividend growth, MAIN is considered one of the top BDCs in the industry. The company’s focus on long-term investments provides shareholders with steady income and the potential for capital appreciation.
10. Apple Hospitality REIT (APLE)
APLE is a hotel-focused REIT offering a yield of 6.8%. The company owns a diversified portfolio of branded hotels, including Marriott, Hilton, and Hyatt properties. APLE’s focus on well-established brands and its strong occupancy rates contribute to its solid monthly dividend payouts.
11. EPR Properties (EPR)
EPR, a REIT specializing in experiential properties, provides a 7.2% dividend yield. With investments in entertainment, recreation, and education properties, EPR benefits from the growing demand for experiential real estate. Its well-diversified portfolio helps mitigate risks associated with any single tenant or sector.
12. Realty Income Corp. (O)
Known as “The Monthly Dividend Company,” Realty Income has a yield of 5.44%. This REIT focuses on commercial real estate with long-term net lease agreements. Realty Income’s extensive portfolio and consistent dividend track record make it a favorite among conservative income investors.
13. SL Green Realty Corp. (SLG)
SLG offers a dividend yield of 4.52%, primarily investing in office properties in New York City. SL Green benefits from owning prime real estate in one of the world’s most lucrative markets. Its portfolio’s high occupancy rates and steady cash flow contribute to its regular monthly dividends.
14. PermRock Royalty Trust (PRT)
PRT provides investors with a yield of 10.6%, backed by oil and gas royalties from the Permian Basin. As energy demand continues to rise, PRT’s focus on long-term, high-yielding assets offers a steady income stream for dividend-focused investors.
15. Itaú Unibanco Holding S.A. (ITUB)
Brazil’s largest private bank, ITUB offers a yield of 6.5%. With diversified operations across Latin America, Itaú benefits from strong economic growth in its core markets. The bank’s consistent dividend policy and solid financial results make it a reliable choice for those seeking exposure to emerging markets.
16. AGNC Investment Corp. (AGNC)
AGNC offers an impressive 14.29% yield and is known for its focus on residential mortgage-backed securities. AGNC’s ability to capitalize on low-cost borrowing and invest in government-backed securities makes it a standout choice for high-yield income investors.
17. Armour Residential REIT (ARR)
ARR offers a 14.22% yield, specializing in residential mortgage-backed securities. Despite a challenging interest rate environment, ARR has managed to maintain high dividend payouts by focusing on government-guaranteed mortgage-backed securities.
18. Gladstone Land Corp. (LAND)
LAND is a farmland REIT offering a 3.8% yield. The company invests in U.S. agricultural properties, benefiting from the stable demand for farmland and agricultural production. Gladstone Land’s focus on long-term leases with farmers provides a secure income stream for investors.
19. Prospect Capital Corp. (PSEC)
With a dividend yield of 10.47%, PSEC invests in middle-market companies, offering debt and equity financing. PSEC’s diversified portfolio includes healthcare, energy, and manufacturing sectors, providing shareholders with a reliable source of monthly income.
20. LTC Properties (LTC)
LTC, a healthcare REIT, offers a yield of 6.87%. The company invests in senior housing and long-term care facilities, benefiting from demographic trends that support the growing demand for healthcare services. LTC’s conservative investment strategy and focus on long-term leases make it a solid choice for income-focused investors.
Endnote
Monthly dividend stocks offer a unique advantage for investors looking for regular, steady income. Diversifying across different sectors like real estate, technology, and finance can help mitigate risks and maximize returns.
While these stocks provide higher yields, it’s key to evaluate each company’s long-term viability and dividend sustainability to avoid potential losses.
Balancing high yields with strong fundamentals will ensure a more secure and prosperous income-generating portfolio.
