Many investors are unaware of the fact that monthly dividend stocks exist.
There is a common misconception that stocks only offer dividend yields quarterly or annually.
However, it is possible to make a solid monthly dividend income from your stocks.
In this article, we’ll talk about the best monthly dividend stocks on the market.
Monthly dividends provide a consistent and reliable income stream.
You can use this income to build up your nest egg and prepared for retirement.
Let’s take a quick look at the best monthly dividend stocks that will provide you with a steady stream of income every 30 days.
Best Monthly Dividend Stocks
Gladstone Capital Corporation (NYSE: GLAD)
Gladstone Capital provides funds for smaller middle-market businesses.
Specifically, the company looks to enterprises that have revenues somewhere between $20 and $150 million.
It invests only in companies with a proven business model that are in the black.
Gladstone Capital provides an assortment of loans to these businesses and has been known to take on a minority share.
Although relatively small, Gladstone Capital has a diverse portfolio of businesses to work with.
It has seen a healthy stock growth since the downturn of early 2020 and is up 50% from last year at this time.
The company is part of a more extensive network, including Gladstone Commercial, Gladstone Land, and Gladstone Investment.
Each of these businesses has the potential to be a good dividend stock.
Gladstone Capital in particular pays out 6.82%.
STAG Industrial (NYSE: STAG)
STAG Industrial is a real estate investment trust specializing in warehouses and light industrial properties.
The company’s primary focus is on distribution centers for large-scale national companies.
In total, STAG Industrial currently owns more than 500 buildings across nearly 40 states.
A near majority of STAG’s portfolio consists of online ventures.
As more and more businesses move online, this puts STAG in an excellent position to succeed.
STAG is renting out buildings at healthy rates, boosting its revenue and dividend price in turn.
The company has more than made up for lost shares in 2020 and is now trading higher than ever before.
With a dividend of 3.4% and a real estate occupancy rate near 97%, Stag is an awfully tempting stock.
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Safe Monthly Dividend Stocks
Realty Income (NYSE: O)
With a dividend of 4.07%, Realty Income is worthy of every investor’s consideration.
Realty Income owns more than 6,700 properties in all 50 states, Puerto Rico, and the United Kingdom.
Most of these properties are single-tenant retail sites.
Realty Income minimizes its financial risk by maintaining a diverse portfolio.
The company is involved in key markets throughout the U.S. and also has clients in many different industries.
With stable business operations, Realty Income’s dividends will likely hold steady going forward.
Since it generally invests in standalone properties instead of malls, it has more versatility moving forward.
While malls have struggled over the past decade, standalone properties have plenty of potential.
A good portion of Realty Income’s properties are convenience stores and pharmacies in high-traffic areas.
Realty Income has paid over 600 monthly dividends in a row, so it has a history of consistent payments.
The company has also increased its dividends more than 100 times in the 26 years since its IPO.
Realty Income has even trademarked itself as the “Monthly Dividend Company”, which shows its commitment to paying its shareholders.
LTC Properties (NYSE: LTC)
LTC provides a dividend yield of 6.61%.
The company’s portfolio is split between skilled nursing facilities and senior housing (LTC stands for long-term care).
In total, LTC has more than 179 investments across nearly 30 states.
It serves as a landlord and does not operate these facilities.
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Senior living took a hit during the pandemic with fears over conditions and safety.
However, as conditions return to normal, these facilities should rebound.
The baby boomer generation is getting older, which bodes well for LTC in both the short and long term.
This population covers those born from the late 1940s through 1960, and a majority of those people are just how considering long-term care.
The United States’ aging population bodes well for LTC’s industry in the years ahead.
LTC’s dividend accounts for three-quarters of their current budget.
This means that even if it loses realty income for its properties at any point, the dividend likely won’t be at risk.
Monthly REIT Dividend Stocks
SL Green Realty (NYSE: SLG)
SL Green Realty is a real estate investment trust that owns and operates properties in Manhattan and the surrounding area.
In fact, SL Green is the largest commercial landlord in New York City.
It owns nearly 80 buildings with a total of more than 35 million square feet.
SL Green has a market capitalization in excess of $5.0 billion and a current dividend yield of 4.89%.
It saw an increase in income through spring 2021 and will release Q3 earnings shortly.
The stock price is still climbing out of the hole left from when the pandemic first hit.
That being said, shares have increased over 50% since last year at this time.
Occupancy rates appear to be on the rise and are still near 95%, indicating that companies are moving back in to physical offices.
SL Green has a robust business model, and they’re likely to remain a monthly dividend-paying company for years to come.
They focus on multi-year commercial leases and have a vast portfolio of properties throughout the city.
This sets them up for financial stability even in a challenging market.
AGNC Investment Corp. (NASDAQ: AGNC)
AGNC Investment Corp. is a real estate investment trust (REIT) and the first of several on this list.
The company works with residential mortgage pass-through securities.
It then generates income from the assets it invests in.
AGNC has seen a gradual share price increase since March 2020, only plateauing in the last few months.
To further incentivize shareholders, AGNC pays out an 8.88% dividend yield.
Best Monthly Dividend Stocks With High Yield
Horizon Technology Finance Corp (NASDAQ: HRZN)
It is not often you find a stock with dividend payments over 7%, but Horizon Technology Finance Corp is one of these exciting stocks.
This strong monthly dividend stock is great for anyone looking for an income investment.
Horizon Technology Finance Corp is a venture capital lender that works with companies that might otherwise struggle to obtain financing.
The company works primarily with tech and life sciences companies that are currently in the development stage.
Horizon provides more than $25 million in financing for their clients over the course of two years.
It makes money through success fees and warrants also recoups its original investment over time.
Horizon’s assets are diversified enough to survive a lengthy economic recession.
The above, along with Horizon’s leadership, has an exemplary track record when selecting investments, and you have an attractive investment.
Dynex Capital, Inc. (NYSE: DX)
Dynex Capital is a mortgage REIT investing in mortgage bonds and securities.
The company does so with both commercial and residential properties.
To appeal to shareholders, it uses these investments to generate high dividends.
Dynex currently has a dividend yield of 8.71%.
Although the share price halved at the beginning of the pandemic, Dynex made up the difference this summer, only now trading sideways this fall.
This is likely due to lower than expected revenue in the second quarter of 2021.
The lower numbers come off a very high revenue stream in Q1.
Third-quarter earnings announcements in a few weeks will hopefully push things back in the right direction.
As life continues to return to normal, businesses will likely look to return to physical locations.
Best Growth Monthly Dividend Stocks
EPR Properties (NYSE: EPR)
EPR Properties is yet another REIT with more of a unique vision.
The company is all about spectacles, owning real estate ventures for things like ski resorts, gaming facilities, movie theaters, bowling alleys, and more.
Because of this, EPR was hit hard during the pandemic, plummeting from nearly $80 per share to $20 overnight.
EPR was forced to suspend its dividend for over a year during this time.
Hope is not lost, as vaccines and reopenings have allowed these types of venues to reopen at full capacity.
It is dedicated to remaking all that it lost and has seen a 140% climb in share price over the last year.
As of July 2021, the company has reintroduced a 5.69% dividend to shareholders, a great sign that the EPR is going strong.
Pembina Pipeline Corporation (NYSE: PBA)
Pembina Pipeline Corporation stands out as its dealings are in the energy sector.
Specifically, the company has transportation and storage capabilities for oil and natural gas throughout Western Canada.
It forms long-term contracts with businesses in the energy sector to use its equipment, providing a steady source of revenue.
After a hard fall thanks to the Covid-19 pandemic, Pembina Pipeline has been making strides to reclaim lost share price.
Its share price has seen a steady rise over the last 18 months and is 60% higher than last year at this time.
These gains allow Pembina Pipeline to pay out a healthy 5.81% dividend at current.
With many long-term investments still in place, things are looking up for Pembina Pipeline.Stock Advice That Beats The Market! Stock Advisor's recommendations have beaten the market over the past 19 years. Tired of picking losers? Stock Dork readers can join for only $99 a year! Check out Stock Advisor today!
Should You Buy Monthly Dividend Stocks?
Yes! However, most publicly traded companies do not provide a monthly dividend.
Quarterly dividends are much more commonplace.
When done carefully, a monthly dividend stock strategy can help you net a consistent monthly income.
Best Monthly Dividend Stocks: Final Thoughts
Monthly dividend stocks are a unique investment opportunity.
They are a great choice for investors who are risk-averse and want the stability of consistent monthly income, in addition to share value gains.
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