For many investors, an important part of their portfolios is dedicated to generating income along with growth. As most of us know, interest rates have been at generational lows for years. While they will start creeping higher in March as promised, even if the Federal Reserve does a stunning seven hikes this year, as some on Wall Street have predicted, that would put the federal funds rate around 2.5%. To put that in perspective, this rate in 2007 topped out at 5.02%.

We decided to screen our 24/7 Wall St. research database looking for companies that pay big and dependable dividends on a monthly basis. Most stocks, and the lion’s share of mutual funds, pay their dividend distributions on a quarterly basis. That’s fine for many, but for those who use investment income to cover the cost of living, most bills unfortunately do not come on a quarterly basis.

We found seven top stocks that are Buy rated and come with dependable monthly dividends. Most importantly, they look live solid investment ideas in these very turbulent times. 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 real estate investment trust (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 10.71% distribution. Royal Bank of Canada has an $18 price target on AGNC Investment stock. That compares with the $15.10 consensus target and Tuesday’s closing price of $13.10.

Similar to a mortgage REIT, this top company is an investor in what is known as deed of trust loans. Broadmark Realty Capital Inc. (NYSE: BRMK) engages in the underwriting, funding, servicing and managing a portfolio of short-term and first deed of trust loans to fund the construction, development and investment in residential or commercial properties in the United States.

The company also provides short-term and first deed of trust loans secured by real estate to fund the construction and development, investment in residential or commercial properties. The company has elected to be taxed as a REIT. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders.

Investors are paid a massive 9.35% distribution. The B. Riley Securities target price is $13, and the consensus target is $12.50. Tuesday’s final trade was reported at $8.69 a share.

EPR Properties

This REIT invests in some of the most popular entertainment companies. EPR Properties (NYSE: EPR) is a leading experiential net lease REIT, specializing in select enduring experiential properties in the real estate industry.

The company is focused on real estate venues that create value by facilitating out-of-home leisure and recreation experiences in which consumers choose to spend their discretionary time and money. EPR Properties has nearly $6.7 billion in total investments across 44 states. The company adheres to rigorous underwriting and investing criteria centered on key industry, property and tenant-level cash flow standards. Many on Wall Street feel that the company’s focused approach provides a competitive advantage and the potential for stable and attractive returns.

Investors may be familiar with the very popular TopGolf sites which are located around the country, and EPR Properties is a big investor in the entertainment complexes.

Investors receive a 6.39% distribution. The $62 Raymond James target price is a Wall Street high. The consensus target is $55, and shares closed on Tuesday at $45.70.

This company increased the distribution for investors during the fourth quarter. Gladstone Commercial Corp. (NASDAQ: GOOD) is focused on acquiring, owning and operating net leased industrial and office properties across the United States.

As of June 30, 2021, Gladstone owns a diversified portfolio of 121 office and industrial properties located in 27 states and leased to 106 tenants. The company has grown the portfolio in a consistent, disciplined manner at a rate of 18% per year since its IPO in 2003. It matches long-term leased properties with long-term debt to lock in the spread to create a durable, stable cash flow stream to fund monthly distributions to shareholders. Current occupancy stands at 96.5%, and occupancy has never dipped below 95.0% since 2003.

Most importantly for investors, Gladstone has a track record of success, as exhibited by a history of strong distribution yields, consistent occupancy greater than 95% and over 10 years of paying continuous monthly cash distributions.

Investors receive a 6.91% distribution. The $26 price target at Colliers Securities is a Wall Street high and looks to be going higher soon. The consensus target is $24.50. The last trade for Tuesday was reported at $21.09 a share.

Main Street Capital

This business development company offers investors a big dividend and has a long and successful track record. Main Street Capital Corp. (NASDAQ: MAIN) is a private equity firm specializing in equity capital to lower middle market companies. The firm specializes in recapitalizations, management buyouts, refinancing, family estate planning, management buyouts, refinancing, industry consolidation and mature, later stage emerging growth. The firm also provides debt capital to middle market companies for acquisitions, management buyouts, growth financings, recapitalizations and refinancing.

Main Street Capital seeks to partner with entrepreneurs, business owners and management teams and generally provides “one-stop” financing alternatives within its lower middle market portfolio.
The company prefers to invest in air freight and logistics; auto components; building products; chemicals; commercial services; computers; construction and engineering; consumer finance and consumer services; electronic equipment; energy equipment and services; financial services; health care equipment; health care providers; hotels, restaurants and leisure; internet software and services; IT Services; machinery; oil, gas and consumable fuels; paper and forest products; professional and industrial services; road and rail; software; specialty retail; telecommunication; consumer discretionary; energy; materials; technology; and transportation.

Investors receive a 6.02% dividend. Raymond James has set a $47 price target. That compares with the $44.25 consensus target and Tuesday’s closing print of $42.22.

Realty Income

This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea for 2022. 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 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since its public listing in 1994. It is a member of the S&P 500 Dividend Aristocrats index.

Realty Income stock investors receive a 4.44% distribution. The Goldman Sachs price objective of $87 is well above the $77.94 consensus target and the $66.04 close on Tuesday.

Adding some of these top stocks to a growth and income portfolio now makes very good sense. They offer dependable monthly income, real estate is an attractive asset class during times of inflation like we are experiencing now, and with an overbought and volatile stock market, these stocks probably will hold up better than crowded technology or momentum stocks.

It is important to note the REIT distributions may contain return of principal in their income distributions.

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