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4 Monthly Dividend Stocks for a Steady Diet of Income

Closed-end funds pay monthly dividends, if you need the cash.

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Monthly Dividend Stocks #2: Apollo Senior Floating Rate Fund (AFT)

monthly-dividend-stocks-aftAFT Dividend Yield: 6.62%

As monthly dividend stocks go, there’s also reason to buy Apollo Senior Floating Rate Fund (AFT). This is another credit-driven fund, so I like it because that’s an area I happen to be involved in. AFT’s goal is to make investments in senior, secured loans to companies whose debt is rated below investment grade (i.e., junk).

It’s the “senior” part of this dividend stock that is important. The fund takes the top position in the firm’s capital structure, and will often insist on structural changes to the deal if the company or economy deteriorates. Being in the senior position means that if something goes wrong, AFT is first in line to get its money back.

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