Filed pursuant to rule 497 (e) under the Securities Act of 1933
Registration Number 2-42379
STRATTON MONTHLY DIVIDEND SHARES, INC.
Supplement dated October 2, 1996
to the Prospectus & Statement of Additional Information dated June 1, 1996
Shareholders of record on October 2, 1996 will be asked to vote on a change
in the Fund's policy on concentration of its investments. If approved by
shareholders, the new concentration policy would read:
"The Fund will invest at least 25% of its assets in Securities of Real
Estate Investment Trusts and of public utility companies engaged in
the production, transmission or distribution of electric, energy, gas,
water or telephone services."