If you want $10,000 per month, or $120k a year, this is a tall order unless you have a huge portfolio. However, the three following stocks have a blended yield of 6.92% and all of them distribute their dividends on a monthly basis. This can shorten your timeline for receiving a 5-digit monthly check. And, you can have both your portfolio and the payouts grow. Monthly payouts are also more convenient for budgeting and compound faster.
The backdrop has shifted in your favor. After keeping rates pinned high enough to bruise everything from regional banks to commercial real estate, the Federal Reserve is once again starting to cut. Treasury yields are expected to fall as rates do, and this can lead to more investors rotating into dividend stocks for more yield.
Here are three monthly dividend stocks to look into that have both yield and upside.
Healthpeak Properties (DOC)
Healthpeak Properties (NYSE:DOC | DOC Price Prediction) is a real estate investment trust (REIT) that owns and operates healthcare-related properties. This includes labs, outpatient medical buildings, and continuing care retirement communities.
All of these properties are expected to see high demand in the future. Demographics are in your favor, as the aging population will keep property usage high. Moreover, drugs developed in one of its lab buildings may eventually be administered in one of its outpatient medical centers, and as patients age, they may transition to one of its care centers.
DOC stock is down nearly 50% from its peak, but it has likely bottomed out and can aggressively rebound. Interest rate cuts make a rebound much more likely, as the company has to service $9.35 billion of debt. In FY 2024, operating income came in at $471.2 million, and net interest losses were $280.4 million.
The forward dividend yield is 6.57%.
DNP Select Income Fund (DNP)
DNP Select Income Fund (NYSE:DNP) is a fund that invests in U.S. utility companies and master limited partnerships (MLPs). These companies are some of the steadiest and also pay handsome dividends consistently. Utility companies are mostly regulated monopolies, and demand stays strong no matter the environment, as the services they provide are non-discretionary.
On the other hand, MLPs are mostly energy infrastructure companies that operate pipelines and storage. Here, the businesses derive earnings from fee-based revenue, and energy prices have minimal impact on the stock. The recent export boom from Europe and an increase in electricity demand due to AI can help DNP stock recover to its pre-pandemic peak.
The stock is down 23% since then, but it is bottoming out, and the potential catalysts ahead suggest a breakout to the upside.
These companies also have minimal exposure to tariffs. If a tariff-driven selloff happens, DNP can actually benefit as it will turn into a haven for those rotating out of tariff-prone stocks.
You get an 8.41% forward dividend yield. The expense ratio is 1.86% but it should go down as interest rate cuts take place.
LTC Properties (LTC)
LTC Properties (NYSE:LTC) is a REIT with a focus on senior housing and healthcare. It is similar to Healthpeak, but the focus is narrower. Almost all of its revenue comes from senior housing or skilled nursing. This is also why the stock has held up much better due to how sticky the demand is in its industry.
The stock has bottomed out and is currently on a small uptrend, and pays a 6.33% dividend yield. In Q2, it grew revenue by 21.5% and beat estimates by 13.5%.
The long-term potential looks rosy as there is a stark supply-demand imbalance in senior care facilities. Only about 4,000 new senior living units are being developed this year and next, but demand growth requires 100,000 new beds.
The shortage is projected to worsen significantly due to demographic trends. There will be 4 million new baby boomers hitting 80 by 2030. Industry experts see a 28% increase in demand for senior living over the next five years.
To meet future demand, supply growth must increase by 35,000 to 45,000 units per year, beginning immediately. For context, the highest number of units ever delivered in a single year was 34,000, but less than 10,000 units were delivered over the trailing 12-month period.
By 2030, an estimated 609,000 new senior housing units will be needed to meet rising demand.
In turn, this can give LTC significant pricing power in the coming years. Thus, buying the dip now looks like a steal.
This is what a portfolio with these 3 stocks would like like today to generate $10,000 per month:
| Stock | Investment Needed | Yield | Annual Income | Monthly Income |
|---|---|---|---|---|
| Healthpeak Properties (DOC) | $563,116 | 6.57% | $36,997 | $3,083 |
| DNP Select Income Fund (DNP) | $563,116 | 8.41% | $47,358 | $3,947 |
| LTC Properties (LTC) | $563,116 | 6.33% | $35,645 | $2,970 |
| TOTAL | $1,689,348 | 7.10% | $120,000 | $10,000 |
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