13 Highest Paying Monthly Dividend Stocks to Buy

Core Viewpoint - The article discusses the resurgence of interest in dividend-paying stocks, particularly those offering monthly dividends, as a reliable source of income in volatile market conditions [1][3][4]. Dividend Market Overview - Dividend-paying stocks have historically provided steady returns across various market environments, contributing approximately 50% of total stock returns on average since the 1930s [4]. - The focus on dividends has increased as investors seek income rather than relying solely on price appreciation, especially following market downturns in the 2000s and the Great Recession [2][3]. Methodology for Stock Selection - The article outlines a methodology for selecting stocks that pay monthly dividends, focusing on those with the highest dividend yields, which range from 3.5% to nearly 19.5% as of December 18 [7]. - Most selected stocks are from the REIT and capital market sectors, which are required to distribute a significant portion of their income to shareholders [8]. Company Highlights - Phillips Edison & Company, Inc. (NASDAQ:PECO): - Dividend Yield: 3.58% as of December 18 - Barclays raised its price target to $42 from $40 following an investor presentation [11]. - The company has a strong portfolio with a median household income of about $92,000 within a three-mile radius of its centers, which is 15% higher than the US average [12]. - Management expects portfolio income to rise by approximately 26% over the next five years [13]. - Agree Realty Corporation (NYSE:ADC): - Dividend Yield: 4.33% as of December 18 - Mizuho lowered its price target to $75 from $77 but maintained a Neutral rating [16]. - The company has transitioned to monthly dividend payments, with a consistent annual growth rate of 5.3% over the past decade [18][19]. - Main Street Capital Corporation (NYSE:MAIN): - Dividend Yield: 5.17% as of December 18 - RBC Capital reduced its price target to $66 from $67 while keeping an Outperform rating [21]. - The company recently completed a follow-on investment in Chamberlin Holding LLC, supporting its acquisition of a commercial roofing contractor [22][24].