7 Best Monthly Dividend Stocks With High Yields

Reap monthly dividends from these investments.

Dividends can be an excellent source of regular income for investors, especially during retirement. While most dividend stocks make their payouts on a quarterly basis, stocks that pay monthly dividends can be particularly appealing to investors who regularly incorporate those dividends into their household budgets. Stock prices can be unpredictable, but dividend payments from high-quality companies are reliable sources of cash flow no matter if the stock market goes up or down. Dividend stocks can also generate long-term upside for investors. These seven monthly dividend stocks have at least 6% yields and make payments about once every four weeks.

Main Street Capital Corp. (ticker: MAIN)

“The current economic and interest rate environment can make it difficult for mid-sized businesses, especially when it comes to obtaining capital financing from traditional banks right now,” says Daniel Milan, managing partner and investment advisor representative at Cornerstone Financial Services. “Main fills this financing gap for small- and mid-sized businesses as a business development company by lending money to lower middle market companies.” Houston-based Main Street Capital has helped more than 200 private companies by providing public equity and debt capital solutions. Main may take equity stakes in the companies it supports, enabling it to “make business decisions with the companies they lend to, which can provide for additional controls from an underwriting perspective,” Milan says. “Most, if not all, of their financing deals are floating rate, which allows them to benefit from the rising rate environment we are currently in.” He expects strong earnings-per-share growth in 2023 as a result.

Dividend yield: 7.7%

AGNC Investment Corp. (AGNC)

AGNC Investment is a mortgage real estate investment trust, or REIT. REITs are a type of corporate structure that receive certain tax benefits but are required to distribute 90% of taxable income to their investors. This mandate guarantees a relatively consistent dividend, which is reflected in AGNC’s regular 12-cent monthly payout. As a mortgage REIT, AGNC doesn’t invest in residential real estate directly. Instead, it buys mortgage-related securities, which are largely federal loans backed by government-sponsored enterprises, including Fannie Mae and Freddie Mac. Federal backing reduces the risk associated with these assets, giving income investors peace of mind.

Dividend yield: 13.8%

LTC Properties Inc. (LTC)

LTC Properties is a self-administered REIT that owns and operates senior housing and health care properties. Senior housing facilities were hit particularly hard during the COVID-19 pandemic, and LTC shares are still down about 17% since the beginning of 2020, but the stock price has been climbing since the start of 2023. Despite the challenges, LTC maintained its 19-cent monthly dividend payment throughout the worst of the pandemic and all of 2022.

Dividend yield: 6.6%

EPR Properties (EPR)

EPR Properties is a specialty triple-net REIT focused on long-term leases on experiential real estate properties. EPR has more than $6.6 billion in investments diversified among more than 200 different tenants across the U.S. With 25 years of experience investing in experiential properties, it knows what it’s doing. Movie theaters make up 41% of EPR’s earnings before interest, taxes, depreciation and amortization for real estate, or EBITDAre. Its other major revenue comes from eat-and-play establishments, ski resorts and other attractions. The REIT pays a monthly 27.5-cent dividend.

Dividend yield: 8.8%

SL Green Realty Corp. (SLG)

As New York City’s largest office landlord, SLG holds a lot of real estate. As of Dec. 31, 2022, it was invested in 61 buildings covering a total of 33.1 million square feet. The company is also a leader for environmental strategies, promising to assess climate-related financial risk involved in any investment. For this, it earned green building designations from many industry rating systems, including LEED, WELL and Energy Star. It paid $3.73 worth of dividends per share in 2021. Although SLG cut its dividend payout in December 2022, it remains high. However, more cuts could come in 2023 amid weakness in the Manhattan office market, home to most of the company’s commercial properties. The stock price is beat down currently, having lost 47.2% since the start of 2022, which has contributed to its high dividend yield.

Dividend yield: 8.8%

Gladstone Commercial (GOOD)

Gladstone Commercial is a REIT focused on industrial and office properties. It owns a portfolio of more than 130 such properties across 27 states. The company boasts an 18% growth rate on its portfolio since going public in 2003 and an occupancy rate that’s never dropped below 95% in that time. GOOD maintained its monthly dividend of just over 12 cents per share throughout the pandemic in accordance with its goal of providing shareholders with monthly distributions.

Dividend yield: 9.7%

Gladstone Investment Corp. (GAIN)

If you don’t want to overload your portfolio with REITs, one of Gladstone Commercial’s sister companies, Gladstone Investment Corp., is another option for a monthly dividend stock with high yield. Gladstone Investment is a business development company, or BDC, that invests in small- and medium-sized private businesses in the U.S. It focuses on mature, middle-market companies that generate between $20 million and $100 million in revenue. It often provides most, if not all, of the equity and debt capital necessary to ensure a faster closing. It raised its monthly dividend from 7.5 cents per share to 8 cents per share in October 2022.

Dividend yield: 9.9%

7 best monthly dividend stocks to buy now:

— Main Street Capital Corp. (MAIN)

— AGNC Investment Corp. (AGNC)

— LTC Properties Inc. (LTC)

— EPR Properties (EPR)

— SL Green Realty Corp. (SLG)

— Gladstone Commercial (GOOD)

— Gladstone Investment Corp. (GAIN)

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7 Best Monthly Dividend Stocks With High Yields originally appeared on usnews.com

Update 01/27/23: This story was previously published at an earlier date and has been updated with new information.

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