Top 10 Highest Paying Monthly Dividend Stocks In US- Generate Consistent Income

Here’s the list of the top 10 highest paying monthly dividend US stocks from the document, along with my analysis of each. I’ve included their investment focus, recent yields, and the risks I think stand out.

Oxford Lane Capital (OXLC)

• What It Does: Invests in equity tranches of collateralized loan obligations (CLOs)—think risky slices of corporate loan pools.
• Dividend Yield: 20-24%
• My Thoughts: That yield is jaw-dropping! OXLC’s strategy of betting on high-risk, high-reward CLOs explains it. But it’s tied to credit markets & economic cycles, so if things go south, those dividends could take a hit. The stock’s volatile too—its price dropped 6.18% to $4.34 recently. I’d need nerves of steel for this one.

Eagle Point Credit (ECC)

• What It Does: Also focuses on CLO equity tranches, with some other asset-backed securities mixed in.
• Dividend Yield: 19-27%
• My Thoughts: Another sky-high yield but the payout ratio over 200% scares me—it’s paying out more than it earns! The stock’s down 7.61% to $7.28, and with a “Strong Sell” rating from some analysts, I’d think twice despite the tempting income.

BlackRock Capital Allocation Term Trust (BCAT)

• What It Does: Spreads investments across equities, fixed income & alternatives for high income.
• Dividend Yield: 18-23% (though reports vary)
• My Thoughts: I like the diversification here—it’s not all-in on one risky bet like CLOs. A recent $0.3036 monthly dividend sounds promising but the yield confusion (some say 3.92%) means I’d double-check the numbers. As a closed-end fund, its price can swing oddly too, recently hitting a low of $13.64.

OFS Credit (OCCI)

• What It Does: Another CLO-focused fund, targeting high returns from credit instruments.
• Dividend Yield: 18-20%
• My Thoughts: At $0.12 monthly, the yield’s solid but declining dividend growth worries me. The stock’s down 2.44% to $6.40 & like OXLC & ECC, it’s exposed to economic downturns. It’s a pattern I’m noticing—high yields, high stakes.

Orchid Island Capital (ORC)

• What It Does: A REIT investing in residential mortgage-backed securities (RMBS) backed by government agencies.
• Dividend Yield: 17-23%
• My Thoughts: I like the government backing, but interest rate hikes could hurt its holdings. The $0.12 monthly dividend is nice, yet the stock’s down 6.35% to $6.05 & negative dividend growth over years makes me question its staying power.

ARMOUR Residential REIT (ARR)

• What It Does: Another REIT focused on agency mortgage-backed securities.
• Dividend Yield: 15-20%
• My Thoughts: A $0.24 monthly payout gives a juicy yield, but like ORC, it’s sensitive to interest rates & prepayments. The stock’s at $14.15 after a 5.98% drop & a “Strong Sell” rating adds to my hesitation.

Ellington Financial (EFC)

• What It Does: A diversified REIT with mortgage & non-mortgage assets.
• Dividend Yield: 11-12%
• My Thoughts: Lower yield, but I’m drawn to its variety—less risk than pure CLO or RMBS plays. At $0.13 monthly and a stock price of $12.43 (down 4.97%), it feels more stable, with a 15-year dividend streak & strong cash reserves.

Dynex Capital (DX)

• What It Does: Mortgage REIT with RMBS & commercial mortgage-backed securities.
• Dividend Yield: 13-14%
• My Thoughts: A $0.17 monthly dividend & a 112% payout ratio aren’t ideal but its long history since 1994 & a recent 3.38% rise to $11.92 give me some confidence. It’s still interest-rate sensitive, though.

Gladstone Commercial (GOOD)

• What It Does: REIT focused on industrial properties like warehouses.
• Dividend Yield: 7-8%
• My Thoughts: A modest $0.10 monthly dividend but that 444.4% payout ratio is a red flag—it’s unsustainable! The stock’s at $13.30 (down 2.92%) & despite a 98.5% occupancy rate, I’d be cautious.

Apple Hospitality REIT (APLE)

• What It Does: Owns upscale hotels across the US.
• Dividend Yield: 7-9%
• My Thoughts: Hotels sound fun & $0.08 monthly adds up. But with a payout ratio over 100% and a 7.30% drop to $11.30, the hospitality sector’s volatility makes me pause, even with a recent “Buy” upgrade.

Pros & Cons of Monthly Dividend Stocks

How I’d Pick the Right Ones

If I were to invest, I wouldn’t just chase the biggest yield. Here’s my checklist:

• Financial Health: Are revenues & earnings solid?
• Dividend Safety: Is the payout ratio reasonable? How’s the cash flow?
• Track Record: Have they paid consistently, or cut dividends before?
• Business Basics: Do I understand what they do & their market?
• Rate Risks: For REITs, how would rate hikes affect them?
• Mix It Up: I’d avoid overloading on one sector.