10 Best Dividend Stocks with Monthly Payout

7. Ellington Financial Inc. (NYSE:EFC)

Number of Hedge Funds: 15

Dividend Yield as of October 26: 13.30%

Ellington Financial Inc. (NYSE:EFC) is a mortgage-focused investment company that invests in residential and commercial mortgage loans, mortgage-backed securities, mortgage servicing rights, consumer loans, and other credit-related assets. Its income is derived from investment returns, financing costs, and the change in value of its portfolio.

Ellington Financial pays a monthly dividend, making it an option for those who prefer regular monthly income over quarterly. It has paid a dividend since 2009. The most recent common dividend declared is $0.13 per share per month, which is $1.56 per share per year. At a share price of around $11.73, this gives a dividend yield of circa 13.3%. This high yield places it among our high-yield stock list. 

The high yield is a reflection of the income focus of Ellington’s investment approach, but the dividend has to be viewed in the context of the company’s earnings and the performance of its portfolio. Mortgage investments are subject to a number of risks, including interest rate movements, borrowing costs, credit losses, and changes in the valuation of the mortgages. All of these can have an impact on the income available to fund the dividend.

Ellington’s board will of course have the discretion to set the dividend amount, having regard to earnings, financial condition, working capital needs and the requirements of maintaining its REIT status. The current dividend therefore should not be regarded as a guaranteed one. Investors should also be mindful of the difference between accounting earnings and adjusted distributable earnings when looking at coverage, as the two are not the same.

For income investors, the monthly payments and the double-digit yield are certainly attractive. The real issue is whether EFC can keep producing sufficient distributable income to underpin the $0.13 per month payment without damaging its own financials.

6. Main Street Capital Corporation (NYSE:MAIN)

Number of Hedge Funds: 18

Dividend Yield as of October 26: 5.94%

Main Street Capital Corporation (NYSE:MAIN) is one of the larger, more established BDCs, with around $9 billion in capital under management. Its core business is to provide debt and equity capital to lower middle market companies that are too small to readily access the public debt markets but large enough to require a substantial amount of capital. That in itself has generated a very good stream of income for the shareholders.

Main Street is currently paying a regular monthly dividend of $0.265 per share or $3.18 per year. At a share price of around $54, that gives a yield of roughly 5.9% on the regular dividend alone. Main Street has also been paying extra dividends. In September, shareholders are due a further $0.30 per share. At a share price of $54, that works out at a yield of around 7.7% on an annualized basis, taking into account both the regular and the supplemental dividend. Read the full analysis here. 

Second quarter investment income was $149.6 million total and $90.3 million net. Distributable net investment income was $1.04 per share. Net asset value at the end of June was $33.92 per share, up from $33.33 at the end of 2025. Annualized return on equity was 18.9%, and investments on non-accrual at fair value were 1.1%.

There’s interest rate risk here. A lot of the BDC loans have floating rates, so falling rates would have a negative impact on investment income. Credit deterioration in the portfolio companies could also be a pressure on earnings. Main Street has never cut its regular monthly dividend since going public in 2007. In fact, the current monthly dividend is nearly 4% higher than it was a year ago. For income investors, that is a very good record.

5. LTC Properties, Inc. (NYSE:LTC)

Number of Hedge Funds: 20

Dividend Yield as of October 26: 6.08%

LTC Properties, Inc. (NYSE:LTC) is a REIT that invests in senior housing communities and skilled nursing facilities throughout the US. Its income is generated through property leases, joint ventures, and investments in senior care operators.

LTC Properties pays a monthly dividend. It has a long track record of paying dividends, having done so for over 30 years, including since the early 1990s. The most recent dividend declared for Q4 2026 is $0.19 per share per month, or $2.28 per share per year. At a share price of around $44.3, that gives a dividend yield of approximately 6%. The dividend has been $0.19 per month since 2016. The company’s operating model is changing, though, with an increase in the size of its senior housing operating portfolio. Revenue in this area comes directly from the fees and services paid by the residents rather than from rental income. This could open up further avenues for growth, though as ever the level of operating expenses and occupancy will be key to the bottom line. The most recent results provide a good measure of dividend coverage.

For Q2 2026, LTC generated core FFO of $0.68 per share versus a total quarterly dividend of $0.57. Core funds available for distribution (FAD) were $0.70 per share, again in excess of the dividend. So the dividend was covered by the core operating measures during the quarter. That said, future coverage will be dependent on the performance of the properties and investments. For income investors, it’s got the monthly payments and a very long track record of paying dividends. Whether it can continue to pay that income will depend on how well it can make the transition to operating senior housing communities and whether it can maintain the level of cash flow required to fund the distributions.

Also read: LTC Properties (LTC) Doubles Down On Senior Housing Bet

4. AGNC Investment Corp. (NASDAQ:AGNC)

Number of Hedge Funds: 28

Dividend Yield as of October 26: 16.29%

AGNC Investment Corp. (NASDAQ:AGNC) is a mortgage REIT that primarily invests in agency residential mortgage-backed securities. The company uses leverage to enhance its returns and pays a monthly dividend to shareholders.

AGNC has just come off a very difficult quarter. Earnings and book value for the mortgage REIT both declined in Q3, and it posted a negative economic return on tangible common equity. The impact of the rate run-up was to drive down the share price, which in turn has pushed the dividend yield up to 16%. That’s a very high yield and suggests the dividend is in a very precarious position. Agency MBS underperformance led to a $1.45 per share decline (16.9%) in the REIT’s tangible net book value per share, which finished the quarter at $7.13. The company also posted an economic return on common equity of -12.7% for the quarter.

Meanwhile, net spread and dollar roll income per share was $0.37. That’s very close to the $0.36 per share in dividends it paid during the period ($0.12 a month). It was the third consecutive quarter of declining spread income, at $0.42 per share in Q1.

AGNC pays a $0.12 per share monthly dividend or $1.44 per share yearly. It has paid a dividend since its May 2008 IPO, which gives it over 18 years of dividend history. For AGNC, the key to dividend sustainability is its cost of capital rather than its earnings. CEO Peter Federico stated that the company’s total cost of capital in Q3 was approximately 19% whilst its existing portfolio was generating a 20% return on equity. New investments were yielding approximately 19%, which is why he believes the dividend is still in line with the business economics. Read its full analysis here.