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One of the most powerful ways to build income-producing wealth is by owning assets that pay monthly dividends. Unlike traditional quarterly payers, monthly dividend stocks and ETFs deliver cash flow every month and feels a lot more like a paycheck and can greatly aid in budgeting, reinvesting, or simply enjoying reliable passive income. 

But not all monthly payers are the same. Some sporting eye-popping yields are riskier than they seem, others blend solid business models with sustainability. In this guide, we break down 8 high-yielding monthly dividend stocks worth considering alongside 4 ETFs that combine income with relative stability.  

 

What Are Monthly Dividend Stocks? 

A monthly dividend stock pays dividends every month instead of quarterly or semi-annually. Most dividend payers including many blue-chips historically distribute income quarterly, so monthly payers are relatively rare and often found in certain sectors such as REITs (Real Estate Investment Trusts), BDCs (Business Development Companies), and sometimes MLPs (Master Limited Partnerships) or other income-focused entities. 

That said, monthly payouts often come with trade-offs: some companies expose investors to higher leverage, sensitive interest rate risk, or cyclical exposure. Which is why we carefully pick names that blend yield with quality. 

 

Pros and Cons of Monthly Dividend Investing 

Before we dive into specific stocks and ETFs, let’s ground you with the trade-offs. 

Pros 

• Regular Income: Monthly checks can feel more intuitive for living expenses or reinvestment strategies. 

• Reinvestment Frequency: More opportunities for compounding through dividend reinvestment plans (DRIPs). 

• Enhanced Cash Flow Planning: Investors who budget around monthly inflows benefit from predictability. 

• Access to Income Sectors: Many monthly payers are tied to real estate, infrastructure, or financial income streams. 

• Portfolio Utility: Monthly payers are especially appealing for retirees, income seekers, and conservative investors who prioritize cash flow over growth. 

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Cons 

• Risk of Yield Traps: Extremely high yields can sometimes signal underlying financial stress. 

• Interest Rate Sensitivity: Real estate and mortgage-focused companies can have revenues squeezed in a rising rate environment. 

• Volatility: Some high-yield business development companies or REITs can swing significantly. 

• Dividend Cuts Possible: Dividends aren’t guaranteed; poor results can lead to reductions. 

 

8 High-Yielding Monthly Dividend Stocks to Consider in 2026 

The stocks below have been curated based on current forward yields, monthly payout frequency, industry rationale, and investor interest. 

Whenever we cite a forward dividend yield, it represents projected annual dividend payments divided by the current share price. 

1. Realty Income (O)

Ticker: O
Forward Yield: 5.5%
Why It Works: Known as “The Monthly Dividend Company,” Realty Income owns thousands of rental properties across diverse industries and has an established history of paying monthly dividends with decades of consistency.
Why Worth Buying: Its lease-heavy model with long-term contracts provides relatively stable cash flow, this, plus diversification across tenants, supports dependable payouts. 

2. AGNC Investment Corp. (AGNC)

Ticker: AGNC
Forward Yield: 13–14% (high)
Why It Works: As a mortgage REIT focused on agency-backed mortgage securities, AGNC earns spreads between borrowing and asset yields translating into strong dividend income.
Why Worth Buying: High yields come with interest rate sensitivity but when rates stabilize or decline, mREITs like AGNC often benefit from better margins. 

3. Prospect Capital Corp. (PSEC)

Ticker: PSEC
Forward Yield: 16–17%
Why It Works: A large business development company (BDC) investing in private debt and equity. 
Reason to Buy: BDCs distribute most earnings as dividends by design. For investors comfortable with credit risk, this offers compelling income. 

4. ARMOUR Residential REIT (ARR)

Ticker: ARR
Forward Yield: 18%+
Why It Works: Another mortgage REIT with monthly payouts.
Reason to Buy: Very high yield, but be cautious: mortgage REITs are highly sensitive to rate moves and portfolio valuation risk. 

5. Ellington Financial (EFC)

Ticker: EFC
Forward Yield: 11%
Why It Works: A hybrid financial investment firm with monthly income.
Reason to Buy: Diverse credit strategy and payout history appeal to seasoned income investors who understand credit cycles. 

6. Gladstone Commercial (GOOD)

Ticker: GOOD
Forward Yield: 9–11%
Why It Works: A diversified commercial REIT with monthly dividends.
Why Worth Buying: While more moderate than pure mREITs, its commercial exposure provides a blend of income and stability. 

7. Apple Hospitality REIT (APLE)

Ticker: APLE
Forward Yield: 7–8%
Why It Works: A hospitality REIT with monthly payouts. 
Why Worth Buying: Travel and lodging are cyclical, but a recovery in travel trends supports occupancy and distributions. 

8. DynexCapital (DX) 

Ticker: DX
Forward Yield: 14–15%
Why It Works: Another mortgage finance firm with strong monthly dividends. 
Reason to Buy: Positioned to benefit from rate cuts while offering solid current income. 

Note: Higher yields typically mean higher risk. Stocks like ARR or AGNC require careful due diligence, as payout sustainability is tied to interest rates and leverage. 

 

4 Monthly Dividend ETFs Considered Reasonably Safe for Long-Term Holding 

ETFs can deliver monthly income plus diversification within a single ticker  reducing company-specific risk. Below are four compelling choices: 

1. JP Morgan Equity Premium Income ETF (JEPI)

Ticker: JEPI
Expense Ratio: 0.35%
Net Assets: $41B
Forward Yield: 7–8%
Why It Works: JEPI uses covered call strategies on large-cap stocks to generate monthly income, blending equity exposure with income enhancement.
Why Worth Buying: High net assets signify strong investor confidence, and the modest expense ratio boosts long-term returns. 

2. JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)

Ticker: JEPQ
Expense Ratio: 0.35%
Net Assets: $32B
Forward Yield: 10–11%
Performance: Five-year returns historically strong (19%).
Why It Works: Similar premium-income strategy but focused on Nasdaq stocks, potentially offering tech-oriented growth plus income. 

3. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

Ticker: SPHD
Expense Ratio: 0.30–0.35%
Net Assets: Several billion
Forward Yield: 3.7–4%
Why It Works: Selects high-yield, low-volatility stocks from the S&P 500 with monthly distributions. 
Why Worth Buying: Lower risk profile among dividend ETFs, fitting well for conservative income investors seeking stability. 

4. Global XSuperDividendU.S. ETF (DIV) 

Ticker: DIV
Expense Ratio: 0.47%
Net Assets: Mid-range
Forward Yield: 7.4%
Why It Works: Focuses on U.S. high-yield equities with monthly income.
Why Worth Buying: Domestic diversification of high-yield stocks with a more balanced yield than ultra-high payoff funds. 

 

Performance Proof and Why These Are Worth Buying 

ETF Performance Context 

• JEPI holds substantial net assets ($41B) and a robust yield with a low expense ratio (0.35%), which is critical because every basis point saved on fees compounds over decades. 

• JEPQ has delivered strong long-term performance (around 19% over five years) in addition to high yield, showing that income and growth can coexist when structured smartly. 

• Historically, monthly dividend ETFs leveraging covered calls or high-yield equities have outpaced more conservative dividend funds when income is the primary objective. 

Stock Income Reality 

The stock list above includes names with forward yields ranging from the 5%+ of Realty Income to the double-digit territory of BDCs and mREITs. High yields like 13–18% are not unheard of for specialized financial stocks; but higher yield often comes with higher volatility, which is why blending them with safer ETFs or established REITs can make sense. 

 

How to Buy Monthly Dividend Stocks 

Buying monthly dividend stocks or ETFs isn’t fundamentally different from buying any other stock, but setting up for success requires a plan: 

Select a Brokerage: Choose a platform offering low commissions and fractional share support if needed (helpful for income investing with smaller capital). 

Research Yield Sustainability: Look at dividend history, payout ratios, sector strength, and balance sheet health. 

Build a Diversified Income Portfolio: Mix stocks and ETFs across sectors (real estate, financial, consumer staples) to avoid concentration risk. 

Reinvest or Collect: Use Dividend Reinvestment Plans (DRIPs) for long-term growth or set up automatic cash distributions for income use. 

Monitor Regularly: Watch interest rate changes, earnings releases, and macro shifts that can impact dividend sustainability. 

 

 

 

 

 

 

 

 

 

 

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We believe the information in this material is reliable, but we cannot guarantee its accuracy or completeness. The opinions, estimates, and strategies shared reflect the author’s judgment based on current market conditions and may change without notice.

The views and strategies shared in this material represent the author’s personal judgment and may differ from those of other contributors at IntriguePages. This content does not constitute official IntriguePages research and should not be interpreted as such. Before making any financial decisions, carefully consider your personal goals and circumstances. For personalized guidance, please consult a qualified financial advisor.

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