According to The Wall Street Journal, average 30-year mortgage rates have now surged to 7.1% and home sales for March, correspondingly, fell 4.3%, the largest drop since November 2022.
Since inflation has also drastically hiked up the costs of basic essentials like food and medicine, stretching dollars to the limit may fall short of covering these necessities, and an additional income stream that can also assist on a monthly basis can mean the difference between being able to keep a roof over one’s family’s heads or facing foreclosure from mortgage default.
24/7 Wall St has published a number of articles about dividend paying stocks as a source of passive income. However, the majority of stock dividends are paid quarterly. In order to make sure that there is a monthly amount to immediately allocate for a mortgage payment or a hiked home rental, a minimum $750 per month can certainly offer welcome relief. The following dividend stocks can cumulatively deliver a double-digit annual yield disbursed on a monthly basis, for an investment of $10,000 per stock.
Allied Properties Real Estate Investment Trust
Stock #1: Allied Properties Real Estate Investment Trust (OTC: APYRF)
Dividend: $1.80 ($0.15/month)
Yield: 14.61% annual
Shares for $10,000: 811
Monthly Passive Dividend Income: $121.75
AppleTV’s miniseries, WeCrashed, documented the rise and fall of hyped commercial real estate company WeWork and its charismatic leader, Adam Neumann, portrayed by Jared Leto. While WeWork is a textbook example of a bank (Japan headquartered Softbank) drastically overpaying for a simple business model that was given a new spin by the profligate Neumann, that simple business model is legitimate, and if managed sensibly, can be profitable. Toronto, Canada based Allied Properties Real Estate Investment Trust is one such company demonstrating this.
Registered as a Real Estate Investment Trust (REIT), which mandates that 90% of profits be remitted to shareholders in the form of dividends for tax purposes, Allied Properties REIT provides commercial real estate spaces with knowledge-based (read: technology) company amenities. With buildings in seven different cities throughout Canada, totalling 530 suites and a cumulative 15.12 million square feet of space, Allied Properties REIT is putting the WeWork model to work in a genuine and profitable fashion. Since going public in 2003, the company has never failed to pay its dividend.
Stellus Capital Investment Corporation
Stock #2: Stellus Capital Investment Corporation (NYSE: SCM)
Dividend: $1.60 ($0.133/month)
Yield: 11.47% annual
Shares for $10,000: 734
Monthly Passive Dividend Income: $95.58
Participating in both the private corporate debt and equity markets, Houston, TX headquartered Stellus Capital Investment Corp. finances deals for American and Canadian companies with EBITDA between $5 million and $50 million. Their origination underwritings may manifest in several configurations, such as first lien, second lien, unitranche, and mezzanine debt, often accompanied with an equity portion.
Slate Grocery REIT
Stock #3: Slate Grocery REIT (OTC: SRRTF)
Dividend: $0.864 ($0.072/month)
Yield: 10.94% annual
Shares for $10,000: 1,265
Monthly Passive Dividend Income: $91.16
REITs that specialize in providing commercial space for tenants in specific industries can often create very profitable niches for their businesses, especially if the locations are accessible and the businesses are essential. Slate Grocery REIT has selected the retail food and grocery business as its targeted industry, and their properties now are occupied by national grocery chains in shopping malls across the continental US.
Although Slate Grocery REIT is a Canadian company, its properties are entirely in the US. Its locations can be found all along the Eastern Seaboard, from New Hampshire all the way to Florida, as well NY, PA, MD, VA, KY, TN, OH, MI, IN, IL, WI, MN, ND, UT, AL, TX, CO, and CA.
Pennant Park Floating Rate Capital Ltd.
Stock #4: Pennant Park Floating Rate Capital Ltd. (NYSE: PFLT)
Dividend: $1.23 ($0.10month)
Yield: 10.82% annual
Shares for $10,000: 892
Monthly Passive Dividend Income: $90.16
PennantPark Floating Rate Capital, Ltd. is a Business Development Company (BDC) that operates out of Miami Beach, FL. As a registered BDC, it engages with primarily US based and a limited number of non-US companies in providing secondary direct secured loans, mezzanine debts, and equity investments, primarily in the form of 3-10 year floating rate debt instruments.
In general, PennantPark will consider financings and investments of between $2 million and $50 million in unrated companies. It will also buy secondary market high-yield bonds, preferred stock, and distressed debt of public companies above $250 million market cap that have a proven history of adequate liquidity.
Fortitude Gold Corporation
Stock #5: Fortitude Gold Corporation (OTC: FTCO)
Dividend: $0.48 ($0.04/month)
Yield: 10.37% annual
Shares for $10,000: 2,159
Monthly Passive Dividend Income: $86.42
Fortitude Gold Corporation is a gold and silver mining company headquartered out of Colorado Springs, CO. With ownership of five gold mine properties in Nevada, its flagship project is the Isabella Pearl, which is 10,400 acres. Fortitude’s proven reserves can potentially yield up to 220,000 oz. of gold and 1.3 million oz. of silver.
At the time of this writing, Fortitude just announced their latest findings in the East Pit of Isabella Pearl: “Within an 80-foot-wide zone of 1.73 grams per tonne gold we intercepted a record high gold grade for the East Pit of 4.77 grams per tonne gold over 15 feet,” stated Mr. Jason Reid, CEO and President of Fortitude Gold.
Gladstone Capital Corporation
Stock #6: Gladstone Capital Corporation (NASDAQ: GLAD)
Dividend: $1.98 ($0.17/month)
Yield: 9.41% annual
Shares for $10,000: 473
Monthly Passive Dividend Income: $78.42
McLean, VA based Gladstone Capital Corporation is a registered BDC that also has a private equity component. On the BDC side, Gladstone originates debt financings in a variety of configurations, including senior term loans, revolving credit lines, secured first and second term liens, unitranche loans, senior or junior subordinated loans, and mezzanine loans, as well as common stock, preferred stock, and/or warrants. Use of proceeds can include, growth capital, acquisitions, refinancings, change of control, and buy & build strategies. Industry agnostic, Gladstone qualification criteria for prospective financing deals from $7 million to $30 million is for company sales between $20 million to $100 million and $3 million to $25 million EBITDA.
On the private equity side, Gladstone will participate in acquisitions, buyouts, or recapitalizations. Its preferred exit strategies can manifest in IPOs, third party strategic acquisitions, or comparable market transactions.
Nexus Industrial REIT
Stock #7: Nexus Industrial REIT (OTC: EFRTF)
Dividend: $0.48 ($0.04/month)
Yield: 9.34% annual
Shares for $10,000: 1,964
Monthly Passive Dividend Income: $77.83
Nexus Industrial is a growth oriented REIT with a total 117 property portfolio of Industrial, Office and Retail oriented commercial properties located across Canada. The cumulative rentable square footage equates to 12.4 million.
Nexus holds 87 Industrial properties (including one mixed-use location) in Alberta, British Columbia, Saskatchewan, Ontario, Quebec, Manitoba, and New Brunswick, with one in the Northwest Territories.
Nexus’ 15 Office properties are in Quebec and New Brunswick. Its 17 Retail properties (including one mixed-use location), are in Quebec and British Columbia.
Boston Pizza Royalties Income Fund
Stock #8: Boston Pizza Royalties Income Fund (OTC: BPZZF)
Dividend: $0.98 ($0.081/month)
Yield: 8.55% annual
Shares for $10,000: 868
Monthly Passive Dividend Income: $71.25
While Tim Horton’s (named after the Canadian NHL hockey all-star player) is recognized as Canada’s most popular fast food chain, the ironically named Boston Pizza has been Canada’s #1 casual dining chain, with hundreds of franchises and sales of around $1 billion annually.
Boston Pizza was founded in 1964 by Greek immigrant Gus Agioritis. Retired Royal Canadian Mounted Police officer Jim Treliving opened the first Boston Pizza franchise in British Columbia in 1968, and would then partner with accountant George Melville to launch a string of 15 additional franchises across B.C. by 1983. From there, the chain would spread throughout Canada, to eventually go public on the Toronto Stock Exchange and list its ADRs on the OTC Market.
In addition to serving in-house pizzas, pastas, salads, appetizers and desserts, Boston Pizza restaurants also have Sports Bars, which generate lots of group meals and beverages during televised sporting events.
2020 Bulkers Ltd.
Stock #9: 2020 Bulkers Ltd. (OTC: TTBKF)
Dividend: $1.21 ($0.10/month)
Yield: 7.90% annual
Shares for $10,000: 653
Monthly Passive Dividend Income: $65.83
When it comes to maritime bulk vessels, negative events like the recent Suez Canal supply chain debacle and the horrible 1989 Exxon Valdez oil spill environmental disaster often come to mind. Although it is small with only a six-vessel Newcastlemax fleet, Bermuda headquartered 2020 Bulkers Ltd. is doing its best to set an example of responsible maritime bulk transport.
If reliance on monthly dividends is something under consideration, it is prudent to remember to monitor one’s portfolio, perhaps more closely than usual. Especially in the current economic climate, where inflation does not appear to have any end in sight and where geopolitical events can trigger domino effects on the economy and banks, it is important to be nimble and willing to make changes whenever warranted.
| Name: | Annual Yield: | Monthly Dividend: |
| Allied Properties Real Estate Investment Trust (OTC: APYRF) | 14.61% | $121.75 |
| Stellus Capital Investment Corporation (NYSE: SCM) | 11.47% | $95.58 |
| Slate Grocery REIT (OTC: SRRTF) | 10.94% | $91.16 |
| Fortitude Gold Corporation (OTC: FTCO) | 10.37% | $86.42 |
| Gladstone Capital Corporation (NASDAQ: GLAD) | 9.41% | $78.42 |
| Nexus Industrial REIT (OTC: EFRTF) | 9.34% | $77.83 |
| Boston Pizza Royalties Income Fund (OTC: BPZZF) | 8.55% | $71.25 |
| 2020 Bulkers Ltd. (OTC: TTBKF) | 7.90% | $65.83 |
| TOTAL: | $778.40 |
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