10 Highest Paying Monthly Dividend Stocks

2. Prospect Capital Corporation (NASDAQ:PSEC)

Dividend Yield as of August 16: 14.55%

An American business development company, Prospect Capital Corporation (NASDAQ:PSEC) ranks second on our list of the best dividend stocks. The company invests in debt and equity in US middle market businesses across various industries, aiming to provide consistent and attractive returns to its shareholders. With this focus, the company has allocated 81% of its investment assets to loans secured by a first lien or other senior secured debt, covering 122 portfolio companies across 36 different industries. Since its inception in 2004, Prospect has invested $20.7 billion across 421 investments and has successfully exited 292 of them.

Prospect Capital Corporation (NASDAQ:PSEC)’s current portfolio is valued at $7.9 billion and includes 122 investments. The portfolio generates a 12.1% annualized current yield on performing interest-bearing investments and a 9.7% annualized yield across all investments. Notably, 91% of the company’s total investment income comes from recurring interest income. The middle-market portfolio has an EBITDA of $106 million and is diversified across 36 industries. Additionally, PSEC serves as the sole or lead investor in 77% of its overall portfolio.

Prospect Capital Corporation (NASDAQ:PSEC) has a strong dividend history. The company has paid dividends to shareholders for 84 consecutive months, which makes PSEC one of the best dividend stocks on our list. In addition, since its inception through August 2024, its cumulative payouts amounted to over $4.3 billion. It pays a monthly dividend of $0.06 per share for a dividend yield of 14.55%, as reported on August 16.