5 Monthly Dividend Stocks To Watch Today
If you are looking for some additional cash flow every month, investing in monthly dividend stocks should be appealing to you. Part of the reason is because you could treat these regular distributions as a kind of paycheck. And more importantly, it allows investors to offset their regular bills with dividend income.
Of course, not all dividend stocks in the stock market today offer a monthly payout. Finding companies that have monthly dividends payout is no easy task. However, you’ll see a few similarities across the selection. They tend to be concentrated in real estate investment trusts (REITs), business development companies (BDCs), and closed-end funds (CEFs).
So, say you’ve decided to invest in dividend stocks right now. It’s worth finding stocks that offer a mix of healthy and reasonable dividends from investment areas that could deliver consistently over an extended period of time. Generating consistent yield during the difficult investment climate in the stock market right now has been the focus for many investors. If the regularity of monthly dividend stocks appeals to you, do you have these five on your watchlist today?
Monthly Dividend Stocks For Your January 2022 Watchlist
- Realty Income Corp. (NYSE: O)
- Stag Industrial Inc. (NYSE: STAG)
- Main Street Capital Corp. (NYSE: MAIN)
- AGNC Investment Corp. (NASDAQ: AGNC)
- Broadcom Inc. (NASDAQ: AVGO)
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. The company’s current dividend yield stands at around 4.1%.
So, what’s the secret sauce behind its strong track record as a monthly dividend stock? It’s a simple, steady and expanding business. 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. Additionally, with Realty Income’s completion of the VEREIT acquisition. The company anticipates that its adjusted funds from operations per share will grow 9.2% from this year to the next. With a solid dividend yield, would you include O stock on your watchlist today?
Stag Industrial is a Boston-based buyer and operator of single-tenant industrial properties. The bulk of its portfolio consists of distribution warehouses with high-credit national tenants. These properties are in high demand as the pandemic served as a catalyst for e-commerce adoption. As more retail businesses move online, a large portion of retail real estate activity has moved into warehouses. What’s more, STAG recently completed what it calls the nation’s largest rooftop community solar project. The solar project could generate enough electricity to power nearly 1,500 local homes and businesses. At its current monthly payout, the stock is offering around 3% yield.
Notably, almost 40% of STAG Industrial’s portfolio handles e-commerce activities. With Amazon (NASDAQ: AMZN) and other e-retailers driving demand, industrial space has been rented at healthy rates. And these translate to profits, and by extension, dividends to investors. If you own STAG stock right now, you’re indirectly betting on megatrends such as e-commerce. Even if the share price drops to a lower level, dividends shouldn’t be much affected. This makes STAG stock one of the best monthly dividend stocks to buy for income investors.
Main Street Capital
Main Street Capital is a Texas based company providing debt and equity financing to lower middle-market companies. It is also a business development company, BDC for short, that is bound by law to pay out 90% of its taxable income in dividends. The company is highly regarded for employing a high due diligence standard regarding portfolio business. For instance, it looks for partners with strong management teams with favorable track records and deep industry knowledge. The BDC currently has a dividend yield of 5.8%.
From its third-quarter fiscal released in early November, Main Street Capital’s total investment income came in 48% year over year to $76.8 million. Net increase in net assets derived from operations came in at $84 million. Furthermore, distributable net investment income stood at $52.2 million. It’s clear that the latest quarter reflected another sequential growth for the BDC’s total investment income. Given its healthy growth rate, would MAIN stock make your list of top monthly dividend stocks to buy?
AGNC Investment is the largest mortgage real estate investment trust (REIT) by market cap. Companies like AGNC borrow money at lower short-term lending rates and use the proceeds to purchase assets with a higher long-term yield. The company uses its in-house subsidiaries to help package, buy, and sell government-backed mortgages secured by residential real estate. While mortgage REITs may not be a favorite on Wall Street, there’s no question about AGNC’s consistent dividend yield. The REIT has an annualized dividend yield of about 9.3%.
What’s more, AGNC almost exclusively invests in agency securities. For those unfamiliar, these assets are backed by the federal government in the event of default. If you’re an investor in the stock market today, you probably know a thing or two about rising interest rates. And that is among the reasons why stocks were down. While it may be bad for stocks in general, a rising interest rate can actually benefit AGNC. For this reason, some may see AGNC stock as a defensive play. With that in mind, would you add AGNC stock to your watchlist?
Last but not least, we have a semiconductor manufacturing firm Broadcom. For the most part, the company focuses on designing, developing, and marketing semiconductor and infrastructure software products. Through its core offerings, Broadcom caters to a wide array of end markets. This includes but is not limited to the data center, networking, wireless, and broadband fields. As the global semiconductor chip shortage persists, AVGO stock could be worth keeping an eye on. The company currently has a dividend yield of over 2.4%.
Regardless of all this, Broadcom does not seem to be slowing down anytime soon. Last month, the company revealed its plan to acquire AppNeta, a Boston-based computer software firm. WIth its end-to-end visibility solutions, AppNeta brings a lot to the table. Besides, Broadcom’s outstanding performance also led Wall Street analysts to increase their price targets on AVGO stock. Analysts from KeyBanc expect the shares to hit $710 compared to the earlier target of $575. Considering all these, would you invest in AVGO stock in the stock market today?
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