For investors, dividends can be a great source of consistent income, particularly in retirement. While the majority of dividend companies pay out their dividends on a quarterly basis, investors who regularly factor those dividends into their household budgets may find monthly dividend stocks to be especially alluring. Despite the unpredictability of stock prices, dividend payments from top-notch businesses are steady streams of cash flow regardless of how the stock market is performing. Investors may experience long-term gains by purchasing dividend stocks. These eight stocks with monthly dividends pay out once every four weeks on average and have yields of at least 5%.
Gladstone Capital
A business development corporation, or BDC, called Gladstone Capital specializes in funding small and medium-sized enterprises. These investments are made using a variety of debt (90% of the portfolio) and equity (10% of the portfolio) instruments, with yields that are often very high. Typical loan amounts vary from $7 million to $30 million, with periods of up to seven years. The BDC’s stated goal is to make money that it may share with its shareholders.
On July 27, 2022, Gladstone released financial results for the third quarter. The results were roughly in line with forecasts. The total investment income was $13.78 million, a little increase from the previous year. Per share, net investment income increased from 19.5 cents to 20.25 cents from the same time last year.
Following excellent originations in the third quarter, total investments increased 9.1% quarter over quarter to $586 million at the conclusion of the period. Because of valuation adjustments brought on by higher market yields and lower equity valuation multiples, net assets worth was $9.12 per share, down 3.9% from the March quarter.
LTC Properties
The LTC in the name of this stock, which is also a real estate-related investment, stands for “long-term care.” It concentrates on assisted living facilities and skilled nursing facilities, making it one of the stocks on this list with the most consistent income streams. After all, the requirement to care for the elderly persists through good and bad periods alike. This is as near to a definite certainty as you’ll find, given to the United States’ shifting demographics, which include predictions that the population of Americans aged 65 and older will more than double over the next 40 years. LTC, however, has plenty to offer investors right now thanks to its rise of more than 15% since the beginning of January in addition to a sizable monthly dividend.
EPR Properties
Another REIT is EPR Properties. It focuses in owning recreational properties like movie theaters, eat-and-play establishments, ski resorts, and gambling establishments. It rents these properties from the owners of the venues under triple-net agreements.
Recreational real estate was significantly impacted by the COVID-19 epidemic. Many of these facilities were forced to temporarily shut down or operate at reduced capacity. Due to the impact on their capacity to pay rent, EPR Properties was compelled to halt its monthly dividend in 2020.
However, now that vaccines are readily accessible, more people feel secure enough to once again enjoy activities away from home. As a result, EPR’s tenants are paying their rent on time. As a result, this REIT was able to start paying dividends again in July 2021.
Even though ERP Properties currently delivers a competitive return, if its portfolio grows, the company may decide to raise that dividend in the future. It had a healthy financial sheet and a lot of liquidity before 2022 began, allowing it the resources to buy additional recreational real estate. EPR intends to focus on purchasing more attraction-related properties that customers can only experience outside the home because online streaming is threatening to destroy movie theaters. That might increase the long-term stability of its monthly dividend.
Prospect Capital Corp
A business development company, or BDC, is Prospect Capital. Prospect offers finance to private equity financial sponsors and middle-market businesses for acquisitions, leveraged buyouts, and other uses. Prospect has invested more than 375 times since 2004 for a total of more than $18.7 billion. The 127 companies in its current portfolio, which spans 39 industries, offer investors a well diversified portfolio. In order to maintain a lower corporation tax rate, BDCs, like REITs, distribute at least 90% of their taxable income to investors. Prospect has paid a dependable monthly payment of 6 cents per share for its 18 years as a publicly traded company.
Broadmark Realty Capital
A REIT called Broadmark Realty Capital offers financial support to developers and real estate investors. To finance the purchase, remodeling, or development of residential or commercial real estate, the company provides short-term, first-deed-of-trust loans secured by real estate. Broadmark has invested $3.8 billion and underwritten more than 1,200 real estate loans since its founding in 2010. With exposure to assets in 20 U.S. states, the company’s active, varied loan portfolio is worth $1.6 billion. There are 227 active loans in the portfolio, with an average loan amount of $7 million.
Realty Income Corp
Many investors turn to Realty Income when looking for securities paying monthly dividends. In fact, the corporate motto of this commercial real estate corporation is “the monthly dividend company.” It has increased its annual dividend for more than 25 years in a row, has paid more than 600 consecutive monthly payments, and is a component of the S&P 500 Dividend Aristocrats index. To boost its long-term performance and support its aim of single-tenant properties like big-box store sites or restaurants that are rented to significant corporations under long-term agreements, it recently purchased fellow commercial real estate firm VEREIT Inc. This will undoubtedly add to Realty Income’s already stellar history of paying out significant monthly dividend.
Ellington Financial
A mortgage REIT called Ellington Financial makes investments in commercial, residential, and business loans. Home mortgages make up over two thirds of their portfolio. According to the business, it focuses on underserved, niche market segments where it thinks it has found market inefficiencies that present investment opportunities. Ellington shifted to a monthly dividend payment in 2019, but during the epidemic in 2020, it was compelled to reduce that monthly payment by over 50%. Since then, Ellington has gradually increased its dividend to match pre-pandemic levels in 2019, reaching its current level of 15 cents per share monthly dividend.