Investors seeking monthly dividend stocks to buy are in a better position than they might think right now. As the market gives back earnings, many seemingly safe growth or value stocks have lost money.
Income-oriented investors seeking dividends and high yields have the cash flow to rely on need companies that distribute their earnings through monthly payments.
Compared to companies that reinvest earnings back into the business, monthly income stocks supply investors with regular, reliable distributions. They share their profits through a payout.
If their business thrives, their earnings increase. Their yield might fall as their stock price rises. Investors benefit from the company’s increasing profits and higher distributions. These are the top monthly dividend stocks to buy:
|SL Green Realty
AllianceBernstein Holding (AB)
AllianceBernstein Holding (NYSE:AB) is a global investment management firm offering institutional and individual clients research and investment services.
The company posted its preliminary AUM fell to $685 billion in April 2022. This is down 7% to $735 billion. It blamed the market depreciation, coupled with firm-wide net outflows for the drop.
AB’s net outflow in every channel is a slight concern. Private Wealth, Retail, and Institutional all faced outflow. Though the company will post lower earnings if this trend continues, investors still benefit. AB stock distributes a $3.99 annual dividend per share.
In the first quarter, AllianceBernstein posted net revenue of $1.1 billion. Operating margin and operating income both fell slightly. Looking ahead, the market’s continued volatility is due to heightened investor uncertainty.
Stock markets will eventually settle in a holding pattern, which is what makes this among the monthly dividend stocks to buy. Inflation rates will slow, slowing interest rate hikes. That would boost stock prices.
Bank Bradesco (BBD)
Banco Bradesco (NYSE:BBD) is a Brazilian financial services company that pays a dividend of 17 cents a share.
The price-to-earnings is in the mid-single-digit multiple. In the first quarter, it reported recurring net income growing by 4.6% year over year to R$6.82 billion. Net interest income rose by 9.5% year over year to R$17.06 billion.
Brazil is one of the few emerging market countries raising rates aggressively to fight inflation. Its early action increased Banco Bradesco’s interest income. Furthermore, the company increased its payout to 35% in Q1. This is up by 13% year over year.
BBD stock is on an uptrend, compared to its U.S. bank counterparts, which makes it one of the best monthly dividend stocks to buy.
In the banking business, lending money is a big revenue generator. This regional bank expanded its loan portfolio in the quarter. Loans to large corporates rose. This more than offset the drop in loans to individuals. For example, payroll-deductible loans and real estate financing fell.
Consider BBD stock for conservative exposure to the foreign banking industry.
EPR Properties (EPR)
EPR Properties (NYSE:EPR) is a real estate investment trust. It invests in amusement parks, movie theatres, and other entertainment properties.
In the first quarter, EPR posted total revenue of $157.5 million. It reversed its losses from last year by posting a net income of $36.2 million.
EPR increased its guidance. It cited 7 cents a share in earnings related to deferral collections. Still, its improved performance in properties will continue for the rest of the year. Entertainment retail centers are performing better than in the past. More importantly, the impact of inflation on EPR’s business is already priced in.
EPR has joint ventures in the works that will reduce investor risks related to acquisitions.
Itau Unibanco Holding (ITUB)
The Brazilian regional bank posted first-quarter revenue that grew by 11.5% year over year to R$33 billion. Its net income was R$7.4 billion.
Investors looking for monthly income may count on the company’s solid margins. For example, it is recovering its margins by managing its credit line quality. Looking ahead, it will benefit from seasonal strength. Customers will have Christmas bonuses. That will increase fund inflow and have a positive impact on its card product usage.
Last quarter, Itau posted margins of 13.8%. This is accelerating from quarter to quarter. The firm expects such metrics as lower delinquency ratios and lower cost of credit per portfolio.
It also managed deteriorating credit quality issues early. By the end of the year, Itau expects its relationship with clients will flourish. Clients will consume more and will need credit facilities with this firm.
Realty Income (O)
Realty Income (NYSE:O) is a REIT. The company expects to increase capitalization rates thanks to the favorable industrial sector. On the retail side, buyers are coming back, which will increase its cap rates.
In the last quarter, Realty Income reported a net income of 34 cents a share. To fuel growth, it invested $1.56 billion in 213 properties and properties under development.
Realty Income also benefited from sale-leaseback activity in the quarter. As this sale-leaseback market matures, the company will manage its balance sheet strategically.
The company is already renewing its loans at better rates. For example, it renewed its $4.25 billion credit facility. Unless it requires more capital to close deals, investors should not expect it to raise debt.
Higher interest rates may concern investors unfamiliar with the REIT sector. Fortunately, the company has hedges in place that started in June 2020. It is ready for a tighter interest rate environment.
SL Green Realty (SLG)
Same-store cash net operating income increased by 9.3% over the same period.
SL Green’s tenants have long-term plans to lease office space. For example, it will incorporate non-work use of the office space. This includes using the space for collaboration, lounges, and breakout rooms. Its tenants will need office space to foster productivity for its employees.
By holding SLG stock, investors get a monthly dividend that pays $3.73 annually. Shares are down sharply from highs. Now that the stock trades at a low P/E, investors may bet on the company posting better earnings in 2022.
Office space is scarce. In addition, companies will want workers to return to the physical office, constraining office space availability.
Markets are bracing for SL Green to report ongoing activity in its property portfolio. Watch for net operating income to improve in the coming quarters.
Stag Industrial (STAG)
Amazon posted weak quarterly results that signal a slowdown in activity ahead. It will slow the pace of its supply chain system build-out. Stag is experiencing aggressive demands from its tenants across its buildings.
Fortunately, Stag has limited exposure to Amazon. It has seven buildings leased to Amazon. Only one building has 12 years left on its lease term.
Interest rates are a headwind for Stag. It did not see a negative impact on capitalization rates yet. Should its cost of capital rise, it will pressure its cap rate. The company did not revise its outlook. If interest rates stay at elevated levels, investors should expect some selling pressure on STAG stock.
Shares pay a dividend that totals $1.46 a share annually.
On the date of publication, Chris Lau 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.