While most companies pay dividends on a quarterly basis, monthly dividend stocks make their dividend payouts each month. Some investors find a monthly payout schedule more appealing, as it makes it easier to derive regular income from dividends. One can also combine quarterly dividend payout stocks that pay dividends in different months and ensure that every month there is a payout with our monthly income generator tool.
Below, we’ve selected 5 monthly dividend paying stocks that are currently yielding more than 3.5%—some even yielding higher than 5%.
EPR Properties (EPR ) - 5.4%
EPR Properties is a self administered REIT that has educational, entertainment and recreation properties in its portfolio. This REIT currently yields 5.45% and has a payout ratio of 80% based on 2016 earnings per share of $4.77. REITs typically pay out over 70% of their earnings as dividends and, hence, lead to very high yields. Its 2017 growth estimates have come in at $5.07, which leads to an estimated growth of 6.29%. The stock is up more than 20% for the year so far. The REIT has a monthly payout of $0.32 which leads to an annual payout of $3.84.
LTC Properties (LTC ) - 4.46%
LTC Properties is a healthcare REIT. The company primarily invests in long-term care and other healthcare related properties through mortgage loans, property lease transactions, and other investments. The company currently yields 4.46% and has a payout ratio of 58% based on 2016 earnings of $3.03. 2017 earnings estimates are $3.20, which leads to a growth estimate of 5.61%. The stock is up 12% for the year. The REIT has a monthly payout of $0.18 which leads to an annual payout of $2.16.
Realty Income Corp (O ) - 3.7%
Realty Income Corp is another REIT making the list. The company currently yields 3.7% and has a payout ratio of 82% based on 2016 earnings per share of $2.88. The 2017 earnings per share are at $3.01, which lead to a growth estimate of 4.51%. The stock is up 23% for the year so far reflecting a positive sentiment towards REITs in a rising interest rate environment. Realty Income Corp has a monthly payout of $0.19, which leads to an annual payout of $2.38.
Shaw Communications (SJR ) - 6.5%
Shaw Communications Inc is a communications company that provides broadband, cable TV and internet services in Canada and the United States. Shaw currently yields 6.5% and has a payout ratio of 77% based on 2016 earnings of $1.17. The estimated earnings per share for 2017 are $1.11, which lead to a negative growth rate of -5%. Shaw is up 6% for the year and currently trades at a PE of 16 times 2016 earnings. The stock is off 19% from its 52-week high. Shaw has a monthly payout of $0.10, which leads to an annual payout of $1.20.
Gladstone Commercial Corporation (GOOD ) - 8.5%
Gladstone Commercial Corporation is the fourth REIT to feature on this list. Currently yielding 8.5%, it has a payout ratio of 97% based upon 2016 earnings of $1.54. Its 2017 earnings estimates have come at $1.52, which lead to a negative growth rate of -1.30%. Gladstone is up 20% for the year. GOOD pays a monthly dividend of $0.13, which leads to an annual payout of $1.5.
The Bottom Line
4 out of the 5 stocks that made this list are REITs. REITs have higher payout ratios than others because, by law, they are required to pay out at least 90% of their earnings as dividends. This leads to higher yields than most other stocks.
Check out a complete list of REITs by their dividend yields and their next ex-dividend dates in our REITs tool.