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Investing in regular stocks is an excellent strategy for an investor trying to capitalize on long-term growth in an organization, while dividend stocks also provide a daily source of money flow. This money flow might be used to support your cost of living in retirement or to reinvest into your portfolio. This text will highlight a few of the perfect monthly dividend stocks to capitalize on each long-term appreciation and short-term money flow

AGNC Investment Corp. (AGNC)

• Current Price: $9.81
• 12-Month High: $16.03
• 12-Month Low: $7.30
• 1-12 months Goal: $8.98
• Market Capitalization: $5.608 billion

AGNC Investment Corp. is an actual estate investment trust or REIT. Many high dividend stocks are REITs. In exchange for distributing 90% of their taxable to investors, REITs earn certain tax advantages. Because they’re required to pay dividends, REITs are a dependable and reliable source of money flow.

AGNC buys mortgage-related securities guaranteed by government-sponsored enterprises like Fannie Mae. Government backing makes these securities less riskier than other varieties of financing options. AGNC investors profit from a 14.37% dividend yield which pays $0.12 per share every month.

>>Related: The best way to Spend money on Dividend Stocks

Broadmark Realty Capital Inc. (BRMK)

• Current Price: $4.065
• 12-Month High: $9.85
• 12-Month Low: $4.06
• 1-12 months Goal: $5.00
• Market Capitalization: $540.328 million

Broadmark Realty Capital Inc. is an actual estate financing company that works with real estate investors and developers. They use real estate as collateral to deploy capital to developers and investors working on residential and industrial renovation and development projects. So far, they’ve invested $4 billion in greater than 2,000 real estate transactions across 30 states. Broadmark has a 20.19% dividend yield which pays out $0.07 per share every month.

Ellington Financial Inc. (EFC)

• Current Price: $13.82
• 12-Month High: $18.13
• 12-Month Low: $10.81
• 1-12 months Goal: $15.16
• Market Capitalization: $834.055 million

Ellington Financial Inc. is one other mortgage REIT that invests in residential and industrial loans and securities. These include quite a lot of investments starting from collateralized loans to mortgage-backed securities. They’ve $10.3 billion assets under management. Ellington has a 12.82% dividend yield and pays $0.15 per share per 30 days.

Prospect Capital Corp. (PSEC)

• Current Price: $7.66
• 12-Month High: $8.95
• 12-Month Low: $6.09
• 1-12 months Goal: $6.00
• Market Capitalization: $3.044 billion

Prospect Capital Corp. is a business development company that gives capital to middle market businesses. They’ve invested in assets totaling $7.7 billion with $3.8 billion in declared dividends. Prospect Capital has a 9.21% dividend yield which pays $0.06 per share every month.

>>Related: The best way to Receive a Regular Income with Dividends

EPR Properties (EPR)

• Current Price: $40.29
• 12-Month High: $56.38
• 12-Month Low: $34.58
• 1-12 months Goal: $47.38
• Market Capitalization: $3.023 billion

EPR Properties is an experiential REIT. They spend money on long-term leases at properties like movie theaters, museums, and ski resorts. Triple-net leases mean the tenants are liable for property upkeep reasonably than EPR. As an alternative of paying for things like real estate taxes, insurance, and constructing maintenance, EPR passes it onto the tenant and the fee savings onto the investor. So far, EPR has made $6.6 billion in investments across 356 different properties. EPR has an 8.01% dividend yield that pays $0.275 per share per 30 days.

LTC Properties Inc. (LTC)

• Current Price: $38.04
• 12-Month High: $45.49
• 12-Month Low: $31.36
• 1-12 months Goal: $40.25
• Market Capitalization: $1.541 billion

LTC Properties is a REIT that funds senior housing and healthcare properties. Roughly 50% of LTC’s portfolio is senior housing while the opposite 50% is expert nursing facilities. They supply investments through sale-leasebacks, mortgages, construction, and joint ventures. LTC has a 5.9% dividend yield and pays a dividend of $0.19 per share every month.

Agree Realty Corp. (ADC)

• Current Price: $68.43
• 12-Month High: $80.44
• 12-Month Low: $61.62
• 1-12 months Goal: $75.97
• Market Capitalization: $6.085 billion

Agree Realty Corp. is a REIT that focuses on essential retail properties comparable to grocery stores, big box retailers, home improvement stores, and drug stores. These properties are secured with triple-net leases. Agree Realty operates 1,707 properties across the US. They increased their monthly dividend payment in October 2022. In 2021 Agree switched from quarterly dividend payments to monthly. They now pay $0.24 per share every month, up from $0.234 per share paid out earlier in 2022. Their dividend yield is currently at 4.21%.

Gladstone Business Corporation (GOOD)

• Current Price: $18.38
• 12-Month High: $26.13
• 12-Month Low: $15.02
• 1-12 months Goal: $19.50
• Market Capitalization: $740.918 million

Gladstone Business Corporation is a REIT that invests in single-tenant or multi-tenant net leased industrial and office properties. With net leased properties a number of the property fees – like real estate taxes – are passed onto the tenants. Gladstone’s investment strategy prioritizes properties in good locations with strong underlying land value. They currently operate in 27 states. Gladstone pays out a monthly dividend of $0.1254 per share and has a yield of 8.004%.

Pembina Pipeline Corporation (PBA)

• Current Price: $35.22
• 12-Month High: $42.74
• 12-Month Low: $28.89
• 1-12 months Goal: $38.12
• Market Capitalization: $19.546 billion

Pembina Pipeline Corporation is a Canadian energy transportation and midstream provider. They own pipelines and facilities that process oil and natural gas for distribution across North America. Pembina pays a monthly dividend of $0.2175 CAD per share and has a yield rate of 5.51%.

Other Ways to Spend money on High Dividend Stocks

As an alternative of investing in individual high dividend stocks, you possibly can spend money on a dividend exchange-traded fund – or ETF – just like the Vanguard Real Estate Index Fund ETF (VNQ). This ETF consists of plenty of REITs across quite a lot of sectors including residential, healthcare, industrial, and hotels and resorts.

Once you buy a share of an ETF you’re buying right into a basket of various REITs. These ETFs typically pay a quarterly dividend that could be even higher than investing in a person REIT. There may be a trade-off though: REIT ETFs come fees. VNQ, for instance, has an expense ratio of 0.12%.

Bonds may also be a high dividend yield investment option. Similarly, you possibly can spend money on a bond ETF. The Vanguard Total Bond Market ETF (BND) pays a monthly dividend of about $0.16 per share with an expense ratio of 0.03%. In case you prefer mutual funds, there may be an equivalent mutual fund for bonds as well.

Should You Spend money on Monthly Dividend Stocks?

Dividend stocks are an awesome way for investors to generate passive income. REITs particularly are good passive income generators because they’re required to pay out a portion of their revenue to investors. Most of those payments are made in the shape of monthly dividends that might be reinvested to grow your portfolio faster than other varieties of dividend stocks.

One downside to investing in monthly dividend stocks is that the stocks with the very best dividends are inclined to be concentrated in real estate. Because of growth in e-commerce and distant working, a shift in industrial real estate is currently underway. While this hasn’t led to a decrease in dividends posted by lots of the REITs listed above, that might change within the near future.

Other assets, like energy infrastructure, are also in danger due to shifting consumer and regulatory expectations around fossil fuels. A move toward a low-carbon economy could end in assets being stranded. While REITs are good for generating monthly income, their long-term viability in certain sectors of the economy is uncertain.

>>Related: Dividend Aristocrats List

Bottom Line

Stocks that pay high dividends are an excellent passive income generator. These stocks put your money to work and show you how to recuperate your return on investment much quicker than regular equity stocks. The dividends you earn might be used to reinvest or to fund your cost of living.

One of the best place to search out high dividend paying stocks is REITs. These are real estate firms which are required to pay dividends to their investors. This implies even when the economy takes a downturn you possibly can still expect to still generate income from these stocks.