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Best Monthly Dividend Stocks To Buy Right Now? 3 To Know

Are these the best monthly dividend stocks to invest in right now?

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 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.

Source: TD Ameritrade TOS

[Read More] 3 Cyclical Stocks To Watch In May 2023

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.

Source: TD Ameritrade TOS

[Read More] 3 Semiconductor Stocks To Watch In May 2023

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.

Source: TD Ameritrade TOS

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By Brett David

Brett David is a digital marketing and finance professional for nearly 10 years now and a contributing author for StockMarket.com. His passion for digital marketing and the stock market began after graduating with a B.S.B.A in business administration and finance. After completing college, he went on to becoming an entrepreneur in the marketing and finance space, which led to becoming a contributor to outlets such as ThriveGlobal.com, MarijuanaStocks.com, MarketingAgency.com and SearchEngineWatch.com.

Brett loves the ability to deliver to his readers engaging and educational content that can be easily consumed by the reader. He enjoys writing about a wide variety of companies ranging from blue-chip stocks to the undervalued small and micro cap stocks. His favorite stock market sectors today to write about are: Tech, Cannabis, Mining, Biotech, and TMT.

Brett has worked with hundreds of publicly traded companies on increasing their digital footprint and corporate outreach since 2013.

You can find Brett most of time digging through corporate filings conducting fundamental analysis or at an industry conference looking for the next big trend or company to hit the street. His digital marketing experience gives a competitive edge over other contributing authors by allowing him to see and analyze trends faster than the next person.

Brett, a South Florida native, enjoys spending time with his wife and son outdoors, and is an avid basketball and MMA fan.

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