UniqueThis Living Off Dividend Income: A Guide to Financial Independence and the Top 100 Monthly Paying Dividend Stocks

Blog Information

  • Posted By : UniqueThis
  • Posted On : May 26, 2024
  • Views : 318
  • Category : Financial
  • Description :

Overview

  • Achieving financial independence through dividend income is an appealing goal for many investors. Dividends provide a steady stream of passive income, allowing individuals to cover their living expenses without needing to work. This blog will explore how to live off dividend income and provide a list of the top 100 monthly paying dividend stocks to help you get started.

    Understanding Dividend Income

    Dividend income is the portion of a company's earnings distributed to shareholders. Dividends can be paid out quarterly, semi-annually, annually, or monthly. Monthly dividends are particularly attractive for those seeking consistent cash flow to cover regular expenses.

    Steps to Live Off Dividend Income

    1. Determine Your Expenses

      • Calculate your annual living expenses, including housing, utilities, groceries, transportation, healthcare, and leisure activities. This figure will be your target for annual dividend income.

    2. Set a Dividend Income Goal

      • Once you know your expenses, set a realistic goal for your dividend income. For example, if your annual expenses are $40,000, aim for at least $40,000 in annual dividend income.

    3. Build a Diversified Portfolio

      • Diversification reduces risk by spreading investments across different sectors and companies. Aim for a mix of high-yield and stable dividend-paying stocks to ensure a balance between income and growth.

    4. Focus on Monthly Paying Dividend Stocks

      • Monthly dividend stocks provide a more frequent and consistent income stream. This can make budgeting easier and provide regular cash flow.

    5. Reinvest Dividends Initially

      • If you're still in the accumulation phase, reinvest dividends to compound your returns. Many brokerage accounts offer automatic dividend reinvestment plans (DRIPs).

    6. Monitor and Adjust Your Portfolio

      • Regularly review your portfolio to ensure it meets your income goals and adjust as necessary. This includes evaluating the performance of your dividend stocks and making changes to maintain or improve income.

    7. Consider Tax Implications

      • Be aware of the tax treatment of dividends in your country. Qualified dividends may be taxed at a lower rate than ordinary income. Utilize tax-advantaged accounts like IRAs or 401(k)s if possible.

    Top 100 Monthly Paying Dividend Stocks

    To help you start building a reliable stream of dividend income, here are 100 stocks known for their monthly dividend payouts. This list includes a mix of REITs, BDCs, energy companies, and other sectors known for regular dividend payments.

    1. Realty Income Corp (O)
    2. Main Street Capital Corp (MAIN)
    3. AGNC Investment Corp (AGNC)
    4. Prospect Capital Corp (PSEC)
    5. STAG Industrial, Inc. (STAG)
    6. EPR Properties (EPR)
    7. Gladstone Investment Corp (GAIN)
    8. Shaw Communications Inc. (SJR)
    9. Pembina Pipeline Corp (PBA)
    10. Cross Timbers Royalty Trust (CRT)
    11. Orchid Island Capital (ORC)
    12. LTC Properties, Inc. (LTC)
    13. Broadmark Realty Capital Inc. (BRMK)
    14. Dynex Capital, Inc. (DX)
    15. Gladstone Capital Corp (GLAD)
    16. Horizon Technology Finance Corp (HRZN)
    17. ARMOUR Residential REIT, Inc. (ARR)
    18. Solar Senior Capital Ltd. (SUNS)
    19. Sabine Royalty Trust (SBR)
    20. Oxford Square Capital Corp (OXSQ)
    21. Solar Capital Ltd. (SLRC)
    22. SL Green Realty Corp (SLG)
    23. Saratoga Investment Corp (SAR)
    24. Whitestone REIT (WSR)
    25. Ellington Financial Inc. (EFC)
    26. Gladstone Land Corp (LAND)
    27. Granite Point Mortgage Trust Inc. (GPMT)
    28. Newtek Business Services Corp (NEWT)
    29. First Industrial Realty Trust, Inc. (FR)
    30. Fidus Investment Corp (FDUS)
    31. PennantPark Floating Rate Capital Ltd. (PFLT)
    32. New Mountain Finance Corp (NMFC)
    33. TriplePoint Venture Growth BDC Corp (TPVG)
    34. PennantPark Investment Corp (PNNT)
    35. Harvest Capital Credit Corp (HCAP)
    36. Full Circle Capital Corp (FULL)
    37. KCAP Financial, Inc. (KCAP)
    38. Capital Southwest Corp (CSWC)
    39. Golub Capital BDC, Inc. (GBDC)
    40. TCG BDC, Inc. (CGBD)
    41. TPG Specialty Lending, Inc. (TSLX)
    42. Fifth Street Finance Corp (FSC)
    43. Hercules Capital, Inc. (HTGC)
    44. OFS Capital Corp (OFS)
    45. CM Finance Inc. (CMFN)
    46. Monroe Capital Corp (MRCC)
    47. Great Elm Capital Corp (GECC)
    48. Capitala Finance Corp (CPTA)
    49. Garrison Capital Inc. (GARS)
    50. MVC Capital, Inc. (MVC)
    51. THL Credit, Inc. (TCRD)
    52. Hennessy Advisors, Inc. (HNNA)
    53. Sutter Rock Capital Corp (SSSS)
    54. Rand Capital Corp (RAND)
    55. BlackRock TCP Capital Corp (TCPC)
    56. Ares Capital Corp (ARCC)
    57. Owl Rock Capital Corp (ORCC)
    58. Golub Capital Investment Corp (GCIC)
    59. Solar Senior Capital Ltd. (SUNS)
    60. Alcentra Capital Corp (ABDC)
    61. Medley Capital Corp (MCC)
    62. TICC Capital Corp (TICC)
    63. Triangle Capital Corp (TCAP)
    64. BlackRock Capital Investment Corp (BKCC)
    65. Gladstone Commercial Corp (GOOD)
    66. One Liberty Properties, Inc. (OLP)
    67. Global Net Lease, Inc. (GNL)
    68. Broadstone Net Lease, Inc. (BNL)
    69. Spirit Realty Capital, Inc. (SRC)
    70. Easterly Government Properties, Inc. (DEA)
    71. Getty Realty Corp (GTY)
    72. Essential Properties Realty Trust, Inc. (EPRT)
    73. STORE Capital Corp (STOR)
    74. Four Corners Property Trust, Inc. (FCPT)
    75. VEREIT, Inc. (VER)
    76. Empire State Realty Trust, Inc. (ESRT)
    77. Healthcare Trust of America, Inc. (HTA)
    78. Physicians Realty Trust (DOC)
    79. Omega Healthcare Investors, Inc. (OHI)
    80. National Health Investors, Inc. (NHI)
    81. CareTrust REIT, Inc. (CTRE)
    82. Sabra Health Care REIT, Inc. (SBRA)
    83. Medical Properties Trust, Inc. (MPW)
    84. Global Medical REIT Inc. (GMRE)
    85. Community Healthcare Trust Inc. (CHCT)
    86. LTC Properties, Inc. (LTC)
    87. CyrusOne Inc. (CONE)
    88. Equinix, Inc. (EQIX)
    89. CoreSite Realty Corp (COR)
    90. QTS Realty Trust, Inc. (QTS)
    91. Digital Realty Trust, Inc. (DLR)
    92. Iron Mountain Inc. (IRM)
    93. Crown Castle International Corp (CCI)
    94. American Tower Corp (AMT)
    95. SBA Communications Corp (SBAC)
    96. Prologis, Inc. (PLD)
    97. Duke Realty Corp (DRE)
    98. First Industrial Realty Trust, Inc. (FR)
    99. Terreno Realty Corp (TRNO)
    100. Rexford Industrial Realty, Inc. (REXR)

    If you're looking to invest in ETFs that pay monthly dividends, here are 100 options to consider:

    1. Global X SuperDividend ETF (SDIV)
    2. Global X SuperDividend U.S. ETF (DIV)
    3. Invesco High Yield Equity Dividend Achievers ETF (PEY)
    4. Invesco KBW High Dividend Yield Financial ETF (KBWD)
    5. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
    6. O'Shares FTSE US Quality Dividend ETF (OUSA)
    7. VictoryShares Dividend Accelerator ETF (VSDA)
    8. WisdomTree U.S. Dividend Growth Fund (DGRW)
    9. WisdomTree US Dividend ex-Financials Fund (DTN)
    10. WisdomTree US High Dividend Fund (DHS)
    11. WisdomTree US LargeCap Dividend Fund (DLN)
    12. WisdomTree US MidCap Dividend Fund (DON)
    13. WisdomTree US SmallCap Dividend Fund (DES)
    14. WisdomTree US Total Dividend Fund (DTD)
    15. SoFi Weekly Income ETF (TGIF)
    16. Harbor Dividend Growth Leaders ETF (GDIV)
    17. VanEck Mortgage REIT Income ETF (MORT)
    18. Pacer Pacific Asset Floating Rate High Income ETF (FLRT)
    19. Pacer US Small Cap Cash Cows 100 ETF (CALF)
    20. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
    21. Vanguard High Dividend Yield ETF (VYM)
    22. iShares Select Dividend ETF (DVY)
    23. First Trust Rising Dividend Achievers ETF (RDVY)
    24. ProShares Russell 2000 Dividend Growers ETF (SMDV)
    25. iShares International Select Dividend ETF (IDV)
    26. Global X MSCI SuperDividend EAFE ETF (EFAS)
    27. iShares Asia/Pacific Dividend ETF (DVYA)
    28. Schwab U.S. Dividend Equity ETF (SCHD)
    29. SPDR S&P Dividend ETF (SDY)
    30. First Trust Value Line Dividend Index Fund (FVD)
    31. Invesco Dividend Achievers ETF (PFM)
    32. Global X MSCI SuperDividend ETF (SDIV)
    33. ALPS Sector Dividend Dogs ETF (SDOG)
    34. Vanguard Dividend Appreciation ETF (VIG)
    35. iShares Core High Dividend ETF (HDV)
    36. First Trust Nasdaq Technology Dividend Index Fund (TDIV)
    37. FlexShares Quality Dividend Index Fund (QDF)
    38. Legg Mason Low Volatility High Dividend ETF (LVHD)
    39. Pacer Global Cash Cows Dividend ETF (GCOW)
    40. Cambria Shareholder Yield ETF (SYLD)
    41. Amplify CWP Enhanced Dividend Income ETF (DIVO)
    42. iShares Core Dividend Growth ETF (DGRO)
    43. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
    44. First Trust Morningstar Dividend Leaders ETF (FDL)
    45. Global X SuperIncome Preferred ETF (SPFF)
    46. JPMorgan Equity Premium Income ETF (JEPI) and (JEPQ)
    47. First Trust Multi-Asset Diversified Income Index Fund (MDIV)
    48. Global X SuperDividend REIT ETF (SRET)
    49. Global X SuperDividend Alternatives ETF (ALTY)
    50. Global X SuperDividend Preferred ETF (PFFD)
    51. Virtus Real Asset Income ETF (VRAI)
    52. Invesco Preferred ETF (PGX)
    53. iShares Preferred and Income Securities ETF (PFF)
    54. SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
    55. iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
    56. VanEck Vectors High-Yield Muni ETF (HYD)
    57. ProShares High Yield—Interest Rate Hedged ETF (HYHG)
    58. iShares U.S. Preferred Stock ETF (PFF)
    59. Invesco Variable Rate Preferred ETF (VRP)
    60. First Trust Preferred Securities and Income ETF (FPE)
    61. SPDR ICE Preferred Securities ETF (PSK)
    62. iShares International Preferred Stock ETF (IPFF)
    63. Invesco Financial Preferred ETF (PGF)
    64. PowerShares Preferred Portfolio ETF (PGX)
    65. Global X U.S. Preferred ETF (PFFD)
    66. Amplify High Income ETF (YYY)
    67. VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)
    68. First Trust Tactical High Yield ETF (HYLS)
    69. SPDR S&P Global Dividend ETF (WDIV)
    70. FlexShares International Quality Dividend Index Fund (IQDF)
    71. iShares Emerging Markets Dividend ETF (DVYE)
    72. First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS)
    73. WisdomTree Emerging Markets High Dividend Fund (DEM)
    74. Invesco S&P Emerging Markets Dividend Opportunities ETF (DPEM)
    75. iShares J.P. Morgan EM High Yield Bond ETF (EMHY)
    76. VanEck Vectors Emerging Markets High Yield Bond ETF (HYEM)
    77. First Trust Emerging Markets Local Currency Bond ETF (FEMB)
    78. WisdomTree Emerging Markets Corporate Bond Fund (EMCB)
    79. iShares International Select Dividend ETF (IDV)
    80. SPDR S&P International Dividend ETF (DWX)
    81. iShares Global REIT ETF (REET)
    82. Vanguard Global ex-U.S. Real Estate ETF (VNQI)
    83. Schwab U.S. REIT ETF (SCHH)
    84. iShares Global Infrastructure ETF (IGF)
    85. First Trust Global Wind Energy ETF (FAN)
    86. SPDR Kensho Clean Power ETF (CNRG)
    87. Invesco Water Resources ETF (PHO)
    88. Global X MSCI SuperDividend EAFE ETF (EFAS)
    89. JPMorgan Global Bond Opportunities ETF (JPGB)
    90. SPDR Bloomberg Barclays International Treasury Bond ETF (BWX)
    91. iShares International Treasury Bond ETF (IGOV)
    92. Invesco International Corporate Bond ETF (PICB)
    93. VanEck Vectors International High Yield Bond ETF (IHY)
    94. SPDR Bloomberg Barclays Emerging Markets Local Bond ETF (EBND)
    95. iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB)
    96. Invesco Emerging Markets Sovereign Debt ETF (PCY)
    97. VanEck Vectors Emerging Markets Local Currency Bond ETF (EMLC)
    98. iShares Global Corp Bond UCITS ETF (CORP)
    99. SPDR Bloomberg Barclays International Corporate Bond ETF (IBND)
    100. VanEck Vectors International Corp Bond UCITS ETF (ICB)

     

    Conclusion

    Living off dividend income is a viable strategy for achieving financial independence. By carefully selecting and investing in a diversified portfolio of monthly paying dividend stocks, you can create a steady and reliable income stream to cover your expenses. Regularly monitor and adjust your portfolio to ensure it continues to meet your financial needs, and always be mindful of the tax implications of your investments. With diligence and smart investing, you can enjoy the freedom and security that comes with living off dividend income.