Wanted: Stable income each month.
Income investing is about finding a stock that offers a good dividend yield and stability. The expectation is this share of profits allows you to pay your expenses in retirement. In this scenario, monthly dividend stocks are attractive. While there aren’t as many companies that pay investors every 30 days instead of every three months, the field is large enough for discerning investors to find a stock that pays a good yield and offers stability — all while dishing out dividends more often than its peers. Here are seven such companies that are worth a look.
Realty Income Corp. (ticker: O)
Realty Income is eager for investors to know that it pays dividends more often than its peers, going so far as trademarking the slogan, “The Monthly Dividend Company.” But this commercial real estate firm offers more than a regular payday. With a current yield that is almost two times that of the 10-year Treasury bond, the dividends are substantial. The company also steadily increases that yield, with dividends increasing in each of the last 82 consecutive quarters. Admittedly, share performance has lagged the market a bit. But income investors have a lot to love with this monthly dividend stock.
Current yield: 5.2 percent
Enerplus Corp. (ERF)
Enerplus is a mid-sized energy exploration company operating mainly in Canada. However, unlike many other energy companies of larger size, ERF is committed to being a monthly dividend stock. It’s fair to point out that distributions can be volatile based on energy pricing — and currently, the yield isn’t impressive. But with oil prices surging in the last year, you can expect the income potential of this stock to rise. Enerplus has returned to profitability, too, after trouble amid weak oil prices, and its stock has surged an impressive 50 percent in the last 12 months as a result.
Current yield: 0.8 percent
LTC Properties (LTC)
LTC is one of the most stable bets on the market, both because of its structure and because of its specific enterprise. The company operates senior housing, nursing centers and other health care-related properties that cater to older Americans. That’s about as sure a business as you can be in, since we all grow old. Also, since it operates as a real estate investment trust, LTC must deliver 90 percent of its taxable income to shareholders. This reliable revenue stream, coupled with a mandate for big dividends, allows for significant monthly distributions.
Current yield: 6.5 percent
Sabine Royalty Trust (SBR)
Sabine Royalty Trust is a unique investment that can be thought of as simply a stake in a giant oil and gas field, which pays investors as those assets are brought to market and sold. It’s a lean operation effectively structured as a pass-through partnership — meaning you get a direct share of the profits from oil and gas sales, but also direct exposure to commodity price fluctuations. Payouts fluctuate from month to month based on the market. However, the rising price of oil means good things ahead for this monthly dividend stock.
Current yield: 5.1 percent
Main Street Capital Corp. (MAIN)
MAIN is more aggressive than your typical dividend stock, operating essentially as a publicly traded investment fund. The company mostly makes these investments through loans to small and mid-sized companies, but occasional takes direct equity stakes based on opportunities it sees. Yield is tied to the performance of these underlying investments. But with a cyclical uptrend for the U.S economy in 2018 thanks to strong consumer metrics and bright growth prospects, now is the perfect time for a company like this — particularly since MAIN is a monthly dividend stock.
Current yield: 6.1 percent
Apple Hospitality REIT (APLE)
While investors may not be familiar with Apple Hospitality, they likely recognize the properties it operates under the Hilton (HLT) and Marriott (MAR) brands. This mid-sized operator is essentially a franchisee for these mega-hotels, but is almost preferable to the parents because it focuses on strategic urban and suburban areas mainly in Texas, California and Florida, where occupancy rates can be high and margins robust. With consumer spending and business confidence high, you can bet plenty of travelers will be checking into Apple-run properties, keeping this monthly dividend stock’s impressive yield going strong.
Current yield: 6.7 percent
Gladstone Investment Corp. (GAIN)
Gladstone is a business development company. This means it doesn’t really run a business but is a partner or owner in a host of other firms — making it something like a private equity fund. The performance and dividends offered by this monthly dividend stock are tied to its underlying portfolio. But thanks to a focus on lending to smaller businesses, a rising-rate environment could mean higher interest payments — and higher dividends for GAIN’s shareholders.
Current yield: 8.7 percent
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7 Monthly Dividend Stocks for Steady Income originally appeared on usnews.com
