8 of the Best Monthly Dividend Stocks

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Monthly dividend stocks are useful for investors looking for regular interest payments, which can be beneficial during retirement. Some investors may also choose to invest in monthly dividend stocks during bear markets when their stock prices fall.

Whatever your situation, the steady interest that monthly dividend stocks provide can make it easier to plan your finances, especially if you rely on your portfolio to generate income. They can also help ease your fears about a struggling market, as you receive regular dividends every month.

Best Monthly Dividend Stocks

Take a look at some of the best monthly dividend stocks and what sets them apart.

1. Main Street Capital Corporation

Main Street Capital Corporation (MAIN) is a private equity firm that invests in lower middle market companies with revenues between $10 million and $150 million. The company has been around since the mid-1990s. During that time, it has helped more than 200 private companies grow. It focuses on companies with strong competitive advantages, stable and positive cash flow, and seasoned management teams with established track records.

Advantages: History of success

The inconvenients: Some recent dividends have been lower than normal

Market capitalization: $2.97 billion

Dividend yield: 6.38%

2. Real Estate Income Corporation

Realty Income Corporation (O) is a real estate investment trust that invests in commercial properties. As a REIT, the company is so confident in its ability to pay monthly dividends that it calls itself The Monthly Dividend Company. He is also a member of the S&P 500 and S&P 500 Dividend Aristocrats indices.

A dividend aristocrat is a company that pays regular dividends and increases them regularly. O has increased its dividend 116 times since it first listed on the NYSE in 1994.

Advantages: Strong history of increasing dividends

The inconvenients: The dividend yield is still low

Market capitalization: $40.93 billion

Dividend yield: 4.28%

3. Green SL

SL Green (SLG) is a REIT that invests in office buildings and shopping centers in New York. He owns properties in Midtown, Midtown South and Downtown. As of March 31, 2022, the company held interests in 71 properties totaling 34.7 million square feet. SL Green is based in New York and was founded in 1997.

Advantages: A solid real estate portfolio is an attractive market; high dividend yield

The inconvenients: Investments limited to New York

Market capitalization: $2.92 billion

Dividend yield: 8.04%

4. AGNC Investment Company

AGNC Investment Corporation (AGNC) is a REIT that invests in residential mortgage loans. Specifically, it invests in mortgage-backed securities. Although he invests on the basis of leverage, his investments are “agency MBS”, meaning they are backed by government agencies. This can help reduce risk for investors. Notably, AGNC’s dividend yield is the highest on this list.

Advantages: Double-digit dividend yield

The inconvenients: High debt; despite a high dividend yield, dividends have fallen significantly since 2011

Market capitalization: $6.07 billion

Dividend yield: 12.61%

5. Properties of REP

EPR Properties (EPR) describes itself as an experiential REIT. It invests in commercial properties, primarily focused on entertainment. This includes amusement parks, cinemas and ski resorts. Its current investment portfolio contains $6.4 billion in assets and the company says its market potential can reach $100 billion in assets.

Advantages: Potentially has a lot of room to develop its portfolio

The inconvenients: The share price has fallen by more than 34% in the last five years; has not always paid regular monthly dividends

Market capitalization: $3.59 billion

Dividend yield: 6.85%

6. Apple Hospitality REIT

Apple Hospitality REIT (APLE) is a REIT that invests in upscale hotels in the United States. Its extensive portfolio includes 219 hotels with over 28,700 rooms. These hotels cover 86 markets in 36 states. They include hotels from major brands, such as Marriott and Hilton.

Advantages: Large portfolio that invests in major hotel brands

The inconvenients: Relatively low yield and earnings per share

Market capitalization: $3.47 billion

Dividend yield: 4%

7. Prospect Capital Corporation

Prospect Capital Corporation (PSEC) is a business development company that makes debt and equity investments in middle market companies in the United States. It does this in many sectors and aims to provide stable returns to investors. Its portfolio includes $7.5 billion in assets and it has already financed more than 375 investments. Its website notes that it has already declared more than $3.7 billion in dividends for investors.

Advantages: High dividend yield

The inconvenients: Low level of ownership by institutional investors, such as mutual funds

Market capitalization: $2.82 billion

Dividend yield: 9.93%

8. STAG Industrial, Inc.

STAG Industrial, Inc. (STAG) is a REIT focused on acquiring and operating industrial properties in the United States. Most of its properties are manufacturing facilities or warehouses. It acquired 74 properties totaling 12.9 million square feet and invested $1.4 billion. Overall, its enterprise value is $9.9 billion, with 551 buildings totaling 110.1 million square feet. The company is present in 40 states.

Advantages: Unique opportunity to invest in warehouses; works in most states

The inconvenients: The dividend yield is low

Market capitalization: $5.50 billion

Dividend yield: 4.84%

Final grip

Dividend stocks may be the ideal investment for those who need regular income, such as retirees. These stocks tend to operate in established sectors, such as real estate, which allows them to pay regular income to investors. Some even pay monthly dividends, which is great if you rely on your portfolio as a source of income.

If you need income from your portfolio each month, look for sectors that can consistently pay dividends, such as real estate, energy, and private equity. However, keep in mind that chasing high returns is not always best. Instead, you should look for companies that consistently increase their dividends. These are known as dividend aristocrats and these companies will be less likely to cut dividends in the future.

FAQs

  • Which stocks pay the highest monthly dividends?
    • The stocks that pay the highest monthly dividends can vary from month to month depending on whether companies increase or decrease their dividends. Currently, some of the highest monthly returns come from Orchid Island Capital (ORC; yield: 19.15%), Armor Residential REIT (ARR; yield: 17.07%) and AGNC Investment Corporation (AGNC; yield: 12.61%). Keep in mind that chasing high dividends can be dangerous, and double-digit dividends can be unsustainable in some cases.
  • Can you earn monthly income from dividends?
    • Many dividend-paying stocks pay dividends to investors every month. Some monthly dividend stocks can even increase their dividends – known as dividend aristocrats. Therefore, you can definitely earn monthly income from dividends.
  • Which stocks pay monthly dividends?
    • There are many stocks that pay monthly dividends, including all of the monthly dividend stocks on this list. For other stocks, you can either view the company’s shareholder information or search for them on a stock research website such as Nasdaq.com.
  • Are Monthly Dividend Stocks Worth It?
    • Monthly dividend stocks can be worth it in some cases. In general, dividend-paying stocks are worth it for retirees and those who want consistent monthly income from their stocks. However, dividend-paying stocks tend to be heavily concentrated in a few sectors, such as energy, real estate, and private equity. These sectors may not offer the same opportunities for growth as other sectors, such as technology. Thus, stocks with monthly dividends may not be as helpful for those focused on building wealth.

Information is accurate as of July 14, 2022.

About the Author

Bob Haegele is a personal finance writer specializing in topics such as investing, banking, and credit cards. He quit his day job in 2019 to pursue his passion for helping people get out of debt and build wealth. You can find his work at outlets such as Business Insider, Forbes Advisor, and SoFi.

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