10 Dividend-Payers to Own for Month-to-Month Income

It’s not complicated. If you’re an investor seeking steady, reliable income on your capital, the market offers a huge number of dividend-paying stocks.

Better still, there are plenty of these outfits that have a long history of dividend increases. 3M Co (NYSE:MMM), for instance, hasn’t failed to increase its annual payout since 1977, and American States Water Co (NYSE:AWR) has upped its dividend every year for more than six consecutive decades.

There is one annoying nuance to even some of the top dividend stocks, however. That is, they only make quarterly payments … what do you do when you may want to use that income to pay an emergency bill?

There is a solution, however.

While they may not be ubiquitous, there are a surprising number of publicly traded corporations that issue monthly dividend checks rather than quarterly payouts. Here’s a rundown of some of the best dividend picks of that ilk, in no particular order:

Editor’s Note: This article originally ran March 6, 2018. It has since been republished to reflect changing dividend yields.

Monthly Dividend Stocks: Realty Income Corp (O)

Dividend yield: 5.25%

If reliable income is the goal, no investment is better suited than a REIT…. short for ‘Real Estate Investment Trust.’ REITs are taxed-advantaged way of pooling assets to purchase real estate which is then leased out, and Realty Income Corp (NYSE:O) is one of the best in the bunch.

At first glance that might be tough to believe. Realty Income specializes in retail real estate, and the so-called retail apocalypse still has the industry in its grips. Take a closer look at this REIT’s clients though.

Chief among them are Walgreens, FedEx, Dollar General and Circle K convenience stores. These are the kinds of businesses that, once established, tend not to leave. And, even if they do shut down, those locales are often prime locations that easily find new tenants.

Whatever the case, Realty Income shares are presently paying out 5.3% of its price.

 

Monthly Dividend Stocks: Guggenheim Strategic Opportunities Fund (GOF)

Dividend yield: 10.8%

Not every list of monthly dividend stocks has to be nothing but stocks. There are some funds — closed-end funds to be precise — that do the exact same thing just as well as an individual equity could.

Case in point: The Guggenheim Strategic Opportunities Fund (NYSE:GOF).

The Strategic Opportunities Fund doesn’t look too terribly different than your average managed bond fund. Guggenheim seeks to “pursue a relative value-based investment philosophy, which utilizes quantitative and qualitative analysis to seek to identify securities or spreads between securities that deviate from their perceived fair value and/or historical norms.”

Its top holdings include quarterly-paying bonds from Discovery Communications, Citigroup, GMAC and the like. It’s simply structured its fund in a way that dishes out stable interest payments every month.

Source: Shutterstock

Monthly Dividend Stocks: Gladstone Investment Corporation (GAIN)

Dividend yield: 7.44%

Gladstone Investment Corporation (NASDAQ:GAIN) is something of a hybrid of a REIT and an exchange-traded fund.

It’s categorized as a business development company, which is the fancy way of saying it can and does own a little of everything, including stakes in companies that may not be publicly-traded. It provides capital to young outfits with a lot of potential, often as a loan, but sometimes in exchange for outright equity. Some of its loans are also convertible to stock.

The current yield of 7.44% is not only well above average, that dividend is paid quite consistently. Better still, since Gladstone is primarily a lender, rising interest rates can help boost its bottom line.

Source: Enerplus

Monthly Dividend Stocks: Enerplus Corp (USA) (ERF)

Dividend yield: 0.8%

As far as oil and gas companies go, Enerplus Corp (USA) (NYSE:ERF) isn’t exactly a household name. Its market cap is a modest $2.7 billion, and the bulk of its operations are in Canada.

Nevertheless, if you like monthly payouts, Enerplus is a name to consider. Unlike too many of its peers, Enerplus is not only back to profitability, it can afford the dividends it dishes out.

It’s a microscopic dividend right now, for the record. The yield of 0.8% is arguably pointless. It should also be noted, however, that the current payout is well below its long-term norm, and has yet to be adjusted to fully reflect last year’s swing back into the black.

If oil prices remain firm, the payout could increase quite nicely in the near future.

Source: Shutterstock

Monthly Dividend Stocks: LTC Properties Inc (LTC)

Dividend yield: 6.3%

With the baby boomers still retiring en masse and entering their golden years, the need for places to take care of them — temporarily if not permanently — is growing too.

Enter LTC Properties Inc (NYSE:LTC). The company operates more than 200 healthcare facilities, consisting of more than 100 assisted living facilities, almost 100 nursing centers and one behavior health hospital.

It’s proven to be a rather recession-resistant business model. That’s not to say headwinds can’t blow against it; last quarter’s top line fell on a year-over-year basis, and per-share earnings actually fell just a bit, from 53 cents to 50 cents. But, its top line and bottom line predictability and stability has translated into a stunningly reliably monthly payout.

The present yield is an above-average 6.0%.

Monthly Dividend Stocks: Banco Bradesco SA (ADR) (BBD)

Dividend yield: 3.4%

Banco Bradesco SA (ADR) (NYSE:BBD) is another name that’s apt to be unfamiliar. That’s because it’s a Brazil-based bank, with no North American presence. Don’t be fooled though. This is a $71.6 billion behemoth.

Yes, Brazil has been rife with political problems that have spilled over into its economy. The top line has been drifting lower since late-2016, and more of the same deterioration is expected this year. That slide is expected to wind down come next year though, and earnings are already on the mend if analysts are right about this year’s projected profit of $1.01 per share.

Though the trailing yield of 0.6% is lackluster, like Enerplus, the stage is set for solid dividend growth.

Source: Marriott

Monthly Dividend Stocks: Chatham Lodging Trust (CLDT)

Dividend yield: 6.83%

It’s possible you’ve stayed at a hotel operated by Chatham Lodging Trust (NYSE:CLDT) without even realizing it. The company, which is set up as a REIT, is the name behind several Hampton Inns, Courtyard Marriotts, Hiltons, Residence Inns and more. All told, it’s got a stake in 135 highly-diversified properties, helping to pay its present yield of 7.3%.

At first glance the company doesn’t look all that different from other hotel REITs, but it is. Chatham’s secret sauce is in picking the right properties to acquire in the first place, and then maximizing their potential. It’s not afraid to convert unused meeting rooms into overnight guest rooms or rebrand a hotel to better attract guests in a particular market. Most REITs are inclined to change as little as possible.

DNP Select Income Fund Inc. (DNP)

Dividend yield: 

Add another exchange-traded fund to your list of monthly dividend stocks to think about — the DNP Select Income Fund Inc. (NYSE:DNP).

Though one can’t tell from its name, this fund is primarily a utility fund. Two-thirds of its assets must be stocks of companies in the electric, gas and water utility arena. And, though not necessarily restricted as such, the other third of the fund’s current portfolio is allocated to communications and energy transportation equities. The constant flow of income those names offer supports the annualized yield of 7.26%, and that payout have been amazingly consistent going all the way back to the mid-90’s.

Just don’t look for a ton of capital appreciation with DNP. It’s all about the cash flow.

Source: Shutterstock

Monthly Dividend Stocks: Stag Industrial, Inc. (STAG)

Dividend yield: 5.9%

Stag Industrial, Inc. (NYSE:STAG) is another REIT, but one that is hyper-focused on one kind of business… single-tenant industrial properties.

Rather than retail properties like the ones Realty Income Corp prefers, STAG specializes in warehoused and cargo transfers. As of the end of last year, it owns 70.2 million square feet worth of industrial real estate, shared among 356 facilities spread across 37 states.

It seems like a risky venture, as these kinds of tenants could easily close shop should an economic headwind turn into a full-blown recession. It may well be worth the risk though, for the dividend yield of 6.3% shareholders are collecting a piece of each and every month.

Source: Shutterstock

Monthly Dividend Stocks: Cohen & Steers Select Preferred and Income Fund, Inc. (PSF)

Dividend yield: 8.12%

Last but not least, another exchange-traded fund… the Cohen & Steers Select Preferred and Income Fund, Inc. (NYSE:PSF).

The Select Preferred and Income Fund is more or less what it sounds like it would be. That is, Cohen & Steers first and foremost seek income-oriented holdings like preferred stocks and bonds. As of the most recent look, nearly all of its holdings are preferred stocks, and 55% of them are from the banking sector.

The dividend yield of 4.7% isn’t exactly earth-shattering. But, this is one of only a few ETFs that’s focused tightly on preferred stocks, which have unique advantages to bonds.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley.

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