HIGHEST-YIELDING MONTHLY DIVIDEND STOCKS FOR APRIL

Highest-Yielding Monthly Dividend Stocks for April

Highest-Yielding Monthly Dividend Stocks for April

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Monthly dividend stocks, such as ARR and AGNC, can offer investors regular payment options; however, these payments may not always be sustainable. Here’s a summary of the key points to consider.

Key Insights



  • Definition: Monthly dividend stocks refer to shares from publicly traded companies that distribute dividends each month, unlike most dividend stocks that pay quarterly or annually.

  • Sustainability Concerns: Many monthly dividend stocks may have dividends that are not sustainable over the long term and could struggle to maintain their payouts.

  • ETFs: Some exchange-traded funds (ETFs) pay monthly dividends but might not specifically consist of monthly dividend stocks.


Due to recent high inflation, particularly affecting retirees, many Americans may seek out frequent cash inflows, and monthly dividend stocks could be a viable investment option.

What Are Monthly Dividend Stocks?


These stocks belong to the broader category of dividend stocks, where companies share a portion of their profits with shareholders. Monthly dividend stocks specifically provide payouts every month.

Top Monthly Dividend Stocks


Here are nine of the highest-yielding monthly dividend stocks, all with market caps over $ 1 billion and payout ratios below 100%, indicating they’re still generating earnings in excess of their dividend payouts:

  1. ARR - Armour Residential REIT: 17.28%

  2. AGNC - AGNC Investment Corp.: 15.24%

  3. EFC - Ellington Financial: 11.87%

  4. APLE - Apple Hospitality REIT: 7.44%

  5. EPR - EPR Properties: 6.89%

  6. LTC - LTC Properties Inc.: 6.41%

  7. O - Realty Income Corp.: 5.64%

  8. MAIN - Main Street Capital Corp.: 4.96%

  9. SLG - SL Green Realty Corp.: 5.31%


Pros and Cons


The primary advantage of monthly dividend stocks is the frequency and typically substantial size of payments. Many of these dividends can yield significantly more than traditional fixed-income investments like the 10-year Treasury note, which pays out biannually.

However, a high dividend yield does not guarantee sustainability. Many of these stocks operate with payout ratios nearing 100%, meaning they might have to borrow to continue paying dividends. This is a risk for investors seeking more reliable income, where alternative strategies like bond ladders or investing in Dividend Aristocrats might be preferable.

How to Invest in Monthly Dividend Stocks


To invest, you'll first need to establish a brokerage account. From there, you can choose to invest in individual monthly dividend stocks or monthly dividend ETFs.

Individual Stocks


While many of these stocks offer enticing yields compared to more traditional investments, there's a risk that some may eventually reduce their dividends. Investors can manage this risk through thorough research or by diversifying their investments across multiple stocks.

Monthly Dividend ETFs


There are ETFs, like JPMorgan Equity Premium Income ETF (JEPI) and Global X Nasdaq 100 Covered Call ETF (QYLD), that pay monthly dividends but do not exclusively invest in monthly dividend stocks. They often employ strategies like selling covered calls to generate income. For those interested in high-yield dividends, exploring top-performing dividend ETFs could be beneficial.

Neither the author nor editor had investments in these securities at the time of writing.

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