Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the actual return on an investment or a portfolio has income and stock appreciation.
Most stocks pay quarterly dividends, which is acceptable for many investors who reinvest dividends. However, others rely on dividends as part of an income stream, and getting a monthly dividend payout is more beneficial. Typically, real estate investment trusts, business development companies, and closed-end funds are among the investment vehicles that pay distributions monthly.
We screened our 24/7 Wall St. research database, looking for companies that paid monthly dividends. We found six that look like great ideas for passive income-oriented investors looking for upside appreciation and big ultra-yield dividends.
AGNC Investment
This company has paid solid monthly dividends for years, with a massive 17.42% yield. AGNC Investment Corp. (NASDAQ: AGNC | AGNC Price Prediction) operates as a real estate investment trust (REIT) in the United States.
The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency.
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 1986. It would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
EPR Properties
This REIT invests in some of the most popular entertainment companies and pays a solid 7.32% dividend. EPR Properties (NYSE: EPR) is a leading experiential net lease real estate investment trust (REIT) specializing in select enduring experiential properties in the real estate industry.
The company focuses on real estate venues that create value by facilitating out-of-home leisure and recreation experiences where consumers spend their time and money.
The company has nearly $6.7 billion in total investments across 44 states. They adhere to rigorous underwriting and investing criteria for crucial industry, property, and tenant-level cash flow standards.
Senior management believes their focused approach provides a competitive advantage and the potential for stable and attractive returns.
Gladstone Commercial
This company was hit hard as interest rates charged higher and is offering the best entry point in over a year and a massive 10.03% dividend. Gladstone Commercial Corporation (NASDAQ: GOOD) is focused on acquiring, owning, and operating net leased industrial and office properties across the United States.
Gladstone owns a diversified portfolio of:
- 121 office and industrial properties in 27 states were leased to 106 tenants. The company has grown its portfolio consistently, disciplined at 18% per year since the IPO in 2003.
They match 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%, and occupancy has never dipped below 95.0% since the IPO in 2003.
Gladstone has a track record of success, exhibited by a history of solid distribution yields, consistent occupancy, and 10+ years of paying continuous monthly cash distributions.
Main Street Capital
This company is a favorite across Wall Street and offers a solid 7.15% dividend. Main Street Capital Corporation. (NASDAQ: MAIN) is a private equity firm specializing in equity capital to lower-middle market companies.
Main Street Capital 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 generally provides “one-stop” financing alternatives within its lower middle market portfolio.
Main Street Capital typically invests in lower middle market companies, generally with annual revenues between $10 million and $150 million.
The firm’s medium market debt investments are made in businesses generally more significant than its lower middle market portfolio companies. It makes majority and minority equity investments.
Realty Income
This is an ideal stock for growth and income investors looking for a safer inflation-busting idea for 2024 that pays a stable 6.14% dividend. Realty Income Corporation (NYSE: O) is 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 13,250 real estate properties owned under long-term net lease agreements with commercial tenants.
Realty Income has declared 640 consecutive common stock monthly dividends throughout its 54-year operating history and increased the dividend 122 times since Realty Income’s public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.
SL Green Realty
This is a leading large-cap office REIT that top analysts on Wall Street prefer now and is a solid (and somewhat) contrarian play with a massive 10.48% dividend. SL Green Realty Group (NYSE: SLG) is a fully integrated real estate investment trust, or REIT focused primarily on acquiring, managing, and maximizing the value of Manhattan commercial properties.
As of September 30, 2023, SL Green held interests in 59 buildings totaling 32.5 million square feet. This included ownership interests in 28.8 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.
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