The S&P 500 has been rising steadily in 2023 despite “big picture” risks including the debt ceiling kerfuffle, a rising interest rate environment and general fears about consumer confidence. In fact, some popular tech stocks including Nvidia Corp. (ticker: NVDA) and Meta Platforms Inc. (META) have actually doubled so far this year.
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While momentum names like these have been making some nice headlines, lower-risk income investments are also worth paying attention to — including monthly dividend stocks, which pay you every 30 days or so rather than once per quarter. A select group of these stocks can provide tremendous yield on top of the potential for upside in shares if the rally continues.
The following seven stocks all offer yields that are at least twice that of the S&P 500 right now, and have a monthly distribution cycle to ensure you get a steady stream of income from your portfolio:
| Dividend stock | Trailing dividend yield |
| Agree Realty Corp. (ADC) | 4.4% |
| AGNC Investment Corp. (AGNC) | 16% |
| EPR Properties (EPR) | 6.9% |
| Gladstone Capital Corp. (GLAD) | 9.2% |
| LTC Properties Inc. (LTC) | 7% |
| SL Green Realty Corp. (SLG) | 15.1% |
| U.S. Global Investors Inc. (GROW) | 3.3% |
Agree Realty Corp. (ADC)
Agree Realty is a $6 billion real estate firm that is a leading owner of retail properties, with more than 1,800 locations across all 48 continental U.S. states that span over 38 million square feet of gross leasable area. ADC took a bit of a hit during the pandemic, but since the fall of 2020 has been incredibly stable even as it has thrown off monthly dividends and provided a yield that is nearly three times that of the S&P 500. And with a focus on long-term leases that service top-tier customers like Advance Auto Parts Inc. (AAP), Dollar General Corp. (DG) and Walmart Inc. (WMT), you may find more stability in this real estate firm than in other names on this list.
Trailing dividend yield: 4.4%
AGNC Investment Corp. (AGNC)
AGNC is a REIT, or real estate investment trust. Though it deals heavily in real estate assets, it doesn’t own actual property and instead holds a portfolio of “agency” mortgages backed by government agencies such as Fannie Mae, Ginnie Mae and Freddie Mac. That provides some structural support for AGNC even if the lenders themselves run into trouble. Furthermore, all REITs must deliver 90% of taxable income back to shareholders, so as AGNC earns interest on the mortgages it also passes through a big share of those profits via its monthly dividends. A year or so ago, it was feared that rising rates would really put the screws to companies like AGNC that often borrow heavily to invest in this portfolio of loans, but since Jan. 1 it has been off to the races with more than 20% gains for AGNC on top of its monthly payday.
Trailing dividend yield: 16%
EPR Properties (EPR)
On the surface, EPR may seem like a risky stock amid all the talk of trouble for consumer spending. It’s an entertainment-related REIT, focused on resorts, theaters and other “lifestyle” properties catering to consumers looking to get away from it all. But even amid fear that consumer confidence is drying up, EPR has been a strong performer in 2023 with more than 13% gains year to date, as of May 24. What’s more, with a big dividend you get a nice premium in yield in exchange for taking on the top-line risks that may come with a spending rollback. Besides, that dividend is very safe as measured against the “funds from operation,” or FFO, posted by this REIT. FFO is considered the most widely watched measure of financial health for companies like this one.
Trailing dividend yield: 6.9%
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Gladstone Capital Corp. (GLAD)
Gladstone is a financial firm that invests in debt securities of established but smaller or mid-sized companies that are looking for financing. GLAD has invested over $2.5 billion since inception in over 260 deals across a wide array of industries, ranging from restaurants to manufacturers to chemical companies to telecommunications firms. The result is a diversified portfolio of assets that delivers consistent payouts every month. Admittedly, shares never seem to rise dramatically — they are in fact right about where they were at the start of 2020 — but with a history of consistent payouts and a nearly double-digit trailing yield, income-oriented investors may like what this monthly dividend stock has to offer.
Trailing dividend yield:?9.2%
LTC Properties Inc. (LTC)
LTC Properties is focused on the recession-proof health care sector generally, and the even more reliable long-term care business as its unique focus in that industry. The company focuses on about 220 senior housing and skilled nursing facilities, which are in high demand in any economic environment. And thanks to the changing demographics of the U.S., with projections that the population of those 65 and older will more than double over the next 40 years, there is a steady flow of new “customers” to LTC properties. Though the company has been under pressure share-wise over the last 12 months or so out of fear that rising rates will cramp its business, the 19-cent monthly dividend remains quite sustainable based on current forecasts.
Trailing dividend yield: 7%
SL Green Realty Corp. (SLG)
Perhaps the most aggressive play on this list, SL Green is Manhattan’s largest office landlord. The $2.5 billion real estate company holds interests in roughly 90 buildings totaling more than 38 million square feet of space. However, thanks to a challenging operating environment after COVID along with a higher interest rate environment that makes it more expensive to borrow to expand its empire, SLG has seen shares under pressure — including a 30% drop in 2023 on fears of a dividend cut. Based on the trailing payout, the yield is off the charts. But even a modest cut in distributions could still wind up delivering a monthly dividend that is many times higher than the typical blue-chip dividend stock that pays only once per quarter.
Trailing dividend yield: 15.1%
U.S. Global Investors Inc. (GROW)
Publicly owned investment services firm GROW is an innovative Wall Street firm that is swimming against the tide of index funds and looking to provide specialty investment vehicles to those folks who don’t want the same old Vanguard funds. It either directly manages or provides support for various hedge funds, exchange-traded funds, mutual funds and other public equity and fixed-income vehicles worldwide. For instance, it offers an airline industry fund, U.S. Global Jets ETF (JETS) as one very specific offering, but it’s an ETF that has about $1.7 billion in assets under management at present despite its very tactical nature. As investments like this throw off regular fees, GROW distributes regular monthly dividends to its shareholders. The company’s 7.5 cent quarterly payout is three times what it was at the beginning of 2021, too, hinting at growth potential in those dividends.
Trailing dividend yield: 3.3%
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7 Best Monthly Dividend Stocks to Buy Now originally appeared on usnews.com
Update 05/24/23: This story was previously published at an earlier date and has been updated with new information.
