4 Monthly Dividend Stocks To Watch Right Now

When it comes to investing in the stock market, some investors lean toward high-dividend stocks that offer big-time yields. Others simply prefer dividend stocks that are reliable and provide a steady stream of income. Of course, some offer the best of both worlds, with big payouts and a monthly distribution schedule. After all, we have bills to pay, and most of those bills come on a monthly basis. That makes monthly dividend stocks ideal for investors who rely on their portfolios for income. This way, investors could offset their expenses with dividend income too.  

Finding companies that offer high monthly dividends is no easy task. The great news is that many of them are real estate investment trusts (REITs) and closed-end funds (CEFs). Generating consistent yield during this difficult investment climate in the stock market has continued to be the focus for many investors. These stocks are not only good for income investors on the side, but are also valuable investments for those looking to get themselves through times of financial distress. 

For investors who are looking for a steady passive income that can support them during times of a volatile stock market, monthly dividend stocks can be excellent investment opportunities. With their high payouts, these stocks can be quite tempting, particularly when it is paid monthly. While it can be a great way to enjoy some extra compounding, they are not without their risks. After all, investors may not necessarily want to depend solely on this group of stocks for monthly income. With all these in mind, here is a list of the best monthly dividend stocks with high yields for you to check out in the stock market today. 

Best Monthly Dividend Stocks To Watch Now

Realty Income

Realty Income is the gold standard of triple net lease REITs. For those unfamiliar, a triple net lease is a form of real estate lease agreement where the tenant or lessee is responsible for all the ongoing expenses of the property. The REIT is a bellwether in one of the most resilient niches of the commercial real estate industry. The company owns more than 6,700 properties, most of which are occupied by retail tenants. That makes up 80% of the portfolio holding. 

While several REITs pay monthly dividends, Realty Income’s monthly payout is a crucial part of its identity. In fact, the company actually trademarked “The Monthly Dividend Company” as its official nickname. For these reasons, it is no surprise why many dividend investors gravitate toward the stock. The company’s current dividend yield stands at around 4%.

There’s no doubt that O stock is such a popular pick for investors looking to steadily grow their passive income. It possesses a very high quality real estate portfolio with their top 20 clients qualifying as recession resistant. And these tenants should continue to do well and bring in a stable revenue stream for the company. Besides, the company recently completed the acquisition of peer VEREIT, bringing its number of properties to over the 10,000 mark. Given all of this, it seems to me that O stock is a great dividend stock that’s getting even better.

monthly dividend stocks (O stock chart)
Source: TD Ameritrade TOS

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W.P. Carey

Similar to Realty Income, W.P. Carey is also another triple net lease REIT that’s increasingly popular among income investors. Some even argued that WPC stock is a better investment than Realty Income. Well, that’s because the vast majority of WPC’s year to date acquisitions and its pipeline are warehouses and industrial assets. And these assets are deemed to have a more favorable outlook than U.S. retail assets. What’s more, its weighted average lease term (WALT) is currently standing at 10.6 years. 

Perhaps, another reason to love W.P. Carey’s business is that it comes with built-in protection against inflation. For instance, 60% of its annualized base rent is tied to the consumer price index. In fact, the persistently high inflation rate we have today had a positive impact on their same-store growth during the third quarter. The company pays a high dividend yield of 4.9%.

Its heavy use of CPI-linked lease bumps may have dragged on growth in the past while its industry rivals zoomed ahead. But if high inflation is stickier than expected, it seems to me that WPC stock has a chance to play significant catch up. With all that in mind, would WPC stock make your list of best dividend stocks to buy now?

WPC stock chart
Source: TD Ameritrade TOS

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LTC Properties

LTC Properties is a healthcare REIT, specializing in senior living properties and skilled nursing facilities. There’s no question that COVID-19 has hit elderly homes especially hard. Considering how susceptible the elderlies are towards the effects of the virus, many are postponing their move into these facilities until the situation is under control. 

Naturally, many of the health REITs will cut down their dividends during this challenging time, but not LTC. This healthcare REIT is bucking the trend and holding the line on its dividend. LTC’s trailing annual dividend is nearly 6.8%. And investors are no doubt getting rewarded with the relatively high dividend yield.

Despite the lingering effects of the pandemic, the REIT’s longer-term outlook remains bright. One of the key reasons why LTC is holding on to its dividend is because of its focus on net-lease properties. Even though the novel coronavirus has presented a great challenge to the industry, the good news is the longer-term demographic trends are here to stay. As the population continues to age, demand for senior living will likely creep up over time. And LTC stock would likely be a beneficiary of that trend.

LTC stock chart
Source: TD Ameritrade TOS

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EPR Properties

Last but not least, we have EPR Properties. Specifically, EPR is a commercial real estate firm that has stakes in entertainment-oriented locations. That includes movie theaters like AMC Entertainment (NYSE: AMC), resorts and casinos. For those unfamiliar, AMC happens to be EPR’s biggest tenant. 

With EPR’s focus on entertainment and leisure, you can imagine what an impact the pandemic has had on the REIT. Fortunately, it is poised to benefit immensely as the economy reopens. The REIT also reinstated its dividend recently, faster than what many investors had earlier expected. With about a 6% dividend yield, there’s a lot to like here.

Besides movie theaters, the REIT also has ski venues, wellness and fitness centers, amusement parks, and more under its belt. Therefore, EPR stock is also easily one of the best reopening stocks to have on your watchlist. A post-pandemic reset and hunger for leisure spending after an unprecedented year presents a big opportunity for investors. With EPR stock still trading for about 30% lower than where they started out in 2020, there could be lots of room for upside as the reopening continues.

EPR stock chart
Source: TD Ameritrade TOS

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