Monthly dividends certainly are a nice form of cash flow. When looking at these kinds of investments, its important to bear in mind that there can be more risk involved, as well as the fact that capital appreciation might be difficult for many of them to attain. Entities like Real Estate Investment Trusts (REITs) dish out monthly payments, but their structure leads them to not retaining much capital.
Below is a list of a few monthly dividend names that span from risky endeavors to relatively stable exchange-traded funds. I would caution you that most of these types of investments struggle to keep up with the broader market in terms of share price appreciation. These are things you want to invest in if youre simply chasing strong dividend yields with more frequent payments.
15 Best Monthly Dividend Stocks 1. Vanguard Total Market Bond ETF (BND) A fixed-income-focused ETF, offers a 2.76% dividend yield, with a very low risk focus on investment-grade fixed-income securities in the U.S. This includes government, corporate and international bonds, as well as mortgage-backed securities.
This ETF tries to track the performance of the Bloomberg Barclays United States aggregate float adjusted index. In laymans terms, Vanguard Total Market Bond ETF is an investment in diversified bond markets. Over the past year, the shares have had much less volatility than the S&P 500. However, the fixed-income-focused fund trails the broader market over time.
Im not a fan of making bond funds too big a piece of a portfolio, but it is a fixed-income instrument with a monthly dividend. 2. AGNC Investment Corp. (AGNC) Quarter to quarter, AGNC Investment Corp. doesnt always produce consistency on the earnings front. But annually, the company has produced fair net income over the last five years.
I consider it a far more risky venture than some of the other names Ive included on this list, but thats the price you pay for a whopping 11.25% dividend yield. A real estate investment trust focused on mortgages, AGNC makes most of its investments in involvement with Fannie Mae and Freddie Mac, so there are some protections on their principal and interest payments.
I would never suggest this become a large piece of the portfolio, simply as the stock itself does not perform well against the broader market, and there are inconsistencies in their earnings trends. But if you are after a high-yielding monthly payout, AGNC definitely offers it. 3. Global Net Lease Inc (GNL) There are a lot of REITs in the monthly payout game, and Global Net Lease is a small cap play offering a 10.
71% dividend yield. Investing in commercial properties in the U.S., United Kingdom, and over broader Europe, GNL seeks leases to single tenants, on properties it acquires in commercial areas. The bulk of its properties are in the U.S., and total revenue has been expanding quickly over the past five years.
. The balance sheet is solid, and GNLs revenues have expanded quickly. The problem here is definitely net income......