7 Monthly Dividend Stocks That Can Collectively Deliver A Mean Annual 14% APY

One of the most unforeseen investment trends to emerge over the past few years is the level of strong interest demonstrated by Gen-Z in dividend stocks, an asset class category generally populated by retirees. Some speculation as to the causes for this anomaly include:

• The growth of the DIY gig economy: many Gen-Z-ers work completely on a freelance basis, so steady passive income can be a reliable safety net to bridge periods of feast and famine.
• The market turbulence over the past few years or even in recent months may have some bearing, since dividend stocks are a solid investment alternative for those with weaker risk tolerance.
• The principles underlying the use of compounding for wealth building can be turbo charged with dividend stocks that reinvest income on a DRIP (Dividend Reinvestment Plan) autopilot protocol to enhance ease of monthly personal budget management.

Given the above criteria, monthly dividend stocks may fit the portfolios of many of these new income investors, and high yield monthly dividend stocks of particular interest, since a monthly reinvestment will exponentially increase one’s DRIP leverage. Dividend stocks with yields of 5% or higher are categorized as “high-yield”. The following collection of seven (7) high-yield stocks as a diversified portfolio, equates to a mean APY of 14%, based upon market prices at the time of this writing. All of them pay dividends on a monthly basis, so income considerations for either essential bill paying or a DRIP strategy would be reliably satisfied. 24/7 Wall Street has an extensive database of high-yield stocks that can be found in a variety of combinations to appeal to investors of all risk-tolerances.  Inserted charts reflect monthly compounding under a DRIP protocol for 10 years. 

Realty Income Corporation

Realty Income Corporation (NYSE: O)

Yield:5.60%

As the focus of this article is on monthly dividend stocks, it is only fitting that the godfather of REIT monthly dividends be included in such an overview: Realty Income Corporation. Since its founding in 1969, the company, which was premised on a then novel concept of monthly dividend payments to its investors, has logged 56 consecutive years of monthly dividends, and achieved dividend aristocrat status with 30 straight years of dividend increases. 

A member of the S&P 500, Reality Income Corporation has amassed a huge $39.24 billion AUM  real estate portfolio consisting of a total of 15,600 properties with 98.5% occupancy from over 1,500 tenant clients in 91 industries across all 50 states, as well as in the UK, Ireland, Germany, Italy, France, Spain, and Portugal. 

Medical Properties Trust

Medical Properties Trust (NYSE: MPW)

Yield: 7.42%

Based in Birmingham, Alabama,  Medical Properties Trust primarily owns properties servicing the medical and healthcare industries. With holdings across 9 countries (mostly Americas and Europe), 393 separate properties, 53 commercial tenants, and over 39,000 hospital beds, MPW has built its business model by providing the following services for its clients:

• Sale/Leasebacks for hospitals to acquire properties with automatic paying tenants in that sector.
• Direct investment in operators for expansion, new equipment, additional doctors, and new programs and services. 
• Provide tax savings through lease deductibility tax write-offs.

With few exceptions, all of Medical Property Trust’s leases are triple net leases. The company is in the process of regaining lost ground due to a primary large tenant Stewart Health Care, forced to file for Chapter 11 bankruptcy a few years ago. As of January 2025, MPW has raised $2.5 billion in an oversubscribed note offering to expand and restore the company to its former glory. 

Ellington Financial, Inc.

Ellington Financial, Inc. (NYSE: EFC) 

Yield: 12.01%

REITs can combine several different real estate related businesses under a single umbrella. 

Old Greenwich, CT based Ellington Management Group, LLC has a presence in several different profit center platforms. Ellington Financial, Inc. represents its real estate sector interests, as a registered Real Estate Investment Trust (REIT). Ellington Financial has two primary operations:

• The Portfolio Segment manages a portfolio of real estate based commercial and residential mortgage loans, mortgage-backed securities and derivatives, non-mortgage debt, derivatives, and equity stakes in loan origination companies and related investments. This portfolio was $14.9 billion as of April, 2025. 
• The Longbridge Segment both originates, acquires, and services reverse mortgage loans, commercial mortgage bridge loans, second lien closed-end loans, and their securitization. 

Dynex Capital, Inc.

Dynex Capital, Inc. (NYSE: DX)

Yield: 16.69%

Not all REITs are involved with brick and mortar real estate. Some of them maximize their profit margins by focusing solely on mortgage paper portfolios, thus cutting out the overhead expenses of conventional real estate management and using its capital to leverage its buying power to further expand its portfolio. 

Founded in 1987 in Glen Allen, VA, Dynex Capital, Inc. is a REIT that invests in a mix of GSE mortgage-backed securities, such as Freddie Macs, as well as non agency ones. Dynex Capital focuses almost exclusively on the residential housing market, and tweaks its strategy and $11.1 billion portfolio holdings to adjust to any opportunities or setbacks. It also engages in mortgage underwriting and just entered the commercial real estate mortgage market this year. 

The caveat to bear in mind with REITs that solely manage mortgage securities and other real estate debt is that they have greater exposure to interest rate changes than those REITs whose revenues are based more on rent rolls from leases, which are contractually bound and ordinarily interest rate agnostic. Dynex does utilize derivatives to hedge interest rate risk effectively, but not all of its competitors may do so to the same extent. 

Horizon Technology Finance Corporation

Horizon Technology Finance Corp. (NASDAQ: HRZN)

Yield: 18.36%

Within the BDC space, the corporate finance needs of many companies at varying stages of development can differ widely. Tilting towards a preference to the technology, biotech, healthcare, cleantech, and sustainability sectors, Farmington, CT headquartered Horizon Technology Finance Corp. provides venture and secured debt financing structures to qualifying growth-stage companies in those areas. 

Since 2004, Horizon Technology Finance Corp. has supplied in excess of $3.5 billion in venture loans to over 340 different companies. The company’s new CEO and CIO management roles are transitioning between June and September due to their predecessors’ retirements. The company is now preparing to fuel new origination business to take advantage of the small and middle level corporate business expansions being encouraged by recent new pro-business policies under the Trump administration. 

Oxford Square Capital Corp.

Oxford Square Capital Corp. (NASDAQ: OXSQ)

Yield: 18.83%

Based in Greenwich, CT, Oxford Square Capital Corp. has both BDC and investment management facets, with a particular affinity for debt and/or equities for companies in the tech sector. In particular, Oxford Square has interest in, but not limited to:

• Computer software, Infotech 
• Media and Telecommunications 
• Semiconductors 
• Technology-enabled services
• Healthcare technology

Its primary financing tool is the Leveraged Loan, which is a secured loan used primarily for buyouts, acquisitions, and recapitalizations. Oxford Square prefers first lien senior secured leveraged loans, which gives them superseding rights over other creditors in the event of a default, and specified collateralized assets depending on the use of proceeds for the transaction in question. This gives Oxford Square a faster chance for recovery and cure in the event of a default. 

Oxford Square then securitizes the loan(s) into a Collateralized Loan Obligation (CLO), which can then be sold to third parties if desired. 

Orchid Island Capital

Orchid Island Capital, Inc. (NYSE: ORC)

Yield: 20.54%

Headquartered in Vero Beach, FL, Orchid Island Capital, Inc. is a REIT that specializes in investments of Residential Mortgage Backed Securities (RMBS). Its $6 billion AUM portfolio consists of single resident mortgages, collateralized mortgage obligations (CMO), mortgage pass-through certificates, as well as interest-only, principal-only, and other types of securities and mortgage related paper. Orchid Island Capital focuses solely on real estate paper; it operates more like a sophisticated portfolio manager than a conventional REIT and thus has zero involvement with physical properties. However, the 90% profit remittance requirement to shareholders makes for a hefty 20.54% yield. 

Orchid Island Capital is managed by Bimini Advisors, LLC, who is registered as such with the SEC. 

For the sake of easy calculation, a $10,000 sample investment per stock will be referenced below to demonstrate monthly and annual dividends, but any investment would be calculated accordingly as per the yield percentages.

Name	Yield	Monthly	Annually	10yr DRIP BAL
Orchid Island Capital (NYSE: ORC)	20.54%	$171.17	$2.054.00	$73,237.27
Oxford Square Capital Corp. (NASDAQ: OXSQ)	18.83%	$156.92	$1,883.00	$64,777.88
Horizon Technology Finance Corp. (NASDAQ: HRZN)	18.36%	$153.00	$1,836.00	$61,848.10
Dynex Capital, Inc. (NYSE: DX)	16.69%	$139.08	$1,669.00	$52,461.79
Ellington Financial, Inc. (NYSE: EFC)	12.01%	$100.08	$1,201.00	$33,036.56
Medical Properties Trust (NYSE: MPW)	7.42%	$ 61.83	$  742.00	$20,953.39
Realty Income Corporation (NYSE: O)	5.60%	$ 46.67	$  560.00	$17,310.76
Totals:		$828.75	$9,945.00	$323,625.75

Based on a $70,000 investment with $10,000 equally allocated to each of these seven stocks, the average APY for an annual dividend payout of $9,945 annually and $828.75 monthly is 14.00%.  The 10-year DRIP Balance is the total balance if all dividends are reinvested to compound with no other additional deposits. That total would be $323,625.75

While dividend stocks with monthly payouts can usually be relied upon for their income, regular monitoring is advised, since market industry sector and geopolitical news events may affect the stocks at any given time.  A prudent extra step to take would be to monitor several additional monthly dividend stocks with equivalent yields, so that any news that indicates a potential risk to the income stream can be seamlessly swapped out so that dividend income remains undisturbed.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.