In this article, we discuss 10 high growth monthly dividend stocks to invest in now.
Franklin Templeton, in its report dated March 7, mentioned that from 1960 to 2024, approximately 85% of the S&P 500’s total return was generated by reinvested dividends and long-term compounding gains. Amid the market turbulence, investors are shifting toward dividend stocks for stability. Although growth stocks remained in the spotlight for a long time, dividend investing is certainly making a comeback. Dividend ETFs listed in the United States experienced average monthly net inflows valued at approximately $3.3 billion across the six months through January 31, 2025. This is significantly higher than net inflows of $107 million in the corresponding period last year. Moreover, when inflation and interest-rate concerns resurfaced in August 2024, dividend stocks held up better than most.
Morningstar columnist Dan Lefkovitz joined The Morning Filter podcast on November 19, 2025, to discuss the performance of dividend payers in 2025 and what to expect next year. Lefkovitz noted that most dividend indices performed well in absolute capacity, but they fell short when compared to the total US stock market. This is because the market is currently dominated by tech and AI, and most dividend payers are not technology-first companies. He noted that dividend stocks usually belong to industries such as industrials, healthcare, or utilities. However, most of these industries are also experiencing a boom because of the overall AI demand. Utilities, for example, have outpaced the broader market because of significant power needs for AI processing.
He added that dividend payers in the financial sector, like bigger banks, credit card companies, and insurers, had a solid year given the higher interest rates. On the flip side, the higher rates negatively impacted REITs and the broader property market across the country. The energy sector also remained soft due to oversupply of oil and constrained demand. Additionally, according to Lefkovitz, 2025 will be the fifth year in a row where companies allocate more funds to share repurchases than to dividends, roughly $1 trillion versus $750 billion.
With that outlook in mind, let’s take a look at the high growth monthly dividend stocks to invest in now.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology
For this list, we used a screener to filter out monthly dividend stocks. To narrow the shortlist, we included only firms with a 5-year average revenue growth rate of at least 5% and positive revenue growth projections for the next financial year. Moreover, we have presented the hedge fund sentiment for the stocks as of Q3 2025, ranking them in ascending order by the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Oxford Lane Capital Corp. (NASDAQ:OXLC)
Dividend Yield as of December 1: 32.02%
Average 5-Year Revenue Growth: 29.97%
Forward Revenue Growth: 23.65%
Number of Hedge Fund Holders: 5
Oxford Lane Capital Corp. (NASDAQ:OXLC) is one of the best high growth stocks to consider. Oxford Lane Capital is an investment company that invests in the debt and equity components of CLOs, which are backed by senior loans and have very little exposure to real estate, mortgages, or consumer debt.
According to a report by The Fly, dated November 7, Clear Street analyst Mickey Schleien maintained a Buy call on OXLC but trimmed the price target from $21.5 to $20.
Separately, on November 3, Oxford Lane Capital reported its financial results for the quarter ended September 30, 2025. From September 5 onward, the company concluded a 1-for-5 reverse stock split of its common shares. OXLC’s net investment income for the quarter came in at roughly $81.4 million, while its core net investment income stood at $120 million.
In the third quarter of 2025, Oxford Lane Capital Corp. (NASDAQ:OXLC) sold roughly 700,000 shares through its at-the-market offering and brought in about $14.5 million after fees. It also repurchased around 1.2 million shares for about $20.5 million during the September quarter.
9. PennantPark Floating Rate Capital Ltd. (NYSE:PFLT)
Dividend Yield as of December 1: 13.41%
Average 5-Year Revenue Growth: 20.49%
Forward Revenue Growth: 14.61%
Number of Hedge Fund Holders: 6
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is one of the best high growth stocks to consider. On November 26, Arren Cyganovich from Truist Financial assigned a Buy recommendation on PennantPark, along with a price target of $11.
In other news, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) reported its financial results for the quarter ended September 30, 2025. The company allocated $633 million towards 11 fresh and 105 current portfolio holdings with debt investments yielding 10.5% on average. Sales and repayments of investments for the quarter stood at $256.2 million.
During the three months and year ended September 30, 2025, investment income amounted to $69 million and $261.4 million, respectively, from first lien secured debt and other types of investments.
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is a business development company that invests in floating rate loans and other debt or equity of middle-market companies, primarily in the United States.
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