In this article we discuss the top 5 stocks that pay dividends monthly. If you want to read our comprehensive analysis of these companies, go directly to the 10 Stocks That Pay Dividends Monthly.
5. NexPoint Strategic Opportunities Fund (NYSE: NHF)
Number of Hedge Fund Holders: 5
Dividend Yield: 5.03%
NexPoint Strategic Opportunities Fund (NYSE: NHF) operates as a listed company seeking capital appreciation and current income for its investors. Its assets were worth $746 million, while its investment was just shy of $700 million as of December 31, 2012. The company announced a monthly dividend of $0.05 per share, which is in line with the previous monthly dividend payout.
Some of the company’s key developments so far this year include the announcement of the completion of its common shares tender offer in exchange for 80% newly-issued 5.50% Series A Preferred Shares and 20% cash. The initial results of the exchange offer reveal that NexPoint Strategic Opportunities Fund expects a common share repurchase of around 9 million shares priced at $12.00 per share, which means the repurchase cost $108 million.
4. Stone Harbor Emerging Markets Total Income Fund (NYSE: EDI)
Number of Hedge Fund Holders: N/A
Dividend Yield: 21.03%
Ranking 4th on the list of best stocks that pay dividends monthly is Stone Harbor Emerging Markets Total Income Fund (NYSE: EDI). It’s a closed-end ETF and exchange-traded fund under non-diversified designation. The company recently announced its common stock dividend distribution at $0.07 per share. The dividend distribution represents a 9.45% annualized distribution rate at the prevailing $8.89 share price and 11.98% annualized distribution rate at $7.01 per share net asset value. Stone Harbor Emerging Markets Total Income Fund paid out a monthly dividend of $0.08 per share on February 12, 2021. Its commitment to providing healthy and consistent dividends to its shareholders makes it one of the best stocks that pay out dividends monthly.
3. First Trust New Opportunities MLP & Energy Fund (NYSE: FPL)
Number of Hedge Fund Holders: 1
Dividend Yield: 8.21%
First Trust New Opportunities MLP & Energy Fund (NYSE: FPL) is a closed-end, non-diversified, and managed fund that aims to deliver high returns to investors. Its investments are mainly in energy utilities and the energy industry. It invests in electric utilities and midstream companies that are well-positioned to provide consistent growth well into the future.
First Trust New Opportunities MLP & Energy Fund announced a dividend of $0.0375 per share for April, aligning with the dividend payout for the previous month. Its investment in Midstream looks healthy considering the demand for fossil fuels while experiencing growth from its utilities investments courtesy of electrification. The fund is not largely diversified, considering that its assets are in a few companies. 2020 was a good year for the fund, although there are signs that it might be over distributing. First Trust is currently trading at discounted prices, but its yield remains impressive at 8.21%.
2. Stone Harbor Emerging Markets Income Fund (NYSE: EDF)
Number of Hedge Fund Holders: N/A
Dividend Yield: 10.34%
Stone Harbor Emerging Markets Income Fund (NYSE: EDF) is a publicly listed and closed-end exchange-traded fund that operates as an investment company. Its monthly payout is $0.07 per share, which was 12.5% lower than the previous $0.08 per share dividend payout.
Stone Harbor Emerging Markets Income Fund had a net asset value of $8.23 per share and a $9.14 share price as of April 20 this year, with a distribution rate of 9.19% for the share price and 10.21% for the net asset value. Investors should note that the fund has a lot of exposure in Argentina, a country with a long history of debt defaulting and financial mismanagement. On the other hand, Stone Harbor Emerging Markets Income Fund maintains an attractive yield at 10.87%, but it is not clear if the fund can sustain it. Its valuation seems extremely high considering the risk. It is one of the best stocks that pay dividends monthly, assuming that the red flags are worth the risk.
1. Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. (NYSE: MIE)
Number of Hedge Fund Holders: N/A
Dividend Yield: 26.63%
Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. (NYSE: MIE) is an investment company that manages alternative income and assets that aim to provide alpha, diversification, and income. The company operates as a closed-end exchange-traded fund that is non-diversified. The fund primarily invests in opportunities worldwide that require local insights and knowledge
Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. board of directors announced dividend payouts at $0.015 per share, payable on April 30, and $0.015 per share, payable on May 28. Earlier this year, the board announced its first monthly distribution at $0.130 per share paid out in January, February, and March. So far, it has demonstrated its commitment as one of the stocks that pay dividends monthly. The fund has been operating under New York Stock Exchange listing since October last year. The company proposed the liquidation of its MLP/midstream fund in February 2020 due to underperformance.
You can also take a peek at 10 Best Dividend Stocks Under $20 and Top 10 Dividend Stocks That Pay Monthly.
