Investors get monthly dividend payments from these stocks.
Dividends can be an excellent source of regular income for investors, especially during retirement. While most dividend stocks make their payouts on a quarterly basis, stocks that pay monthly dividends can be particularly appealing to investors who regularly incorporate those dividends into their household budgets. Stock prices can be unpredictable, but dividend payments from high-quality companies are reliable sources of cash flow no matter if the stock market goes up or down. Dividend stocks can also generate long-term upside for investors. These eight monthly dividend stocks have at least 5% yields and make payments about once every four weeks. All dividends are calculated on a trailing-12-month basis according to the stock’s closing price on July 1.
Pembina Pipeline Corp. (ticker: PBA)
Pembina Pipeline is an oil and gas infrastructure and pipeline company that operates mainly in western Canada. So far in 2022, Pembina has provided investors with a powerful one-two punch of a rising stock price and regular monthly dividend of about 16.5 cents per share. Pembina shares are up more than 20% year to date thanks to soaring oil and gas prices. The ongoing conflict between Russia and Ukraine suggests energy prices will likely remain elevated for the foreseeable future. Pembina has also said it plans to raise its monthly dividend by 0.75 cent, or 3.6%, per share once it completes a joint venture deal with KKR, likely in the third quarter.
Dividend yield: 5.5%
AGNC Investment Corp. (AGNC)
AGNC Investment is a mortgage real estate investment trust, or REIT. REITs are a type of corporate structure that receive certain tax benefits but are required to distribute 90% of taxable income to their investors. This mandate guarantees a relatively consistent dividend, which is reflected in AGNC’s regular 12-cent monthly payout. As a mortgage REIT, AGNC doesn’t invest in residential real estate directly. Instead, it buys mortgage-related securities, which are largely federal loans backed by government-sponsored enterprises, including Fannie Mae and Freddie Mac. Federal backing reduces the risk associated with these assets, giving income investors peace of mind.
Dividend yield: 12.5%
Prospect Capital Corp. (PSEC)
Prospect Capital is a business development company, or BDC. Prospect provides capital to middle-market companies and private equity financial sponsors for refinancings, leveraged buyouts, acquisitions and other purposes. Since 2004, Prospect has made more than 375 investments totaling more than $18.7 billion. Its current portfolio consists of 127 companies spanning 39 industries, providing investors with deep diversification. Like REITs, BDCs pay out at least 90% of their taxable profits as distributions to investors to maintain a lower corporate tax rate. Prospect has been public for 18 years, and it pays a consistent monthly distribution of 6 cents per share.
Dividend yield: 10%
Main Street Capital Corp. (MAIN)
Main Street Capital is another leading public BDC with a diversified portfolio, a proven track record and a lofty monthly distribution. Main Street has 190 cumulative investments and manages $5.8 billion in capital. The company also has a healthy balance sheet and a debt-to-asset ratio of around 1. The BDC focuses largely on debt investments in lower-middle-market companies that have annual revenue of between $10 million and $150 million. In October 2007, MAIN shares were trading at $15. In the roughly 15 years since, Main Street has paid out more than $34 per share in distributions.
Dividend yield: 6.5%
LTC Properties Inc. (LTC)
LTC Properties is a REIT that owns and operates senior housing and health care properties. Senior housing facilities were hit particularly hard during the COVID-19 pandemic, and LTC shares are still down about 13% since the beginning of 2020. Despite the challenges, LTC maintained its 19-cent monthly dividend payment throughout the worst of the pandemic. As a result, LTC’s funds available for distribution, or FAD, payout ratio climbed to an uncomfortable 100% in the third quarter of 2021. However, that ratio has dropped to 89.1% as of the first quarter, a sign business is now trending back in the right direction.
Dividend yield: 5.9%
Broadmark Realty Capital Inc. (BRMK)
Broadmark Realty Capital is a REIT that provides financial services for real estate investors and developers. The company offers short-term, first-deed-of-trust loans backed by real estate to fund acquisitions, renovations or development of residential or commercial real estate. Since its inception in 2010, Broadmark has funded more than 1,200 real estate loans and deployed $3.8 billion in capital. The company has a $1.6 billion active, diversified loan portfolio with exposure to properties in 20 U.S. states. The portfolio consists of 227 active loans with an average loan size of about $7 million.
Dividend yield: 12.3%
Ellington Financial Inc. (EFC)
Ellington Financial is a mortgage REIT that invests in residential loans, commercial mortgages and commercial loans. About two-thirds of its portfolio consists of residential mortgages. The company says it focuses on underserved, niche market segments where it believes it has identified market inefficiencies that provide opportunities for investment. Ellington switched to a monthly dividend payment in 2019, but it was forced to cut that monthly payment by nearly 50% during the pandemic in 2020. Ellington has since steadily built its dividend back up to its current level of 15 cents per share monthly, in line with pre-pandemic levels in 2019.
Dividend yield: 11.9%
EPR Properties (EPR)
EPR Properties is a specialty triple-net REIT focused on long-term leases on experiential real estate properties. EPR has a total of more than $6.4 billion in investments diversified among more than 200 tenants in 44 U.S. states. Movie theaters make up 43% of EPR’s contractual revenue, and about 8% of total North American box-office sales are generated by EPR theaters. Its other major sources of revenue include eat-and-play establishments, ski resorts and other attractions. Since November 1997, EPR has generated a total shareholder return of about 1,570%. The REIT pays a monthly 27.5-cent dividend.
Dividend yield: 6.5%
8 monthly dividend stocks with high yields:
— Pembina Pipeline Corp. (PBA)
— AGNC Investment Corp. (AGNC)
— Prospect Capital Corp. (PSEC)
— Main Street Capital Corp. (MAIN)
— LTC Properties Inc. (LTC)
— Broadmark Realty Capital Inc. (BRMK)
— Ellington Financial Inc. (EFC)
— EPR Properties (EPR)
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8 Monthly Dividend Stocks With High Yields originally appeared on usnews.com
Update 07/05/22: This story was published at an earlier date and has been updated with new information.
