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Best Monthly Dividend Stocks for Income Investing

Hassan Maishera - January 02, 2020

monthly dividend stocks

While most companies pay quarterly dividends, monthly dividend stocks offer more cash-flow flexibility. Income investors often prefer monthly dividend payouts because they offer more regular income. However, almost any trader can appreciate the value of monthly dividend payments.

Traders have hundreds of monthly dividend stocks to choose from, but they each have their own set of risks and benefits. They each pay varying rates of return, but that’s just the beginning of the differences.

Most monthly dividend stocks represent funds or REITs. Each fund focuses on a particular area of investment, and they have different strategies and risk levels. To determine which one is best for your portfolio, you’ll need to identify which one fits best with your overall investment strategy.

Monthly Dividend Stocks: Our Top Picks

If you’re looking to add some monthly dividend stocks to your portfolio, you might not know where to begin. You should look for picks that fit with your investing goals. This list of the best monthly dividend stocks provides a solid starting point for investors of all skill levels.

Realty Income Corporation (O)

This San Diego-based REIT has properties in the United States, Puerto Rico, and the United Kingdom. The fund primarily invests in freestanding, single-tenant commercial properties. Property rents provide most of the fund’s cash flow, and the income is distributed as monthly dividends.

Realty Income Corporation has long-term lease agreements with its tenants, and its properties provide over $20 billion in annual income. Dividend payments currently yield about 3.7% monthly.

This fund has made good on over 500 consecutive monthly dividends over the past few decades. Since it listed on the NYSE over 20 years ago, it raised its dividend 102 times. Realty Income Corp. is a rock-steady company and it’s a reliable option for income investors.

STAG Industrial, Inc. (STAG)

Founded in 2011, this Boston-base REIT focuses on single-tenant industrial properties in the US. The company’s investment strategy offers a good balance of income and growth.

STAG’s enterprise is worth more than $5.5 billion. Currently, STAG’s monthly dividend payout yields about 4.6%. Thus, making STAG one of the most lucrative monthly dividend stocks available to investors.

Over the past few years, STAG Industrials increased its monthly dividends regularly. This fund posted an excellent performance in 2019, and share prices could be heading higher over the next few months.

Shaw Communications Inc. (SJR)

Shaw Communications Inc. is a Canadian cable company that primarily operates in North America. The company offers telephone, Internet, television, and mobile service. Their services are backed by a fiber-optic network. Shaw Communications Inc. also operates via its subsidiary Freedom Mobile, allowing it to provide services in more regions on the continent.

Over the past few years, Shaw Communications has shown a strong commitment to maintaining its dividend payments. Despite having cashflow troubles between 2013 and 2015, the company managed to make all of its dividend payments. If you’re an income investor, that’s the kind of reliability you’re looking for.

Shaw’s annual revenues add up to about $9 billion, and its monthly dividend yields about 4.4%. Shaw Communications Inc. could be set for another fantastic year following recent developments by Freedom Mobile. The firm recently launched home internet services, and the new offering could be a major growth engine for the company this year.

Pembina Pipeline Corporation (PBA)

Pembina Pipeline Corp is one of the best Canadian monthly dividend stocks. Though it trades on the NYSE in the US, the firm offers various services for the oil and natural gas industry.

The company is worth over $18 billion, and its dividend yields about 4.9%. While that’s an excellent yield, it’s a few points lower than the production and pipeline industry’s average yield of 5.29%. However, monthly payments somewhat compensate for the lower yield. Currently, it’s one of the best monthly dividend stocks.

Pembina share prices are also up over the past few months. The firm’s recent acquisition of the outstanding common equity of KML could help boost its output this year. The expansion could fuel more gains over the coming few months.

EPR Properties (EPR)

This real estate investment trust is based in Kansas City, Missouri. EPR Properties focuses its efforts on the commercial property market. Its primary interests lay in the entertainment, recreation and education sectors. Shares of EPR performed excellently in recent months, and it returned a lot of revenues to its investors via monthly dividends.

The current monthly dividend yield for this stock stands at 6.4%, which makes it one of the highest-yielding monthly dividend stocks on the market. The annual dividend payout amount is up by 150% over the past two decades, despite slashing its payments after the 2008 financial crisis.

Increases in capital gains helped EPR maintain its record of dividend increases. The company’s capital gains are up 12% over the past year. Similarly, it’s up by roughly 30% and 70% over the last three and five years respectively.

Recent developments such as the sale of its Charter School portfolio could rally share prices over the net few months. This earnings boost could, in turn, lead to increased dividends.

shipping REITS monthly dividend stocks
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Gladstone Commercial Corporation (GOOD)

Gladstone Commercial Corporation is leading real estate investment trust. The trust invests in single-tenant and anchored multi-tenant net leased industrial, and office. It also invests in medical properties across the United States.

The company has been paying regular monthly dividends since 2005. Gladstone Commercial Corporation has had over 170 consecutive monthly cash distributions on its stock. Also, the company has paid 160 consecutive monthly cash distributions and 36 consecutive monthly cash distributions on its Series D Preferred Stock.

For its Series B Preferred Stock, the company has paid 151 consecutive monthly cash distributions to investors. The annual revenue of Gladstone Commercial Corporation is over $600 million. Its dividend yield currently stands at 6.9%, which is higher than the REIT and Equity Trust yield of 4.11%.

The share price of Gladstone Commercial Corporation has been performing well over the past decade. This has helped the company boost its dividend payout to investors during that period.

Gladstone Commercial Corporation is expanding its portfolio into the industrial sector. At the moment, the company has a few industrial properties across the United States. The acquisition of an industrial portfolio in several parts of the US could open up the business for the company. Thus, it could boost the earnings of the company and subsequently the dividend.

Gladstone Investment Corporation (GAIN)

This is a private equity fund that has been around since 2005. The company specializes in the purchase of mature, lower middle-market companies. The companies they acquire usually have $20 to $100 million in revenue, attractive fundamentals, and strong management teams.

The company has seen massive returns over the past decade, following the 85% drop it experienced after the 2008 financial crisis. The current monthly dividend yield for this stock is 5.9%, which makes it one of the best options for investors. In 2018, Gladstone Investment Corporation increased its monthly payout three times. It did the same thing twice in 2019.

In addition to these, Gladstone Investment Corporation has been increasing its annual dividend payout each year since 2010. These moves make it one of the best monthly dividend stocks for investors. In the past three years, shareholders of Gladstone Investment Corporation have received a 106% total return. Over the past five years, the total return on this stock stands at 151%. Thus, Gladstone Investment Corporation is an excellent stock to look at if you wish to earn high monthly dividends on your investment.

At the moment, Gladstone Investment Corporation’s investment portfolio consists of 27 companies. It could increase this number in the coming year, which could further boost investor payout.

Stellus Capital Investment Corporation (SCM)

Stellus Capital Investment Corporation was founded in 2012 as a spin-off from the D. E. Shaw & Company. It is a middle-market investment firm that has over $1.6 billion in assets under management and is active in roughly 20 industries.

Stellus Capital Investment Corporation has one of the best monthly dividend payouts. The currently monthly dividend yield for this stock stands at 9.4%, which is quite impressive. The rising share price since 2012 has been responsible for the growth of its dividend rate. The five-year average dividend rate is 11%, which makes it an exciting option to consider. The total return over the past year is 17%. Meanwhile, the dividend growth rate is up by 63% over the past five years.

The company’s involvement in the acquisition of a few companies could see it perform well over the next few months. Stellus Capital Investment Corporation has provided financing to aid the acquisition of Numet, FTC FBO, Naumann/Hobbs, and more. The expansion of its portfolio could lead to more revenue and, subsequently, more massive payout to investors.

Monthly Dividend Stocks: Closing Thoughts

Monthly dividend stocks have become an attractive option for investors who wish to get regular returns to take care of their needs. Several companies now pay monthly dividends. However, this has made it harder for investors to decide which ones to invest in at the moment. We believe the monthly dividend stocks mentioned in this review could generate good yields to investors over the coming months.

If you’re ready to know more about monthly dividend stocks, you should sign up for Stock Dork Alerts. We provide a steady stream of stock market news and analysis that will help keep you informed on everything happening in the world of Wall Street. Plus, our reports are written in plain English, so they’re easy to understand. After just a few weeks reading Dork Alerts, you’ll sound like the smartest guy at the water cooler. Sign up today and get a jump on the New Year with our 2020 Growth Stock Guide, it’s yours free when you join. Click here to join and claim your free copy now.


Hassan Maishera is a cryptocurrency expert and a Stock Dork freelance contibutor.

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