Realty Income also boasts having an elite balance sheet, giving it additional financial flexibility to fund new investments. The company expects to invest over $6 billion this year in new income-producing real estate investments, which should help grow its cash flow and dividend. Gladstone Capital Corp (GLAD) netted $214.12 based on the median of target price estimates from 3 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 31% greater than the market as a whole. Stellus Capital Investment Corp (SCM) netted $244.68, based on the median of target price estimates from 6 analysts, plus dividends, less broker fees.
And at 7.1%, LTC is one of the higher-yielding monthly dividend stocks on this list. Stellus Capital Investment Corp (SCM) netted $171.42, based on the median of target price estimates from 6 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 21% greater than the market as a whole. PennantPark Floating Rate Capital (PFLT) netted $198.92 based on the median of target price estimates from 5 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 65% greater than the market as a whole.
However dividends that pay at quarterly intervals, and bonds that pay out semi-annually, may leave gaps. These gaps can lead investors to dip into the principal of their retirement fund. Aside from creating elaborate dividend calendars, one way these investors can help mitigate avoid these gaps is by having a portion of their dividend investments in stocks that pay monthly dividends. Over the long term, dividends make up a big chunk of total stock markets returns.
Simply click on the last bullet point in the Summary section above. Ellington Residential Mortgage REIT acquires, invests in, and manages residential mortgage and real estate related assets. Ellington focuses primarily on residential mortgage-backed securities, specifically those backed an overview by a U.S. Prospect Capital Corporation is a Business Development Company, or BDC, that provides private debt and private equity to middle–market companies in the U.S. The company focuses on direct lending to owner–operated companies, as well as sponsor–backed transactions.
For the quarter, gross interest income came in at $88.1 million, up 1% quarter-over-quarter. Adjusted (previously referred to as “core”) EPS came in at $0.38, seven cents lower versus Q1-2023. Dynex Capital reported its second quarter financial results on July 24th, 2023. The company achieved a total economic return of $0.79 per common share, equivalent to 5.7% of the beginning book value. The book value per common share increased to $14.20 as of June 30, 2023. Gladstone Capital is a business development company, or BDC, that primarily invests in small and medium businesses.
The report mentioned that dividends represented 40% of the stock market returns since 1930 and 54% during decades of high inflation. It also mentioned that companies that raise their dividends during inflationary periods outperform the broader market because of positive investor sentiment. This list includes all the stocks that pay dividends every month and are listed on the NASDAQ, NYSE or NYSE American in the U.S. A key to the REIT’s strategy is investing in properties that produce durable income. It focuses on owning properties leased to companies in industries relatively immune to recessions and the pressure of e-commerce. Top-tenant categories include grocery, convenience, and dollar stores.
For experienced investors, this approach can make the most of a good dividend stock. The dividend from a stock that pays generously is not diluted by other stocks in a mutual fund or ETF portfolio that pay a lower dividend or none at all or are less reliable dividend payers. Realty Income is the top monthly dividend stock, not just because of a high dividend yield, but also its uniquely high level of dividend safety and long history of consistent dividend growth. In terms of U.S. dollars, the annualized dividend payout of $0.74 per share represents a strong yield of 4.3%.
Cory has been a professional trader since 2005, and holds a Chartered Market Technician (CMT) designation. He has been widely published, writing for Technical Analysis of Stock & Commodities magazine, Investopedia, Benzinga, and others. He runs TradeThatSwing.com, has authored several trading courses and books, coaches individual clients, and regularly trades stocks, currencies, and ETFs. Another way that a dividend can be attractive is if it is rising. Stocks that persistently pay a dividend—whether each year’s is higher or not—are attractive because of that reliability.
For this list, we selected dividend stocks that offer monthly payouts to shareholders. These stocks have yields above 5.8%, as recorded on November 23. The company’s focus on utilizing net and ground leases enables it to produce very stable cash flow because tenants cover inflationary expenses like maintenance, real estate taxes, and insurance. That allows it to generate steady cash flow to pay its monthly dividend, which currently yields 5.4%. In addition to the stocks featured on this list, investors interested in generating steady monthly income streams through their investments could consider several monthly dividend ETFs.
Therefore one company may report a higher yield than another company but actually pay less of a dividend. It is also important to look at a company’s track record of paying the dividend and whether they are increasing or decreasing the payout. Realty broker finexo Income is the top REIT pick, not just because of a high rate of expected return, but also a uniquely high level of dividend safety among the monthly dividend stocks. In 2021, the company switched from a quarterly payout schedule to a monthly one.
Loan size is typically in the $7 million to $30 million range and has terms up to seven years. The BDC’s stated purpose is to generate income it can distribute to its shareholders. SCM stock is flat for 2023 but pays a dividend of 11.7%, helping to give xm.com forex broker review it an “A” rating in the Portfolio Grader. This company invests in middle-market private companies through senior secured loans. Because the loans are secured through collateral, they represent little risk to the company should the debtor default.
The net interest income was $5.8 million, with an asset yield of 4.24% and a net cost of funds of 2.49%, resulting in a net interest margin of 1.75%. The company paid common stock dividends of $0.08 per share per month. SLRC is a Business Development Company that primarily invests in U.S. middle market companies. The company has five core business units which include cash flow, asset-based, life science lending, equipment finance, and corporate leasing. The list excludes oil and gas royalty trust, which have extreme fluctuations in their dividend payouts from one quarter to the next due to the underlying volatility of commodity prices. In addition, stocks that have high dividend yields are also attractive for income investors.
Let’s take a closer look at each of these top monthly dividend stocks. Each offers a much higher dividend yield than the average stock in the S&P 500 (1.6% as of May 18, 2023). AGNC Investment Corp. (AGNC) netted $301.58 based on the median of target estimates from 9 analysts, plus estimated annual dividends less broker fees.
IBM is an information technology company that has been around since 1911 and has a solid income stream. Exxon Mobil is a petroleum and chemical company that engages in the extraction of oil and the creation of products using petroleum byproducts. Verizon is a communications company that provides consumers with cellular communications, internet, and cable services.
Thus, the Dogcatcher yield-based strategy for this MoPay group, as graded by broker estimates this month, proved 60% accurate. Additionally, see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities. The Realty Income example shows that there are high-quality monthly dividend payers around, but they are the exception rather than the norm. We suggest investors do ample due diligence before buying into any monthly dividend payer. Additionally, a high payout ratio means that a company is retaining little money to invest for future growth.