Highest-Yielding Monthly Dividend Stocks for April
Highest-Yielding Monthly Dividend Stocks for April
Blog Article
Monthly dividend stocks, such as ARR and AGNC, offer investors regular payments, but those payments may not always be sustainable. Here are some key points to consider. To conveniently track your dividend portfolio, use the dividend tracker.
Key Insights
- Definition: Monthly dividend stocks are shares in publicly traded companies that distribute a portion of their profits to shareholders on a monthly basis, in contrast to the more common quarterly or annual dividends.
- Sustainability Concerns: Many of these stocks may have dividends that are not sustainable over the long term, and there is a risk of cuts in payouts.
- ETFs: Some exchange-traded funds (ETFs) also provide monthly dividends, though they may not exclusively contain stocks that pay monthly.
Given the rising inflation, particularly affecting retirees, monthly dividend stocks can offer valuable supplemental income.
What Are Monthly Dividend Stocks?
Monthly dividend stocks are a specific category of dividend stocks that provide regular payments to investors. Unlike the usual quarterly or annual payouts, these stocks distribute dividends every month.
Top Monthly Dividend Stocks by Yield
Here are nine of the highest-yielding monthly dividend stocks, all with market capitalizations over $ 1 billion and payout ratios below 100%, indicating they are generating more in earnings than they are distributing:
| Symbol | Company Name | Forward Dividend Yield (Annual) |
|---|---|---|
| ARR | Armour Residential REIT | 17.28% |
| AGNC | AGNC Investment Corp. | 15.24% |
| EFC | Ellington Financial | 11.87% |
| APLE | Apple Hospitality REIT | 7.44% |
| EPR | EPR Properties | 6.89% |
| LTC | LTC Properties Inc. | 6.41% |
| O | Realty Income Corp. | 5.64% |
| MAIN | Main Street Capital Corp. | 4.96% |
| SLG | SL Green Realty Corp. | 5.31% |
Pros and Cons of Monthly Dividend Stocks
The main advantage of these stocks is the frequent and often significant payments they provide, with yields that can greatly exceed those of traditional income investments like bonds, which only pay twice a year. However, many of these stocks have high payout ratios approaching 100%, which means they may need to borrow funds to maintain their dividends or may eventually have to reduce them.
For more stable returns, investors might consider alternatives such as bond ladders, certificates of deposit (CD) ladders, or Dividend Aristocrats—S&P 500 stocks that consistently raise their dividends for at least 25 years.
How to Invest in Monthly Dividend Stocks
To invest in monthly dividend stocks, you'll need to open a brokerage account. You can choose to invest in individual stocks or consider monthly dividend ETFs.
Individual Stocks: These stocks can yield higher returns compared to traditional income investments. However, investing in several stocks may help mitigate the risk of dividend cuts, requiring thorough research or more capital for diversification.
Monthly Dividend ETFs: ETFs that offer monthly dividends, like the JPMorgan Equity Premium Income ETF (JEPI) and the Global X Nasdaq 100 Covered Call ETF (QYLD), don’t necessarily focus exclusively on monthly dividend stocks. They often utilize covered calls to generate the income for monthly payouts.
When considering dividend investments, be sure to research and evaluate your options carefully. Report this page