Monthly dividend stocks are highly appealing for investors looking for more frequent dividend payments. Most dividend stocks pay their dividends quarterly, but a smaller group of monthly dividend stocks make payments to shareholders every month, for 12 payments per year.
As a result, monthly dividend stocks can be a great way to earn passive income more consistently throughout the year. This article will discuss 3 high-quality monthly dividend stocks with high dividend yields.
Monthly Dividend Stock #1: Realty Income (O)
Realty Income is a time-tested Real Estate Investment Trust, or REIT, operating in the retail industry. It owns more than 6,500 properties.
Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties. This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.
These properties have held up well over the past year, even with the challenges of the coronavirus pandemic which suppressed traffic at retailers. Still, Realty Income grew third-quarter revenue by 22% year-over-year.
Realty Income is an attractive monthly dividend stock because it has a very safe dividend payout. The company has maintained an impressive dividend history.
Realty Income has declared 619 consecutive monthly dividend payments without interruption in the company’s 53-year operating history. It has increased its dividend 114 times since its initial public offering in 1994. Shares currently yield 4.3%.
Realty Income is on the Dividend Aristocrats list.
Monthly Dividend Stock #2: SL Green Realty (SLG)
SL Green is an integrated REIT focused on acquiring, managing, and maximizing the value of Manhattan commercial properties. It is Manhattan’s largest office landlord, and currently has an interest in 77 buildings totaling 35 million square feet.
The past two years have been highly challenging for SL Green Realty. Office properties were under pressure from the work-from-home trend, which was only accelerated during the coronavirus pandemic. However, SL Green has continued to generate steady cash flow, a testament to its strong properties.
In the 2021 third quarter, Its occupancy rate slightly decreased, from 93.6% at the end of the previous quarter to 93.1%, but its same–store net operating income grew 3.6% over last year’s quarter. As a result, its funds from operations (FFO) per share grew 2% over the prior year’s quarter, from $1.75 to $1.78.
SL Green is an attractive dividend stock, as it has a number of positive qualities. First, it has a high dividend yield of 5.2%. Next, it pays its dividend each month. And finally, the company has a shareholder-friendly management team that periodically announces special dividends, including a recent one-time special payout of $2.4392 per share.
Monthly Dividend Stock #3: STAG Industrial (STAG)
STAG Industrial is an owner of industrial real estate. It is focused on single-tenant industrial properties and has ~462 buildings across 38 states.
The company is benefiting from a broad growth tailwind, which is rising demand for industrial properties such as those that handle e-commerce activity. These tailwinds have been reflected in STAG’s strong financial results. In the 2021 third quarter, core FFO grew 25% over last year’s quarter thanks to the sustained strength of the REIT’s tenants.
Core FFO per share grew at a slower rate (15%), from $0.46 to $0.53, due to the issuance of new units. Still, the company impressively registered double-digit FFO growth, even on a per-share basis. It is remarkable that the REIT has collected approximately 99% of its rental income in the last four quarters.
STAG Industrial stock has an attractive 3.6% dividend yield and the company regularly increases its dividend, including a recent ~1% hike.
Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul University, and an MBA with a concentration in Investments from the University of Notre Dame.
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