Monthly Dividend Stocks: 7 Picks For Steady Income

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top monthly dividend stocks

It is also a member of the S&P 500 and S&P 500 Dividend Aristocrats index. Regardless of your situation, the regular payments that monthly dividend stocks provide can make planning your finances easier, especially if you rely on your portfolio for income. They can also help calm your fears about a struggling market as you receive consistent dividends each and every month.

top monthly dividend stocks

The fund is composed of 50 stocks traded on the S&P 500 Index. These stocks historically have provided high dividend yields and low volatility. A great combination to earn recurring dividends from stocks.

STAG Industrial (STAG)

In other words, you don’t want to overload on monthly dividend stocks. But they do allow exposure to a handful of niche sectors that add some income stability, so take a look and see if any of these monthly payers align with your investment style. Dividend-paying exchange-traded funds (ETFs) have been growing in popularity, especially among investors looking for high yields and more stability from their portfolios. As with stocks and many mutual funds, most ETFs pay their dividends quarterly—once every three months.

SL Green is based in New York City and was founded in 1997. Dynex Capital invests in mortgage–backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non–agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest–only securities. SL Green also benefits from its trophy assets, such as 450 Park Avenue and 245 Park Avenue, where the company can command high rents from tenants and where demand remains high. The company’s regular asset sales of non-core assets aim to further strengthen the portfolio, which should help with demand and occupancy rates in the long run. This REIT focuses on industrial properties and warehouses, niches that have performed well amid the rise of e-commerce, particularly since the advent of COVID.

Monthly Dividend Stocks Under $5

There is no need to wait for semi-annual or quarterly dividend payments. Because that concludes our review of 4 companies that pay monthly dividends. Since its October 2007 initial public offering, Main Street has periodically increased the amount of its regular monthly dividends paid per share. Most importantly, the company and has never reduced its regular monthly stock dividend on a per-share basis. While you can use dividend-producing stocks as an inflationary shield, you may also plan for the future.

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There is a high probability that commodity price changes will result in losses for investors. It can indicate whether their profits go back into the company to encourage more growth or pay out to investors. When you invest in one company that pays only annually, you potentially profit only from your initial investment. So, if you invest $100,000, your return percentage is based only on that amount. Even with the yield falling over the last few years, it is still outperforming the industry.

High-Yield Monthly Dividend Stock #8: SL Green Realty (SLG)

Read on to learn more about the best monthly dividend stocks and how to select them. We conducted a comprehensive search for companies that pay monthly dividends, focusing on those with a track record of healthy dividend growth. The stocks have been ranked in ascending order of their revenue growth. You’ll often hear of investors holding onto a stock until they receive their dividend payment, even if market conditions urge you to sell. Since monthly dividends pay out monthly, you feel less compelled to hold onto a stock until you get paid.

Most dividend stocks pay dividends on a quarterly or annual basis. However, a select group of companies pay out monthly dividends. For income investors, a monthly dividend stream creates a predictable source of income. This provides peace of mind because they don’t have to dip into the principal of their investments.

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Investing in a company that pays monthly, it works a little differently. If you invest $100,000 and then invest your monthly dividends back into the stock market, you can potentially gain returns from your initial investments and dividend payments. AGNC Investment (AGNC, $9.82) is a REIT, strictly speaking, but it’s very different from the likes of Realty Income, STAG or any of the others covered on this list of monthly dividend stocks. Rather than own properties, AGNC owns a portfolio of mortgage securities. This gives it the same tax benefits of a REIT – no federal income taxes so long as the company distributes at least 90% of its net income as dividends – but a very different return profile.

  • And, with a stellar occupancy rate of 99%, the REIT increased its 2023 guidance for normalized funds from operations per share of $4.05 to $4.15, as compared to the $4.12 consensus.
  • On May 2nd, 2023, Horizon released its Q1 results for the period ending March 31st, 2023.
  • Simply put, investing $10,000 in Company A would produce $752.50 of annual dividend income or $62.70 of monthly dividend income if they pay monthly.
  • Many of these companies generate income through collecting rent on a portfolio of industrial properties or residential loans.
  • These companies pay their shareholders regularly, making them good sources of income.

Obviously, the REIT’s tenants had a hard time during the pandemic, as the heightened risks dampened enthusiasm for senior living and nursing homes. And the national labor shortage has only added fuel to the fire. It may be a while before the industry returns to full pre-pandemic health.

Add that to the growing rental income from its existing properties, and STAG should be able to continue increasing its monthly dividend, so long as you’re not expecting big raises. Its most recent increase was less than 1%, and over the past five years, the payout has only risen 3.5%. So, having a monthly stream of dividend income is helpful when trying to use the money from dividends to pay bills. Finally, SPHD holds many stocks that I own and cover here at Dividends Diversify.

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For this article, we first screened for monthly dividend stocks with yields above 3%, as of March 20. The stocks are ranked in ascending order of the upside potential as of March 20. Monthly dividend stocks could be more appealing to income investors than quarterly or semi-annual dividend stocks. This is because monthly dividend stocks make 12 dividend payments per year, instead of the usual 4 or 2.