5 Monthly Dividend Stocks Yielding Up to 12.2% Income Investors 2018-07-20 10:19:41 monthly dividend stocks Realty Income Corp Apple Hospitality REIT Inc Main Street Capital Corporation AGNC Investment Corp San Juan Basin Royalty Trust How would you like to get paid every month from your investments? These five monthly dividend stocks pay you 12 times per year and yield up to 12%. AGNC Stock,Apple Hospitality Stock,Dividend Stocks,Main Street Capital Stock,Realty Income Corp Stock,San Juan Basin Royalty Trust Stock https://www.incomeinvestors.com/wp-content/uploads/2018/05/Monthly-Dividend-Stocks-150x150.jpg

5 Monthly Dividend Stocks Yielding Up to 12.2%


These Stocks Pay You Monthly

I love dividend stocks, but they’ve always had one big problem: you only get paid every three months.

That creates a headache for those of us who rely on our portfolio income to pay the bills. Sure, we can sync quarterly distributions to pay the bills, but it’s not really convenient.

Bonds make it even harder. By convention, most fixed-income investments only pay you semi-annually. Aside from the hassle of just managing our cash flow, no one wants to wait that long just to get paid.

Thankfully, we have options. Over the past few years, a growing number of companies have started paying dividends monthly. In the traditional world of Wall Street, the shift presents a big change from the typical quarterly schedule.

And it’s not hard to see why some businesses have switched. Companies gain a loyal shareholder base. Investors can better match their dividend income with expenses. You could call it a real win-win for everyone.

New investors won’t find many widely held stocks in this group. You can, however, find enough high-quality businesses to build a reliable stream of monthly income.

Here are five top names to get you started.


Market Cap


Realty Income Corp



Apple Hospitality REIT Inc



Main Street Capital Corporation



AGNC Investment Corp



San Juan Basin Royalty Trust



(Source: Yahoo! Finance, last accessed July 19, 2018.)

Let’s say a few words about these stocks.

Real estate investment trusts (REITs) offer investors a chance to earn monthly rental income, minus the hassle of dealing with tenants. These firms own sprawling property empires and pass on the proceeds to investors. And because they receive payments monthly, most of them mail out checks to their unitholders in the same manner.

Realty Income Corp (NYSE:O) and Apple Hospitality REIT Inc (NYSE:APLE) are some of my favorite names in this group. Realty Income Corp’s portfolio consists mostly of retail developments. Apple Hospitality has stuck mostly to hotels and vacation properties. But in both cases, commercial investments generate a lot more income than traditional rental apartments. For this reason, these two REITs pay out some of the highest yields around.

I have long admired the management team at Main Street Capital Corporation (NYSE:MAIN). The firm has structured itself as a business development company (BDC) that lends money to small, fast-growing businesses for interest and an equity stake. Main Street pays out this interest income each month. Management also pays out supplemental distributions twice a year. This variable dividend policy concerns cash during a recession and rewards shareholders during the good times.

AGNC Investment Corp (NASDAQ:AGNC) works like a “virtual bank.” The partnership borrows money from depositors at a low interest rate, then invests these funds in higher-yielding mortgages. But unlike traditional banks, AGNC has no branches, no tellers, and no ATMs. Because all of its profits can flow directly to investors, the investment trust can fund an 11.4% dividend yield.

You can think of San Juan Basin Royalty Trust (NYSE:SJT) simply as a stake in a number of oil and gas wells. But rather than plowing profits into new properties, management passes on all of their profits to investors. It’s a lean operating structure that effectively works as a pass-through entity—meaning you get a direct share of the profits from energy production, but also get direct exposure to wild swings in commodity prices. Payouts vary from month to month based on output and market conditions. But with the rebound in the energy market, San Juan could generate handsome rewards for investors.

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