But the long-term demographic trends here are just about unstoppable, and LTC is an attractive turnaround play in 2023. Illinois Tool Works manufactures industrial products and equipment for construction, automotive, and other industries. The following is a look at companies with reliable performance in terms of profitability, stock prices, and dividends.
- Monthly dividend stocks could be more appealing to income investors than quarterly or semi-annual dividend stocks.
- Based on distributions per unit of $1.57 in the first 11 months of the year, we expect annual distributable income per unit around $1.71, a 10-year high.
- Dividend investors valuing stability over a full cycle should look elsewhere.
Moreover, Russell 2000 Dividend Growth Index plunged by 5.44% as compared with a negative 20.44% return of the Russell 2000 Index. A qualified dividend is a payment to owners of stock shares that meets the IRS criteria for taxation at the capital gains tax rate. Established in 2013, the Global X U.S. SuperDividend fund focuses on abasket of low-volatility, high-yielding securities. The objective is to track the performance of 50 equally weighted common stocks, MLPs, and REITs within the U.S.
This frequency better aligns with the timing of many regular bills, allowing an investor to offset expenses with dividend income. That makes monthly dividend stocks ideal for retirees or other investors who rely on their portfolios for income. That said, we ranked the list of micro-cap and OTC monthly dividend stocks below in order from least to most risky. As conservative income investors, our preference would be to invest in monthly dividend stocks outside the residential mortgage REIT space. Some monthly dividend stocks known as Dividend Aristocrats may even increase their dividends.
CT REIT owns over 370 mostly single-tenant retail properties across Canada. The REIT enjoys very high occupancy and generates nearly all rent from investment-grade tenants. However, this is driven by the fact that BBB rated Canadian Tire Corporation accounts for the majority of rent.
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Moving forward, we believe that SLG’s occupancy and rental rates will likely recover as lingering headwinds from the Covid-19 outbreak and the severe New York City lockdowns dissipate. When combined with fairly aggressive share repurchases, we think SLG can grow its FFO per share at a 5% CAGR over the next half decade. There is only one situation I can think of where the faster compounding of dividends monthly has value. Thus, you can build a 12-month dividend portfolio by selecting at least one stock from each pattern.
https://forex-world.net/ owns a diverse and eclectic portfolio of movie theaters, amusement parks, ski parks, “eat and play” properties like Topgolf, and a host of others. You know those gritty warehouse properties you might see near the airport with 18-wheelers constantly coming and going? That’s exactly the kind of property that Stag Industrial buys and holds. The more companies you find that meet this schedule, the higher the potential dividend you can collect. Prices and interest rates generally move in opposite directions, but each sector responds uniquely. This will be especially important to keep an eye on given that interest rates are currently very low.
The firm’s monthly dividend enjoys a final layer of protection from funds Main Street retains after exiting a successful investment. Main Street Capital’s roots trace back to the mid-1990s, making the internally-managed business development company one of the oldest and largest in the industry. Finally, with ARR you get by far the most attractive dividend yield of the three at 19.4%.
With under 100 investments, the BDC’s portfolio is less diversified than many others, too. The bottom line is that PSEC’s strengths are offset by its weaknesses, which make an investment in this monthly dividend payer a riskier bet over a full economic cycle. Overall, LTC is a well-managed firm operating in a difficult industry that faces numerous risks outside of management’s control. While the REIT has been resilient in maintaining the dividend, conservative income investors may want to look at other stocks given LTC’s wider range of outcomes. It’s also worth noting that, all else equal, SLR’s net investment income and dividend coverage benefit from rising interest rates. Most of the firm’s loan investments have floating rates, whereas SLR’s debt has primarily fixed interest rates.
High-Yield Monthly Dividend Stock #4: Hugoton Royalty Trust (HGTXU)
Inflation doesn’t help on that front either, nor does the tight labor market, which makes it difficult to find help. And EPR has a large allocation to movie theater properties, and movies have been slow to bounce back to pre-COVID levels. Such a diversified portfolio has had little difficulty navigating the crazy volatility of the past few years. As of Sept. 30, 2022, the REIT had a portfolio of 137 properties spread across 27 states and leased to 112 distinct tenants. GOOD has grown its portfolio 15% per year in a consistent, disciplined manner since 2012.
The last benefit of monthly dividend stocks is that they allow investors to have – on average – more cash on hand to make opportunistic purchases. A monthly dividend payment is more likely to put cash in your account when you need it versus a quarterly dividend. With farmland representing a solid long-term inflation hedge, Gladstone Land may appeal to investors despite its lower dividend yield compared to other companies on our list of monthly dividend stocks. Dividend stocks can be the perfect investment for those who need regular income, such as retirees.
Final Thoughts & Other Income Investing Resources
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Unlike most of its peers which prioritize loan investments, equity securities account for around one-third of the small-cap BDC’s portfolio. This provides Gladstone Investment with more upside in the management buyout transactions it helps fund. These funds, known as spillover, provide an offset against the inevitable credit losses that will be experienced when making investments in subprime debt securities. Pembina dropped off the list in January 2023 as the popular Canadian midstream stock switched to paying dividends quarterly. Below the table you’ll find our analysis on every stock that pays dividends monthly, ranked from our most to least favorite companies. It invests in commercial properties, primarily focused on entertainment.
Agree Realty switched from a quarterly to a monthly dividend payment schedule in January 2021. This REIT has increased its dividend at a 5.5% compound annual rate over the past decade. For the year, EPS came in at $1.68, down 8.2% compared to fiscal 2022. The higher cost of funds was only partially offset by higher asset yields. Ellington’s book value per share declined from $15.22 to $15.05 during the last three months, with its dividend exceeding the underlying earnings.
High-Yield Monthly Dividend Stock #6: PermRock Royalty Trust (PRT)
With movie theaters facing disruption from online streaming, EPR plans to acquire more attraction-related properties that consumers can only experience outside the home. That said, these 20 dividend stocks make monthly payments to shareholders, and all have high dividend yields. For this reason, we created a full list of 84 monthly dividend stocks. Global Water Resources formed in 2003 and has paid monthly dividends without interruption since going public in 2016. The firm owns and operates over 20 water and wastewater utilities in communities around Phoenix, Arizona. With new connections in existing service areas, acquisitions, and utility rate increases, Global Water has an attractive growth profile to support a rising monthly dividend despite its concentrated footprint.
The company posted net investment income of 23 cents per share, which was two cents better than expected. That was up 21% year-over-year, but missed estimates by about half a million dollars. As a result, we have real concerns that many monthly dividend payers will not be able to continue paying rising dividends in the event of a recession. Each separate monthly dividend stock has its own unique characteristics. The resources below will give you a better understanding of monthly dividend stock investing.
While most companies pay dividends quarterly, there are 60 stocks that pay dividends monthly. For retirees looking to fund their monthly living expenses, monthly dividend stocks can be a great tool. That said, just because a dividend is attractive and is paid monthly does not automatically make it a great fit for the portfolio. As a result, while the current monthly dividend payout looks very attractive with a 19.4% annualized yield, investors should keep in mind that the dividend is highly subject to interest rate movement.
Overall, PennantPark has a solid opeBest monthly dividendsnal track record and maintains a diversified portfolio invested in securities with more protection from loan defaults. Income investors considering the stock still have to be comfortable with the BDC industry’s cyclicality, though. PennantPark lends to somewhat smaller companies compared to most of its peers. While these businesses can be more likely to default during downturns, management mitigates this risk with the types of investments the firm pursues.
JEPI has grown to over $21 billion in assets under management since its inception in 2020. Learn more about dividend stocks, including information about important dividend dates, the advantages of dividend stocks, dividend yield, and much more in our financial education center. The following list of exchange-traded funds is not in any particular order and is offered only as an example of some of the funds that fall into the category of the monthly-dividend paying ETFs.
Despite its smaller size and higher mix of equity holdings, Gladstone Investment has proven over time to be one of the better managed BDCs with a solid performance track record. Investors who are comfortable with these risks and the tax implications of owning a Canadian stock may be attracted to the company’s long-term runway as demand for clean energy rises in the decades ahead. STAG hedges its bets by spreading its portfolio across many different tenants (none greater than 4% of rent) and over 60 geographic markets (none exceed 10% of rent). Doing business with a diversified set of mostly essential, creditworthy retailers helped ADC collect nearly 90% of rent during the depths of the pandemic, one of the best records of any retail REIT. ADC also diversifies across retail industries, with none accounting for more than 10% of rent.
However, PSEC has historically struggled to create shareholder value and maintain its dividend, which has undergone two large cuts over the past decade. The BDC’s external management structure and riskier investment portfolio are the main culprits. LTC’s five largest tenants account for nearly half of the REIT’s revenue, making for an even murkier outlook as management navigates these challenges while trying to keep the firm’s monthly dividend covered. LTC’s tenants provide essential services for seniors and should enjoy higher patient volumes over time due to America’s aging population. These factors have helped the company pay uninterrupted dividends since 2003. These qualities reduce Gladstone Commercial’s margin of safety to maintain its payout in the event of any unexpected weakness, making the stock less appropriate for conservative income investors.
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- With that said, it might not be practical to manually re-invest dividend payments on a monthly basis.
- Meanwhile, others seemed to be at a higher risk of reducing their dividends if market conditions deteriorate.
- That’s good because, with the yield curve inverted as it was for much of 2022, a recession in 2023 is a real possibility.
- This resource links to stand-alone analysis on each of these 84 securities.
With a dividend yield of 10.2%, JEPQ has a lower yield than JEPI, but this is still an attractive payout. JEPI achieves this by investing up to 20% of its assets into ELNs (equity-linked notes) and selling call options with exposure to the S&P 500. While this approach held up well last year and preserved investor capital in a challenging market, it warrants mentioning that this approach may also limit some of JEPI’s upside in a bull market. However, this is why an ETF like JEPI is best suited as part of a balanced portfolio.
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It just means that their primary objective is stability, not aggressive growth. Dividend stocks generally pay quarterly, and most bonds pay semiannually, or twice per year. This has a way of making portfolio income lumpy, as dividend and interest payments often come in clusters. Dover is a global manufacturer and solutions provider with heavy exposure to the oil and gas industry.