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The fastest approach to earn $1,000 in monthly dividends can be to speculate heavily in high-yield stocks. But high-yield dividend investing is not easy. There are tons of yield traps on the market. You will find many firms with over 10% yields, but these often include weak underlying business fundamentals and a history of dividend cuts or suspensions. Who’d want to speculate a fortune in such firms?
Since investing in high-yield dividends to earn a large monthly income is inherently dangerous, many beginner investors surrender on the concept of creating a good income just by investing in dividends. But what if finding quality, high-yield dividend stocks with strong growth and secure payouts was possible?
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Let’s examine among the top stocks and ETFs with high dividend yields that may be suitable selections for those seeking to construct a portfolio that earns no less than $1,000 in dividends per thirty days.
Fundamental Street Capital
Fundamental Street Capital Corp (NYSE:MAIN) is a business development company, and BDCs are at all times price your attention in the case of dividend investing due to their high yields. What makes Fundamental Street Capital special is its monthly dividends and stellar history of dividend growth. Earlier this month, Fundamental Street Capital announced a supplemental money dividend of $0.30 per share.
Fundamental Street’s business as a BDC is powerful since it raises capital by selling notes and shares to the general public and lends money to small- and mid-sized firms and earns interest income. Unlike many other BDCs, Fundamental Street Capital also asks for equity stakes in the businesses it lends to.
Ares Capital
With a dividend yield of about 9%, Ares Capital Corporation (NASDAQ:ARCC) is probably the greatest dividend stocks for any income portfolio to earn $1,000 a month. The corporate recently posted solid second-quarter results, as net investment income rose by 10% to $0.58 per share. The corporate is seeing strong deal volume amid elevated rates of interest and a slowdown within the private equity market. In June, Ares Capital’s transactions rose 40% from the prior quarter.
During a recent earnings call, Ares Capital’s management revealed that it swapped its $850 million issued debt to a floating rate of interest. With this move, Ares Capital positioned itself favorably for the upcoming rate cut cycle, as its interest burden will decrease with the expected ease in monetary policy.
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Hercules Capital
One other BDC on our list of one of the best dividend stocks to earn $1,000 per thirty days in dividends fast, Hercules Capital Inc. (NYSE:HTGC) has a dividend yield of about 13%. Jefferies recently increased the stock’s price goal to $25 from $23, reiterating its Buy rating following second-quarter results. Net interest income within the quarter totaled $0.51, meeting estimates.
Hercules Capital has greater than a decade of consistent dividend growth. Since 2019, the corporate has paid 16 special dividends. The corporate provides high-yield enterprise debt to early-stage biotech and software firms, and historically, Hercules’ company selection has been solid, with a really low rate of defaults. The stock is up about 43% over the past five years.
NEOS S&P 500 High Income ETF (BATS:SPYI)
NEOS S&P 500 High Income ETF (BATS:SPYI) is a high-yield covered call ETF that pays monthly dividend income. It invests in among the top S&P 500 firms and generates extra income by selling call options on stocks, generating extra premium income for shareholders. SPYI has a dividend yield of over 12%.
JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ)
JEPQ is one other high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq firms and generates extra income by selling call options. As of Aug. 8, JEPQ yields 9%.
Looking For Higher-Yield Opportunities?
The present high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the chance to capitalize on these high-yield opportunities and Benzinga has identified among the most engaging options for you to think about.
For example, the Ascent Income Fund from EquityMultiple targets stable income from senior industrial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and versatile liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now spend money on the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% return boost in your first EquityMultiple investment once you join here (accredited investors only).
Don’t miss out on this chance to reap the benefits of high-yield investments while rates are high. Try Benzinga’s favorite high-yield offerings.
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