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 really 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 top monthly dividend stocks that will provide you with a steady stream of income every 30 days.
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Best Monthly Dividend Stocks
LTC Properties (LTC)
LTC provides a dividend yield of 5.89%. Their portfolio is split between skilled nursing facilities and senior housing (LTC stands for long-term care). In total, LTC has more than 180 investments across nearly 30 states. They serve as a landlord and do not operate these facilities.
The baby boomer generation is getting older, which bodes well for LTC in both the near and short term. As the baby boomers age, LTC will be able to keep their facilities full and maintain consistent cash flow.
LTC’s dividend accounts for three-quarters of their current budget. This means that even if they lose realty income for their properties at any point, the dividend likely won’t be at risk.
The United States’ aging population bodes well for LTC’s industry in the years ahead. We’ve seen this reflected in their stock price as well. Their stock has generally increased in value over the years as baby boomers have gotten older.
Gladstone Land (LAND)
Gladstone currently pays a dividend of 3.5%. They are an agricultural real estate investment company and generate their income by leasing land to farmers throughout the US. They currently own more than 110 farms with nearly 90,000 acres of land.
Gladstone currently has properties across 10 states, which has helped them diversify their income. Most of their properties are fruit and vegetable farms, which generate a more stable income than other crops.
Farmland has become more valuable over the past several decades. Cities and suburbs have expanded and rural areas are shrinking, so the value of farmland has slowly gone up. Gladstone has been able to keep occupancy for their properties full and even purchased two new farms earlier this year.
This stock is fairly affordable, and it has recovered well from the market crash in early 2020. In addition to paying monthly dividends, this stock has plenty of growth potential for the long term.
Safe Monthly Dividend Stocks
Solar Senior Capital (SUNS)
Solar Senior currently has a dividend yield of 8.22%. They are a business development company that invests in middle market companies by providing them with loans.
Solar Senior’s clients are primarily based in the United States. As of September 2020, they had an investment portfolio of $389 million. They choose non-cyclical clients to maintain financial stability and mitigate risks. They have experience in niche markets, which help them keep a diverse portfolio.
Like many other stocks, Solar Senior struggled in 2020. However, they are still very committed to paying their monthly dividends. They recently announced a monthly income of $0.10 per share for December.
Solar Senior is also likely to bounce back when the stock market recovers and their clients can pay back their loans more consistently. For now, it serves as an affordable stock that can also pay monthly income.
Global Water Resources (GWRS)
Global Water pays a dividend of 2.05% on a monthly basis. This utility company owns and operates a variety of water services, including water generation, wastewater handling, and recycled water. They are based in Phoenix, Arizona.
Government agencies have made things difficult for some of GWR’s competitors with challenging barriers to entry in the marketplace. However, this has actually helped GWR, which already has a strong foothold on the industry.
This company recently reported their third quarter earnings for 2020, and they exceeded investors’ expectations. This has driven their share prices on an upward trajectory since the beginning of November.
While Global Water Resources doesn’t pay huge monthly dividends, they are consistent. Their current earnings data means they’ll likely be able to continue paying these dividends in the future.
Monthly REIT Dividend Stocks
SL Green Realty (SLG)
SL Green Realty is a real estate investment trust, or REIT. They own and operate properties in Manhattan and the surrounding area. In fact, SL Green is the largest commercial landlord in New York City.
This company owns nearly 100 buildings with a total of more than 40 million square feet. All in all, SL Green has a market capitalization in excess of $4.5 billion. The company’s current dividend yield is 5.79%.
SL Green’s third quarter earnings were strong in 2020. They were able to increase their net operational income year over year by 2 percent. However, this year has not been without challenges.
Their occupancy rate for this year did decrease by roughly 1 percent as a result of the pandemic. However, they were still able to collect close to 97 percent of aggregate billings in the third quarter, so it didn’t hurt their income too dramatically.
SL Green has a strong 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 huge portfolio of properties throughout the city. This sets them up for financial stability even in a challenging market.
Stag Industrial (STAG)
Stag Industrial is a real estate investment trust specializing in industrial properties. In total, Stag currently owns more than 450 buildings across nearly 40 states.
Stag Industrial has a unique business model that sets them apart from their real estate competitors. They tend to focus on single-tenant properties instead of going for larger multi-tenant options. However, they’ve been able to mitigate the risk that comes with this by
Though zeroing in on single-tenant properties has the potential to put investor dollars at risk, Stag carefully chooses its tenants after conducting extensive qualitative and quantitative analysis. This monthly dividend superstar primarily restricts its sphere of business operations to companies that have proven they are established tenants with minimal risk.
If the pandemic has you concerned that Stag might not be able to fulfill its monthly dividend, you should rest easy. This company is still desirable from an investor’s point of view as they are integrated in the e-commerce industry, a sector that will likely continue to grow for years or even decades to come. With a dividend just under 5% and a real estate occupancy rate near 97%, Stag is an awfully tempting stock.
Realty Income (O)
With a dividend of 4.61%, Realty Income is worthy of every investor’s consideration. Realty owns more than 6,500 properties in all 50 states. Most of these are single-tenant retail sites.
Realty Income minimizes their financial risk by maintaining a diverse portfolio. They are involved in key markets throughout the US, and they also have clients in many different industries. This stability has been particularly important during the COVID-19 pandemic, as the real estate market has struggled as a whole.
With stable business operations, it’s likely that Realty Income’s dividends will hold steady going forward. Since they generally invest in standalone properties instead of malls, they have more versatility moving forward. While malls have struggled over the past decade, standalone properties have plenty of potential.
Many of Realty Income’s properties are also considered essential businesses, so they have been able to stay open even with the recent shutdowns. A good portion of their properties are in high-traffic areas, which means that they will be able to
Realty Income has paid over 600 monthly dividends in a row, so they a history of consistent payments. They’ve also increased their dividends more than 100 times in the 26 years since their IPO. They’ve even trademarked themselves as the “Monthly Dividend Company”, which shows their commitment to paying their shareholders.
Best High Yield Monthly Dividend Stocks
PennantPark Floating Rate Capital (PFLT)
This company has an impressive dividend yield of 10.41%. PennantPark offers first lien debt to businesses, most of which are located in the United States. In particular, PennantPark zeroes in on middle market businesses. However, PennantPark also provides second lien debt and even acquires equity positions in some of their clients’ businesses.
The size of the average PennantPark investment is $10.6 million. In total, the company’s portfolio is valued at more than a billion dollars. This portfolio consists of 100+ companies spanning more than 40 industries.
PennantPark recently launched a joint venture with Pantheon, a global private markets investing group. Investment analysts are bullish on PennantPark because of their high quality portfolio. Their management team is full of experienced executives with a track record of success.
Horizon Technology Finance Corp (HRZN)
It is not often you find a stock with dividend payments in excess of 9%. Horizon Technology Finance Corp is one of these exciting stocks. This strong monthly dividend stock is great for anyone looking for an income investment.
This company has been on a strong upward trajectory over the past decade. They are a venture capital lender that works with companies that might otherwise struggle to obtain financing. They focus on 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. The company makes money through success fees and warrants, and they also recoup their original investment over time.
Horizon’s assets are diversified enough to survive a lengthy economic recession. Add in the fact that Horizon’s leadership has an exemplary track record when selecting investments, and you have an attractive investment.
Best Growth Monthly Dividend Stocks
TransAlta Renewables (TRSWF)
With a dividend of 5.21%, TransAlta Renewables is an intriguing pick for investment income. They are an offshoot of TransAlta, and have more than 100 years of experience in the energy industry. Their primary focus is eco-friendly power generation through wind power, hydro power, solar power, natural gas, and more. The business has a gross generation capacity of 2,500 megawatts.
TransAlta Renewables has either increased or maintained its dividend every single year going back to 2014. This dividend has grown an average of 4% per year in this period.
In addition to their excellent dividend, this stock has excellent potential based on their operations alone. There’s a huge spotlight on the renewable energy industry right now, and TransAlta has a strong portfolio that’s likely to succeed.
TransAlta’s third-quarter revenue is up nearly 7% on a year-over-year basis. Additionally, the company’s renewable energy production spiked to more than 860 from slightly above 700 on a year-over-year basis.
Shaw Communications (SJR)
With a 4.95% dividend yield, Shaw Communications is an attractive stock. They are one of Canada’s largest cable businesses and provide TV, internet, and phone service. The company also has an expansive landline phone business to boot. They’ve also recently expanded their operations to offer wireless phone service.
Having multiple revenue streams will help Shaw continue to pay its monthly dividend. In total, Shaw generates slightly more than $4 billion USD in yearly revenue.
Many people consider phone and internet services essential, which will help Shaw survive even as the market fluctuates. They have a defensive business model that will help them draw in necessary income even during a recession. Earlier this year, Shaw had to cut overhead costs as a result of the pandemic. This showed shareholders that they were able to pay their dividend regardless of internal challenges.
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.
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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.