Investors build their investment portfolios from a range of different stock options that behave differently over time. While some prefer the stocks that are long-term and have the highest potential for paying big if the company succeeds, they also incur a risk. Others prefer to build their portfolios through dividend-paying stocks. Some dividend stocks pay annually, while others pay quarterly and even monthly. While this type of stock isn’t the choice of all investors, they are options that can help you to build a decent retirement portfolio with a monthly income in the future. Some investors prefer monthly dividend stocks, choosing to reinvest the returns for years, hoping to build a sizable retirement income for their golden years. If you’re interested in investing in monthly dividend stocks, we’ve chosen the 20 most highly recommended by analysts and experts in the field, based upon their expected performance and a positive outlook for future performance.
20. Gladstone Investment Corporation
Ticker Symbol GAIN
Gladstone Investment Corporation is a business development company. It operates on a unique model that makes investments of debt and equity in companies that meet the requirements for being small to medium in size, and privately held. Their investments are made in businesses which are still at an early stage in their development. GAIN has been successful in choosing companies with solid yearly revenues that fall between $5 million and $50 million. Gladstone makes money on the capital gains for successful investments as well as from the dividend income from the securities held and the interest. Dividends to investors in GAIN are paid to investors on a monthly basis. The split between debt and equity investments made by GAIN is 75%-25% with debt investments mostly in the form of junior subordinated loans, senior subordinated loans, and senior term loans.
19. Gladstone Commercial Corporation
Ticker symbol GOOD
Gladstone Commercial Corporation is an investment company based in the real estate industry. The corporation owns approximately 11.7 million square feet of industrial and office real estate in the United States. This is another highly recommended monthly dividend-paying stock. It deals mostly in anchored multi-tenant leased assets of the single-tenant category. The diversity of Gladstone Commercial’s portfolio makes it an attractive stock for investors with 101 properties which are spread throughout 24 states. This diversity offers the implication of protection in the event that the housing market underperforms within one or more regions.
18. Gladstone Capital Corporation
Ticker symbol: GLAD
This company is a business development corporation, also known as a BDC. It makes investments in equity and debt securities and its income is generated mainly from the debt investments that it makes. The fair value of its total investments was $431 million as of the end of 2018 with a market capitalization of $260 million. The investments made by Gladstone capital are made within industries featuring stability, favorable growth characteristics, cash flow, and sustainable margins. The income received is fairly predictable due to its targeted investment in non-financial and non-cyclical companies to avoid peaks and valleys in ROI. Gladstone Capital Corporation maintains a diverse portfolio of investments that span 18 stable industries in stable companies with an annual EBITDA ranging between $3 to $15 million and it pays hefty monthly dividends to investors.
17. Exchange Income Corporation
Ticker symbol: EIFZF
This company is based in Winnipeg, Manitoba, Canada. It is a corporation that acquires companies in aviation and aerospace services, manufacturing, and equipment. The corporation maintains a diverse portfolio within these two segments of operation and a total of 13 subsidiaries. Exchange Income Corporation has a history of rewarding shareholders with annual dividend increases and a growth rate that has maintained a 5% gain for the last 15 years, along with a high dividend yield of 6.4% making it an attractive monthly dividend-paying company.
16. EPR Properties
Ticker symbol: EPR
EPR Properties is a highly recommended monthly-dividend stock. The company is an established Real Estate Investment Trust, also known as a REIT, with a strong history of returns in comparison with other REITs. The current dividend yield for EPR Properties is 6% which makes it an attractive option for investors in search of monthly-paying dividend stocks. The company has an outsized dividend yield of 6% paying out monthly which makes it an excellent retirement portfolio choice for investors interested in creating an income stream that is more reliable. Dividends may be reinvested for compounding wealth for a future date.
15. Realty Income Corporation
Ticker symbol: O
Reality Income Corporation is a real estate investment trust that begun paying monthly dividends in 1995. The company has 5,900 rental properties in its asset base. The majority of the assets are in retail spaces with long-term lease agreements with the properties leased by commercial tenants operating businesses. The company has been in operation for 50 years with a market cap of $22.839 billion, a P/E ratio of 55.34 and an EPS of $1.30. The dividend and yield are $2.72 and 3.76% respectively.
14. Shaw Communications Inc
Ticker symbol: SJR
Shaw Communications is a company that is involved with broadband internet, digital phone services, video services, and Wi-Fi. In 2016, Shaw Communications turned the corner on a troubled past with an increase in net income and rising stock prices. The price of the stock rose from $16.37 in February of 2016 to $19.08 most recently. The company has not failed to issue attractive monthly dividend payouts to investors with a 4.56% yield. Shaw Communications is a Canadian cable company with multiple business lines.
13. Pembina Pipeline Corporation
Ticker symbol PBA
Pembina Pipeline Corporation is a company that offers midstream and transportation services for the North American energy industry. This is an attractive monthly dividend-paying stock from a company that operates through three business silos. These include pipelines, new ventures, and facilities. For the past five years, Pembina Pipeline Corporation has grown to a current 4.98%yield and a dividend of $1.82.
12. Main Street Capital
Ticker symbol: MAIN
Main Street Capital is a blue-chip BDC providing middle-market companies with debt and equity capital. Its clients are those that are too large to obtain funding from local banks. Funding provided by Main Street Capital is usually used in the practices involved with acquisitions, refinancings, growth investments, management buyouts, and recapitalizations. The market value is $2.7 billion with a dividend yield of 5.7%.
11. Armour Residential REIT
Ticker symbol ARR
Armour Residential invests in Fannie Mae, Freddie Mac, and Ginnie Mae securities which are mortgage-backed securities. The company also purchases mortgage securities that have been issued by private banks. It is a mortgage REIT and trades at a price to book ratio of 0.73. The shares yield almost 12% and although there is an increased risk for investors over the long-term this is a high yield company that pays monthly dividends.
10. Dynex Captial
Ticker symbol DX
Dynex Capital is a smaller REIT that invests in residential and commercial mortgage securities. The market cap is $390 million. It is independently managed with a strategy for diversifications across the various agency and non-agency mortgage assets. The market value is $387.6 million with a high dividend yield of 10.7% which makes it attractive to investors as a monthly paying company with an 8% discount to book value. Dynex stock can be volatile so it is a stock that is worth considering but with caution and the knowledge that care is necessary when entering and exiting.
9. AGNC Investment Corporation
Ticker symbol AGNC
AGNC Investment Corporation is one of the largest and most liquid mortgage REITs. The company invests in collateralized mortgage obligation and residential mortgage pass-through securities. The payments of principal and interest are guaranteed by a United States government agency or a government-sponsored enterprise which makes it one of the safer investments. The market value is $9.4 billion and the dividend yield is 11.1%.
Ticker symbol: ALARF
Alaris Royalty provides profitable companies that are well-managed with capital, with a unique business model that requires a monthly cash distribution in exchange, fulfilling a private capital market niche. It serves companies with solid business backgrounds that are not able to borrow funds from traditional channels. The EBITDA margins are over 80%. Dividends are distributed monthly with a 10% dividend yield.
7. STAG Industrial
Ticker symbol: STAG
The market value of STAG Industrial is $4.1 billion with a dividend yield of 4.6%. The company is a single-tenant acquisition group that runs a portfolio that is based upon this type of light industrial buildings. Properties include distribution centers, light manufacturing facilities, and similar holdings. The dividend price for STAG has raised a minimum of once annually since 2013, offering monthly dividend payments.
6. Entertainment Properties
Ticker symbol: EPR
The market value of EPR is $5.6 billion with a dividend yield of 4.6%. This company is a REIT that manages entertainment-related properties which include ski resorts, TopGolf driving ranges, educational facilities that are rented to early childhood centers and private schools, and movie theaters. This company has been paying out monthly dividend payments since 2013.
5. Grupo Aval Acciones y Valores S.A.
Ticker symbol: AVAL
This is a company that has a market value of $8.9 billion with a dividend yield of 4.4%. This is a Columbian banking group that invests in Latin American middle class as their clientele with basic banking services which includes checking and savings accounts as well as business and personal loans. Grupo Aval Acciones y Valores S.A. also provides investment banking, insurance operations, and brokerage services. This company pays high-yield monthly dividend stocks of 4.4%.
4. Global Water Resources
Ticker symbol: GWRS
Global Water Resources is a utility based in Phoenix, Arizona, providing water resource management. The company owns, manages, and operates regulated water, recycled water, and wastewater in the metropolitan area of the city. It has been in operation since 2003 serving 21,000 households in the area. The market value of the company is $290.1 million with a dividend yield of 2.2% paying monthly.
Ticker symbol: T
The market value of AT&T is $234.5 billion with a dividend yield of 6.2%. This stock is considered to be one of the safest and best high-dividend stocks for investors with a higher dividend paid out monthly for 34 years in a row. There have been several changes in the company in recent years including the acquisition of DirecTV, adn a merge with Time Warner. AT&T is a media conglomerate providing direct to consumer services for 170 million customers.
2. Tanger Factory Outlet Centers
Ticker symbol: SKT
Tanger Factory Outlet Centers is a real estate investment trust. It has been in operation since 1981 and retains ownership of a total of 44 outlet centers throughout Canada and the United States. High-end retailers lease store locations which number in the hundreds, paying monthly rent and assuring a solid revenue stream for the company. The Market value is $2.2 billion with a dividend yield of 5.9%.
Ticker symbol: ENB
Enbridge is a midstream energy company that owns a network of storage and transportation assets. These assets connect North American oil and gas producing regions. Enbridge also maintains a focus on pipeline capabilities and it is serving a growing market that offers a sunny outlook for the future. The market value of Enbridge is $61.5 billion and the dividend yield is 5.7% with monthly dividend payouts. Enbridge is a highly recommended stock for those who are building a retirement portfolio that will help to build a stable and reliable monthly income stream in the future. Those who are in the building process may opt to reinvest monthly dividends to more quickly build retirement income from this course.