Two of my favorite stocks to own are great growth stocks, and stocks that pay a monthly dividend. So when I can put those things together to invest in growth stocks that pay a monthly dividend, you know I’m all in.
When you invest in growth stocks you’re getting companies that are building value over a long period of time, which helps you increase your portfolio as well.
And then you consider the benefit of a monthly dividend payment. Most dividend stocks pay out quarterly, but fewer than 70 offer a monthly dividend. And even fewer can be considered great growth stocks that pay a monthly dividend.
Monthly dividend stocks give you the opportunity to reinvest to accelerate your portfolio growth through the power of compound investing. Or, you can take the dividends and use it as a reliable source of income in your retirement years.
While the pool of great monthly dividend stocks is small, there are still several that are worth your look as we roll into the fourth quarter of 2023.
Gladstone Land Corp. (GLAD)
Gladstone Land Corp. (NYSE:GLAD) is what’s known as a business development company, or BDC. This kind of structure returns 90% of its taxable income back to shareholders, and those payouts can quickly add up to be formidable.
BDCs provide financing and capital to small- and medium-sized businesses and help companies that may not have access to traditional finance mechanisms.
Gladstone, as of June 30, was invested in 52 businesses representing 12 industries, with a value of $715 million. That includes three new companies and $17.1 million in new investments in the fiscal third quarter. Income in the quarter was $11.7 million, up 21% from the previous quarter.
More than 90% of the company’s investments are in secured loans, which makes it a relatively safe bet.
GLAD stock is down 3% this year but offers a dividend yield of 10.2%. It gets a “B” rating in the Portfolio Grader.
Modiv Industrial (MDV)
Modiv Industrial (NYSE:MDV) is a real estate investment trust based in Nevada.
The company invests in industrial manufacturing facilities that are in the energy, infrastructure and automotive sectors, among others.
The company has 45 properties that are being rented by 31 tenants in 16 states stretching from coast to coast. Its holdings represent 4.7 million square feet of property.
The company’s philosophy is to “invest in properties” in the heartland of America, properties that manufacture products essential to our lives, properties that offer good paying jobs for their employees and where there is a real pride in putting in a hard day’s work.”
Modiv reported Q2 earnings in August. Revenue of $11.8 million was up 16.7% from a year ago, helped by the purchase of 16 industrial manufacturing properties in the last 12 months.
The company is growing its portfolio quickly, adding $129.8 million in properties in 2023.
MDV stock is up 33% this year and offers a dividend yield of 6.9%. It gets a “B” rating in the Portfolio Grader.
Phillips Edison & Co. (PECO)
To the uninitiated, Phillips Edison & Co. (NASDAQ:PECO) may sound like a utility company. But this is really another REIT that pays a solid monthly dividend.
Phillips Edison invests in shopping centers that are anchored by grocery stores. That footprint gives Phillips Edison more stability than a REIT that is involved in retail or office space these days.
The company is now one of the biggest owners of shopping centers in the country, managing nearly 300 centers in 31 states. Nearly 98% of the property is leased.
It reported Q2 revenue of $152.1 million, up 6.7% from a year ago, and net income of $14.4 million. More significantly, the company raised full-year income guidance to a range of 51 cents to 55 cents per share, from a range of 47 cents to 52 cents per share.
“We continue to see strong retailer demand, which we are converting into higher rents, with no current signs of slowing.” CEO Jeff Edison said.
PECO stock is up 2% this year and pays a dividend of 3.5%. It gets a “B” rating in the Portfolio Grader.
PennantPark Floating Rate Capital (PFLT)
PennantPark Floating Rate Capital (NYSE:PFLT) is another business development company, or BDC.
This company invests in middle-market private companies through senior secured loans. Because the loans are secured through collateral, they represent little risk to the company should the debtor default.
The company has 15 accounts in its portfolio, representing business services, insurance, aerospace, building materials and healthcare companies. The Miami-based company has invested more than $18 billion since 2007, an impressive sum for a company with a market value of only $600 million.
Earnings for the fiscal third quarter were $18.5 million, up 56% from a year ago. Income per share came in at 36 cents, up 24% from last year.
PFLT stock is down 6% this year but provides an impressive dividend yield of 10.5%. That performance helps it score a “B” rating in the Portfolio Grader.
Stellus Capital Investment (SCM)
Stellus Capital Investment (NYSE:SCM) is a private equity firm. It invests in private middle-market companies, which it describes as those with between $5 million and $50 million of earnings before taxes, depreciation and amortization (EBITDA).
It helps companies by providing the capital they need to expand or purchase other companies, such as it did when it helped Gauge Capital acquire Craftable, a software-as-a-service business that services the hospitality, food, beverage and entertainment industries.
It has more than 80 active investments in companies like Atkins, Dr. Scholl’s, Magnitude Software, Petmate and US Auto Sales.
Revenue for the second quarter was $10.41 million, or 49 cents per share, up from $6.17 million and 32 cents per share a year ago.
SCM stock is flat for 2023 but pays a dividend of 11.7%, helping to give it an “A” rating in the Portfolio Grader.
SLR Investment Corp. (SLRC)
SLR Investment Corp. (NASDAQ:SLRC) is another business development company. And like other BDCs, its pass-through structure allows it to essentially eliminate all taxation at the investment company level and pay outsized dividends to its investors.
It works with middle-market companies, public and private healthcare companies and financial service companies. It also has a commercial finance division. Investments range as high as $125 million per transaction.
Earnings for the second quarter were $22.7 million, or 35 cents per share, an increase from $20.3 million and a net loss of 29 cents per share a year ago.
“The market environment remains attractive, with the continued retrenchment by both regional banks and the syndicated loan market resulting in a compelling opportunity set,” Co-CEO Bruce Spohler said.
SLRC stock is up 5% in 2023 and pays a dividend yield of 10.6%. It gets a “B” rating in the Portfolio Grader.
Stag Industrial (STAG)
Stag Industrial (NYSE:STAG) is a REIT that focuses on industrial properties such as manufacturing facilities, warehouses, distribution centers and industrial parks.
Similar to BDCs, REITs return 90% of their income through tax-advantaged dividends, so they are favored targets for investors seeking yield.
Stag currently holds more than 550 buildings in 41 states, with a cumulative square footage of more than 111 million.
The company achieved record leasing spreads in the second quarter and an occupancy rate of nearly 98%. That helped push income to $51.5 million and 29 cents per share, up from $32.3 million and 18 cents per share a year ago.
STAG stock is up 3% in 2023 and pays a dividend yield of 4.2%. It gets a “B” rating in the Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
