Jordan-Invest: 25 Companies Paying the Highest Monthly Dividends

Investing in dividend-paying companies has become more accessible than ever, thanks to user-friendly apps like Trading 212 and others. Investors can now earn monthly income by diversifying their portfolios and strategically choosing dividend stocks.

Monthly dividend stocks are particularly attractive to those seeking a steady income stream, whether for reinvestment or financial stability. This guide explores 30 companies offering some of the highest monthly dividends, the concept of price volatility, and strategies to navigate its impact on your investments.

1. What Are Monthly Dividend Stocks?

Monthly dividend stocks are equities that pay out dividends on a monthly schedule instead of the typical quarterly or annual basis. This provides a consistent and predictable income stream, making them a popular choice for investors who prioritize cash flow, such as retirees or individuals seeking passive income.

2. Understanding Price Volatility and Its Impact on Dividends

Price volatility refers to how much and how quickly a stock’s price fluctuates over a given period. High volatility means frequent and significant price swings, while low volatility indicates a more stable price trend. For dividend investors, price volatility can impact the stock's attractiveness, as falling stock prices may suggest potential issues with a company’s financial health. However, dividends are typically paid from company profits, not stock prices, making them a potentially steady income source even in volatile markets.

Strategies to Manage Price Volatility

1. Diversification: Spreading investments across sectors reduces risk. If one sector underperforms, gains from another can offset losses.

2. Focus on Fundamentals: Investing in companies with strong financial health, consistent earnings, and a history of stable dividend payouts can mitigate the impact of market swings.

3. Avoid Overreacting: Short-term price drops are common. Sticking to a long-term strategy ensures price volatility doesn’t lead to unnecessary losses.

4. Reinvest Dividends: Use dividends to buy more shares, potentially reducing your average cost over time and taking advantage of compounding growth.

3. The 30 Companies with the Highest Monthly Dividends

Below is a curated list of 30 companies offering high monthly dividend yields. Each company is assessed based on its dividend yield, advantages, disadvantages, and price volatility level.

1. Realty Income Corporation (O)

Yield: ~5.2%
Pros: Long track record of consistent dividend payouts; focus on stable industries like retail and healthcare.
Cons: Exposure to retail sector risks; sensitive to interest rate changes.
Volatility: Low

2. Pembina Pipeline Corporation (PBA)

Yield: ~6.6%
Pros: Stable cash flow from energy transportation; strong Canadian market presence.
Cons: Vulnerable to oil price fluctuations; regulatory risks.
Volatility: Medium

3. STAG Industrial Inc. (STAG)

Yield: ~4.4%
Pros: Specializes in industrial real estate; benefits from e-commerce growth.
Cons: Geographic concentration in the U.S.; cyclical real estate risks.
Volatility: Medium

4. Main Street Capital Corporation (MAIN)

Yield: ~6.3%
Pros: Focus on small and middle-market businesses; regular dividend increases.
Cons: Economic downturns can impact portfolio companies.
Volatility: Medium

5. AGNC Investment Corp. (AGNC)

Yield: ~14.7%
Pros: High yield; benefits from interest rate arbitrage in mortgage-backed securities.
Cons: Highly sensitive to interest rate changes.
Volatility: High

6. EPR Properties (EPR)

Yield: ~7.8%
Pros: Unique focus on entertainment and experiential real estate.
Cons: Industry-specific risks; post-pandemic recovery challenges.
Volatility: Medium

7. Prospect Capital Corporation (PSEC)

Yield: ~9.7%
Pros: Diversified investment portfolio; attractive yield.
Cons: Higher exposure to credit risk.
Volatility: High

8. Horizon Technology Finance Corp. (HRZN)

Yield: ~10.3%
Pros: Focuses on technology and life sciences investments.
Cons: High-risk portfolio; dependency on innovative sectors.
Volatility: High

9. Broadmark Realty Capital (BRMK)

Yield: ~11.1%
Pros: Specializes in real estate loans; no leverage on balance sheet.
Cons: Limited growth prospects; exposure to real estate market downturns.
Volatility: Medium

10. Gladstone Commercial Corporation (GOOD)

Yield: ~9.1%
Pros: Portfolio of diverse office and industrial properties.
Cons: Vulnerable to tenant defaults; macroeconomic sensitivity.
Volatility: Medium

11. Dynex Capital Inc. (DX)

Yield: ~12.5%
Pros: High payout; experienced management in mortgage securities.
Cons: Heavily impacted by interest rate changes.
Volatility: High

12. Cross Timbers Royalty Trust (CRT)

Yield: ~8.8%
Pros: High cash flow tied to oil and gas royalties.
Cons: Exposure to energy price fluctuations.
Volatility: Medium

13. LTC Properties Inc. (LTC)

Yield: ~6.9%
Pros: Specializes in senior housing and healthcare facilities.
Cons: Healthcare regulation risks; tenant concentration issues.
Volatility: Low

14. ARMOUR Residential REIT Inc. (ARR)

Yield: ~16.2%
Pros: High dividend yield; focus on mortgage-backed securities.
Cons: Significant sensitivity to interest rate changes.
Volatility: High

15. Orchid Island Capital (ORC)

Yield: ~17.5%
Pros: Attractive yield for high-income seekers.
Cons: High leverage and interest rate sensitivity.
Volatility: High

16. SL Green Realty Corp. (SLG)

Yield: ~9.5%
Pros: Prime Manhattan real estate holdings; experienced management.
Cons: Exposure to office real estate decline post-pandemic.
Volatility: Medium

17. TriplePoint Venture Growth (TPVG)

Yield: ~13.3%
Pros: Focus on venture capital-backed growth-stage companies.
Cons: High risk from unproven businesses.
Volatility: High

18. Ellington Financial Inc. (EFC)

Yield: ~11.8%
Pros: Diverse financial strategies in mortgage securities.
Cons: High sensitivity to economic and rate changes.
Volatility: High

19. Granite Real Estate Investment Trust (GRP.U)

Yield: ~3.8%
Pros: Stable industrial and logistics properties.
Cons: Limited yield compared to peers.
Volatility: Low

20. Sabine Royalty Trust (SBR)

Yield: ~8.3%
Pros: Consistent payouts tied to natural resource royalties.
Cons: Heavily influenced by commodity prices.
Volatility: Medium

21. Shaw Communications Inc. (SJR)

Yield: ~4.4%
Pros: Diversified telecom operations in Canada.
Cons: Competitive industry pressures.
Volatility: Low

22. TransAlta Renewables (RNW)

Yield: ~6.2%
Pros: Renewable energy focus; growing industry.
Cons: High initial costs impact profitability.
Volatility: Medium

23. Lumen Technologies Inc. (LUMN)

Yield: ~9.9%
Pros: Focused on digital transformation; solid customer base.
Cons: High debt levels; declining legacy business.
Volatility: High

24. Crescent Capital BDC Inc. (CCAP)

Yield: ~9.4%
Pros: Targets middle-market businesses for strong returns.
Cons: Economic slowdowns can affect portfolio performance.
Volatility: Medium

25. Ares Commercial Real Estate Corporation (ACRE)

Yield: ~10.1%
Pros: Focus on senior secured commercial real estate loans.
Cons: Interest rate sensitivity.
Volatility

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10 questions and answers

1. What are monthly dividend stocks?

These are companies or funds that pay dividends to shareholders every month, providing a steady and frequent income stream.

2. Why choose monthly dividends over quarterly ones?

Monthly dividends offer more consistent cash flow, which can be ideal for investors relying on regular income, like retirees.

3. Are monthly dividend stocks riskier than quarterly dividend stocks?

Not necessarily, but some monthly dividend stocks may have higher yields to compensate for added risk. Always evaluate company fundamentals carefully.

4. Can you name some companies known for high monthly dividends?

Examples include Realty Income (O), Shaw Communications (SJR), STAG Industrial (STAG), and Main Street Capital (MAIN).

5. Do monthly dividend stocks typically belong to specific sectors?

Yes, many are in real estate (REITs), utilities, and business development companies (BDCs), which tend to have stable cash flows.

6. How do REITs pay monthly dividends?

REITs generate rental income, which they distribute regularly to shareholders, often on a monthly basis as part of their income-focused model.

7. Are monthly dividend ETFs available for investors?

Yes, ETFs like Global X SuperDividend ETF (SDIV) and Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) offer monthly dividend payouts.

8. What is the impact of dividend consistency on stock performance?

Stocks with reliable monthly dividends often attract income-focused investors, which can lead to more stable prices over time.

9. Should investors reinvest monthly dividends?

Reinvesting monthly dividends can accelerate portfolio growth through compounding, especially when using platforms like Trading 212 that support automatic reinvestment.

10. Where can I find a current list of companies with the highest monthly dividends?

Financial websites like Dividend.com, Seeking Alpha, and MarketWatch regularly update rankings and detailed profiles of monthly dividend stocks.

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