Monthly dividend stocks are those securities that pay a dividend every month. The majority of US dividend-paying stocks will pay quarterly or annually, but some companies or funds have chosen to have a more frequent payout schedule, and these are good income-producing stocks for those that need a constant cash flow from their investments.
More frequent dividend payouts result in a smoother income stream, and investors are able to get some of their investment capital out of a stock without having to sell. We found 49 securities that are paying a monthly dividend.
We have included a list of all 49, and we will highlight some of the best of the bunch; many on the list of highest yield dividend stocks have dividend yields of 10%+, and the best monthly dividend stock has a dividend yield of around 19%.
Also check out our top Canadian monthly paying dividend stocks.
List of US Stocks With Monthly Dividend-Payouts
Here is the list of all the current US stocks that are paying a monthly dividend.
List of The Top 10 US Monthly Dividend Stocks by Yield
The list above has a range of dividend yield from a 0% up to over 19%.
Here is our list of the Best, Highest Yield Stocks; these are the top 10 highest yield monthly dividend-paying stocks.
You can see that the top ten yield list is made up of three sectors; Real Estate, Financial Services, and Energy. Next we will go into a bit of depth for each of the top five.
The Best of the Best Monthly Dividend Yield Stocks
Here are the top five monthly dividend stocks ordered by the yield from excellent to best.
#5 San Juan Basin Royalty Trust (SJT)
- Ticker: SJT
- Dividend Yield: 12.2%
SJT is a trust indenture between Southland Royalty and The Fort Worth National Bank. Southland Royalty conveyed a 75% net royalty interest to the Trust created from Southland Royalty’s oil and gas leasehold and its royalty interest in the San Juan Basin of northwestern New Mexico. Shareholders receive a share of the proceeds from the Trust’s holdings.
Their current price for SJT is $9.82, with a 12.2% dividend yield.
#4 Ellington Financial Inc. (EFC)
- Ticker: EFC
- Dividend Yield: 12.3%
EFC is in the financial services industry but has money in the real estate loan sector. They have an objective to generate risk-adjusted total returns for stockholders through investments in a diverse array of assets which includes residential and commercial mortgages and mortgage-backed securities, consumer loans, and securities that are backed by consumer loans, collateralized loan obligations, mortgage, and non-mortgage-related derivatives, and strategic debt and equity investments in loan origination companies.
Their current price sits at $14.67 and have a dividend yield of 12.3%
#3 Ellington Residential Mortgage REIT (EARN)
- Ticker: EARN
- Dividend Yield: 15.36%
EARN is a residential mortgage Real Estate Investment Trust (REIT) that is headquartered in Old Greenwich, Connecticut. EARN is in the small-cap category with a market capitalization of about $135 million. EARN attains, invests in, and manages several real estate assets. The majority of Ellington’s investments focus in on residential mortgage-backed securities and, more specifically, securities that are backed by a U.S. Governmental agency or a U.S. government-sponsored enterprise.
The REIT is externally managed by the Ellington Residential Mortgage Management LLC. EARN currently has a price of $7.81, a dividend yield of 15.36%, and there is an expected five-year annualized return of 14.7%.
#2 ARMOUR Residential REIT Inc (ARR)
- Ticker: ARR
- Dividend Yield: 16.23%
Our second best dividend yield performer is Armour Residential, another REIT that was created in 2008. Similar to Ellington, Armour’s Trust primarily invests in residential mortgage-backed securities again backed by or issued by the United States government agency or government-sponsored enterprises such as Fannie Mae, Freddie Mac, or Ginnie Mae.
Armour’s most recent quarter (Q1 2022) results showed that the Trust’s net interest income reached $30.9 million, with liquidity, which includes cash and unencumbered securities, totaling $628 million, and a book value of $8.48/ common share to end the quarter. This means that the first quarter’s distributable earnings per share (EPS) was $0.28 and its debt to equity ratio stood at 6.3 to 1, and its leverage, including its TBA securities, finished the quarter at 7.0 to 1.
The current price of Armour Residential (at writing) is $7.395 per share with an annual dividend of 16.23%. Armour also has a five year expected yearly return of 13.7%
#1 Orchid Island Capital (ORC)
- Ticker: ORC
- Dividend Yield: 19.58%
Our stock with the best monthly dividend payout is ORC. ORC is also a REIT, but it is solely in the mortgage industry. Traditional REITs own a real estate portfolio leased to tenants, while mortgage REITs do not own property and are purely financial, investing in residential mortgage-backed securities (RMBS) that create cash flow from residential loans. Though it recently cut its dividend, ORC still tops the list for the highest yield and has a small amount of growth.
The current price for a share of ORC is $2.86, and it has a class-leading dividend yield of 19.58%, and Orchid has an expected five-year annual return of 21.1%
Summary and Thoughts
All of the top five look like they will be winners over the next few years, and stocks with monthly dividend payouts allow you to get some of your money out of an investment before having to sell that stock.
For anyone who wants a regular payout, these high-yield dividend-paying stocks can be extraordinary. Just remember, like, with any investment, markets can change quickly.
Many of these stocks are in the Real Estate Sector or they are in real estate-related finance, which means that a change in lending rates and the Real Estate market can have a significant effect on their business.
So pay attention to where the markets are moving and make changes accordingly.