2023 Monthly Dividend Stocks List | See All 50 Now | Yields Up To 20.7%

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2023 Monthly Dividend Stocks List | See All 50 Now | Yields Up To 20.7%


Updated on January 4th, 2023 by Bob Ciura
Spreadsheet data updated daily

Monthly dividend stocks are securities that pay a dividend every month instead of quarterly or annually. More frequent dividend payments mean a smoother income stream for investors.

This article includes:

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:

 

The downloadable Monthly Dividend Stocks Spreadsheet above contains the following for each stock that pays monthly dividends:

Note: We strive to maintain an accurate list of all monthly dividend payers. There’s no universal source we are aware of for monthly dividend stocks; we curate this list manually. If you know of any stocks that pay monthly dividends that are not on our list, please email support@suredividend.com.

This article also includes our top 5 ranked monthly dividend stocks today, according to expected five-year annual returns.

We have excluded oil and gas royalty trusts due to their high risks. These high risks make them less attractive for income investors, in our view.

Table of Contents

Having the list of monthly dividend stocks along with metrics that matter is a great way to begin creating a monthly passive income stream.

High-yielding monthly dividend payers have a unique mix of characteristics that make them especially suitable for investors seeking current income.

Keep reading this article to learn more about investing in monthly dividend stocks.

How to Use the Monthly Dividend Stocks Sheet to Find Dividend Investment Ideas

For investors that use their dividend stock portfolios to generate passive monthly income, one of the main concerns is the sustainability of the company’s dividend.

A dividend cut indicates one of two things:

  1. The business isn’t performing well enough to sustain a dividend
  2. Management is no longer interested in rewarding shareholders with dividends

Either of these should be considered an automatic sign to sell a dividend stock.

Of the two reasons listed above, #1 is more likely to happen. Thus, it is very important to continually monitor the financial feasibility of a company’s dividend.

This is best evaluated by using the payout ratio. The payout ratio is a mathematical expression that shows what percentage of a company’s earnings is distributed to shareholders as dividend payments. A very high payout ratio could indicate that a company’s dividend is in danger of being reduced or eliminated completely.

For readers unfamiliar with Microsoft Excel, this section will show you how to list the stocks in the spreadsheet in order of decreasing payout ratio.

Step 1: Download the monthly dividend stocks excel sheet at the link above.

Step 2: Highlight columns A through H, and go to “Data”, then “Filter”.

How To Filter

Step 3: Click on the ‘filter’ icon at the top of the payout ratio column.

Filter Click

Step 4: Filter the high dividend stocks spreadsheet in descending order by payout ratio. This will list the stocks with lower (safer) payout ratios at the top.

The 5 Best Monthly Dividend Stocks

The following companies represent our top 5 monthly dividend stocks right now. Stocks were selected based on their projected total annual returns over the next five years.

Monthly Dividend Stock #5: Ellington Financial (EFC)

PermRock Royalty Trust is a trust formed in November 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 derives all its cash flows from profits from the sale of oil and natural gas production from these properties and distributes dividends monthly.

Ellington Financial Inc. acquires and manages mortgage, consumer, corporate, and other related financial assets in the United States. The company acquires and manages residential mortgagebacked securities (RMBS) backed by prime jumbo, AltA, 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, mortgagerelated and nonmortgagerelated derivatives, equity investments in mortgage originators and other strategic investments.

Source: Investor Presentation

On November 7th, 2022, Ellington Financial reported its Q3 results for the period ending September 30th, 2022. Due to the company’s business model, Ellington doesn’t report any revenues. Instead, it records only income. Interest income came in at $66.8 million, 29.5% higher quarter-over-quarter. Adjusted (previously referred to as “core”) earnings-pershare came in at $0.44, three cents higher versus Q3-2021, driven by higher interest income and a lesser growth in total expenses.

The company’s improving results were driven primarily by a larger residential transition loan portfolio at higher rates, partially offset by opportunistic sales, paydowns, and mark-to-market losses elsewhere in the credit portfolio. Ellington’s book value per share declined from $16.22 to $15.22 during the last three months, with its dividend exceeding the underlying earnings.

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

Monthly Dividend Stock #4: AGNC Investment Corporation (AGNC)

American Capital Agency Corp was founded in 2008, and 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.

The majority of American Capital’s investments are fixed rate agency MBS. Most of these are MBS with a 30-year maturity period. AGNC derives nearly all its revenue in the form of interest income. It currently generates $1.2 billion in annual net revenue.

AGNC reported its Q3 2022 results on October 24, 2022. It generated a $2.01 comprehensive loss per common share. AGNC had a $9.08 tangible net book value per common share as of September 30, 2022, which decreased $2.35 per common share, or -20.6%, from $11.43 per common share as of June 30, 2022.

AGNC paid out $0.36 in dividends per common share for the third quarter. There was a -17.4% economic return on tangible common equity for the quarter comprised of $0.36 dividends per common share and a $2.35 decrease in tangible net book value per common share.

We expect 16.8% annual returns for AGNC, made up of the 13.7% dividend yield, negative EPS growth of -0.9%, and a small boost from a rising P/FFO multiple.

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

Monthly Dividend Stock #3: ARMOUR Residential REIT (ARR)

ARMOUR is a mortgage REIT that invests primarily in residential mortgagebacked securities that are guaranteed or issued by a United States government entity including Fannie Mae, Freddie Mac and Ginnie Mae.

Source: Investor Presentation

ARMOUR reported Q3 results on October 26th, 2022. It generated a comprehensive loss of $(155.7) million or $(1.26) per common share. Distributable Earnings were $38.8 million, representing $0.32 per common share. The REIT paid common stock dividends of $0.10 per share per month during the quarter and raised $167.2 million of capital by issuing 22,733,043 shares of common stock at $7.36 net proceeds per share, after fees and expenses.

Management has also repurchased 780,000 shares of common stock at an average cost of $4.96 per share. Net interest income was $25.1 million, while the net interest margin of 2.21% was down one basis point from the prior quarter.

Book value per common share was $5.83, while total liquidity was $469.3 million. The debt-to-equity ratio was 8.7 to 1, while leverage, net of TBA Security short positions, was 7.8 to 1. Implied leverage, adjusted for forward settling sales and unsettled purchases, was 7.3 to 1. Interest Rate swap contracts totaled $6.5 billion of notional amount, representing 90% of the total repurchase agreement and TBA Securities liabilities.

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

Monthly Dividend Stock #2: Broadmark Realty Capital (BRMK)

Broadmark Realty Capital Inc. is a real estate investment trust that provides short-term, first deed of trust loans that are secured by real estate. Customers use these loans to acquire, renovate, rehab and develop properties for both residential and commercial uses in the U.S. Broadmark Realty formed in 2010, but had its initial public offering in November 2019.

Source: Investor Presentation

On November 7th, 2022, Broadmark Realty reported third quarter results for the period ending September 30th, 2022. For the quarter, revenue decreased 11.4% to $27.1 million, which was $1.42 million below estimates. Adjusted earnings per share of $0.14 compared to $0.16 in the prior year and was $0.02 less than expected.

Quarterly interest income totaled $20.7 million and fee income was $6.4 million. The total loan portfolio consisted of $1.5 billion of loans across 17 U.S. states and the District of Columbia. Broadmark Realty originated $137.9 million of new loans and amendments for the quarter. Second quarter origination was a 30% decrease sequentially and had a weighted average loan-to-value of 59.7%.

As of September 30th, 2022, Broadmark Realty had a total of $115.4 million of loans in contractual default. Provisions for credit losses totaled $12.3 million compares to $2.6 million in the prior year.

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

Monthly Dividend Stock #1: SL Green Realty (SLG)

SL Green Realty Corp was formed in 1980. It is an integrated real estate investment trust (REIT) that is focused on acquiring, managing, and maximizing the value of Manhattan commercial properties. It is Manhattan’s largest office landlord, and currently owns 73 buildings totaling 35 million square feet.

Source: Investor Presentation

In mid-October, SLG reported (10/19/2022) financial results for the third quarter of fiscal 2022. Its occupancy rate edged up from 92.0% at the end of the previous quarter to 92.1%, but its same-store net operating income dipped -0.5% over the prior year’s quarter.

Given also the negative effect of some assets sales, its funds from operations (FFO) per share decreased -7% over the prior year’s quarter, from $1.78 to $1.66. The REIT exceeded the analysts’ consensus by $0.01. During the quarter, SLG signed 32 Manhattan office leases for a total of 930,232 square feet.

We expect annual returns of 27.3% going forward, comprised of 5% expected earnings growth, the 9.1% dividend yield, and a significant boost from an expanding P/FFO multiple.

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

Detailed Analysis On All of The Monthly Dividend Stocks

You can see detailed analysis on monthly dividend securities we cover by clicking the links below. We’ve included our most recent Sure Analysis Research Database report update in brackets as well, where applicable.

  1. Agree Realty (ADC) | [See Newest Sure Analysis Report]
  2. AGNC Investment (AGNC) | [See Newest Sure Analysis Report]
  3. Apple Hospitality REIT, Inc. (APLE) | See Newest Sure Analysis Report
  4. ARMOUR Residential REIT (ARR) | [See Newest Sure Analysis Report]
  5. Banco Bradesco S.A. (BBD) | [See Newest Sure Analysis Report]
  6. Broadmark Realty Capital (BRMK) | [See Newest Sure Analysis Report]
  7. Chatham Lodging (CLDT)* | [See Newest Sure Analysis Report]
  8. Choice Properties REIT (PPRQF) | [See Newest Sure Analysis Report]
  9. Cross Timbers Royalty Trust (CRT) | [See Newest Sure Analysis Report]
  10. Dream Industrial REIT (DREUF) | [See Newest Sure Analysis Report]
  11. Dream Office REIT (DRETF) | [See Newest Sure Analysis Report]
  12. Dynex Capital (DX) | [See Newest Sure Analysis Report]
  13. Ellington Residential Mortgage REIT (EARN) | [See Newest Sure Analysis Report]
  14. Ellington Financial (EFC) | [See Newest Sure Analysis Report]
  15. EPR Properties (EPR) | [See Newest Sure Analysis Report]
  16. Exchange Income Corporation (EIFZF) | [See Newest Sure Analysis Report]
  17. Fortitude Gold (FTCO) | [See Newest Sure Analysis Report]
  18. Generation Income Properties (GIPR) | [See Newest Sure Analysis Report]
  19. Gladstone Capital Corporation (GLAD) | [See Newest Sure Analysis Report]
  20. Gladstone Commercial Corporation (GOOD) | [See Newest Sure Analysis Report]
  21. Gladstone Investment Corporation (GAIN) | [See Newest Sure Analysis Report]
  22. Gladstone Land Corporation (LAND) | [See Newest Sure Analysis Report]
  23. Global Water Resources (GWRS) | [See Newest Sure Analysis Report]
  24. Granite Real Estate Investment Trust (GRP.U)** | [Historical Reports]
  25. Horizon Technology Finance (HRZN) | [See Newest Sure Analysis Report]
  26. Hugoton Royalty Trust (HGTXU) | [See Newest Sure Analysis Report]
  27. Itaú Unibanco (ITUB) | [See Newest Sure Analysis Report]
  28. LTC Properties (LTC) | [See Newest Sure Analysis Report]
  29. Main Street Capital (MAIN) | [See Newest Sure Analysis Report]
  30. Orchid Island Capital (ORC) | [See Newest Sure Analysis Report]
  31. Oxford Square Capital (OXSQ) | [See Newest Sure Analysis Report]
  32. Pembina Pipeline (PBA) | [See Newest Sure Analysis Report]
  33. Permian Basin Royalty Trust (PBT) | [See Newest Sure Analysis Report]
  34. Phillips Edison & Company (PECO) | [See Newest Sure Analysis Report]
  35. Pennant Park Floating Rate (PFLT) | [See Newest Sure Analysis Report]
  36. PermRock Royalty Trust (PRT) | [See Newest Sure Analysis Report]
  37. Prospect Capital Corporation (PSEC) | [See Newest Sure Analysis Report]
  38. Permianville Royalty Trust (PVL)
  39. Realty Income (O) | [See Newest Sure Analysis Report]
  40. Sabine Royalty Trust (SBR) | [See Newest Sure Analysis Report]
  41. Stellus Capital Investment Corp. (SCM) | [See Newest Sure Analysis Report]
  42. San Juan Basin Royalty Trust (SJT)
  43. Shaw Communications (SJR) | [See Newest Sure Analysis Report]
  44. SL Green Realty Corp. (SLG) | [See Newest Sure Analysis Report]
  45. SLR Investment Corp. (SLRC) | [See Newest Sure Analysis Report]
  46. Stag Industrial (STAG) | [See Newest Sure Analysis Report]
  47. Superior Plus (SUUIF) | [See Newest Sure Analysis Report]
  48. TransAlta Renewables (TRSWF) | [See Newest Sure Analysis Report]
  49. U.S. Global Investors (GROW) | [See Newest Sure Analysis Report]
  50. Whitestone REIT (WSR) | [See Newest Sure Analysis Report]

Note 1: The asterisk (*) denotes a stock that has suspended its dividend. As a result, we have not included the stock in our annual Monthly Dividend Stock In Focus Series. We will resume coverage when and if the company in question resumes paying dividends.

Note 2: The double asterisk (**) denotes a security that is not included by our data provider and is therefore excluded from our Sure Analysis research database despite being a monthly paying dividend stock.

As we do not have coverage of every monthly dividend stock, they are not all included in the list above. Note that most of these businesses are either small or mid-cap companies.

You will not see any S&P 500 stocks in this list – it is predominantly populated by members of the Russell 2000 Index or various international stock market indices.

Based on the list above, the bulk of monthly dividend paying securities are REITs and BDCs.

Performance Through December 2022

In December 2022, a basket of the 50 monthly dividend stocks above (excluding SJT) generated total returns of -2.1%. For comparison, the Russell 2000 ETF (IWM) generated total returns of -6.5% for the month.

Notes: Data for performance is from Ycharts. Canadian company performance may be in the company’s home currency. Year-to-date performance does have survivorship bias as some securities have been excluded as they eliminated their dividends. Global Net Lease (GNL) was also eliminated as it changed its dividend to quarterly payments.

Monthly dividend stocks out-performed in December. We will update our performance section monthly to track future monthly dividend stock returns.

In December 2022, the 3 best-performing monthly dividend stocks (including dividends) were:

The 3 worst-performing monthly dividend stocks (including dividends) in December were:

Why Monthly Dividends Matter

Monthly dividend payments are beneficial for one group of investors in particular – retirees who rely on dividend stocks for income.

With that said, monthly dividend stocks are better under all circumstances (everything else being equal), because they allow for returns to be compounded on a more frequent basis. More frequent compounding results in better total returns, particularly over long periods of time.

Consider the following performance comparison:

Monthly vs Quarterly Compounding Over 40 Years

Over the long run, monthly compounding generates slightly higher returns over quarterly compounding. Every little bit helps.

With that said, it might not be practical to manually re-invest dividend payments on a monthly basis. It is more feasible to combine monthly dividend stocks with a dividend reinvestment plan to dollar cost average into your favorite dividend stocks.

The last benefit of monthly dividend stocks is that they allow investors to have – on average – more cash on hand to make opportunistic purchases. A monthly dividend payment is more likely to put cash in your account when you need it versus a quarterly dividend.

Case-in-point: Investors who bought a broad basket of stocks at the bottom of the 2008-2009 financial crisis are likely sitting on triple-digit total returns from those purchases today.

The Dangers of Investing In Monthly Dividend Stocks

Monthly dividend stocks have characteristics that make them appealing to do-it-yourself investors looking for a steady stream of income. Typically, these are retirees and people planning for retirement.

Investors should note many monthly dividend stocks are highly speculative. On average, monthly dividend stocks tend to have elevated payout ratios. An elevated payout ratio means there’s less margin for error to continue paying the dividend if business results suffer a temporary (or permanent) decline.

As a result, we have real concerns that many monthly dividend payers will not be able to continue paying rising dividends in the event of a recession.

Additionally, a high payout ratio means that a company is retaining little money to invest for future growth. This can lead management teams to aggressively leverage their balance sheet, fueling growth with debt. High debt and a high payout ratio is perhaps the most dangerous combination around for a potential future dividend reduction.

With that said, there are a handful of high-quality monthly dividend payers around. Chief among them is Realty Income (O). Realty Income has paid increasing dividends (on an annual basis) every year since 1994.

The Realty Income example shows that there are high-quality monthly dividend payers around, but they are the exception rather than the norm. We suggest investors do ample due diligence before buying into any monthly dividend payer.

Final Thoughts

Financial freedom is achieved when your passive investment income exceeds your expenses. But the sequence and timing of your passive income investment payments can matter.

Monthly payments make matching portfolio income with expenses easier. Most personal expenses recur monthly whereas most dividend stocks pay quarterly. Investing in monthly dividend stocks matches the frequency of portfolio income payments with the normal frequency of personal expenses.

Additionally, many monthly dividend payers offer investors high yields. The combination of a monthly dividend payment and a high yield should be especially appealing to income investors.

But not all monthly dividend payers offer the safety that income investors need. A monthly dividend is better than a quarterly dividend, but not if that monthly dividend is reduced soon after you invest. The high payout ratios and shorter histories of most monthly dividend securities mean they tend to have elevated risk levels.

Because of this, we advise investors to look for high-quality monthly dividend payers with reasonable payout ratios, trading at fair or better prices.

 

If you are interested in finding more high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.


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