Investing in dividend-yielding stocks can provide a reliable source of passive income. If you’re looking to boost your monthly cash flow, focusing on stocks that pay dividends monthly—rather than quarterly—is a smart strategy. Here are the top 5 monthly dividend-yielding stocks to consider adding to your portfolio.
1. JPMorgan Equity Premium Income ETF (JEPI)
Dividend Yield: Approximately 11% annually
JEPI is one of the most popular options for income-focused investors. This actively managed ETF seeks to deliver high income by employing a covered call strategy while maintaining exposure to the broader equity market. Its diversified portfolio of high-quality U.S. large-cap stocks makes it a relatively low-risk choice for generating consistent income.
Key Benefits of JEPI:
This ETF is my preferred selection among the top five monthly dividend-yielding stocks for a variety of reasons.
- High dividend yield compared to traditional ETFs.
- Monthly payouts, providing consistent cash flow.
- Strong historical performance and low volatility.
JEPI’s combination of income generation and capital appreciation potential makes it a top pick for income-oriented investors.
Analysis:
If you have Invested $1,000 in JPMorgan Equity Premium Income ETF on December 20, 2023 you would now have:
Source: https://stoculator.com/
2. Realty Income Corporation (O)
Dividend Yield: ~5% annually
Known as “The Monthly Dividend Company,” Realty Income is a real estate investment trust (REIT) specializing in commercial properties. Its long track record of paying dividends makes it a favorite among income investors.
Why Choose Realty Income?
- Consistent monthly dividends since its inception.
- Exposure to a diversified portfolio of high-quality properties.
- Resilience during economic downturns due to its focus on essential businesses.
Analysis:
If you have Invested $1,000 in Realty Income Corporation on December 20, 2023 you would now have:
Source: https://stoculator.com/
3. Pembina Pipeline Corporation (PBA)
Dividend Yield: ~6% annually
Pembina Pipeline is a Canadian energy company that operates pipelines and other midstream assets. It’s a solid pick for those seeking exposure to the energy sector with the benefit of monthly dividends.
Highlights:
- Strong financial performance with predictable cash flow.
- Reliable monthly payouts, supported by long-term contracts.
- Exposure to both the U.S. and Canadian markets.
Analysis:
If you have Invested $1,000 in Pembina Pipeline Corporation on December 20, 2023 you would now have:
Source: https://stoculator.com/
4. STAG Industrial (STAG)
Dividend Yield: ~4% annually
STAG Industrial is another REIT that specializes in single-tenant industrial properties. It focuses on secondary markets, which often offer higher yields and less competition than primary markets.
Why Consider STAG Industrial?
- Monthly dividends supported by a diversified tenant base.
- Growth potential in the booming e-commerce sector.
- Proven track record of stable income generation.
Analysis:
If you have Invested $1,000 in STAG Industrial on December 20, 2023 you would now have:
Source: https://stoculator.com/
5. AGNC Investment Corp (AGNC)
Dividend Yield: ~14% annually
AGNC is a mortgage REIT (mREIT) that invests in residential mortgage-backed securities. With its high dividend yield, it’s an attractive option for income-focused investors willing to accept higher risk.
Key Features:
- Exceptional dividend yield.
- Monthly payouts, ideal for income seekers.
- Focus on agency-backed securities for added security.
Analysis:
If you have Invested $1,000 in AGNC Investment Corp on December 20, 2023 you would now have:
Source: https://stoculator.com/
How to Build a Dividend Portfolio for Reliable Passive Income
Final Thoughts
These five stocks and ETFs offer excellent opportunities for investors seeking consistent monthly income. However, it’s crucial to consider your risk tolerance, investment goals, and market conditions before making a decision. Diversifying your portfolio with a mix of REITs, ETFs, and energy or industrial stocks can help balance risk while maximizing returns.
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