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Top 20 Highest Yielding Monthly Dividend Stocks Now | Yields Up To 29.7%


Updated on November 7th, 2023 by Bob Ciura

Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.

For this reason, we created a full list of 80 monthly dividend stocks.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:

 

Click here to instantly download your free spreadsheet of all 80 monthly dividend stocks now, along with important investing metrics.

In addition, stocks that have high dividend yields are also attractive for income investors.

With the average S&P 500 yield hovering around 1.6%, investors can generate much more income with high-yield stocks. Screening for monthly dividend stocks that also have high dividend yields makes for an appealing combination.

This article will list the 20 highest-yielding monthly dividend stocks.

Table Of Contents

The following 20 monthly dividend stocks have high dividend yields above 5%. Stocks are listed by their dividend yields, from lowest to highest.

The list excludes oil and gas royalty trust, which have extreme fluctuations in their dividend payouts from one quarter to the next due to the underlying volatility of commodity prices.

You can instantly jump to an individual section of the article by utilizing the links below:

High-Yield Monthly Dividend Stock #20: PermRock Royalty Trust (PRT)

PermRock Royalty Trust is a trust formed in late 2017 by Boaz Energy, a company that is focused on the acquisition, development and operation of oil and natural gas properties in the Permian Basin. The Trust benefits from the unique characteristics of the Permian Basin, which is the most prolific oil producing area in the U.S. The properties of PermRock consist of long-life reserves in mature, conventional oil fields, with shallow, predictable decline rates.

PermRock expects to drill new producing wells in the Permian Shelf area. It will also try to grow its production at existing wells and reactivate wells which were inactivated due to the slump of commodity prices during the pandemic. Nevertheless, it is important to note that the production of PermRock has declined in each of the last three years.

Click here to download our most recent Sure Analysis report on PermRock Royalty Trust (PRT) (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #19: Sabine Royalty Trust (SBR)

Sabine Royalty Trust is an oil and gas trust that was formed in 1983 by Sabine Corporation. It consists of royalty and mineral interests in producing properties and proved oil and gas properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. It generates approximately two-thirds of its revenues from oil and one-third of its revenues from gas. The trust has static assets, i.e., it cannot add new properties to its asset portfolio. Sabine Royalty Trust has no operations but is merely a pass-through vehicle for royalties.

All the oil and gas trusts face a strong secular headwind, namely the natural decline of their producing wells. Due to this decline, their production is expected to decrease in the long run. Sabine Royalty Trust has proved superior in this aspect. When it was set up, 40 years ago, it was expected to have a life of 8-10 years. However, it is still producing meaningful volumes and is expected to remain in life for more than a decade.

Click here to download our most recent Sure Analysis report on Sabine Royalty Trust (SBR) (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #18: Gladstone Capital (GLAD)

Gladstone Capital is a business development company, or BDC, that primarily invests in small and medium businesses. These investments are made via a variety of equity (10% of portfolio) and debt instruments (90% of portfolio), generally with very high yields.

Loan size is typically in the $7 million to $30 million range and has terms up to seven years. The BDC’s stated purpose is to generate income it can distribute to its shareholders.

Gladstone posted third quarter earnings on July 26th, 2023, and results were ahead of expectations on both the top and bottom lines. Net investment income per share was 31 cents, which was four cents better than expected. Total investment income was $22.8 million, up 66% year-over-year, which was $1.15 million better than estimates.

The increase in investment income was due to higher interest income, which was attributable to increases in the weighted average yield and weighted average principal balance of the company’s interest-bearing investments.

Click here to download our most recent Sure Analysis report on GLAD (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #17: Horizon Technology (HRZN)

Horizon Technology Finance Corp. is a BDC that provides venture capital to small and medium–sized companies in the technology, life sciences, and healthcare–IT sectors.

The company has generated attractive risk–adjusted returns through directly originated senior secured loans and additional capital appreciation through warrants, featuring a last–nine–month annualized portfolio yield of 14.7%.

On August 1st, 2023, Horizon released its Q2 results for the period ending June 30th, 2023. For the quarter, total investment income grew 51.3% year-over-year to $28.1 million, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio and an increase in the base rate for most of the company’s variable rate debt investments. The latter was driven by rising interest rates.

Net investment income per share (IIS) rose to $0.54, roughly 54% higher compared to Q2-2022. Net asset value (NAV) per share landed at $11.07, 2.4% lower sequentially or 5.3% lower year-over-year.

Click here to download our most recent Sure Analysis report on HRZN (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #16: SLR Investment Corp. (SLRC)

SLRC is a Business Development Company that primarily invests in U.S. middle market companies. The company has five core business units which include cash flow, asset-based, life science lending, equipment finance, and corporate leasing.

The trust’s debt investments primarily consist of cash flow senior secured loans, including first lien and second lien debt instruments. It also offers asset-based loans including senior secured loans collateralized on a first lien basis by current assets.

Click here to download our most recent Sure Analysis report on SLRC (preview of page 1 of 3 shown below):


High-Yield Monthly Dividend Stock #15: Dream Office REIT (DRETF)

Dream Office REIT acquires and manages predominantly office and industrial properties in major urban areas throughout Canada, with a focus on downtown Toronto. The trust’s portfolio is located primarily in Toronto, Montreal/Ottawa, Mississauga/North York, and Calgary, though it does have small exposure to other markets as well.

Dream Office ownership interests include 5.5 million square feet of gross leasable area from 30 properties, which include 28 office properties, and two properties under development. Dream Office has leases with 500 tenants across Canada, a few of its larger tenants include: Government of Canada, Government of Ontario and State Street Trust.

Source: Investor Presentation

Dream Office Corporation released its Q2 results on August 3rd, 2023. In the quarter ended June 30, 2023, the diluted FFO per unit decreased by $0.03 to $0.35 compared to $0.38 in Q2 2022. This decline was influenced by a lower share of FFO from the investment in Dream Industrial REIT due to unit sales, reduced net rental income from sold properties, and higher interest expenses.

Comparative properties NOI increased by 3.8%, driven by higher in-place net rents, rent step-ups, and better rates on new leases and renewals.

Click here to download our most recent Sure Analysis report on DRETF (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #14: PennantPark Floating Rate (PFLT)

PennantPark Floating Rate Capital Ltd. is a BDC that makes secondary direct, debt, equity, and loan investments.

The fund also aims to invest through floating rate loans in private or thinly traded or small–cap, public middle market companies, equity securities, preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments.

Source: Investor Presentation

It generally invests in the United States and to a limited extent non–U.S. companies. It aims to invest in companies not rated by national rating agencies.

Click here to download our most recent Sure Analysis report on PFLT (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #13: Generation Income Properties (GIPR)

Generation Income Properties, Inc. is an internally managed REIT focused on acquiring and managing income-producing retail, office, and industrial properties. As of December 31st, 2022, the company’s asset base included 13 properties, comprising one industrial, seven retail (including one medical-retail), and five office properties, which are net leased to high-quality tenants in major markets throughout the United States.

These properties, along with a 36.8% tenancy in common interest in a single tenant retail building (approximately 15,300 square feet) leased to La-Z-Boy Company, feature 338,142 leasable square feet and an annualized base rent of $5.43 million.

Click here to download our most recent Sure Analysis report on GIPR (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #12: Cross Timbers Royalty Trust (CRT)

Cross Timbers Royalty Trust is an oil and gas trust (about 50/50), set up in 1991 by XTO Energy. Its unitholders have a 90% net profit interest in producing properties in Texas, Oklahoma, and New Mexico; and a 75% net profit interest in working interest properties in Texas and Oklahoma.

Cross Timbers Royalty Trust estimates that the rate of natural production decline of its oil and gas properties is 6%-8% per year. This is a significant headwind for future returns.

Click here to download our most recent Sure Analysis report on Cross Timbers Royalty Trust (CRT) (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #11: Stellus Capital (SCM)

Stellus Capital Management provides capital solutions to companies with $5 million to $50 million of EBITDA and does so with a variety of instruments, the majority of which are debt. Stellus provides first lien, second lien, mezzanine, convertible debt, and equity investments to a diverse group of customers, generally at high yields, in the US and Canada.

Stellus posted second quarter earnings on August 9th, 2023, and results were quite strong against estimates. Adjusted net income per share was 51 cents, four cents better than expected. Net investment income was $10.4 million. Total investment income, which is akin to revenue, was $26.6 million, which beat estimates by $1.1 million, and was up 65% year-over-year.

Click here to download our most recent Sure Analysis report on Stellus (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #10: Prospect Capital (PSEC)

Prospect Capital Corporation is a Business Development Company, or BDC, that provides private debt and private equity to middle–market companies in the U.S. The company focuses on direct lending to owner–operated companies, as well as sponsor–backed transactions.

Prospect invests primarily in first and second lien senior loans and mezzanine debt, with occasional equity investments. 

Source: Investor Presentation

Prospect Capital posted fourth quarter and full-year earnings on August 29th, 2023, and results were somewhat weaker than expected. Net investment income was up from the prior quarter and the year-ago quarter, as originations more than doubled.

However, results missed consensus estimates. Net investment income for the quarter was $113 million, or 23 cents per share. That missed estimates by a penny, but was up from 21 cents.

Click here to download our most recent Sure Analysis report on PSEC (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #9: Oxford Square Capital (OXSQ)

Oxford Square Capital Corp. is a BDC specializing in financing early and middle–stage businesses through loans and CLOs.

The company holds an equally split portfolio of First–Lien, Second–Lien, and CLO equity assets spread across 8 industries, with the highest exposure in business services and healthcare, at 36% and 25%, respectively.

Source: Investor Presentation

On August 10th, 2023, Oxford Square reported its Q2 results for the period ending June 30th, 2023. For the period, the company generated approximately $13.5 million of total investment income, up 4.7% from the previous quarter. The rise in total investment income was due to rising interest rates. Specifically, the weighted average yield of the debt investments came in at 12.8% at current cost, compared to 12.4% during Q1-2023.

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.

Click here to download our most recent Sure Analysis report on OXSQ (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #8: Ellington Financial (EFC)

Ellington Financial Inc. acquires and manages mortgage, consumer, corporate, and other related financial assets in the United States. The company acquires and manages residential mortgage–backed securities (RMBS) backed by prime jumbo, Alt–A, manufactured housing, and subprime residential mortgage loans.

Additionally, it manages RMBS, for which the U.S. government guarantees the principal and interest payments. It also provides collateralized loan obligations, mortgage–related and non–mortgage–related derivatives, equity investments in mortgage originators and other strategic investments.

Source: Investor Presentation

On August 7th, 2023, Ellington Financial reported its Q2 results for the period ending June 30th, 2023. Due to the company’s business model, Ellington doesn’t report any revenues. Instead, it records only income. For the quarter, gross interest income came in at $88.1 million, up 1% quarter-over-quarter. Adjusted (previously referred to as “core”) EPS came in at $0.38, seven cents lower versus Q1-2023.

The decline was mainly due to higher professional fees. Ellington’s book value per share fell from $15.10 to $14.70 during the last three months, with its dividends exceeding the underlying income. The monthly dividend remains at $0.15.

Click here to download our most recent Sure Analysis report on Ellington Financial Inc (EFC) (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #7: Dynex Capital (DX)

Dynex Capital invests in mortgage–backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non–agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest–only securities.

Dynex Capital, Inc. reported its third quarter financial results on October 23rd, 2023. Dynex Capital reported a book value of $12.25 and a comprehensive loss of $1.59 for the third quarter. Influenced by rate increases and spread widening, the performance this quarter saw leverage rise to 8.5 turns from 7.7 turns in the previous quarter.

While Dynex’s Economic Adjusted Duration (EAD) doesn’t factor in the benefits of hedging activities, the company predominantly uses futures as their primary hedging instrument due to their market depth, liquidity, and lower capital requirements.

Click here to download our most recent Sure Analysis report on DX (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #6: Permianville Royalty Trust (PVL)

Permianville Royalty Trust operates as a statutory trust and owns a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from properties located in the states of Texas, Louisiana and New Mexico. The company was formerly known as Enduro Royalty Trust and changed its name to Permianville Royalty Trust in September 2018.

The trust’s assets are static in that no further properties can be added. In addition, the trust is passive, as it has no control over operating costs and the rate of production.

In mid-August, PVL reported (8/14/23) financial results for the second quarter of fiscal 2023. Oil volumes and gas volumes decreased -12% and -28%, respectively, over the prior year’s quarter and the average realized prices of oil and gas dipped -3% and -10%, respectively. As a result, distributable income decreased -21%.

Click here to download our most recent Sure Analysis report on Permianville Royalty Trust (PVL) (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #5: Ellington Residential Mortgage REIT (EARN)

Ellington Residential Mortgage REIT acquires, invests in, and manages residential mortgage and real estate related assets. Ellington focuses primarily on residential mortgage-backed securities, specifically those backed by a U.S. Government agency or U.S. government–sponsored enterprise.

Agency MBS are created and backed by government agencies or enterprises, while non-agency MBS are not guaranteed by the government.

Source: Investor Presentation

On August 10th, 2023, Ellington Residential reported its second quarter results for the period ending June 30th, 2023. The company generated net income of $1.2 million, or $0.09 per share. Ellington achieved adjusted distributable earnings of $2.4 million in the quarter, leading to adjusted earnings of $0.17 per share, which does not cover the dividend paid in the period.

Click here to download our most recent Sure Analysis report on EARN (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #4: AGNC Investment Corporation (AGNC)

American Capital Agency Corp is a mortgage real estate investment trust that invests primarily in agency mortgage–backed securities (or MBS) on a leveraged basis.

The firm’s asset portfolio is comprised of residential mortgage pass–through securities, collateralized mortgage obligations (or CMO), and non–agency MBS. Many of these are guaranteed by government–sponsored enterprises.

AGNC Investment Corp. announced its third-quarter financial results on October 30, 2023. The company reported a comprehensive loss of $1.02 per common share, which included a net loss of $0.68 per common share and another comprehensive loss (OCI) of $0.34 per common share on investments marked-to-market through OCI.

Despite these losses, AGNC reported a $0.65 net spread and dollar roll income per common share, excluding an estimated “catch-up” premium amortization benefit. The tangible net book value per common share was reported as $8.08 as of September 30, 2023, reflecting a decrease of $1.31 per common share, or -14.0%, from the end of the previous quarter.

Click here to download our most recent Sure Analysis report on AGNC Investment Corp (AGNC) (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #3: San Juan Royalty Trust (SJT)

San Juan Basin Royalty Trust is a medium sized gas trust, which was set up 40 years ago by Southland Royalty Company. The producing properties are all in northern New Mexico, in the San Juan Basin.

San Juan Basin Royalty Trust has a key difference from the other royalty trusts. It produces a negligible amount of oil and thus its results are affected only by the cycles of the price of natural gas. Thanks to favorable gas prices, San Juan Basin Royalty Trust more than doubled its annual distribution, from $0.77 in 2021 to a 10-year high of $1.71 in 2022.

In mid-August, SJT reported (8/14/2023) financial results for the second quarter of fiscal 2023. Production of gas dipped -8% and the price of gas declined -19% over the prior year’s quarter. As a result, distributable income per unit decreased -39%.

Click here to download our most recent Sure Analysis report on San Juan Basin Royalty Trust (SJT) (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #2: Orchid Island Capital (ORC)

Orchid Island Capital, Inc. is an mortgage REIT that is externally managed by Bimini Advisors LLC and focuses on investing in residential mortgage-backed securities (RMBS), including pass-through and structured agency RMBSs. These financial instruments generate cash flow based on residential loans such as mortgages, subprime, and home-equity loans.

On October 27, 2023, Orchid Island Capital released its financial results for the third quarter. The company reported a net loss of $80.1 million for the quarter ending on September 30, 2023, which is a slight improvement compared to the net loss of $84.5 million for the same period in 20222.

Orchid’s Agency Residential Mortgage-Backed Securities (RMBS) portfolio increased from $4.4 billion at the end of June 2023 to $4.5 billion at the end of September 2023. The interest income on this portfolio rose by approximately $10.2 million from Q2 2023. In terms of yield, the average Agency RMBS yield went up from 3.81% in Q2 2023 to 4.51% in Q3 2023.

Click here to download our most recent Sure Analysis report on Orchid Island Capital, Inc. (ORC) (preview of page 1 of 3 shown below):

High-Yield Monthly Dividend Stock #1: ARMOUR Residential REIT (ARR)

ARMOUR Residential invests in residential mortgage-backed securities that include U.S. Government-sponsored entities (GSE) such as Fannie Mae and Freddie Mac. It also includes Ginnie Mae, the Government National Mortgage Administration’s issued or guaranteed securities backed by fixed-rate, hybrid adjustable-rate, and adjustable-rate home loans.

Unsecured notes and bonds issued by the GSE and the US Treasury, money market instruments, and non-GSE or government agency-backed securities are examples of other types of investments.

Source: Investor Presentation

On October 25, 2023, ARR announced its Q3 2023 results and financial position as of September 30, 2023. Following a one-for-five reverse stock split completed on September 29, 2023, the company reported a loss of $(182.2) million or $(3.92) per common share.

Net interest income stood at $3.6 million, and distributable earnings available to common stockholders were $50.2 million, equating to $1.08 per common share. The asset yield was 4.65%, and after deducting the net cost of funds of 2.92%, the net interest margin was 1.73%.

Click here to download our most recent Sure Analysis report on ARMOUR Residential REIT Inc (ARR) (preview of page 1 of 3 shown below):

Final Thoughts

Monthly dividend stocks could be more appealing to income investors than quarterly or semi-annual dividend stocks. This is because monthly dividend stocks make 12 dividend payments per year, instead of the usual 4 or 2.

Furthermore, monthly dividend stocks with high yields above 5% are even more attractive for income investors.

The 20 stocks on this list have not been vetted for dividend safety, meaning each investor should understand the unique risk factors of each company.

That said, these 20 dividend stocks make monthly payments to shareholders, and all have high dividend yields.

Further Reading

If you are interested in finding high-quality dividend growth stocks and/or other high-yield securities and income securities, the following Sure Dividend resources will be useful:

Monthly Dividend Stock Individual Security Research

Other Sure Dividend Resources

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