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U.S. Global Investors is a boutique investment management firm specializing in actively managed equity and bond strategies with eight mutual funds and two ETFs. The fund’s strategies focus on niches such as gold and precious metals, natural resources, emerging markets, and luxury goods. The micro-cap manager’s eclectic set of strategies have failed to deliver much shareholder value over the decades, and the dividend has experienced two major cuts since 2007. Investors comfortable with these risks may want to look for mortgage REITs with lower-cost internally-managed structures, more moderate leverage, and less dependence on repurchase agreements.

Helpful articles on different dividend investing options and how to best save, invest, and spend your hard-earned money. From 1930 to 2021, the average contribution of dividend income to the total return of the S&P 500 Index was 40%. As of August 2022, the ETF with the greatest dividend yield was the ProShares K-1 Free Crude Oil Strategy ETF , with a yield of 26.1%. Securities listed in the index are among the highest-yielding in the United States, and they have lower relative volatility than the market. It pairs very nicely with SDVI for investors who want a truly global grip on high-yielding equities.

Closing Thoughts on Monthly Dividend Stocks

It’s simply the number of years, in a row, that the company has increased its dividends. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. A young, fast-growing company will typically reinvest profit into their business because shareholders expect aggressive growth and are willing to assume the heightened risk that comes with that growth.

In total, management estimates that around 85% of the mid-cap REIT’s rent comes from tenants with “stable rent-paying ability, strong covenants, and sustained foot-traffic.” Looking ahead, the fragmented nature of the industrial real estate market should help STAG continue consolidating single-tenant warehouses. The BDC takes a disciplined approach to leverage as well, holding much less debt than is allowed by regulators. Coupled with a relatively conservative portfolio, Main Street earns a BBB- investment grade credit rating. Read this easy guide to learn more about stocks and see how you can gain returns on your investment.

Monthly Dividend Stock #25: Oxford Square Capital

This can be a great business model at scale, but GIPR’s concentrated portfolio creates much higher cash flow risk in the event that any property goes unoccupied. For this post, we will share the list of 15 Canadian “dividend aristocrats” stocks that pay monthly dividends! Monthly dividend stocks are a great way to generate a regular passive income. For each company, we will provide the dividend yield, the pay out ratio and historical performance. Monthly dividend stocks make it easy for investors to earn passive income. They can use that money to cover their monthly expenses orreinvest their dividends and set themselves up to generate even more recurring cash flow in the future when they need it.

However, this REIT used its financial strength to weather the storm and offset some of the lost income with new investments. PermRock Royalty Trust is a trust formed in November 2017 by Boaz Energy, a company that is focused on the acquisition, development and operation of oil and natural gas properties in the Permian Basin. The Trust derives all its cash flows from profits from the sale of oil and natural gas production from these properties and distributes dividends monthly.

Monthly Dividend Stock #15: Gladstone Commercial

It’s working with another Canadian energy infrastructure company on a carbon dioxide transportation and sequestration system to go along with its wind energy assets. These moves into cleaner alternatives should help fuel continued dividend growth in the coming years. It generated comprehensive income available to common stockholders of $39.5 million or $0.27 per common share.

Despite the firm’s relatively small size, Gladstone Commercial’s portfolio is reasonably diversified with no tenant exceeding 4% of total rent and no industry exposure greater than 15%. This would lower the risk of EPR’s rental revenue stream, which otherwise enjoys stability thanks to the REIT’s long-term triple-net leases. Looking ahead, BBB- rated EPR expects to diversify its tenant and industry concentration through acquisitions, with hopes to materially shrink its exposure to movie theaters. The company’s theaters enjoy some insulation from this trend as most of them serve food and beverages, have quality locations, and sit in the top half of theaters nationwide for box office revenue generated. Founded in 1991, Phillips Edison owns around 300 grocery-anchored shopping centers located in secondary or suburban markets, with the Sun Belt region driving roughly half of rent. The company’s farms are leased to more than 80 farming tenants who grow about 60 different types of mostly specialty crops .

High-Yield Monthly Dividend Stock #13: Stellus Capital (SCM)

Pembina has a solid https://forex-world.net/ history as it has steadily expanded its payout over the years. It should be able to continue increasing its dividend in the future as it completes additional energy infrastructure expansion projects. Pembina has an extensive backlog of secured projects and several more in its development pipeline to fuel future dividend growth. Book value per common share came in at $11.93, while the total return of 8.67% comprised of a $0.48 dividend per common share and a $0.51 increase in book value per common share. Hugoton Royalty Trust was created in late 1998, when XTO Energy conveyed 80% net profit interests in some predominantly gas-producing properties in Kansas, Oklahoma and Wyoming to the trust. Net profits in each area are calculated by subtracting production costs, development costs and labor costs from revenues.

However, in the worst case scenario, the company may make the decision to stop issuing a dividend altogether. The list isn’t particularly diversified, so it doesn’t make a complete portfolio. In other words, you don’t want to overload on monthly dividend stocks. But they do allow exposure to a handful of niche sectors that add some income stability, so take a look and see if any of these monthly payers align with your investment style. “We’d never recommend buying a stock purely because it has a monthly dividend,” says Rachel Klinger, president of McCann Wealth Strategies, an investment adviser based in State College, Pennsylvania.

That said, the mortgage REIT and its monthly dividend are not immune to the industry’s challenges caused by high leverage, high payout ratios, and elevated interest rate sensitivity. The firm has only cut its dividend once, a 26% reduction during the 2020 pandemic when management temporarily switched to a quarterly payout cadence as falling interest rates pressured Stellus’s investment income. Gladstone Land’s small size and external management structure may turn off some dividend investors. But the REIT’s monthly dividend, which has been paid without interruption since the firm went public in 2013, has become more sustainable in recent years as cash flow coverage has improved and leverage has come down.

Best Monthly Dividend Stocks to Buy According to Analysts

When it comes to monthly dividend stocks, Realty Income is the clear leader. It has paid more than 600 consecutive monthly dividends as of early 2022. Further, Realty Income has increased its dividend more than 100 times since its initial public offering in 1994, while increasing the payout at a 4.5% compound annual rate. That gives this REIT more than 25 years of dividend increases, qualifying it as a Dividend Aristocrat. Looking ahead, O’s dividend remains very safe with strong cash flow coverage. When including its very low risk profile, O looks like a very compelling monthly dividend stock investment.

Realty Income Corp. is the leading triple net lease REIT with immense scale. It has a $59 billion enterprise value and owns 11,733 properties that are leased out to 1,147 tenants. Thus, the situation creates an accelerated compounding effect for the investor. This article is for informational purposes and does not constitute as financial advice.

Efforts to hedge interest rate fluctuations are only so effective given the number of variables in play. Dynex’s repos have floating interest rates and typically mature within a couple of months. But most of its agency MBS have fixed interest rates and long-term maturities.

AGNC Investment Corp. is a REIT that invests in residential mortgages. Although it invests on a leveraged basis, its investments are mainly in agency mortgage-backed securities, which means they are backed by government-sponsored enterprises or government agencies. The main risk to the investment thesis is that SLG’s balance sheet is pretty heavily leveraged and cap rates are starting to come under pressure due to rising interest rates. If the cap rates continue to rise and SLG does not reduce its leverage ratio soon, it could quickly find its price-to-NAV gap disappearing and its shares may not end up being so undervalued after all. Realty Income is a great company and has been an excellent long-term holding in my portfolio. I have over 14 years of investment experience, and generally focus on stocks that are more defensive in nature, with a medium to long-term horizon.

And regardless of whether the Fed manages to get inflation under control any time soon, Realty Income’s history suggests it should be able to keep its dividend growth rate ahead of inflation. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Archer-Daniels-Midland is an agricultural company focused on researching and developing human and animal nutrition products, biosolutions for various industries, and farming-related services. AbbVie is a pharmaceutical research and development company that creates medications for medical treatments. While no stock is immune to losing value, odds are much better with a stable company like Procter & Gamble.

While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. To calculate the dividend yield, you would simply divide the announced per share annual dividend by the share price. Main Street has a conservative monthly dividend model in that it pays a relatively modest monthly dividend, but then uses any excess earnings to issue special dividends twice per year.

The average realized sale price of natural gas also shot up massively, from $4.29 to $8.95 per Mcf. For the quarter, gross interest income came in at $89.8 million, 14.2% higher quarter-over-quarter. Higher gross interest income was primarily driven primarily by a larger residential transition loan portfolio at higher rates. Adjusted (previously referred to as “core”) EPS came in at $0.42, two cents lower versus Q3-2022. Given also the negative effect of some assets sales, its funds from operations per share decreased -3% over the prior year’s quarter, from $1.52 to $1.47. This represents a year-over-year increase of 49%, which was driven primarily by the acquisition of properties the company executed over the past four quarters.

• LTC’s tenants provide essential services for seniors and should enjoy higher patient volumes over time due to America’s aging population.
• The higher cost of funds was only partially offset by higher asset yields.
• This inevitable profit squeeze over a full economic cycle can quickly stress dividend coverage since mortgage REITs are required to pay out the vast majority of their profits.
• For the quarter, the company generated approximately $11.9 million of total investment income, up 4.3% from the previous quarter.

The Best monthly dividends has paid more than 200 consecutive monthly dividends either at or above the prior month’s level. On February 28th, Horizon released its Q and full-year results for the period ending December 31st, 2022. This article will list the 20 highest-yielding monthly dividend stocks.

• AGNC commenced operations in 2008 and invests predominantly in agency mortgage-backed securities .
• As of this writing, Realty Income has made 629 consecutive monthly dividend payments and has raised its dividend for 100 consecutive quarters – making it a proud member of the S&P 500 Dividend Aristocrats.
• Meanwhile, it has a strong balance sheet even after completing last year’s acquisitions to continue buying more properties.
• The Monthly Dividend Stocks In Focus series is where we analyzeall 84 monthly paying dividend stocks.
• ARR’s debt consists mostly of repurchase agreements, or repos, in which the firm pledges its investment securities in exchange for funding from lenders.
• Kimberly-Clark is a consumer goods giant that focuses on personal health products.

This acquisition spree will help boost its cash flow per share by more than 9% in 2022. That upward trend should continue as the company keeps expanding its portfolio. The retail REIT acquired a record $1.4 billion of properties in 2021, increasing its rental income and dividend-paying capacity. Agree Realty has a strong balance sheet to help finance its continued expansion.

NAV takes a company’s total assets and subtracts out its liabilities, effectively representing the net worth a business. Debt and cash that is not yet invested are included in PSEC’s asset calculations, too. Management can sell new shares and take on more debt to grow its fees, even if the resulting shareholder dilution destroys value over time. Part of this arrangement includes a base management fee calculated an annual rate of 2% on PSEC’s total assets, incentivizing the advisor to grow the business at any cost. Compared to most of its peers, Gladstone Capital lends to smaller businesses which can be riskier given their fewer financial resources.