The best monthly dividend stocks aren’t just companies with big yields, but also investments that can deliver impressive share appreciation.
So if you’re an income investor settling for underperformance, you really want to check out this list of seven monthly dividend stocks. Several of these stocks have doubled, tripled, even quadrupled the market year-to-date. In fact, one boring bus company has soared more than 50% since January!
Income investors are all about reliable payouts and stability for good reason. I would never recommend a stock that boasts short-term outperformance without expecting the future returns to be there too, so rest assured that these picks aren’t losing steam. If anything, they should power even higher in the second half of 2016 as the market continues to put a premium on high-yield stocks.
If you’re looking for income and want your dividends more often, then check out these seven best monthly dividend stocks to buy now.
Best Monthly Dividend Stocks: Realty Income (O)
Dividend Yield: 3.6%
Industry: Commercial Real Estate
Market Cap: $17.7 billion
YTD Performance: +31%
Realty Income boasts more than 4,600 properties, occupied by a wide number of industries that include bulletproof tenants such as Walgreens Boots Alliance Inc (NASDAQ:WBA) and FedEx Corporation (NYSE:FDX).
In addition to paying out monthly dividends for 47 years straight, it also has seen consistent increases in those payouts with distributions always rising each month, even if only fractionally, across the last decade. Realty Income can do this thanks to a scale unmatched by many other REITs.
Best Monthly Dividend Stocks: Student Transportation (STB)
Dividend Yield: 7.7%
Industry: Transportation and Logistics
Market Cap: $530 million
YTD Performance: +54%
Student Transportation Inc (NASDAQ:STB) is a fascinating entry on this list of the best monthly dividend stocks. That’s because STB is a school bus operator that has long-term contracts with various school districts across North America.
Student Transportation is not exactly printing money since it’s a small-scale operation that returns a huge amount of capital back to shareholders in the form of big dividends comparative to its share price.
However, steadily rising revenue — STB generated $423.7 million in 2013, and $554.7 million last year — clearly has investors bullish about this monthly dividend stock’s future.
Best Monthly Dividend Stocks: Main Street Capital (MAIN)
Dividend Yield: 6.4%
Industry: Business Development
Market Cap: $1.8 billion
YTD Performance: +19%
Main Street Capital Corporation (NYSE:MAIN) is an investment firm known as a business development company, or BDC. In short, your investment in MAIN allows the firm to share in the success of other companies via debt or equity investments.
Main Street Capital’s current portfolio of investments include manufacturers like chemical and polymer companies as well as some service and tech companies. Together, these investments throw off some nice cash to support a sustainable dividend that’s more than four times the yield on T-notes right now.
With a yield north of 6%, MAIN is one of the best monthly dividend stocks to buy now.
Best Monthly Dividend Stocks: EPR Properties (EPR)
Dividend Yield: 4.8%
Industry: Entertainment Real Estate
Market Cap: $5.1 billion
YTD Performance: +37%
EPR Properties (NYSE:EPR) is a mid-size real estate investment trust that primarily makes its money off of leases at consumer-focused facilities including water parks, retail centers, golf courses and movie theaters.
With strong consumer spending and continued improvement in the unemployment rate, EPR Properties’ properties are doing well … and so is EPR stock, with big outperformance year-to-date in 2016 on top of its juicy dividend.
Best Monthly Dividend Stocks: Sabine Royalty Trust (SBR)
Distribution Yield: 5.3%
Market Cap: $540 million
YTD Performance: +41%
Sabine Royalty Trust (NYSE:SBR) is a classic energy royalty trust, with interests in oil and gas production mainly across Florida, Oklahoma, Texas and Louisiana. Royalty trusts and other energy assets really took a beating in 2015 as crashing oil prices resulted in falling shares and falling distributions; however, things have stabilized for Sabine and others in 2016.
Even if payouts don’t move higher and stay at currently depressed levels, you’re still taking in more than 5% annually with SBR. That makes it one of the best monthly dividend stocks out there right now.
Best Monthly Dividend Stocks: Brookfield Infrastructure Fund (INF)
Dividend Yield: 10.1%
Market Cap: $190 million
YTD Performance: +18%
The Brookfield Global Listed Infrastructure Income Fund Inc. (NYSE:INF) is a closed-end fund (CEF) — think a mutual fund, but with a limited number of units that trade on an exchange — that invests in pipelines, airports, toll roads and other infrastructure with the express desire of generating income.
Currently trading at a double-digit discount and boasting a double-digit yield, the fact that distributions come on a monthly basis makes this dividend payer even more attractive.
INF is not a “stock” per se, but this closed-end fund is undeniably a great bedrock investment for you portfolio.
Best Monthly Dividend Stocks: Chatham Lodging Trust (CLDT)
Dividend Yield: 6.5%
Industry: Lodging Real Estate
Market Cap: $780 million
YTD Performance: Flat
Chatham Lodging Trust (NYSE:CLDT) is a real estate investment trust that owns and leases premium-brand and extended-stay hotels under including Residence Inn by Marriott brand and Homewood Suites by Hilton, among others.
While CLDT sticks out like a sore thumb as the lone market underperformer in the lot, don’t worry. Hotel bookings in 2016 are pacing at or just below records after continued growth in occupancy rates, according to the latest numbers, and that means a robust revenue stream fueling growing monthly dividends for CLDT investors.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at [email protected] or follow him on Twitter via @JeffReevesIP.