Get Paid 12x a Year With These Income Stocks

By Chris MacDonald Published Jun 22, 7:51AM EDT

Key Points

There are a number of top quality monthly dividend paying stocks out there, but there are risks associated with many offerings.
Here are three top real estate focused companies that may be worth a look for those seeking consistent monthly passive income.

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Get Paid 12x a Year With These Income Stocks — © Jack_the_sparow / Shutterstock.com

When most investors think about building a dividend portfolio, key factors such as dividend yield, dividend growth track record, and other factors tied to the sustainability of a given dividend (such as payout ratio and other balance sheet metrics) are often the primary concern.

That said, another key factor I think can often get lost in the shuffle when it comes to assessing the potential value of a dividend stock holding is a given company’s payout frequency. There happen to be a number of top dividend stocks that pay dividends monthly rather than quarterly (the typical cadence), or in some cases semi-annually or annually.

The three income-generating stocks I’m going to discuss here are among the most robust monthly dividend payers out there I think are worth considering right now. So, without further ado, let’s dive in!

Realty Income Corporation (O)

There’s going to be a trend investors may notice with this piece, in that the companies I’m going to discuss have close ties to the real estate sector. Realty Income Corp. (NYSE:O | O Price Prediction) is among the leading real estate investment trusts I continue to discuss, for a variety of reasons. But one of the key reasons this is a stock I think investors can hold long-term is the fact that Realty Income pays a monthly dividend.

With a current dividend yield of 5.6%, and a diversified portfolio of more than 15,000 commercial properties, Realty Income is among the best operators in this space and has maintained a relatively healthy valuation multiple as a result.

In the company’s first quarter, Realty Income brought in $0.23 per share in earnings. And notably, this company does provide a dividend yield amounting to $3.23 per share annually, so there’s some risk with Realty Income’s very high payout ratio of more than 250%. But for those who want exposure to the commercial real estate sector and monthly yields for the foreseeable future, this is a stock to at least watch from here.

Apple Hospitality REIT (APLE)

Sticking with this trend, Apple Hospitality REIT (NYSE:APLE) is another REIT I’ve had my eye on for some time. Unlike Realty Income, Apple Hospitality focuses on (as its name suggests) hotels and other upscale lodging options for a range of clientele. Most notably, the company is known for its hotel portfolio spread across various prominent banners such as Marriott, Hilton and Hyatt.

With more than 220 hotels in a vast array of global markets, Apple Hospitality is also unique in the fact that this is a very geographically-diversified REIT. And from an operating perspective, the company has done a fantastic job of maintaining a low vacancy rate and solid fundamentals.

With a much more reasonable payout ratio and a current dividend yield of more than 8.2%, this certainly looks like one of the more attractive offerings in the REIT world. While the company’s stock price has declined as investors appear to be betting on a travel slowdown, I do think now could be a decent buying opportunity, particularly for investors looking for yield in this current environment.

Gladstone Commercial (GOOD)

Last, but certainly not least on this list of real estate focused monthly dividend paying stocks, is Gladstone Commercial (NASDAQ:GOOD). As its name suggests, Gladstone Commercial is another commercial real estate player, focusing on the industrial and office segments of this market. Gladstone is smaller than the previous two monthly dividend paying stocks on this list, with a portfolio of around 130 commercial properties. But given the quality of the tenants in Gladstone’s real estate portfolio, and the excellent operational metrics (occupancy, mainly), this is a stock I’m watching closely.

Gladstone has been able to maintain what I’d consider a healthy balance sheet, and has also provided a very stable dividend distribution over time. Like Apple Hospitality, Gladstone also yields more than 8%. So, for dividend hungry investors out there, this is another top-tier option I think is worth paying attention to.

Gladstone has incorporated some unique management strategies which have allowed the company to maintain strong retention among its existing tenants, and this is a model I think long-term investors can get behind. For its current yield, there are few better options out there right now in my view.

About the Author Chris MacDonald →

Chris MacDonald is a 24/7 Wall St. contributor and long-time contributor to other notable finance publications, including The Motley Fool and InvestorPlace. With an MBA in Finance, and more than a decade of experience in venture capital and the corporate finance world, Chris brings a long-term perspective to his analysis of equities and alternative assets.

His love of investing and focus on finding quality undervalued stocks is complemented by recent research into alternative assets as well. He takes a long-term approach to analyzing companies and cryptos, with a focus on directing the reader to the most sustainable and important catalysts for each respective potential investment.