- These are great Robinhood (HOOD) stocks distributing monthly cash payments to invest in now that can protect your assets against durable high inflation.
- Horizon Technology Finance (HRZN): An elevated annual dividend yield of 10% and fair valuation make this investment company a great candidate for monthly dividend payments.
- Ellington Financial (EFC): With a 12% yield, robust top-line growth and a discount on its valuation, the REIT can deliver sturdy gains in the next quarters.
- LTC Properties (LTC): Expanding net profit margins and above-average annual yields make LTC a great investment for monthly regular income.
- Agree Realty (ADC): After raising dividends in the past 11 years, this fast-growing REIT that offers an average dividend yield is an honorable pick for risk-averse investors.
According to the Survey of Consumer Expectations released by the Federal Reserve Bank, Long-term inflation expectations rose higher in April, advancing by 0.2% to a 3.9% annual rate. High inflation equates to elevated interest rates. That make lending pricier and in turn puts pressure on economic growth and households’ purchasing power. For investors looking for Robinhood (NASDAQ:HOOD) stocks, this offers some unique challenges.
To minimize these impacts, individual investors should consider investing in these Robinhood stocks, distributing monthly dividends and limiting the effect of price increases.
Most dividend stocks make payments quarterly, but some stocks distribute monthly dividends, offering a regular income to their shareholders. These stocks are mainly real estate investment trusts (REITs), which resisted quite well the recent equity market correction.
Here are four Robinhood stocks paying monthly dividends with high yields and solid fundamentals:
|HRZN||Horizon Technology Finance||$12.31|
Horizon Technology Finance (HRZN)
Horizon Technology Finance (NASDAQ:HRZN) is a non-diversified, closed-end management investment company, providing capital to venture capital-backed companies in the technology, life science, healthcare information and services and sustainability industries. HRZN stock dipped 23% since the beginning of the year to $12.35 per share at the start of May 16, following seasonally light prepayments during Q1 2022 and an unfavorable equity market in the past weeks.
The investment company is predicted to deliver a robust yield of 10% per year. HRZN announced a stable monthly cash distribution of 10 cents per share for July through September this year. It is expected to deliver a dividend of $1.20 per share yearly.
Going forward, HRZN’s net sales are expected to appreciate 13.5% to $68.1 million and 15.1% to $78.4 million. However, higher expenses and increasing interest rates should pressure the stock, and net profit margins are estimated to decelerate in 2022, down to 41% per year.
Despite that, the investment company is one of the cheapest Robinhood stocks that pay monthly dividends. Indeed, HRZN is currently exchanging at a forward price-to-book ratio of 0.98 and 4.17 times 2022 enterprise value over revenue.
Ellington Financial (EFC)
Ellington Financial (NYSE:EFC) is a real estate investment trust (REIT), investing in a diverse array of financial assets, including residential and commercial mortgage loans, mortgage-backed securities and consumer loans. EFC stock has lost 12% year-to-date to $15.10 per share, as rapidly rising interest rates and widening yield spreads compressed Ellington’s margins.
The company recently reported Q1 2022 net loss of $9.9 million, amid a significant net loss on its agency residential mortgage-backed security (RMBS) business. However, the REIT is expected to deliver a double-digit yield of 12% in 2022, offering one of the highest monthly dividend yields in our selection of Robinhood stocks.
Moreover, EFC stock should expand rapidly this year, with net sales expected to advance 35.7% to $239 million in 2022. On the other side, the consensus of analyst estimates is that net income will decelerate from $125 million in 2021 to $88 million this year, down 29.6% year-on-year. Net profit margins are anticipated to be slashed in two, establishing at 36.8% in 2022 versus 71.4% last year.
The REIT has attractive valuation metrics, making it a long-term opportunity for investors looking for monthly dividend payments. Indeed, EFC is undervalued in terms of 2022 P/B, trading at only 0.84 times.
LTC Properties (LTC)
LTC Properties (NYSE:LTC) is another REIT company, investing in seniors’ housing and health care properties through sale-leasebacks, mortgage financing, joint ventures, construction financing and structured finance solutions. LTC stock has risen somewhat, up 7% year-to-date at $35.83 at the start of May 16.
Despite rising rates and increasing spread, LTC’s net income lifted in Q1 2021, reaching a total amount of $14.3 million, up 12% quarter-on-quarter. Moreover, revenue and net income guidance remain productive. Net sales are expected to grow moderately, up 8.9% to $169 million this year and 8.3% to $183 million in 2023.
The REIT is forecasted to deliver a dividend yield of 6.7% in 2022 per year, standing in the upper high average of Robinhood stocks. LTC stock is a bit pricey, exchanging at 1.78 times 2022 P/B. Nevertheless, the company might prove a great hedge against rising inflation and its valuation premium looks acceptable given its consistent net profit margin accretion.
Agree Realty (ADC)
Agree Realty (NYSE:ADC) is primarily focused on the acquisition, development and ownership of retail properties and has a portfolio of approximately 1,500 properties with approximately 31 million square feet of gross leasable area. ADC stock is down 46.36% year-to-date to $68.30 per share at the start of May 16.
The REIT has a strong history of raising dividends per share in the past 11 years and is expected to deliver a yearly figure of $2.81 per share in 2022, representing a moderate yield of 8%. With this strong execution, ADC stock is estimated to maintain a steady growth pace. Revenues are projected to jump 25% to $424 million in 2022, whereas net income should expand at a slower pace, up 20% to $144 million, representing a slightly decelerating profit margin of 34% per year.
Nevertheless, AGC stock is currently trading at a fair valuation due to its strong track record. The REIT has a strong buy rating, with an average target price of $76.83 per share, corresponding to an upside potential of 12% in the next twelve months.
On the date of publication, Cristian Docan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.