Monthly dividend stocks are a unique class of investments that can be an excellent option for investors seeking a steady income stream. Unlike most stocks that pay dividends quarterly, semi-annually, or annually, these companies distribute dividends to their shareholders every month. This can be particularly appealing to retirees or other investors who rely on their investment income for regular expenses. These stocks also provide a faster compounding effect when dividends are reinvested, which can lead to greater wealth accumulation over time.
The companies that offer monthly dividends come from various sectors, including real estate investment trusts (REITs), business development companies (BDCs), and some exchange-traded funds (ETFs). These firms often operate in industries with stable and predictable cash flows, which allows them to sustain regular dividend payments. Investing in monthly dividend stocks can also provide a level of diversification in your portfolio, but it’s essential to remember that higher yields can sometimes indicate higher risk.
However, like all investments, monthly dividend stocks come with their own set of risks. The sustainability of monthly dividends depends on the company’s financial health and profitability, so it’s important to do thorough research and due diligence. An understanding of the company’s business model, profitability, payout ratio, and debt levels is crucial. Despite the risks, for those who need regular income from their investments, monthly dividend stocks can be a valuable part of their investment strategy. Given this information, let’s look at three monthly dividend stocks to watch in the stock market today.
Monthly Dividend Stocks To Watch Now
- Main Street Capital Corporation (NYSE: MAIN)
- Stag Industrial Inc. (NYSE: STAG)
- Realty Income Corporation (NYSE: O)
Main Street Capital Corp. (MAIN Stock)
First, Main Street Capital (MAIN) is a Business Development Company (BDC) that provides debt and equity financing to lower-middle market companies and debt capital to middle-market companies. Today, MAIN pays its shareholders a quarterly dividend of $0.67 paid monthly, resulting in an annual dividend yield of 6.76%.
Earlier this month, Main Street Capital reported its first-quarter 2023 earnings results. Diving in, the company showed earnings of $1.02 per share on revenue of $120.3 million. For context, this is versus the Street’s estimates for Q1 2023 which were an EPS of $1.02 per share, with revenue of $115.1 million. Meanwhile, revenue for the quarter advanced by 51.5% versus the same period, the previous year.
Since the start of 2023, shares of MAIN stock have increased by 8.15%. Meanwhile, during Friday’s premarket trading session, MAIN stock is trading slightly higher by 0.80% at $40.24 a share.
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Stag Industrial Inc. (STAG Stock)
Second, Stag Industrial (STAG) is a real estate investment trust (REIT) that primarily invests in single-tenant, industrial properties throughout the United States. Currently, Stag Industrial pays its shareholders a quarterly dividend of $0.37, paid monthly, which results in an annual dividend yield of 4.24%.
At the end of April, Stag Industrial announced its first quarter 2023 financial results. In detail, the real estate company reported earnings per share of $0.55 with revenue of $173.6 million. This is compared with analysts’ consensus estimates for Q1 2023 which were earnings of $0.55 per share, along with revenue of $170.8 million. Moreover, the company also reported that revenue grew by 9.0% versus the same period, in 2022.
Year-to-date, Stag Industrial stock has jumped by 7.20% so far. While, ahead of Friday morning’s opening bell, shares of STAG stock are trading at around $34.68 a share.
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Realty Income Corp. (O Stock)
Lastly, Realty Income (O) is one of the most well-known monthly dividend payers. It’s a Real Estate Investment Trust (REIT) that owns over 12,000 commercial real estate properties across the U.S., with tenants spanning various industries. The company currently pays its stockholders a quarterly dividend of $0.76, paid out monthly, which equals an annual dividend yield of 4.95%.
Just last week, Realty Income Corporation announced its first quarter 2023 earnings results. In the report, the company posted Q1 2023 earnings of $0.98 per share, along with revenue of $944.4 million. This came in slightly under analysts’ estimates which were earnings of $1.02 per share, though revenue came in higher versus estimates of $907.77 million. As a result, revenue increased by 17.0% in comparison to the same time period, the prior year.
Year-to-date, shares of Realty Income Corp. stock have fallen by 3.13%. Though, during Monday’s pre-market trading session, O stock is trading modestly higher by 0.16% at $51.90 a share.
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