Monthly dividend stocks payout their dividends each month instead of on a quarterly schedule like the majority of income stocks. They can work better for people needing consistent monthly income on the same schedule as their monthly bill payments.
High Dividend Stocks
Here is a list of some of the highest yielding monthly dividend stocks.
AGNC Investment Corp. (NASDAQ:AGNC) 11.35%
San Juan Basin Royalty Trust (NYSE:SJT) 10.16%
Special Opportunities Fund (NYSE:SPE) 9.00%
Broadmark Realty Capital (NYSE:BRMK) 9.91%
Dynex Capital, Inc. (NYSE:DX) 9.80%
Prospect Capital (NASDAQ:PSEC) 8.69%
Horizon Technology Finance (NASDAQ:HRZN) 8.55%
Gladstone Commercial (NASDAQ:GOOD) 6.70%
EPR Properties (NYSE:EPR) 6.17%
LTC Properties (NYSE:LTC) 6.13%*
Monthly Dividend Formula
Remember that the dividend yield is on a annual basis and distributed on a monthly basis as one twelfth of the yield a month. So a $120 priced stock with a 10% yield would payout $1 a month per share for twelve months. $120 / 10% yield = $12 / 12 months = $1 a month dividend.
Also be aware that as the price of a stock drops the yield percentage increases if it stays constant at lower stock prices. If the dividend yield is cut then it could indicate trouble with the company and decrease the dividend yield if the price stays constant.
*This is not investment advice, “best’ refers to high yields and not risk involved and is for informational purposes only. Please do your own due diligence or seek financial advice from a professional to see if any of these stocks are right for your own risk tolerance and time frame.