Stocks and ETFs $5 and Lower With Massive Monthly Ultra-High-Yield Dividends

Investors love dividend stocks, especially the ultra-high-yield variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.

While the Federal Reserve is trapped between the proverbial rock and a hard place when it comes to interest rates, as lowering them now could kick inflation higher, which has remained near the 3% level, doing nothing could help lead the economy into a mild recession, and raising them is out of the question. One solid idea for investors is to wait out the rest of 2025 and move some capital to ultra-high-yield stocks and exchange-traded funds to generate as much passive income as possible.

We screened our 24/7 Wall St. ultra-high-yield research database and found four stocks and an exchange-traded fund offering massive monthly dividends. While not suited for everybody, those trying to build strong passive income streams can do exceptionally well with some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can employ a barbell approach to generate substantial passive income streams.

Why we recommend ultra-high-yield monthly income stocks

A monthly check from your stock portfolio makes sense for most people with bills and expenses due every 30 days, especially in a world where prices are consistently rising. Items such as mortgage payments, rent, utility bills, cell phone and internet bills, trash collection, and grocery bills are always due each month. A steady stream of passive monthly income helps meet these obligations.

Fortitude Gold

Fortitude Gold Corp. (OTC: FTCO) is a U.S.-based gold producer targeting projects with low operating costs, high margins, and strong returns on capital. Gold is printing all-time highs, and with a huge 12.13% dividend, this could be a great way to play the sector.

The company’s strategy is to grow organically, remain debt-free, and distribute substantial dividends. Its Nevada Mining Unit consists of seven high-grade gold properties in the Walker Lane Mineral Belt and an eighth high-grade gold property in west central Nevada.

The Isabella Pearl gold mine is currently in production and is located on the Isabella Pearl mineralized trend. Nevada is among the world’s premier mining-friendly jurisdictions. The company recently announced receiving all regulatory approvals and permits to mine deeper in its Isabella Pearl deposit.

Oxford Square Capital

Oxford Square Capital Corp. (NASDAQ: OXSQ) is a business development company that operates as a closed-end, non-diversified management investment company. If the stock moves higher, this one could be a substantial total return home run. Oxford Square Capital also is a private equity and mezzanine firm that invests in both public and private companies.

The firm invests in:

• Secured and unsecured senior debt
• Subordinated debt
• Junior subordinated debt
• Preferred stock
• Common stock
• Syndicated bank loans

Oxford Square Capital primarily invests in debt and/or equity securities of technology-related companies that operate in:

• Computer software
• Internet
• Information technology infrastructure and services
• Media, telecommunications, and telecommunications equipment
• Semiconductors
• Hardware
• Technology-enabled services
• Semiconductor capital equipment
• Medical device technology
• Diversified technology
• Networking systems sectors.

Nuveen Credit Strategies

Run by one of the world’s biggest money managers, this exchange-traded fund, with a stunning 423 holdings and a 12.76% dividend, offers the kind of diversity ultra-high-yield investors look for. Nuveen Credit Strategies Income Fund (NYSE: JQC) is a diversified closed-end management investment company. The fund’s investment objective is to achieve a high level of current income, and the secondary investment objective is total return.

At the time of purchase, the fund invests at least 80% of its assets in instruments that are senior to common equity in an issuer’s capital structure, including loans, debt securities, and preferred securities.

Nuveen Credit Strategies invests up to 20% of its managed assets in instruments of non-U.S. issuers that are U.S. dollar or non-U.S. dollar denominated, including instruments of issuers located in or conducting their business in emerging market countries. It also invests up to 25% of its managed assets in collateralized loan obligations debt securities.

It serves various industries, such as:

• Software
• Hotels
• Restaurants
• Leisure
• Media
• Insurance

PermRock Royalty Trust

PermRock Royalty Trust (NYSE: PRT) acquires, develops, and operates oil and natural gas properties in the Permian Basin. With a huge dividend, this energy trust makes sense as spot oil prices look to rebound. PermRock Royalty Property Trust is a statutory trust. It owns a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from the underlying properties. T2S Permian Acquisition II owns and operates the underlying properties.

The underlying properties comprise about 31,354 gross (22,394 net) acres in the Permian Basin, which extends over 75,000 square miles in West Texas and Southeastern New Mexico.

The underlying properties consist of four operating areas:

• The Permian Clearfork area consists of about 2,434 net acres on the Central Basin Platform of the Permian Basin in Hockley and Terry Counties, Texas.
• Permian Abo area consists of about 1,667 net acres on the Central Basin Platform of the Permian Basin in Terry and Cochran Counties, Texas.
• The Permian Shelf area consists of 14,390 net acres on the Eastern Shelf of the Permian Basin.
• The Permian Platform area consists of 3,903 net acres.

Prospect Capital

This one is a leading flexible private debt and equity capital provider. Hedge funds love this top business development company, and the gigantic dividend makes it another potential total return home run. Prospect Capital Corp. (NASDAQ: PSEC) specializes in:

• Middle market
• Mature
• Mezzanine finance
• Later-stage emerging growth
• Leveraged buyouts
• Refinancing
• Acquisitions
• Recapitalizations
• Turnaround
• Growth capital
• Development
• Capital expenditures and subordinated debt tranches of collateralized loan obligations
• Cash flow term loans
• Marketplace lending
• Bridge transactions.

It also invests in the multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second-lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses.

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