Best paying monthly dividend stock?

Screening Filters

1. Market Cap ≥ $1,000,000,000 (≥ $1B)

   • Purpose: Focus on established, relatively stable companies.
   • Rationale:
     • Monthly dividend payers that are truly “best” tend to be larger, more mature businesses (REITs, utilities, business development companies, etc.), not micro‑caps.
     • A $1B minimum helps avoid very small, illiquid, or speculative firms whose dividends are more likely to be cut or heavily diluted.
     • This makes the list more suitable for consistent income rather than speculative high yield.

2. Beta: LowRisk, ModerateRisk, HighRisk (i.e., no strict limit)

   • Purpose: Allow a full range of volatility profiles.
   • Rationale:
     • Investors in monthly dividend stocks have different risk tolerances. Some prefer low‑beta “bond‑like” income; others accept higher volatility for higher yield or growth.
     • By explicitly including low, moderate, and high risk, the screener does not exclude potentially attractive monthly payers just because they’re more volatile, while still labeling risk so you can choose according to your comfort level.

3. 5‑Year Dividend CAGR ≥ 2%

   • Purpose: Require some history of dividend growth.
   • Rationale:
     • “Best” dividend payers aren’t just those paying today—they should be growing or at least keeping up with inflation over time.
     • A minimum 2% compound annual growth over 5 years helps filter out companies that have completely stagnant or shrinking dividends, pointing you toward firms that have at least modestly increased payouts.
     • This supports long‑term income sustainability and purchasing power.

4. Dividend Yield (TTM) Between 4% and 10%

   • Purpose: Target a reasonably high, but not extreme, income yield.
   • Rationale:
     • Many investors look to monthly dividend stocks specifically for income, so setting a floor at 4% focuses on genuinely income‑oriented names.
     • Capping yield at 10% helps avoid many “yield traps” where yields are extremely high because the market anticipates a cut or serious financial trouble.
     • This band aims to balance attractive income with a better chance of sustainability.

5. Dividend Payout Ratio Between 40% and 90%

   • Purpose: Screen for dividends that are more likely to be sustainable.
   • Rationale:
     • A payout ratio below ~40% can indicate the company is very conservative with distributions, which is fine, but for “best monthly dividend” stocks you generally want firms that prioritize returning cash to shareholders.
     • Above ~90% of earnings, dividends can become fragile; the company has very little buffer if earnings drop, especially relevant for steady monthly commitments.
     • The 40–90% range attempts to capture businesses that (a) clearly emphasize dividends, yet (b) still retain enough earnings to reinvest and weather downturns.

Why Results Match:

• The filters focus on established, sizable companies more likely to maintain a reliable monthly dividend program.
• Yield and payout filters aim for attractive yet sustainable income, avoiding the riskiest ultra‑high yields.
• The dividend growth requirement targets quality income names that don’t just pay today but have a history of increasing payouts.
• Risk is left open (beta not tightly constrained), so you get a broad opportunity set of monthly dividend payers and can then choose within that set according to your own risk tolerance.

Note: The “monthly” aspect itself typically comes from the dividend payment schedule (a separate field), while these filters are about making sure those monthly payers you see are more likely to be good long‑term income candidates.