In Dividends, We Trust: Here Are the Highest Paying Monthly Dividend Stocks

Key takeaways

• A dividend stock is a company that pays out a portion of its profits to shareholders
• Dividend stocks can be a good form of passive income
• SL Green, Gladstone Capital and LTC Properties are all examples of high-dividends stocks right now

If you want to build wealth and generate income from your investments, dividend stocks are the way to go. Dividends are never a dead cert, but there are some examples on the market now where companies pay more than others. Here’s the lowdown.

Dividends can come from the slow-and-steady companies that hold strong when the economy falters. Q.ai’s Value Vault Kit features some of these stocks and more, with a laser focus on firms with sturdy financials and comparatively undervalued stocks. The secret sauce is an AI algorithm to do the heavy lifting so you don’t have to.

Download Q.ai today for access to AI-powered investment strategies.

What are dividend stocks?

Fancy a quarterly or annual cash payout from a company you’ve invested in? That’s what dividends are for. When you buy shares in a dividend stock, the company’s board decides how much of its profits it should pay out to investors and dishes them out accordingly.

Dividends are never a guarantee — companies can instead choose to reinvest all their profits back into the business, which is why some companies stop paying dividends during economic malaise. But on the whole, they can be a good source of passive income for budding investors.

Examples of high-dividend stocks

SL Green Realty Corp

SL Green is one of the biggest office landlords in New York City, holding a portfolio of around 90 properties, and the company is worth around $2.5 billion. The dividend yield is a whopping 15.1% annually, but the share price has come under pressure recently as fears of a dividend cut have pushed the stock down by 16.4% this year.

Fair warning: there are concerns about the U.S. commercial property market and whether it can prop itself up in the long term, so do your research first.

Gladstone Capital

Financial conglomerate Gladstone Capital has almost everything you can think of as part of its portfolio, including restaurants, telecoms and chemical companies. This level of diversification is a good recipe for success regarding dividend payouts.

Currently Gladstone Capital has a forward dividend and yield of 10.14%, and its share price has stayed largely consistent over the last five years, excluding the start of the pandemic. It’s as close to a ‘safe bet’ as you can get with higher dividend stocks.

LTC Properties

This property company is focused on the typically recession-proof healthcare sector, with a portfolio of around 220 care homes and nursing facilities. With most developed economies facing an ageing population issue, care homes are set to be in demand in the coming years, which is possibly good news for the dividend’s longevity.

LTC Properties has a trailing dividend yield of 7%. The share price hasn’t fared as well in 2023, losing 7.1% since the start of the year, but investors hope the stock should pick up when the worst of the economic uncertainty is out the way.

The bottom line

While individual stock picking isn’t a great investing strategy, going for a diversified group of dividend stocks can be a good play for any would-be income investors. Not to mention, using AI investing to help you make smarter investing decisions can simplify the process.

Dividends are one way to boost your income, which AI investing can make even simpler. Q.ai’s Value Vault Kit takes the Warren Buffett mindset to the next level by using an AI algorithm to select companies with good balance sheets and relatively low valuations. It then dynamically adjusts your investment in the Kit’s holdings to help ensure your money is always working hard.

Download Q.ai today for access to AI-powered investment strategies.