On November 30, Louis Navellier Reveals Bold New Income Strategy

Need cash now? Then check out The One Percent Event on November 30 at 12 p.m. ET.

Wed, November 30 at 12:00PM ET
 
 
 
 

3 Monthly Dividend Stocks That Are Too Cheap to Ignore

  • If you want to protect yourself from the fluctuations of the stock market, cheap monthly dividend stocks are one of the best ways to do so. Investing in them helps hedge against risk, and you have a steady cash flow and a guarantee that this investment will grow over time. In this list, only stocks sporting more than 8% yields have been considered, and they’re worth looking into.
  • Horizon Technology Finance (HRZN): Both stability and growth can be found at Horizon Technology Finance. This company invests in high-tech and high-growth opportunities and traditional areas like electronics and software.
  • EPR Properties (EPR): The REIT holds 353 properties involved in various functions of amusement. Many of these parks, theaters, and ski resorts are brimming with visitors after a pandemic lasting more than two years.
  • Gladstone Capital (GLAD): Gladstone’s approach is simple. The company will seek out the best investment opportunities, especially smaller ones, and distribute the returns to shareholders.
cheap monthly dividend stocks - 3 Monthly Dividend Stocks That Are Too Cheap to Ignore

Source: Pisit.Sj / Shutterstock.com

For retirees, cheap monthly dividend stocks can be a great way to combat inflation. This type of investment provides a consistent and predictable stream of income that can help offset the rising cost of living. In addition, monthly dividend stocks tend to be less volatile than other investments, providing retirees with peace of mind in uncertain times. While there are no guarantees in the stock market, monthly dividend stocks offer a solid way to beat inflation and protect retirement savings. The best thing is that many monthly dividend stocks are cheap now, owing to broader macroeconomic headwinds.

Monthly dividend stocks are a favorite for income-oriented portfolios because they offer cash flow every 30 days instead of the usual three months. These stocks offer investors a reliable stream of income that can help supplement other investments or meet monthly expenses. While some risks are associated with monthly dividend stocks, such as the potential for missed payments if the company experiences financial difficulties, overall, they offer a compelling case for inclusion in any income-oriented portfolio.

Of the 3000 companies that pay dividends regularly, only 51 are monthly dividend payers. This article will look at three companies with more than 8% yields.

HRZN Horizon Technology Finance $10.06
EPR EPR Properties $36.04
GLAD Gladstone Capital $8.52

Horizon Technology Finance (HRZN)

A concept image for venture capital private investing with a man walking up blocks.
Source: Shutterstock

Horizon Technology Finance (NASDAQ:HRZN) has been around for a while and is well-known for its expertise in providing services to the technology industry. The company invests in early-stage venture capital firms. To date, the company has invested in over 285 different companies across various sectors, including healthcare, information technology, and clean energy.

Horizon Technology is also one of the few companies actively investing in early-stage companies. This gives Horizon Technology an edge over other companies. It can invest in the most promising companies before they go public.

Therefore, Horizon Technology’s diversification and commitment to early-stage investing make it a great choice for investors looking for long-term growth, and you see that with its second-quarter results. The company outperformed analyst expectations on both earnings and revenue. With growth, the company has paid close attention to its credit ratings. As a result, HRZN reported that 96% of its loan portfolio has a credit rating of 3 or better. With increased lending capacity, the company is well positioned for the future.

In addition, HRZN has paid consecutive dividends for the last 10 years. This ensures a safe place to invest your money and get a monthly income. If you are looking for the best cheap monthly dividend stocks, there are few better than Horizon Technology.

EPR Properties (EPR)

Real estate investment trust REIT on an office desk.
Source: Vitalii Vodolazskyi / Shutterstock

One of the most negative aspects of a bear market is how vulnerable companies become, even if they do nothing wrong. EPR Properties (NYSE:EPR) is a great example of this phenomenon.

The company is a listed real estate investment trust focused on entertainment, education, and recreation-related properties. EPR’s portfolio includes ski resorts, water parks, movie theaters, golf courses, and educational facilities. It has a long-term strategy of investing in high-quality properties that generate stable and growing cash flow.

EPR’s diversified portfolio provides exposure to a broad range of growth drivers and helps to mitigate the impact of any one property or industry cycle. As a result, EPR is in a great position to deliver strong results for its shareholders over the long term.

This year, the stock was ready for prime time with the pandemic behind us. The company focuses on the entertainment side of things, and that’s what people want now that everything is calm.

However, the REIT hit a roadblock this year because of rising interest rates and its bankruptcy. However, as Charles Sizemore, Principal of Sizemore Capital points out, the money spent on leisure activities has risen over the last two decades, with only very slight pauses during recessions.

On its part, EPR is doing very well. It beat Wall Street expectations in the second quarter, raising its guidance. Halfway through the year, investment spending totaled $239.2 million, and the company is expecting that pace to pick up in the second half of the year.

Considering these factors, if you look past the bearishness, this is probably one of the best monthly stocks to buy right now and is incredibly cheap.

Gladstone Capital (GLAD)

A photo of a person holding money while reading statistics on a page.
Source: Shutterstock

Gladstone Capital (NASDAQ:GLAD) operates within the larger framework of Gladstone Management, which has several components to it. Gladstone Management manages the overall organization. Another major enterprise under the broader umbrella is Gladstone Land, a diversified REIT. It provides critical services, like leasing and selling farmland to funders. My colleague Josh Enomoto said Gladstone is “essentially tied to our national security.” There is merit to saying so, considering the niche services it provides.

Gladstone Capital is a company that invests in other companies on behalf of outside investors. It’s structured as a Business Development Company, which passes all investment income and capital gains to its investors. In return, it gets an exemption from paying income taxes.

Gladstone Capital focuses on middle-market companies with an EBITDA close to the $3-$15 million range. The average investment size ranges between $7 million to $30 million. The total asset value of the portfolio stood at $312.9 million as of June 30, 2022. It includes different industries, including restaurants, manufacturers, and other types of enterprises.

Moreover, according to Gladstone, the recent uptick in LIBOR is expected to lift core net interest income and enhance earnings for the next few quarters. It had a very strong Q3, which led to a spike in the stock price. Now, sentiment has cooled off. Among high-yield monthly dividend stocks, this one is also very cheap because it has fallen by double digits this year.

On the publication date, Faizan Farooque 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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


Article printed from InvestorPlace Media, https://investorplace.com/2022/10/3-monthly-dividend-stocks-that-are-too-cheap-to-ignore-hrzn-epr-glad/.

©2022 InvestorPlace Media, LLC