Monthly Dividend Stocks and ETFs

Below you will find a list of companies and ETFs that issue dividends on a monthly schedule. Some investors prefer monthly-dividend payers because of the consistent income these companies and funds offer. Learn more.

Market Cap:
Dividend Growth
Per Share
Itau Unibanco (ITUB)Stock0.57%$0.0518.40%4.67%1.0713.03
Vanguard Total Bond Market ETF (BND)ETF3.00%$2.505.20%N/AN/AN/A
Vanguard Short-Term Corporate Bond ETF (VCSH)ETF2.86%$2.308.00%N/AN/AN/A
iShares Short Treasury Bond ETF (SHV)ETF2.38%$2.63302.10%N/AN/AN/A
Vanguard Intermediate-Term Corporate Bond ETF (VCIT)ETF3.46%$3.112.10%N/AN/AN/A
Realty Income (O)Stock3.75%$2.725.00%85.53%3.1822.77
Vanguard Total International Bond ETF (BNDX)ETF2.87%$1.6723.80%N/AN/AN/A
iShares MBS ETF (MBB)ETF3.00%$3.2312.30%N/AN/AN/A
iShares 7-10 Year Treasury Bond ETF (IEF)ETF2.43%$2.6911.90%N/AN/AN/A
iShares 1-3 Year Treasury Bond ETF (SHY)ETF2.27%$1.9256.50%N/AN/AN/A
iShares 20+ Year Treasury Bond ETF (TLT)ETF2.34%$3.206.90%N/AN/AN/A
iShares US Preferred Stock ETF (PFF)ETF6.07%$2.241.60%N/AN/AN/A
iShares JP Morgan USD Emerging Markets Bond ETF (EMB)ETF5.87%$6.6110.80%N/AN/AN/A
iShares Short-Term Corporate Bond ETF (IGSB)ETF3.30%$1.76N/AN/AN/AN/A
Vanguard Mortgage-Backed Securities ETF (VMBS)ETF2.91%$1.547.70%N/AN/AN/A
AGNC Investment (AGNC)Stock12.11%$1.92-4.80%78.69%2.446.74
GRUPO AVAL ACCI/S (AVAL)Stock4.59%$0.35-21.50%44.87%0.789.54
iShares 3-7 Year Treasury Bond ETF (IEI)ETF2.26%$2.8418.70%N/AN/AN/A
iShares Intermediate-Term Corporate Bond ETF (IGIB)ETF3.97%$2.27N/AN/AN/AN/A
EPR Properties (EPR)Stock5.96%$4.509.10%74.50%6.0412.37
Vanguard Short-Term Government Bond ETF (VGSH)ETF2.27%$1.3835.90%N/AN/AN/A
First Trust Enhanced Short Maturity ETF (FTSM)ETF2.46%$1.4864.10%N/AN/AN/A
Vanguard Intermediate-Term Government Bond ETF (VGIT)ETF2.25%$1.486.10%N/AN/AN/A
iShares Core Total USD Bond Market ETF (IUSB)ETF3.26%$1.6923.00%N/AN/AN/A
Vanguard Long-Term Corporate Bond ETF (VCLT)ETF4.00%$3.91-0.50%N/AN/AN/A
DNP Select Income Fund (DNP)ETF6.12%$0.78N/AN/AN/AN/A
Stag Industrial (STAG)Stock4.82%$1.431.40%79.89%1.7916.59
Apple Hospitality REIT (APLE)Stock7.34%$1.2019.70%69.36%1.739.50
First Trust Low Duration Opportunities ETF (LMBS)ETF2.59%$1.34-2.70%N/AN/AN/A
WisdomTree U.S. Quality Dividend Growth Fund (DGRW)ETF2.45%$1.1112.00%N/AN/AN/A
Main Street Capital (MAIN)Stock5.68%$2.463.00%97.23%2.5316.65
iShares Core 1-5 Year USD Bond ETF (ISTB)ETF2.77%$1.3924.90%N/AN/AN/A
Prospect Capital (PSEC)Stock10.83%$0.72-11.90%84.71%0.857.82
Nuveen Municipal Value Fund (NUV)ETF3.90%$0.400.40%N/AN/AN/A
LTC Properties (LTC)Stock4.64%$2.283.30%75.75%3.0116.08
iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD)ETF2.83%$1.4428.90%N/AN/AN/A
Colony Credit Real Estate (CLNC)Stock12.38%$1.74N/AN/AN/A20.09
First Trust Senior Loan ETF (FTSL)ETF4.55%$2.161.80%N/AN/AN/A
PIMCO Corporate&Income Opportunity Fund (PTY)ETF9.45%$1.69-11.00%N/AN/AN/A
Vanguard Emerging Markets Government Bond ETF (VWOB)ETF4.57%$3.65-2.60%N/AN/AN/A
American Finance Trust (AFIN)Stock8.23%$1.10N/AN/AN/AN/A
First Trust Exchange-Traded Fund IV First Trust Tactical High Yield ETF (HYLS)ETF5.40%$2.61-3.20%N/AN/AN/A
Vanguard Long-Term Government Bond ETF (VGLT)ETF2.47%$2.07-0.80%N/AN/AN/A
ARMOUR Residential REIT (ARR)Stock11.92%$2.04-16.30%83.27%2.456.85
PIMCO High Income Fund (PHK)ETF12.00%$0.93-11.70%N/AN/AN/A
AllianceBernstein Global Hgh Incm Fd (AWF)Stock6.97%$0.82-11.40%N/AN/AN/A
First Trust Managed Municipal ETF (FMB)ETF2.49%$1.38-5.30%N/AN/AN/A
Blackrock Muniyield Insured Fund (MYI)ETF4.46%$0.59-7.00%N/AN/AN/A
First Trust TCW Opportunistic Fixed Income ETF (FIXD)ETF2.76%$1.44N/AN/AN/AN/A
Invesco High Yield Equity Dividend Achievers ETF (PEY)ETF3.73%$0.6914.30%N/AN/AN/A
John Hancock Patriot Premium Div Fund II (PDT)ETF7.20%$1.276.70%N/AN/AN/A
Chatham Lodging Trust (CLDT)Stock7.28%$1.323.80%68.75%1.929.29
Invesco Van Kampen Munpl Oprtnty Tr (VMO)Stock5.13%$0.63-4.40%N/AN/AN/A
Templeton Global Income Fund (GIM)ETF6.86%$0.42N/AN/AN/AN/A
VictoryShares US 500 Enhanced Volatility Wtd ETF (CFO)ETF1.49%$0.7411.70%N/AN/AN/A
VictoryShares US 500 Volatility Wtd ETF (CFA)ETF1.39%$0.7412.00%N/AN/AN/A
Invesco Value Municipal Income Trust (IIM)Stock4.75%$0.71-1.80%N/AN/AN/A
Gladstone Commercial (GOOD)Stock6.39%$1.50N/A94.34%1.5914.77
Invesco Trust for Investment GradeMncpls (VGM)Stock4.88%$0.62-5.40%N/AN/AN/A
First Trust Multi-Asset Diversified Income Index Fund (MDIV)ETF6.09%$1.13-5.60%N/AN/AN/A
Invesco Municipal Trust (VKQ)Stock5.12%$0.63-3.80%N/AN/AN/A
Blackrock Muniyield Fund (MYD)ETF4.96%$0.71-4.30%N/AN/AN/A
Horizons Nasdaq-100 Covered Call ETF (QYLD)ETF10.67%$2.454.00%N/AN/AN/A
VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC)ETF3.07%$1.437.90%N/AN/AN/A
Sabine Royalty Trust (SBR)Stock6.09%$2.752.60%N/AN/A13.44
Invesco Quality Municipal Income Trust (IQI)Stock5.18%$0.64-1.40%N/AN/AN/A
Invesco California Value Mncpl Incm Trst (VCV)Stock4.72%$0.59-5.30%N/AN/AN/A
Ellington Financial (EFC)Stock9.43%$1.68-12.50%118.31%1.4212.63
Western Asset Managed Municipals Fnd (MMU)Stock5.21%$0.70-2.60%N/AN/AN/A
Whitestone REIT (WSR)Stock8.27%$1.14N/A109.62%1.0411.89
Putnam Premier Income Trust (PPT)Stock7.36%$0.39N/AN/AN/AN/A
Blackrock Muniassets Fund (MUA)ETF4.38%$0.65-1.40%N/AN/AN/A
BlackRock Debt Strategies Fund (DSU)ETF7.65%$0.822.30%N/AN/AN/A
Nuveen Pennsylvania Invsmt Qlty Mncpl Fd (NQP)Stock4.64%$0.64-5.00%N/AN/AN/A
Dreyfus Strategic Muni. (LEO)Stock5.15%$0.42-6.00%N/AN/AN/A
Dreyfus Strategic Municipal Bond Fund (DSM)ETF5.26%$0.42-5.00%N/AN/AN/A
BlackRock MuniYield New York Insured Fnd (MYN)Stock4.02%$0.51-8.20%N/AN/AN/A
BlackRock MuniHolding Insured Investm (MFL)Stock4.85%$0.64-3.40%N/AN/AN/A
Eaton Vance Municipal Income Trust (EVN)Stock4.99%$0.62-8.70%N/AN/AN/A
Blackrock Muniyld California Quty Fd (MCA)Stock4.39%$0.61-5.50%N/AN/AN/A
Blackrock Muniyield Quality Fund (MQY)ETF4.58%$0.67-5.90%N/AN/AN/A
DWS Municipal Income Trust (KTF)Stock4.77%$0.54-6.20%N/AN/AN/A
Pennantpark Floating Rate Capital (PFLT)Stock9.71%$1.140.40%117.53%0.9711.08
Putnam Municipal Opportunities Trust (PMO)Stock4.79%$0.61-8.30%N/AN/AN/A
MFS Intermediate Income Trust (MIN)Stock8.95%$0.34-4.40%N/AN/AN/A
BlackRock MuniHoldings New Jersey Ins Fn (MUJ)Stock4.57%$0.632.40%N/AN/AN/A
Blackrock Muniholdings New York Qulty Fd (MHN)Stock3.95%$0.53-5.80%N/AN/AN/A
Putnam Managed Municipal Income Trust (PMM)Stock4.82%$0.37-5.80%N/AN/AN/A
Blackrock Muniyield Michign Qulty Fd (MIY)Stock4.51%$0.62-0.60%N/AN/AN/A
Gladstone Investment (GAIN)Stock6.58%$0.822.60%107.89%0.7616.18
Western Asset Emerging Mrkts Dbt Fnd (EMD)Stock9.05%$1.2611.70%N/AN/AN/A
Strategic Global Government Fund Inc. Closed-End Fund (RCS)ETF9.55%$0.87-5.50%N/AN/AN/A
Cohen & Steers Total Return Real. Fd (RFI)Stock6.55%$0.96-8.70%N/AN/AN/A
BlackRock Income Trust (BKT)Stock6.86%$0.410.80%N/AN/AN/A
EAGLE POINT CR/COM (ECC)Stock14.92%$2.400.70%142.01%1.6910.12
Invesco Municipal Income Opp Trust (OIA)Stock5.01%$0.394.00%N/AN/AN/A
MFS Multimarket Income Trust (MMT)Stock8.36%$0.493.60%N/AN/AN/A
Dynex Capital (DX)Stock11.79%$1.80-9.50%253.52%0.716.97
VictoryShares US Large Cap High Div Volatility Wtd ETF (CDL)ETF2.96%$1.4346.10%N/AN/AN/A
Invesco KBW Premium Yield Equity REIT ETF (KBWY)ETF6.16%$1.9010.20%N/AN/AN/A
Oxford Lane Capital (OXLC)Stock16.55%$1.62-12.30%99.39%1.63N/A
Orchid Island Capital (ORC)Stock17.05%$0.96-14.10%64.43%1.494.08
Blackrock Munivest Fund II (MVT)ETF5.09%$0.73-2.90%N/AN/AN/A
Highland/iBoxx Senior Loan ETF (SNLN)ETF5.20%$0.913.10%N/AN/AN/A
Global X SuperDividend REIT ETF (SRET)ETF7.97%$1.1822.30%N/AN/AN/A
Invesco Pennsylvania Value Mncpl Incm Tr (VPV)Stock5.26%$0.68-1.20%N/AN/AN/A
Oxford Square Capital (OXSQ)Stock12.70%$0.80N/A117.65%0.689.40
Nuveen California Municipal Value Fund (NCA)ETF3.68%$0.37-7.00%N/AN/AN/A
Blackrock Muniyield Quality Fund II (MQT)ETF4.51%$0.57-7.30%N/AN/AN/A
MFS Municipal Income Trust (MFM)Stock4.91%$0.340.30%N/AN/AN/A
Nuveen Ohio Quality Income Muncpl Fund (NUO)ETF3.75%$0.58-7.70%N/AN/AN/A
Invesco KBW High Dividend Yield Financial ETF (KBWD)ETF8.48%$1.790.20%N/AN/AN/A
Gladstone Capital (GLAD)Stock8.76%$0.84N/A97.67%0.8611.28
Solar Senior Capital (SUNS)Stock8.14%$1.412.90%100.71%1.4012.29
Global Water Resources (GWRS)Stock2.35%$0.29N/A152.63%0.1982.40
BlackRock Inv. Quality Munic. Trust (BKN)Stock4.53%$0.68-6.30%N/AN/AN/A
The Zweig Total Return Fund (ZTR)ETF13.57%$1.4712.60%N/AN/AN/A
Nuveen Select Tax-Free Income Portfolio (NXP)Stock3.75%$0.591.70%N/AN/AN/A
Invesco Van Kmpn Trst for Inv Gr NY Mcps (VTN)Stock4.89%$0.64-2.70%N/AN/AN/A
Stellus Capital Investment (SCM)Stock10.08%$1.36N/A107.09%1.279.50
Gladstone Land (LAND)Stock4.42%$0.534.60%120.45%0.4423.49
WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD)ETF5.67%$1.329.20%N/AN/AN/A
Duff & Phelps Utility & Corp Bond Trust (DUC)Stock4.68%$0.42-11.20%N/AN/AN/A
Nuveen Va Premium Income Municipal Fund (NPV)ETF4.13%$0.57-6.30%N/AN/AN/A
Putnam Master Int. Income (PIM)Stock7.42%$0.34-2.90%N/AN/AN/A
Gold Resource (GORO)Stock0.56%$0.02-45.00%N/AN/AN/A
Permian Basin Royalty Trust (PBT)Stock10.70%$0.5221.30%N/AN/A9.86
Invesco Bond Fund (VBF)ETF4.17%$0.825.20%N/AN/AN/A
Dreyfus High Yield Strategies Fund (DHF)ETF8.82%$0.27-6.80%N/AN/AN/A
Nuveen North Carol Premium Incom Mun Fd (NNC)Stock3.70%$0.49-4.90%N/AN/AN/A
BlackRock MuniYield New Jersey Fund (MYJ)ETF4.91%$0.73-5.60%N/AN/AN/A
New America High Income Fund (HYB)ETF6.86%$0.610.50%N/AN/AN/A
Nuveen Select Tax-Free Incom Portfolio 3 (NXR)Stock3.63%$0.57N/AN/AN/AN/A
Vanguard Total Corporate Bond Fund (VTC)ETF3.42%$2.97N/AN/AN/AN/A
BlackRock MuniYield Investment Fund (MYF)ETF5.41%$0.75-2.70%N/AN/AN/A
First Trust SSI Strategic Convertible Securities ETF (FCVT)ETF1.56%$0.4951.80%N/AN/AN/A
Nuveen Connecticut Premium Income Mun Fd (NTC)Stock4.00%$0.53-7.80%N/AN/AN/A
Franklin Universal Trust (FT)Stock5.04%$0.38-6.80%N/AN/AN/A
BlackRock MuniYield Pennsylvania Insured (MPA)Stock4.56%$0.63-0.40%N/AN/AN/A
Invesco 1-30 Laddered Treasury ETF (PLW)ETF1.99%$0.69-0.20%N/AN/AN/A
Brookfield Glbl Lstd Infrstr Incm Fd (INF)Stock7.34%$0.98-11.20%N/AN/AN/A
iShares GNMA Bond ETF (GNMA)ETF2.72%$1.3624.80%N/AN/AN/A
Blackrock Muniholdings Fund II (MUH)ETF4.97%$0.73-1.00%N/AN/AN/A
Western Asset Municipal Hgh Incm Fnd (MHF)Stock4.10%$0.31-4.10%N/AN/AN/A
Horizon Technology Finance (HRZN)Stock10.09%$1.20-4.60%105.26%1.149.19
Nuveen NY Municipal Value (NNY)Stock3.82%$0.390.20%N/AN/AN/A
Nuveen Arizona Premium Income Mun Fd (NAZ)Stock4.25%$0.56-9.80%N/AN/AN/A
Western Asset Inv Grade Income Fund (PAI)ETF4.47%$0.69N/AN/AN/AN/A
Western Asset Municipal Partners Fnd (MNP)Stock4.64%$0.69-6.30%N/AN/AN/A
DWS Strategic Municipal Income Trust (KSM)Stock5.00%$0.58-8.20%N/AN/AN/A
First Trust Emerging Markets Local Currency Bond ETF (FEMB)ETF5.35%$2.073.80%N/AN/AN/A
MFS High Yield Municipal Trust (CMU)Stock5.27%$0.24-0.40%N/AN/AN/A
Capitala Finance (CPTA)Stock12.12%$1.00-19.00%95.24%1.058.25
Nuveen Massachusetts Pre Income Mun Fd (NMT)Stock3.90%$0.53-5.40%N/AN/AN/A
PCM Fund (PCM)ETF9.47%$1.04-2.90%N/AN/AN/A
iShares ESG 1-5 Year USD Corporate Bond ETF (SUSB)ETF2.85%$0.72N/AN/AN/AN/A
iShares Fallen Angels USD Bond ETF (FALN)ETF5.58%$1.50N/AN/AN/AN/A
Special Opportunities Fund (SPE)ETF4.59%$0.65-18.40%N/AN/AN/A
DTF Tax Free Income (DTF)Stock3.20%$0.44-11.00%N/AN/AN/A
Invesco Van Kampen High Income Trust II (VLT)Stock8.03%$1.16-2.60%N/AN/AN/A
SPDR Dorsey Wright Fixed Income Allocation ETF (DWFI)ETF4.31%$1.00N/AN/AN/AN/A
BlackRock MuniYield Insured Investment (MFT)Stock5.30%$0.69-3.90%N/AN/AN/A
WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS)ETF2.59%$0.946.70%N/AN/AN/A
Nuveen Municipal Income Fund (NMI)ETF4.16%$0.474.00%N/AN/AN/A
VictoryShares Developed Enhanced Volatility Wtd ETF (CIZ)ETF2.96%$0.9413.80%N/AN/AN/A
LMP Corporate Loan Fund Inc. Closed-End Fund (TLI)ETF7.01%$0.67-9.90%N/AN/AN/A
FlexShares Credit-Scored US Corporate Bond Index Fund (SKOR)ETF3.04%$1.5818.60%N/AN/AN/A
VictoryShares International High Div Volatility Wtd ETF (CID)ETF4.93%$1.5963.80%N/AN/AN/A
VictoryShares US Small Cap High Div Volatility Wtd ETF (CSB)ETF3.13%$1.4338.90%N/AN/AN/A
PermRock Royalty Trust (PRT)Stock12.03%$0.84N/A37.84%2.225.45
VictoryShares International Volatility Wtd ETF (CIL)ETF2.86%$1.0889.10%N/AN/AN/A
Great Elm Capital (GECC)Stock11.92%$1.00N/A67.57%1.487.92
First Trust Strategic Income ETF (FDIV)ETF4.26%$2.177.30%N/AN/AN/A
Permianville Royalty Trust (PVL)Stock10.25%$0.25N/AN/AN/A1.63
Pacific Coast Oil Trust (ROYT)Stock14.57%$0.298.00%181.25%0.165.91
First Trust BuyWrite Income ETF (FTHI)ETF4.27%$0.96-1.40%N/AN/AN/A
WisdomTree Interest Rate Hedged U.S. Aggregate Bond Fund (AGZD)ETF2.86%$1.3715.60%N/AN/AN/A
First Trust Municipal High Income ETF (FMHI)ETF3.38%$1.79N/AN/AN/AN/A
VictoryShares US Discovery Enhanced Volatility Wtd ETF (CSF)ETF1.78%$0.6511.10%N/AN/AN/A
Eaton Vance Global Income Builder NextShares (EVGBC)Stock1.23%$1.23N/AN/AN/AN/A
Harvest Capital Credit (HCAP)Stock9.55%$0.96-5.00%100.00%0.9613.15
Cross Timbers Royalty Trust (CRT)Stock9.13%$0.86-1.10%N/AN/A7.91
Nuveen NY Select Tax-Free Income Portfol (NXN)Stock3.80%$0.53-0.10%N/AN/AN/A
iShares ESG USD Corporate Bond ETF (SUSC)ETF3.24%$0.84N/AN/AN/AN/A
High Income Securities Fund (PCF)ETF0.60%$0.0516.80%N/AN/AN/A
VictoryShares Emerging Market Volatility Wtd ETF (CEZ)ETF4.65%$1.18N/AN/AN/AN/A
OFS Credit (OCCI)Stock11.51%$2.00N/AN/AN/AN/A
First Trust California Municipal High Income ETF (FCAL)ETF2.83%$1.50N/AN/AN/AN/A
Invesco DWA Tactical Multi-Asset Income ETF (DWIN)ETF5.76%$1.47N/AN/AN/AN/A
MFS Special Value Trust (MFV)Stock9.47%$0.55-1.00%N/AN/AN/A
WisdomTree Emerging Markets Corporate Bond Fund (EMCB)ETF4.15%$3.03-5.00%N/AN/AN/A
Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI)Stock4.45%$0.41-24.00%N/AN/AN/A
WisdomTree Negative Duration High Yield Bond Fund (HYND)ETF6.01%$1.1310.40%N/AN/AN/A
FlexShares Disciplined Duration MBS Index Fund (MBSD)ETF3.53%$0.8310.60%N/AN/AN/A
U.S. Global Investors (GROW)Stock1.50%$0.03-17.00%N/AN/AN/A
Global X SuperDividend Alternatives ETF (ALTY)ETF7.79%$1.1657.20%N/AN/AN/A
VictoryShares US Small Cap Volatility Wtd (CSA)Stock1.44%$0.6851.10%N/AN/AN/A
WisdomTree Negative Duration U.S. Aggregate Bond Fund (AGND)ETF3.13%$1.2917.20%N/AN/AN/A
Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO)Stock3.48%$0.25-33.40%N/AN/AN/A
Global X MSCI SuperDividend EAFE ETF (EFAS)ETF6.58%$1.04N/AN/AN/AN/A
FlexShares Credit-Scored US Long Corporate Bond Index Fund (LKOR)ETF3.94%$2.20106.60%N/AN/AN/A
Mesa Royalty Trust (MTR)Stock4.10%$0.32-5.50%N/AN/A6.67
iShares iBoxx $ High Yield ex Oil & Gas Corporate Bond ETF (HYXE)ETF5.73%$2.97N/AN/AN/AN/A
Invesco LadderRite 0-5 Year Corporate Bond ETF (LDRI)ETF2.69%$0.6813.10%N/AN/AN/A
First Trust Hedged BuyWrite Income ETF (FTLB)ETF2.96%$0.66-1.90%N/AN/AN/A
X-Links Crude Oil Shares Covered Call ETN (USOI)Stock11.43%$2.28N/AN/AN/AN/A
Calamos Dynamic Convertible & Incm Fd (CCD)Stock9.80%$2.0019.70%N/AN/AN/A
Eaton Vance TABS 5 to 15 Year Laddered Municipal NextShares (EVLMC)Stock0.25%$0.25N/AN/AN/AN/A
JETS Contrarian Opp Index Fund (JCO)ETF5.71%$0.56N/AN/AN/AN/A
BlackRock Global Energy & Resources Trus (BGR)Stock8.53%$0.93-14.60%N/AN/AN/A
Nuveen High Income Nov2021 Trgt Trm Fund (JHB)ETF5.68%$0.56N/AN/AN/AN/A
BlackRock Enhanced Government Fund (EGF)ETF3.81%$0.49-5.10%N/AN/AN/A
Blackrock New York Municipal Bond Trust (BQH)Stock3.71%$0.55-6.60%N/AN/AN/A
BlackRock New York Insured Municipal (BSE)Stock3.61%$0.49-10.10%N/AN/AN/A
Blackrock New York Municipal Incme Tr II (BFY)Stock4.27%$0.59-7.40%N/AN/AN/A
Eaton Vance Risk-Mngd Dvrsfd Eqty Inc Fd (ETJ)Stock9.69%$0.91-3.80%N/AN/AN/A
Blackstone / GSO Strategic Credit Fund (BGB)ETF8.89%$1.320.10%N/AN/AN/A
Blackrock Municipal 2020 Term Trust (BKK)Stock2.52%$0.38-7.90%N/AN/AN/A
Flaherty & Crumrine Dynmc Prf&Inm Fd (DFP)Stock6.94%$1.78-2.40%N/AN/AN/A
Nuveen Real Asset Income and Growth Fund (JRI)ETF7.41%$1.27-4.30%N/AN/AN/A
Nuveen Taxable Municipal Income Fund (NBB)ETF5.69%$1.24-1.30%N/AN/AN/A
First Trust Dynamic Europe Eqty Incm Fd (FDEU)Stock10.56%$1.45128.90%N/AN/AN/A
PIMCO New York Municipal Income Fund III (PNI)ETF4.11%$0.48-8.50%N/AN/AN/A
Blackrock MuniHoldings Insured Fd (MUS)Stock4.85%$0.61-2.70%N/AN/AN/A
Eaton Vance Tax-Managed Buy-Write Income (ETB)Stock8.25%$1.302.90%N/AN/AN/A
Cohen & Steers Ltd DrtnPrfrrd&IncmFndInc (LDP)Stock7.37%$1.87-3.20%N/AN/AN/A
Allianzgi Diversified Incm and Cnvrtb Fd (ACV)Stock8.52%$2.0033.90%N/AN/AN/A
First Trust/Aberdeen Global Opportunity (FAM)Stock8.33%$0.90-8.40%N/AN/AN/A
John Hancock Pref. Income Fund II (HPF)ETF7.41%$1.682.90%N/AN/AN/A
PIMCO Dynamic Income Fund (PDI)ETF8.32%$2.65-20.70%N/AN/AN/A
Lazard Global Total Return & Income Fund (LGI)ETF8.71%$1.3938.40%N/AN/AN/A
Alpine Global Premier Properties Fund (AWP)ETF9.82%$0.60-2.90%N/AN/AN/A
CTR COAST MLP &/COM (CEN)Stock17.15%$1.25N/AN/AN/AN/A
EATON VANCE MUN/SHS (ETX)Stock4.11%$0.853.00%N/A-0.07N/A
First Trust New Opprtnts MLP & Engy Fd (FPL)Stock13.58%$1.26-2.50%N/AN/AN/A
NUVEEN MN QLTY/SHS (NMS)Stock4.75%$0.66-3.80%N/AN/AN/A
PIMCO Income Opportunity Fund (PKO)ETF8.65%$2.28-19.60%N/AN/AN/A
Western Asset Intermediate Muni Fund (SBI)ETF3.87%$0.35-9.10%N/AN/AN/A
Tortoise Power & Energy Infrstrct Fd (TPZ)Stock8.30%$1.50-2.60%N/AN/AN/A
Eaton Vance Tax Managed Buy Write Opport (ETV)Stock9.08%$1.332.90%N/AN/AN/A
Cohen & Steers Infrastructure Fund (UTF)ETF6.84%$1.868.10%N/AN/AN/A
Pioneer Municipal High Income Trust (MHI)Stock5.24%$0.63-11.20%N/AN/AN/A
Ares Dynamic Credit Allocation Fund (ARDC)ETF8.57%$1.29-2.80%N/AN/AN/A
Guggenheim Taxabl Mncpl Mngd Drtn Trst (GBAB)Stock6.41%$1.51-0.20%N/AN/AN/A
Pimco Dynamic Credit and MortggeIncmFund (PCI)ETF8.13%$1.97-7.60%N/AN/AN/A
THL Credit Senior Loan Fund (TSLF)ETF7.84%$1.15-4.90%N/AN/AN/A
John Hancock Tax-Advantage Dvd Incom Fd. (HTD)Stock6.13%$1.6615.70%N/AN/AN/A
Stone Harbor Emerging Mkt Total Incom FD (EDI)Stock15.10%$1.81N/AN/AN/AN/A
PIMCO Global StocksPLUS & Income Fund (PGP)ETF12.56%$1.46-12.20%N/AN/AN/A
Nuveen Intermediate Duration Qlty Mun FD (NIQ)Stock2.98%$0.40-9.90%N/AN/AN/A
Western Asset Municipal D Opp Trust (MTT)Stock4.48%$0.95-1.20%N/AN/AN/A
BlackRock Insured Municipal Income Inves (BAF)Stock4.99%$0.700.40%N/AN/AN/A
Pioneer Municipal High (MAV)Stock5.90%$0.63-14.80%N/AN/AN/A
Nuveen New Jersey Dividend Advantg Mncpl (NXJ)Stock4.59%$0.650.10%N/AN/AN/A
Nuveen Amt-Free Quality Municpl Incm Fnd (NEA)Stock4.59%$0.64-2.80%N/AN/AN/A
Nuveen California Quality Muncpl IncmFnd (NAC)Stock4.70%$0.67-7.30%N/AN/AN/A
John Hancock Preferred Income Fund III (HPS)ETF7.68%$1.472.90%N/AN/AN/A
John Hancock Preferred Income Fund (HPI)ETF7.29%$1.682.90%N/AN/AN/A
Guggenheim Credit Allocation Fund (GGM)ETF10.93%$2.182.90%N/AN/AN/A
Lazard World Dividend & Income Fund (LOR)ETF9.44%$0.891.90%N/AN/AN/A
Nuveen Floating Rate Income Fund (JFR)ETF7.14%$0.693.60%N/AN/AN/A
BlackRock MuniHoldings Fund (MHD)ETF5.30%$0.84-2.50%N/AN/AN/A
Flaherty & Crumrine Total Return Fd (FLC)Stock6.65%$1.43-4.20%N/AN/AN/A
Nuveen Mortgage Opportunity Term Fund (JLS)ETF5.91%$1.367.20%N/AN/AN/A
Cohen & Steers Select Pref & Inc Fd (PSF)Stock7.12%$2.06-5.40%N/AN/AN/A
Blackrock Multi-Sector Income Trust (BIT)Stock8.18%$1.402.90%N/AN/AN/A
First Trust High Income Long/short Fund (FSD)ETF8.42%$1.261.60%N/AN/AN/A
First Trust Intrmdt Drtn Prfrd & Incm Fd (FPF)Stock7.29%$1.71-3.50%N/AN/AN/A
Apollo Tactical Income Fund (AIF)ETF8.25%$1.25-4.10%N/AN/AN/A
Cohen and Steers Global Income Builder (INB)Stock9.09%$0.83-9.60%N/AN/AN/A
Cohen & Strs MLP Inc & Ergy Oprty Fd (MIE)Stock9.97%$0.92-11.20%N/AN/AN/A
Cohen & Steers Clsd-End Optuny Fnd (FOF)Stock7.94%$1.040.10%N/AN/AN/A
Eaton Vance Tax-Managed Global Dive Eq (EXG)Stock10.89%$0.910.70%N/AN/AN/A
Eaton Vance Tax-Managed Global Buy-Write (ETW)Stock11.25%$1.090.70%N/AN/AN/A
Eaton Vance Tax-Advantaged Global Dvd. (ETG)Stock7.44%$1.232.90%N/AN/AN/A
BlackRock Insured Municipal Income Trust (BYM)Stock4.53%$0.62-6.60%N/AN/AN/A
Blackrock Municipal 2030 Trgt Trm Trst (BTT)Stock3.21%$0.75-2.90%N/AN/AN/A
BlackRock Muni Income Investment Trust (BBF)Stock5.39%$0.73-1.60%N/AN/AN/A
Calamos Strategic Total Return Fund (CSQ)ETF7.64%$0.99N/AN/AN/AN/A
Calamos Global Total Return Fund (CGO)ETF9.68%$1.20N/AN/AN/AN/A
First Trust/FIDAC Mortgage Income Fund (FMY)ETF5.25%$0.72-10.10%N/AN/AN/A
Nexpoint Strategic Opportunities Fund (NHF)ETF13.20%$2.40-5.90%N/AN/AN/A
Calamos Global Dynamic Income Fund (CHW)ETF10.63%$0.84N/AN/AN/AN/A
Calamos Convertible & Hi Income Fund (CHY)ETF10.72%$1.20-1.30%N/AN/AN/A
First Trust MLP and Energy Income Fund (FEI)ETF12.39%$1.42-1.10%N/AN/AN/A
Eaton Vance Senior Floating-Rate Trust (EFR)Stock6.61%$0.86-0.20%N/AN/AN/A
Eaton Vance FloatingRate Incme Plus Fund (EFF)ETF6.01%$0.91-12.10%N/AN/AN/A
EATON VANCE SHO/COM (EVG)Stock5.90%$0.78-5.90%N/AN/AN/A
BlackRock Science & Technology Trust (BST)Stock5.50%$1.8013.60%N/AN/AN/A
Rivernorth Opportunities Fund (RIV)ETF14.38%$2.52N/AN/AN/AN/A
BLACKROCK 2022/COM (BGIO)Stock6.36%$0.60N/AN/AN/AN/A
PGIM Global Short Duration Hgh Yd Fd (GHY)Stock6.91%$0.99-11.30%N/AN/AN/A
PGIM High Yield Bond Fund (ISD)ETF6.91%$1.02-10.00%N/AN/AN/A
DE ENHANCED GLB/COM (DEX)Stock12.44%$1.2314.60%N/AN/AN/A
Blackrock Health Sciences Trust (BME)Stock6.30%$2.403.70%N/AN/AN/A
Eagle Growth & Income Opportunities Fund (EGIF)ETF5.56%$0.8818.40%N/AN/AN/A
Virtus Global Multi-Sector Income Fund (VGI)ETF11.91%$1.511.80%N/AN/AN/A
BlackRock Core Bond Trust (BHK)Stock5.54%$0.78-1.70%N/AN/AN/A
Tekla World Healthcare Fund (THW)ETF10.36%$1.4044.20%N/AN/AN/A
Voya International High Div Eqt Incm Fd (IID)Stock10.93%$0.62-9.00%N/AN/AN/A
Principal Real Estate Income Fund (PGZ)ETF6.57%$1.32-8.70%N/AN/AN/A
Tekla Healthcare Opportunities Fund (THQ)ETF7.67%$1.352.90%N/AN/AN/A
Voya Global Equity Div & Prm Oppty Fund (IGD)ETF11.50%$0.73-7.10%N/AN/AN/A
Ivy High Income Opportunities Fund (IVH)ETF8.73%$1.20-7.20%N/AN/AN/A
Blackrock Muni Intermediate Drtn Fnd (MUI)Stock3.80%$0.53-7.40%N/AN/AN/A
Alpine Global Dynamic Dividend Fund (AGD)ETF8.00%$0.78-2.70%N/AN/AN/A
Western Asset High Yield Dfnd Opp FI (HYI)Stock6.95%$1.06-6.90%N/AN/AN/A
Western Asset Vrble Rate Strtgc Fnd (GFY)Stock5.68%$0.931.50%N/AN/AN/A
Western Asset Global Corp Defind Opp Fnd (GDO)Stock7.01%$1.21-2.60%N/AN/AN/A
Western Asset Global High Income Fnd (EHI)Stock7.37%$0.73-13.90%N/AN/AN/A
Templeton Emerging Markets Income Fund (TEI)ETF9.50%$0.862.80%N/AN/AN/A
Nuveen Global High Income Fund (JGH)ETF8.27%$1.28-2.20%N/AN/AN/A
Nuveen New York Municipal Value Fund 2 (NYV)ETF3.56%$0.51-4.10%N/AN/AN/A
Nuveen Amt-Free Municipal Value Fund (NUW)ETF4.12%$0.673.30%N/AN/AN/A
Nuveen Pennsylvania Municipal Value Fund (NPN)ETF3.70%$0.522.50%N/AN/AN/A
Nuveen New Jersey Municipal Value Fund (NJV)ETF4.05%$0.545.80%N/AN/AN/A
NUVEEN MUN 2021/COM (NHA)Stock2.05%$0.20N/AN/AN/AN/A
Nuveen California Municipal Value Fund 2 (NCB)ETF3.91%$0.65-11.90%N/AN/AN/A
Stone Harbor Emerging Markets Income Fnd (EDF)Stock16.22%$2.16N/AN/AN/AN/A
Flaherty&Crumrine Prfrd Scts Incm Fd (FFC)Stock6.86%$1.37-5.60%N/AN/AN/A
Western Asset High Income Fund II (HIX)ETF8.20%$0.55-12.90%N/AN/AN/A
Pioneer High Income Trust (PHT)Stock8.43%$0.78-17.80%N/AN/AN/A
BlackRock Enhanced Dividend Achievers Tr (BDJ)Stock6.10%$0.56N/AN/AN/AN/A
Blackrock Utlts Infra&Pwr Oprtnt Trst (BUI)Stock5.99%$1.45N/AN/AN/AN/A
Pimco Municipal Income Fund II (PML)ETF5.21%$0.78N/AN/AN/AN/A
Cushing Energy Income Cf (SRF)Stock7.52%$0.48-42.10%N/AN/AN/A
Cushing MLP Total Return Fund (SRV)ETF10.69%$1.08-2.70%N/AN/AN/A
BlackRock Enhanced Capital and Income Fd (CII)Stock6.14%$0.99-6.10%N/AN/AN/A
Pimco Municipal Income Fund III (PMX)ETF5.64%$0.671.40%N/AN/AN/A
Cohen & Steers Quality Income Realty (RQI)Stock6.23%$0.96N/AN/AN/AN/A
Kayne Anderson Midstream Energy Fd (KMF)Stock10.90%$1.20-13.60%N/AN/AN/A
Kayne Anderson MLP Midstream Invstmnt (KYN)Stock12.12%$1.80-9.50%N/AN/AN/A
BlackRock Muni New York Intr. Dur. Fnd. (MNE)Stock3.29%$0.48-4.50%N/AN/AN/A
BlackRock Floating Rate Income Trust (BGT)Stock6.05%$0.740.80%N/AN/AN/A
Pimco Income Strategy Fund II (PFN)ETF9.26%$0.96-4.90%N/AN/AN/A
Cohen & Steers Reit & Pfd Icm Fd (RNP)Stock6.32%$1.490.20%N/AN/AN/A
Western Asset Premier Bond Fund (WEA)ETF5.59%$0.78-10.10%N/AN/AN/A
BlackRock Ltd. Duration Income Trust (BLW)Stock6.13%$0.95-3.70%N/AN/AN/A
Nuveen Enhanced Municipal Value Fund (NEV)ETF5.24%$0.74-5.70%N/AN/AN/A
Nuveen Intermediate Duration Munpl Tm Fd (NID)Stock3.83%$0.51-4.90%N/AN/AN/A
Nuveen Mortgage Opportunity Term Fund 2 (JMT)ETF6.06%$1.358.00%N/AN/AN/A
BlackRock Resources and Commodities (BCX)Stock8.05%$0.62-8.50%N/AN/AN/A
Doubleline Opportunistic Credit Fund (DBL)ETF9.70%$2.00-1.00%N/AN/AN/A
Gabelli Utility Trust (GUT)Stock8.43%$0.60N/AN/AN/AN/A
MFS Charter Income Trust (MCR)Stock8.43%$0.703.80%N/AN/AN/A
Guggenheim Strategic Opportunities Fund (GOF)ETF11.24%$2.192.90%N/AN/AN/A
Blackrock Coporate High Yield Fund (HYT)ETF8.10%$0.862.90%N/AN/AN/A
KKR Income Opportunities Fund (KIO)ETF9.70%$1.50N/AN/AN/AN/A
Nuveen AMT-Free Municipal Credit Income (NVG)Stock4.96%$0.796.00%N/AN/AN/A
Advent Claymore Convertible Sec & Inc Fd (AVK)Stock9.70%$1.4110.80%N/AN/AN/A
Blackrock Enhanced Internationl Dvdnd Tr (BGY)Stock8.38%$0.46-9.00%N/AN/AN/A
BlackRock Enhanced Global Dividend Trust (BOE)Stock7.32%$0.76-10.10%N/AN/AN/A
Eaton Vance Tax Managed Diversified Eq. (ETY)Stock8.31%$1.012.90%N/AN/AN/A
Mainstay Definedterm Municipal Opptys Fd (MMD)Stock4.96%$1.02-3.70%N/AN/AN/A
Allianzgi Convertible & Income Fund (NCV)ETF13.88%$0.78-8.10%N/AN/AN/A
Pimco CA Muni. Income Fund II (PCK)ETF4.46%$0.42-12.50%N/AN/AN/A
Western Asset Inflation-Linked Income Fd (WIA)Stock3.59%$0.415.60%N/AN/AN/A
Western Asst Inflatn Lkd Opts & Inc Fd (WIW)Stock3.87%$0.435.40%N/AN/AN/A
AllianceBernstein Natnl Muncpl Incm Fnd. (AFB)Stock4.10%$0.55-11.80%N/AN/AN/A
Blackrock Municipal Income Trust (BFK)Stock5.16%$0.70-4.70%N/AN/AN/A
Blackrock Strategic Municipal Trust Fund (BSD)ETF4.71%$0.68-3.60%N/AN/AN/A
BlackRock LT Municipal Advantage Trust (BTA)Stock5.24%$0.650.60%N/AN/AN/A
Nuveen Preferred & Income Oprtnts Fnd (JPC)Stock7.34%$0.731.20%N/AN/AN/A
Nuveen Preferred & Income Securities Fnd (JPS)Stock6.86%$0.673.20%N/AN/AN/A
Blackrock MuniEnhanced Fund (MEN)ETF5.26%$0.58-4.40%N/AN/AN/A
Eaton V.Tax-Advantaged Dividend Inc Fund (EVT)ETF7.07%$1.747.00%N/AN/AN/A
Nuveen Short Duration Credit Opp Fund (JSD)ETF8.02%$1.214.30%N/AN/AN/A
Nuveen Municipal High Income Oppty Fund (NMZ)ETF5.25%$0.72-5.00%N/AN/AN/A
BlackRock Municipal Bond Trust (BBK)Stock5.02%$0.76-2.30%N/AN/AN/A
BlackRock Floating Rate Income SFI (FRA)Stock6.11%$0.771.10%N/AN/AN/A
Nuveen Floating Rate Income Opportnty Fd (JRO)Stock7.27%$0.702.30%N/AN/AN/A
Nuveen Senior Income Fund (NSL)ETF6.98%$0.404.00%N/AN/AN/A
Pimco CA Municipal Income Fund (PCQ)ETF4.77%$0.92N/AN/AN/AN/A
Pimco Municipal Income Fund (PMF)ETF5.04%$0.72-9.80%N/AN/AN/A
Gamco Natural Resources Gold & Incm Trst (GNT)Stock10.27%$0.60-10.60%N/AN/AN/A
Nuveen Credit Strategies Income Fund (JQC)ETF5.84%$0.44-3.50%N/AN/AN/A
Nuveen Dividend Advantage Municipal Fund (NAD)ETF4.90%$0.69-5.40%N/AN/AN/A
Nuveen Enhanced Municipal Crdt Opptys Fd (NZF)Stock5.10%$0.794.30%N/AN/AN/A
Flaherty & Crumrine Pref. Income Fd (PFD)Stock6.25%$0.94-4.50%N/AN/AN/A
Pimco CA Muni. Income Fund III (PZC)ETF5.10%$0.54-9.10%N/AN/AN/A
Blackrock Credit Allocation Income Trust (BTZ)Stock5.92%$0.80-3.20%N/AN/AN/A
Pimco Income Strategy Fund (PFL)ETF9.50%$1.08-4.00%N/AN/AN/A
Blackrock Taxable Municipal Bond Trust (BBN)Stock5.95%$1.431.20%N/AN/AN/A
Pimco Corporate & Income Strategy Fund (PCN)ETF7.61%$1.35-7.40%N/AN/AN/A
Barings Global Short Duratin Hgh Yld Fnd (BGH)Stock10.08%$1.78-8.30%N/AN/AN/A
DoubleLine Income Solutions Fund (DSL)ETF9.05%$1.80N/AN/AN/AN/A
Nuveen New York AMT-Fr Qty Mnpl Incm Fd (NRK)Stock4.13%$0.54-6.00%N/AN/AN/A
Nuveen New York Dividend Advntg Mncpl Fd (NAN)Stock4.23%$0.58-6.50%N/AN/AN/A
Blackrock New York Municipal Income Trst (BNY)Stock3.95%$0.53-9.10%N/AN/AN/A
Blackrock Muniholdings Insured Fund II (MUE)ETF5.22%$0.65-4.20%N/AN/AN/A
Aberdeen Total Dynamic Dividend Fund (AOD)ETF8.24%$0.69-2.70%N/AN/AN/A
First Trust Senior Fltng Rate Incm Fd II (FCT)Stock6.07%$0.72-6.50%N/AN/AN/A
The Gabelli Dividend & Income Trust (GDV)Stock6.11%$1.322.10%N/AN/AN/A
Western Asst High Incm Opprtnty Fnd (HIO)Stock6.30%$0.32-9.10%N/AN/AN/A
CBRE Clarion Global Real Estate Incm Fd (IGR)Stock7.87%$0.601.70%N/AN/AN/A
Invesco Dynamic Credit Opportunities Fd (VTA)Stock6.80%$0.753.30%N/AN/AN/A
Western Asset Mrtg Defined Oppn Fund (DMO)ETF10.27%$2.28-10.10%N/AN/AN/A
Eaton Vance Tax-Advantaged Global Divide (ETO)Stock8.58%$2.16-9.90%N/AN/AN/A
Nuveen Georgia Dividend Advntg Mncpl Fd2 (NKG)Stock3.75%$0.46-8.80%N/AN/AN/A
Allianzgi Convertible & Income Fund II (NCZ)ETF13.66%$0.69-9.70%N/AN/AN/A
Pioneer Floating Rate Trust (PHD)Stock6.82%$0.720.90%N/AN/AN/A
Invesco Senior Income Trust (VVR)Stock5.49%$0.23-4.10%N/AN/AN/A
Blackstone/GSO Senior Fltg Rt Term Fund (BSL)ETF6.96%$1.162.80%N/AN/AN/A
Voya Prime Rate Trust (PPR)Stock5.97%$0.28-5.10%N/AN/AN/A
Aberdeen Income Credit Strategies Fund (ACP)ETF11.54%$1.44-8.10%N/AN/AN/A
1ST TR ENERGY I/SH (FIF)Stock8.22%$1.32-7.40%N/AN/AN/A
Apollo Senior Floating Rate Fund (AFT)ETF7.75%$1.15-0.50%N/AN/AN/A
Eaton Vance Floating-Rate Income Trust (EFT)Stock6.27%$0.83-0.20%N/AN/AN/A
Last Updated: Sunday, 09:58 PM ET

Monthly Dividend Stocks Can Provide Solid Income

Investors who want income and reasonable growth are attracted to dividend stocks. Companies that issue dividends are not the high flying growth stocks that aggressive investors love. However, because they are slow, steady performers, the stock price of these companies is not as affected by volatile markets. For that reason dividend stocks give shareholders a dividend as a reward for owning their stock.

Many companies pay dividends on a quarterly or annual basis. However, a select group of companies pays out monthly dividends. For income investors, the ability to have a predictable source of income provides peace of mind. Monthly dividend payments can help them supplement their retirement income without having to dip into the principal of their investments. Even investors who do not need the benefit of regular income can benefit from re-investing the monthly dividends to buy additional shares.

Some of the most popular monthly dividend-paying stocks are real estate investment trusts (REITs) and business development corporations (BDCs). These stocks are required to return at least 90% of their profit to investors as a dividend. Many of these companies generate revenue by collecting rent. This is why they have the necessary cash flow to sustain a monthly dividend.

Like all investments, investors should due their due diligence before investing in a monthly dividend stock. A company’s dividend yield is important, but the yield is tied to a company’s stock price. Stock prices and yields move in opposite directions. Therefore one company may report a higher yield than another company but pay less of a dividend. It is also important to look at a company's track record of paying the dividend and whether they are increasing or decreasing the payout.


Many fixed-income investors rely on regular income from their investments to help pay the bills. However, dividends that pay at quarterly intervals, and bonds that pay out semi-annually, may leave gaps. These gaps can lead investors to dip into the principal of their retirement fund. Aside from creating elaborate dividend calendars, one way these investors can help mitigate avoid these gaps is by having a portion of their dividend investments in stocks that pay monthly dividends. In this article, we’ll review what a dividend is and why companies offer them. We'll also explain why a company may issue a monthly as opposed to a quarterly or annual dividend and give an example of why investors need to pay attention to more than a company’s announced dividend yield.

What are dividends?

Dividends are payments that a company makes to its shareholders. These payments come out of a company’s profit. On a balance sheet, dividends are recorded as current liabilities. An investor can re-invest their dividend payment to buy additional shares of the company’s stock. They can also receive the money directly into their bank account. This ability to receive regular income is the primary reason dividend stocks are appealing to income-oriented investors. The majority of companies pay out dividends quarterly. However, several companies pay dividends monthly.

Why do companies pay dividends?

The simple answer is because they can afford it. As stated above, a dividend is paid out of a company’s profit before it makes it to the bottom line as retained earnings. A company can reward shareholders in two ways through stock price appreciation (i.e. capital growth) or by issuing a dividend. To pay a dividend, a company needs to be able to have the cash flow needed to support the dividend.

A young, fast-growing company will typically reinvest profit into their business because shareholders expect aggressive growth and are willing to assume the heightened risk that comes with that growth. Companies that are into the mature phase of their business cycle may not be able to deliver the same return for their shareholders by reinvesting their profit into the business. For this reason, they decide to take a portion of their profits and directly pay shareholders as a dividend. This does not mean they won’t undertake capital investments or take on debt. It just means that their primary objective is stability, not aggressive growth.

Dividend-paying companies are commonly in defensive sectors like utilities and health care. Companies that manufacture consumer staples also fall into this category. Defensive stocks tend to hold their value in any economy. For example, individuals get sick in any economy so pharmaceutical stocks tend to be impervious to recessions. In the same way, consumers still need to pay for electricity, water, and natural gas so these stocks fall into the defensive category.

Why do companies issue monthly dividends?

A company that issues a monthly dividend can sustain the cash flow needed to support a monthly dividend. Two special kinds of dividend stocks that are more likely to issue monthly dividends are real estate investment trusts (REITs) and business development companies (BDCs). Companies in these two sectors are required to pay out at least 90% of their taxable income as dividends. Because a high percentage of their revenue comes in the form of monthly rental income, they have a cash flow that allows them to pay their dividends monthly.

Look for more than dividend yield when considering a monthly dividend stock.

One of the most common metrics that investors use when comparing the dividend of one company to another is the dividend yield. A dividend yield is a ratio that expresses the company’s annual dividend compared to its share price as a percentage. The calculation for dividend yield is:

Annual dividend/Share price

To calculate dividend yield, let’s look at this example:

  • Company A announces a $1.75 per share annual dividend. The stock costs $45 per share.
  • Company B announces a $2 per share annual dividend. Their stock also costs $50 per share.

To calculate the yield, you would simply divide the announced per share annual dividend by the share price.

  • For company A, that would be 1.75/40 = 0.043 (4.3%)
  • For company B, that would be 2/50 = 0.04 (4%)

Simply put, investing $10,000 in Company A would produce $752.50 of annual dividend income or $62.70 of monthly dividend income if they pay monthly. That same $10,000 in Company B would produce $800 in annual dividend income or around $66.66 of monthly dividend income. Assuming all other fundamentals were the same, income-oriented investors would prefer to invest in Company B because of the slightly higher payout despite Company A has a higher yield.

This would hold as long as the two companies maintained their current dividend. If Company A in the next month, increases its dividend to $2 and it's stock price stays the same, their monthly payout would rise to $71.66 which would make their stock more attractive.

A more useful measurement for investors is the dividend payout ratio. The dividend payout ratio, which is also known as simply the payout ratio, tells investors how much profit a company is returning to shareholders as a dividend. The formula for the dividend payout ratio is as follows:

  • Dividend Payout Ratio = Dividends Paid/Net Income

What caution should investors take when investing in monthly dividend stocks?

Many companies issue monthly dividends to maximize shareholder value. However, like any investment, investing in monthly dividend stocks contains risks. Many of these risks can be anticipated if an investor does their due diligence of a company's business. Of course, investors need to look at a company’s history of paying monthly dividends. But past dividend performance does not mean that a company can sustain its monthly dividend. To get a sense of this, investors should look at a company's financial statements including their balance sheet, income statement, cash flow statement and key performance and profitability ratios. These documents will provide information on how much cash a business is generating and how that cash is being deployed.

In addition to making sure that a company has a reliable history of paying dividends, investors need to be aware of any cuts in monthly dividends. Although a company may have many reasons for cutting its dividend, it may mean that the company's performance is slowing to a point where a monthly dividend may eventually become unsustainable. Sometimes, the company may simply need to change to a quarterly or annual dividend schedule. However, in the worst-case scenario, the company may decide to stop issuing a dividend altogether.

The final word on the income potential of monthly dividend stocks

Monthly dividend stocks provide a service to income investors. This is particularly true for retired investors who need to preserve as much of their principal as possible. With life expectancies increasing, investors need to plan to have their retirement savings last longer than they may originally have expected.

Most income investments, such as bonds do not provide a regular source of income. Bonds will typically make semi-annual payments despite no longer being based on paper coupons as they did in the past. Many stocks pay dividends quarterly, but that is not always helpful to deal with recurring monthly medical expenses and other regular bills. This is where monthly dividend stocks can come in handy.

While investors should not commit the entire income side of their portfolio to monthly dividend stocks, having a reliable stable of these steady performers can help ensure a predictable source of income when bonds and other dividend stocks are not paying out.

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