The Best Monthly Dividend Stocks for Income

while most dividend stocks pay dividends quarterly there are a select few companies out there that pay dividends monthly as opposed to quarterly for dividend investors looking for passive income these stocks are oftentimes more sought out for several reasons since our living expenses like rent and energy bills come monthly receiving dividends every month is much more ideal for people who want to live off their dividend income another reason to prefer monthly dividends is faster compounding when you reinvest those dividends in order to buy more shares you're receiving more and more dividends every single month so it's for these reasons that many investors including myself are more partial to these kinds of stocks as of the making of this video i was able to find about 41 monthly dividend companies i've seen lists online that claim that there's about 50 but i've checked these lists and after going through every single company i discovered that a number of these stocks stopped paying monthly dividends during the pandemic some even switched to quarterly after being monthly payers for years so in today's video i'm going to be presenting four of my current favorite monthly dividend stocks and briefly discuss each of them these aren't in any particular order like my least to most favorite or anything like that this list also only covers individual companies and not etfs also if you're interested in any of these companies be sure to perform your own due diligence going really in depth on each company here would have taken a really long time to do so i'm not going to go too too deep on each one for those of you who are new to my channel my name is allen and dividend bull focuses on aggressive dividend investing we don't like to waste our time here with dividend stocks that yield one or two percent those aren't going to give us enough cash flow to live off of unless we happen to have millions of dollars to invest already we're also not interested in waiting 30 years for these low yielding stocks to grow their dividends we're all about seeking higher paying dividend stocks now without foregoing safety if that sounds like something you're interested in feel free to click the subscribe button below for more dividend investing content you can also click the bell icon which gives you an alert as to whenever a new video is posted thank you all so much for your consideration and with that being said let's get started the first company stock we're going to take a look at is stag industrial ticker symbol s-t-a-g stag industrial is a real estate investment trust that's focused on the acquisition and operation of single tenant industrial properties throughout the united states they're the only pure play industrial read active across the entire domestic industrial real estate market they were founded back in 2010 and they're headquartered in boston massachusetts i've mentioned this stock a couple of times on my channel before because in my opinion they're one of the best warehouse reits currently out there stag industrial is a wreath that owns warehouses and distribution centers for a lot of larger companies including amazon which makes up about 40 percent of their company's portfolio they also own warehouses for really good tenants like ups fedex tesla samsung and starbucks according to their latest investor presentation their property portfolio covers over 60 markets and they own warehouses for companies in over 45 different industries some other good things include 40 of their properties deal with e-commerce activity which is projected to keep growing into the future stag also has a lot of long-term lease agreements with the businesses that rent their warehouses in my opinion there's a lot of safety in this stock in the sense that the majority of e-commerce tenants like amazon tend to still do well during bad economic times their stock currently yields 3.87 percent which is the lowest yielding stock on this list but that's due to the fact that their share price has seen some massive growth it's up about 33 from this time a year ago and it's up over 211 from this time 10 years ago stag pays a monthly dividend of a little over 12 cents per share and they've increased their dividend every single year since their inception which is really impressive for people who are interested in growth number two on this list is main street capital ticker symbol m-a-i-n this is a bdc or a business development company that specializes in supplying equity capital to lower middle market companies main street provides debt capital to middle market companies for acquisitions management buyouts growth financings recapitalizations and refinancing they were founded back in 2007 and they're based out of houston texas investing in bdcs are in some ways like investing in venture capital funds only you don't have to be an accredited investor companies like main street capital lend money to small and medium-sized businesses who need money in order to grow their companies as a result investing in bdcs are considered riskier investments than reits and bad economic times can put a lot of stress on bdcs since a lot of companies can go bankrupt during recessions but there are a few bdcs out there that have distinguished themselves among others for one thing main street capital was founded in 2007 right before the financial crisis of 2008. they also survived the pandemic all without cutting their dividend ones that's a pretty impressive feat that not too many bdcs can achieve when investing in a bdc another really important thing to consider is the company's strength in numbers main street is one of the most well diversified bdc's i've ever come across they're invested in companies across a ton of different industries everything from it services to construction to fireworks swimming pool supplies and more if you want to see for yourself the companies main street invests in you can check out their website and check out their portfolio main street stock currently has a dividend yield of 5.99 and they pay a monthly dividend of a little over 20 cents per share their stock is up about 33 from this time a year ago and it's up an impressive 147 percent from 10 years ago it's pretty unusual for a bdc to experience as much growth as main street has achieved which i think further attests to their excellent management team coming in at number three on this list is a company many people are probably well familiar with already but i still have to include it on this list and that's realty income ticker symbol o realty income aka the monthly dividend company is a wreath that was founded back in 1969 and was created specifically to provide investors with consistent dividends every month they own over 6 600 properties in all 50 states as well as puerto rico and the uk there's really no way anyone can deny how impressive this company is in regards to their monthly dividends according to their website they've paid out monthly dividends for 611 consecutive months and they've also grown their dividend for 95 consecutive quarters right now realty incomes properties have a 98 occupancy rating which is really impressive when compared to other reits out there if you go to their website you can see a breakdown of all the different industries they have properties in which they currently own real estate in 56 different industries from what i can see it looks like realty income is slowly transitioning away from some industries that tend to be more impacted during recessions and slower economic times for example they've been moving away from gyms and entertainment venues all of which suffered a lot during the pandemic since i've covered this company a lot on this channel i won't go too in depth here but it's great just how dedicated realty income is to providing monthly growing dividends it was basically one of the focal points of this company all the way back when they were founded they're also a dividend aristocrat because of how long they've been able to grow their dividends realty income stock currently has a 4.23 dividend yield and their share price is up about 13 from a year ago when looking back 10 years their share price is up almost 102 their current monthly dividend amount is a little under 24 cents a share before i get to the last stock on this list if this video provided you with any sort of benefit please consider hitting the thumbs up button below and also subscribing to the channel if you want to see more aggressive dividend investing strategy videos thank you all so much for your consideration and with that being said let's get to the last company this last company in my opinion is the riskiest stock on this list and that would be prospect capital corporation ticker symbol psec prospect capital is a business development company that seeks to invest between 10 million to 500 million dollars in each company and invest in a wide range of industries including aerospace energy industrial financial services as well as retail they were founded back in 2004 and they're headquartered in new york city prospect capital in my opinion is a mixed bag and in the past on my channel i voiced my concern over them so i'll go over some things that i like and some things that concern me about it one of the best things about this stock is its dividend yield of eight point sixteen percent which is the highest on this list it's consistently paid out six cents per share in dividends over the last several years however as you can see they have had to cut their dividend a couple times over their 14-year history out of any other company on this list prospect capital took the biggest hit from the pandemic they actually recorded negative net income for the year 2020 because of this although they are projecting to post much better results for 2021. on the other hand their stock price has recovered a lot and it's currently up about 67 from this time a year ago i've known that some people also like oxford square capital as well as armor realty but after i spent some time comparing these three companies and thinking which one i'd feel more comfortable investing in i ultimately went with prospect capital because i think they're in a better position out of all of them while the other two do have slightly better dividend yields they do have a much greater history of slashing their dividends their share price also hasn't done well over the long term or they're struggling to return to their pre-pandemic price in my opinion if you do decide to invest in prospect capital i would do so very strategically be on the lookout for dips in their share price and i'd also plan on choosing to sell my shares if the share price appreciated too much and i felt like it was overvalued this is a strategy that i've used in the past with realty income years ago where i'd buy and hold sell my position when i felt like it was overvalued and then i'd want to re-enter a position after i saw the price depreciate enough i also wouldn't feel comfortable holding on to this company for years on end without checking on it from time to time but again with its massive dividend yield the larger the reward the larger the risk if you're willing to be strategic when it comes to owning prospect capital along with reinvesting those dividends i think it can potentially be a very profitable investment all right everyone that's going to wrap up today's video thank you all so much for watching i really do appreciate it if this video benefited you in any sort of way please click the like button below and click subscribe if you want to see more dividend investing strategy videos it would just let me know that there's a sizable enough audience out there who wants this kind of content and i'll continue to provide you all with that content alright everyone thanks again for watching and i'll catch you next time take care

Channel: Dividend Bull

Views: 125,705

Keywords: monthly dividend stocks, stocks that pay dividends monthly, dividend investing, passive income, monthly dividends, best monthly dividend stocks, dividend growth, dividend growth investing, best dividend stocks, realty income, prospect capital, prospect capital corporation, stag industrial, safe dividends, main street capital

Id: 69b8usr0b_c

Length: 10min 45sec (645 seconds)

Published: Fri Jul 02 2021