Top 3 stocks, 2 ETFs

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The fastest way to earn $1,000 in monthly dividends would be to invest heavily in high yielding stocks. But investing in high-yielding dividends isn’t simple. There are tons of production traps out there. You’ll find many companies with yields above 10%, but they often come with weak business fundamentals and a history of dividend cuts or suspensions. Who would want to invest a fortune in such companies?

Because investing in high-yielding dividends to earn a hefty monthly income is inherently risky, many novice investors give up on the idea of ​​making a decent income just by investing in dividends. But what if it were possible to find quality, high-yielding dividend stocks with strong growth and safe payouts?

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Let’s examine some of the top stocks and ETFs with high dividend yields that could be suitable choices for those looking to build a portfolio that earns at least $1,000 in dividends per month.

Capital Main Street

Main Street Capital Corp (NYSE:MAIN) is a business growth company, and BDCs are always worth your attention when it comes to dividend investing because of their high yields. What makes Main Street Capital special are its monthly dividends and stellar dividend growth history. Earlier this month, Main Street Capital announced an additional cash dividend of $0.30 per share.

The Main Street business as a BDC is powerful because it raises capital by selling notes and stocks to the public and lends money to small and medium-sized companies and earns interest income. Unlike many other BDCs, Main Street Capital also requires equity stakes in the companies it lends to.

The capital city of Ares

With a dividend yield of around 9%, Ares Capital Corporation (NASDAQ:ARCC) is one of the best dividend stocks for any income portfolio to earn $1,000 per month. The company recently posted solid Q2 results as net investment income rose 10% to $0.58 per share. The company is seeing high transaction volume amid high interest rates and a slowdown in the private equity market. In June, Ares Capital’s transactions increased by 40% compared to the previous quarter.

During a recent earnings call, Ares Capital management revealed that it has swapped $850 million of its issued debt for a floating interest rate. With this move, Ares Capital has positioned itself favorably for the next rate cut cycle as the interest burden will decrease with the expected easing of monetary policy.

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The capital of Hercules

Another BDC on our list of the best dividend stocks to earn $1,000 per month in dividends fast, Hercules Capital Inc. (NYSE:HTGC) has a dividend yield of about 13%. Jefferies recently raised its price target on the stock to $25 from $23, reiterating a Buy rating following its second-quarter results. Net interest income in the quarter was $0.51, in line with estimates.

Hercules Capital has over a decade of consistent dividend growth. Since 2019, the company has paid 16 special dividends. The company provides high-yield venture debt to early-stage biotechnology and software companies, and historically Hercules’ selection has been solid with a very low default rate. 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 some of the top companies in the S&P 500 and generates additional income by selling call options on the stock, generating additional premium income for shareholders. SPYI has a dividend yield of over 12%.

JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ)

JEPQ is another high yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates additional income by selling call options. As of August 8, JEPQ is at 9%.

Looking for higher yielding opportunities?

The current high interest rate environment has created an incredible opportunity for income investors to earn massive returns, but not through dividend stocks… Certain private market real estate investments offer retail investors the opportunity to capitalize on these investments with high yield. opportunities and Benzinga has identified some of the most attractive options for you to consider.

For example, EquityMultiple’s Ascent Income Fund targets stable income from senior real estate commercial debt positions and has a historical distribution yield of 12.1% backed by real assets. With priority payment and flexible liquidity options, the Ascent Income Fund is a core investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Get a 1% ROI boost on your first EquityMultiple investment when you sign up here (accredited investors only).

Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high yield deals.

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