Many investors look forward to receiving a dividend payment each quarter from their dividend stocks. But what if you could receive a dividend payment every month instead? Even better, what if this dividend came with a 10% yield? If you like the sound of that, you're in luck, because you can receive $1,000 in dividend income each month by buying shares of Prospect Capital (NASDAQ: PSEC). Here's how. 

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While most dividend stocks pay out on a quarterly basis, some stocks pay out on a monthly basis instead. One of these is Prospect Capital, a business development corporation (BDC) that lends to and sometimes makes equity investments in mid-tier private companies -- the types that are generally too small to raise money in the public market but that require more capital than a local bank can provide. Because of the tax structure for BDCs, they pay out a large portion of their earnings in dividends. Prospect Capital has a diverse portfolio with 129 investments in 40 different industries, ranging from software to textiles and even aerospace. 

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Source Fool.com