[Updated July 20, 2017 by Sam Bourgi]
Most investors are accustomed to receiving quarterly payouts from their dividend-paying securities, but there are opportunities to generate current income on a more frequent basis: monthly dividend stocks.
There are nearly 800 stocks that follow a monthly payout schedule and warrant a closer look from yield-seeking investors. Monthly dividend stocks provide risk-adjusted returns and diversification benefits that can boost your portfolio over the long haul.
Below we take a closer look at 12 monthly dividend stocks with stable payout records.
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12. Main Street Capital Corp (MAIN )
Houston-based Main Street Capital has been a monthly dividend payer since 2011. The investment company provides lower-middle market companies with customized debt and equity financing services. MAIN serves companies across a range of industries with annual revenues between $10 million and $100 million. Earlier this month, the company announced an $18.6 million debt and equity investment in Boccella Precast, a New Jersey-based manufacturer of precast concrete products.
MAIN’s five-year distribution is summarized below:
11. Realty Income Corp (O )
Founded in 1970, Realty Income Corp is a commercial REIT focused on the freestanding retail and rental-income properties under long-term agreements. The company has been increasing its dividend steadily for the past 21 years and has a solid track record of 563 months of consecutive monthly payouts. Its diversified real estate portfolio includes more than 4,900 properties under long-term net lease agreements – up from 2,600 less than two years ago. Bank of America Corp DE (BAC ) recently announced a bigger stake in Realty Income Corp.
O’s five-year distribution is summarized below:
10. Shaw Communications (SJR )
Based out of Alberta, Canada, Shaw Communications is one of the country’s largest diversified communications companies. Having been in business for more than 50 years, SJR provides cable TV, satellite, broadband, internet and digital phone services to consumers and businesses. The company has been a steady dividend payer since 2005, with current distributions exceeding pre-crisis levels. The company gained momentum in the quarter ended May 31, when it added 13,000 cable subscribers – the first such increase since 2010.
SJR’s five-year distribution is summarized below:
9. Pembina Pipeline Corp (PBA )
Pembina Pipeline Corp is an Alberta, Canada-based petroleum and natural gas producer that has been in operation since 1954. The company operates mainly in Western Canada, with ethane production facilities located in North Dakota. The company shifted to a monthly payout schedule in April 2012. Its monthly distribution declined during the oil-price collapse phase, but has steadily improved since early 2016.
PBA’s five-year distribution is summarized below:
8. Gladstone Commercial (GOOD )
Gladstone Commercial is a Virginia-based REIT that owns and leases industrial and commercial property. Its primary end market is small- and medium-sized enterprises (SMEs), as well as larger public companies. GOOD has been paying monthly dividends regularly since 2005, with stable distributions since before the financial crisis.
GOOD’s five-year distribution is summarized below:
7. Enerplus Corporation (ERF )
Founded in 1986, Enerplus Corporation is an Alberta-based oil and gas producer that has offered steady dividend growth since 2001. The company operates mainly in the natural gas and crude oil industries, with most of its operations in the energy-rich region of Western Canada. Enerplus also operates properties in the U.S. states of Montana, North Dakota, Pennsylvania, West Virginia and Wyoming. The company’s annual dividends have plunged over the past two years as the oil-price collapse weighed on the industry. Investors seeking heavily discounted stocks should take a closer look at Enerplus.
ERF’s five-year distribution is summarized below:
6. Gladstone Capital (GLAD )
Based in Virginia, Gladstone Capital is a business development company that invests in debt and equity securities. Its primary focus is on secured first and second lien term loans in lower-middle market companies across the United States. Founded in 2001, GLAD has been paying monthly dividends regularly since the fourth quarter of 2003. The company’s dividend payouts have declined since the last recession, but have remained consistent.
GLAD’s five-year distribution is summarized below:
5. STAG Industrial (STAG )
Boston-based STAG Industrial is a real estate investment trust (REIT) focused on the acquisition and operation of single-tenant industrial properties. The company operates more than 300 properties across 37 states. Since launching back in 2003, STAG’s portfolio has grown nearly 400%. STAG shifted to a monthly distribution schedule in 2013 and has been raising its monthly payout every year.
STAG’s five-year distribution is summarized below:
4. LTC Properties (LTC )
Another REIT makes the list in the form of EPR Properties, a California-based investor focused exclusively on the healthcare industry. EPR invests in long-term-care facilities serving seniors, with an emphasis on skilled nursing properties, assisted living facilities and other diverse healthcare properties. A steady dividend payer since 1992, LTC shifted to a monthly payout schedule in 2005. LTC has distributed a steady monthly dividend in each of the last six months, with annual dividends rising each year since 2009. It’s also worth noting that its currently monthly distributions exceed those prior to the 2008 financial crisis.
LTC’s five-year distribution is summarized below:
3. EPR Properties (EPR )
Headquartered in Kansas City, Missouri, EPR Properties is a specialty REIT that focuses on real estate in non-commodity market segments, including the entertainment, recreation and education industries. EPR has long outperformed the broader REIT market, having returned over 140% to shareholders over the past ten years. That’s more than double the broad REIT Index average. EPR shifted to a monthly payout schedule in 2013.
EPR’s five-year distribution is summarized below:
2. Cross Timbers Royalty Trust Units (CRT )
Cross Timbers Royalty Trust Units is a solid play for investors looking for consistent dividends. The Texas-based company has been paying out monthly dividends since 1992. Its business receives royalties from various timber properties concentrated throughout the southern United States. After a volatile few years, CRT offers a significant discount for investors looking for monthly dividends.
CRT’s five-year distribution is summarized below:
1. Chatham Lodging Trust (CLDT )
Chatham Lodging Trust is a Florida-based REIT that invests in upscale hotels and premium-based lodging services. The company is involved in a large portfolio of hotels across the United States and has attracted investment from the likes of UBS Asset Management Americas Inc. CLDT was founded in 2009 and shifted to a monthly distribution model in January 2013. It has been a monthly dividend payer ever since.
CLDT’s five-year distribution is summarized below:
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The Bottom Line
Income investors have a lot to gain by incorporating monthly dividend plays in their portfolio. Consistent dividend growers provide stability and steady growth over the long haul, helping you create a more risk-adjusted portfolio. To find more of the best monthly dividends stocks, check out our entire list of monthly dividend stocks.