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Investing in regular stocks is an excellent strategy for investors looking to invest in the long-term growth of a company, and dividend stocks also provide a regular source of cash flow. This cash flow can be used to support your retirement expenses or to reinvest in your portfolio. This article highlights some of the best monthly dividend stocks to take advantage of both long-term gains and short-term cash flow.
stock | ticker | TL;DR |
---|---|---|
AGNC Investment Corporation | AGNC | REITs that purchase government-backed mortgages and mortgage-backed securities. |
Broadmark Realty Capital Co., Ltd. | BRMKMore | A real estate finance company that provides capital to real estate investors and developers. |
Ellington Financial Co. | EFC | REITs that invest in mortgages, commercial loans, and securities. |
Prospect Capital Corporation | PSEC | A business development company that provides capital to middle market companies. |
EPR properties | EPR | An experience-based REIT that invests in long-term rental properties such as movie theaters, museums, and ski resorts. |
LTC Properties Co., Ltd. | LTC | REITs that finance senior housing and healthcare facilities. |
Ugly Realty Corporation | ADCs | A REIT focused on critical retail establishments such as grocery stores, large retailers, home centers and drugstores. |
Gladstone Commercial Corporation | good | REITs that invest in single-tenant or multi-tenant net-leased industrial and office properties. |
Pembina Pipeline Corporation | PBA | Canadian energy transportation and midstream provider with pipelines and facilities that process oil and natural gas |
AGNC Investment Corporation (AGNC)
- Current Price: $9.81
- 12-month high: $16.03
- 12 months low: $7.30
- 1 year goal: $8.98
- Market cap: $5.68 billion
AGNC Investment Co., Ltd. is a Real Estate Investment Trust or REIT. Many high dividend stocks are REITs. In exchange for sharing 90% of the taxable income with investors, REITs earn certain tax incentives. Due to the need to pay dividends, REITs are a reliable and reliable source of cash flow.
AGNC purchases mortgage-related securities backed by government-backed companies such as Fannie Mae. Government backing makes these securities less risky than other types of financing options. AGNC investors will benefit from his 14.37% dividend yield, which pays $0.12 per share each month.
>> Related: How to invest in dividend stocks
Broadmark Realty Capital Inc. (BRMK)
- Current Price: $4.065
- 12-month high: $9.85
- 12 months low: $4.06
- 1 year goal: $5.00
- Market capitalization: $540,328,000
Broadmark Realty Capital Inc. is a real estate finance company that works with real estate investors and developers. They use real estate as collateral to deploy capital to developers and investors working on residential and commercial renovation and development projects. To date, they have invested $4 billion in more than 2,000 real estate deals in his 30 states. Broadmark’s dividend yield is 20.19% and pays $0.07 per share each month.
Ellington Financial Inc. (EFC)
- Current Price: $13.82
- 12-month high: $18.13
- 12 months low: $10.81
- 1 year goal: $15.16
- Market cap: $834.055 million
Ellington Financial Inc. is another mortgage REIT that invests in residential and commercial loans and securities. These include investments ranging from secured loans to mortgage-backed securities. They manage $10.3 billion in assets. Ellington has a dividend yield of 12.82% and pays $0.15 per share per month.
Prospect Capital Corporation (PSEC)
- Current Price: $7.66
- 12-month high: $8.95
- 12 months low: $6.09
- 1 year goal: $6.00
- Market cap: $3.044 billion
Prospect Capital Corp. is a business development firm that provides capital to midsize businesses. They have invested in a total of $7.7 billion in assets and declared dividends he is $3.8 billion. Prospect Capital has a dividend yield of 9.21% and pays $0.06 per share each month.
>> Related: How to get stable income with dividends
EPR Properties (EPR)
- Current Price: $40.29
- 12-month high: $56.38
- 12 months low: $34.58
- 1 year goal: $47.38
- Market cap: $3.023 billion
EPR Property is an experience REIT. They invest in long-term leases of properties such as movie theaters, museums and ski resorts. A triple net lease means the tenant is responsible for the maintenance of the property rather than her EPR. Instead of paying for property taxes, insurance, building maintenance, etc., EPR passes it on to the tenants and the cost savings to the investors. To date, EPR has invested him $6.6 billion in 356 different properties. EPR has a dividend yield of 8.01% and pays $0.275 per share per month.
LTC Properties (LTC)
- Current Price: $38.04
- 12-month high: $45.49
- 12 months low: $31.36
- 1 year goal: $40.25
- Market cap: $1.541 billion
LTC Properties is a REIT that finances senior housing and healthcare properties. Approximately 50% of LTC’s portfolio is senior housing and the remaining 50% is advanced care facilities. They offer investments through sale-leasebacks, mortgages, construction and joint ventures. LTC has a dividend yield of 5.9% and pays a dividend of $0.19 per share each month.
Ugly Realty Corporation (ADC)
- Current Price: $68.43
- 12-month high: $80.44
- 12 months low: $61.62
- 1 year goal: $75.97
- Market cap: $6.085 billion
Agree Realty Corp. is a REIT focused on critical retail establishments such as grocery stores, hypermarkets, home centers and drugstores. These properties are protected with triple net leases. Agree Realty operates 1,707 properties across the United States. They increased his monthly dividend payout in October 2022. In 2021, Agree switched from quarterly dividend payments to monthly dividend payments. From $0.234 per share paid in 2022, he is now up to $0.24 per share. The current dividend yield is 4.21%.
Gladstone Commercial Corporation (GOOD)
- Current Price: $18.38
- 12-month high: $26.13
- 12 months low: $15.02
- 1 year goal: $19.50
- Market capitalization: $740,918,000
Gladstone Commercial Corporation is a REIT that invests in single-tenant or multi-tenant pure-rent industrial and office properties. In a net lease property, a portion of property fees such as property tax is passed on to the tenant. Gladstone’s investment strategy prioritizes properties in prime locations with high underlying land values. They are currently active in 27 states. Gladstone pays a monthly dividend of $0.1254 per share and yields 8.004%.
Pembina Pipeline Corporation (PBA)
- Current Price: $35.22
- 12-month high: $42.74
- 12 months low: $28.89
- 1 year goal: $38.12
- Market cap: $19.546 billion
Pembina Pipeline Corporation is a Canadian energy transportation and midstream provider. They own pipelines and facilities that process oil and natural gas distributed throughout North America. Pembina pays a monthly dividend of C$0.2175 per share and yields 5.51%.
Other Ways to Invest in High Dividend Stocks
Instead of investing in individual dividend stocks, you can invest in dividend-paying exchange-traded funds (ETFs) like the Vanguard Real Estate Index Fund ETF (VNQ). This ETF consists of a number of his REITs across various sectors including residential, healthcare, industrial, hotels and resorts.
When you buy stock in an ETF, you’re buying a basket of different REITs. These ETFs typically pay even higher quarterly dividends than individual investments in his REITs. However, there are trade-offs. REIT ETFs come with fees. For example, VNQ has an expense ratio of 0.12%.
Bonds can also be a high-dividend-yielding investment option. Similarly, you can also invest in bond ETFs. The Vanguard Total Bond Market ETF (BND) pays a monthly dividend of approximately $0.16 per share at an expense ratio of 0.03%. If you prefer mutual funds, there are also equivalent mutual funds for fixed income.
Should I invest in monthly dividend stocks?
Dividend stocks are a great way for investors to earn passive income. REITs in particular are excellent sources of passive income, as they have to pay a portion of their earnings to investors. Most of these payments come in the form of monthly dividends that can be reinvested to grow your portfolio faster than other types of dividend stocks.
One of the downsides to investing in monthly dividend stocks is that the stocks with the highest dividends tend to be concentrated in real estate. A shift in commercial real estate is currently underway due to the growth of e-commerce and remote work. This hasn’t led to dividend reductions announced by many of the REITs above, but that could change in the near future.
Other assets, such as energy infrastructure, are also at risk due to changing consumer and regulatory expectations of fossil fuels. The transition to a low-carbon economy can leave assets stranded. REITs are good at generating monthly income, but their long-term viability in certain sectors of the economy is uncertain.
>> Related: Dividend Aristocrat List
Conclusion
Stocks that pay high dividends are excellent sources of passive income. These stocks will help you put your money to work and recover your return on investment much faster than regular stock stocks.
The best place to find high dividend stocks is REITs. These are real estate companies that need to pay dividends to investors. This means that you can expect income from these stocks even in the event of a recession.