Investors love dividend stocks because they not only provide dependable income but also give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends and distributions realized over a given period. In other words, the total return on an investment or a portfolio includes both income and stock appreciation.

Most stocks that pay dividends pay them on a quarterly basis. For many investors that reinvest dividends, that is fine. Many investors, though, rely on dividends as part of an income stream, and it is more beneficial to them to get a monthly dividend payout. Typically, real estate investment trusts (REITs), business development companies and closed-end funds are among the investment vehicles that pay out monthly.

We screened our 24/7 Wall St. research database looking for companies that were rated Buy at major Wall Street firms and that also paid dividends on a monthly basis. We found four that look like great ideas for income-oriented investors seeking some upside appreciation as well. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

AGNC Investment

This company has paid solid dividends for years. AGNC Investment Corp. (NASDAQ: AGNC) operates as a REIT in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by U.S. government-sponsored enterprises or agencies.

The company funds its investments primarily through collateralized borrowings structured as repurchase agreements. The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders.

Investors receive a rich 7.74% dividend. BofA Securities has a $19 price target on AGNC Investment stock. That compares with the $18.25 consensus target and Thursday’s closing price of $18.60 a share.

Main Street Capital

This stock is a favorite across Wall Street that offers very solid upside potential. Main Street Capital Corp. (NASDAQ: MAIN) is a private equity firm specializing in equity capital to lower middle market companies. The firm also provides debt capital to middle market companies for acquisitions, management buyouts, growth financings, recapitalizations and refinancing.

The firm seeks to partner with entrepreneurs, business owners and management teams, and it generally provides “one-stop” financing alternatives within its lower middle market portfolio. Main Street Capital typically invests in lower middle market companies with annual revenues between $10 million and $150 million. The firm’s middle market debt investments are made in businesses that generally are larger in size than its lower middle market portfolio companies. It makes majority and minority equity investments.

Investors receive a 5.94% dividend. The $43.50 Raymond James price target is well above the $39.38 consensus target. However, the stock closed at $41.42 a share on Thursday.

This is an ideal stock for growth and income investors looking for a safer idea for the rest of 2021. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.

To date, the company has declared 604 consecutive common stock monthly dividends throughout its 51-year operating history and increased the dividend 108 times since its public listing in 1994, and it is a member of the S&P 500 Dividend Aristocrats index.

Investors receive a 4.02% distribution. The Goldman Sachs price objective is $84, and Realty Income stock is on the firm’s Conviction List of top picks. The lower $73.43 consensus target price compares with Thursday’s $70.19 close.

Stag Industrial

This strong industrial REIT play offers solid upside potential. Stag Industrial Inc. (NYSE: STAG) is a self-managed full-service real estate company primarily focused on the acquisition, ownership and management of single-tenant, Class B warehouses in secondary markets across the United States. The company continues to focus on expansion of its acquisition platform to find acquisitions to grow the portfolio.

Top Wall Street analysts expect management to be aggressive acquirers over time, pursuing accretive deals in 2021 and beyond. The company should be able to drive meaningful earnings growth largely due to management’s ability to source and complete accretive acquisitions. Additionally, the in-place portfolio should deliver stable organic growth supported by healthy property-level fundamentals.

Investors receive a 3.93% distribution. Royal Bank of Canada just boosted its price target to $42 from $36. The posted consensus target is $34.25, and the shares closed most recently at $36.92.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

These four top companies all pay reliable monthly dividends and their stocks have Buy ratings from some top firms on Wall Street. While not go-go momentum names that promise huge upside, what they do promise is making sure investors are paid on a more regular basis than most stocks and certainly bonds.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.