FPS SERVICES, INC.
3200 Horizon Drive
King of Prussia, PA 19406
October 2, 1997
Securities and Exchange Commission
Judiciary Plaza
Public Filing Desk
450 Fifth Street, NW
Washington, DC 20549
Re: Stratton Monthly Dividend Shares, Inc. (the "Registrant")
1940 Act File No. 811-2240
1933 Act File No. 2-42379
To the Staff of the Commission:
Pursuant to Rule 497(e) under the Securities Act of 1933, as
amended, enclosed for filing on behalf of the Registrant is the
EDGAR transmission of the Supplement to the Prospectus and Statement of
Additional Information dated May 15, 1997, as supplemented October 2,
1997.
The purpose of this filing is to inform prospective shareholders of the
Funds' Proxy record date and meeting, in which shareholders will be
asked to vote on a change in the Investment Concentration.
Should you have any questions, comments or require further information,
I can be reached directly at 800-441-6580 extension 4745.Thank you for
your continued courtesy and cooperation.
Sincerely,
/s/ William J. Baltrus
William J. Baltrus
Manager, Corporate Compliance<PAGE>
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, 1997
to the Prospectus & Statement of Additional Information dated May 15, 1997
Shareholders of record on October 1, 1997 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."
