Dividend Stocks
  • Monthly dividend stocks provide investors with a sense of stability and consistency, which is hard to come by in today’s volatile market environment.
  • STAG Industrial (STAG): STAG Industrial primarily manages industrial estates. They have a huge selection of properties, providing income and growth.
  • Realty Income (O): Realty Income Corporation is a real estate investment trust, or REIT, that invests in properties with single-tenant leases.
  • Dynex Capital (DX): Dynex Capital invests in mortgage loans, making it much more stable than many REITs.
  • Main Street Capital Corporation (MAIN): Investments in public business development companies (BDCs) like Main Street Capital provide you with a diversified portfolio.
  • Apple Hospitality REIT (APLE): Apple Hospitality REIT owns many upscale hotels in the U.S. As the tourism industry makes a comeback, watch out for this one.
  • S.L. Green (SLG): S.L. Green is one of the largest REITs and the leading office landlord in New York City.
  • Pembina Pipeline (PBA): Pembina Pipeline is a Canadian company that operates pipelines and other facilities to transport oil and gas.
sheet of paper marked "dividends" with a $20 bill on top of it to represent dividend stocks

Source: Shutterstock

One of the main reasons why people invest in monthly dividend stocks is that they want to diversify their portfolios with reliable income streams. Quarterly dividends are great, but getting that money monthly works much better for many people’s lives. After all, bills tend to come due monthly. Why not get monthly dividend payouts too?

This strategy has been popularized by Warren Buffett and other successful investors who have made fortunes by investing in this type of stock for decades.

And for obvious reasons, it can be a favorite of retirees as well.

We compiled a list of seven prominent monthly dividend stocks to keep in mind moving forward:

STAG STAG Industrial $32.61
O Realty Income $69.18
DX Dynex Capital $16.18
MAIN Main Street Capital Corporation $36.94
APLE Apple Hospitality REIT $15.85
SLG S.L. Green $62.36
PBA Pembina Pipeline $39.61

STAG Industrial (STAG)

stocks to buy: warehouse interior with shelves, pallets and boxes D

Source: Don Pablo / Shutterstock.com

Dividend Yield: 4.5%

E-commerce is one of the fastest-growing industries in the world. According to Statista, in 2021, e-commerce sales worldwide reached $4.9 trillion, which is forecast to grow by 50% within the next four years and reach $7.4 trillion in 2025.

Therefore, it is important to remember that companies exposed to e-commerce will do well moving forward.

STAG Industrial (NYSE:STAG), the first of our monthly dividend stocks, is a company that specializes in industrial properties. They benefit from the rise of e-commerce since they sell industrial property too, but have also been spearheading leasing strategies aimed at small- and medium-sized businesses.

Aside from this, the company has a huge portfolio in logistics and light industrial properties.

E-commerce continues to grow, and STAG Industrial is positioned for a strong future. This type of business is responsible for about 40% of STAG’s revenue, which showcases the profit potential. Making this even better, Amazon (NASDAQ:AMZN) is its biggest tenant.

Realty Income (O)

dividend stocks: A calculator projecting the word "DIVIDEND" rests on a pile of gold and silver coins.

Source: Shutterstock

Dividend Yield: 4.3%

Realty Income (NYSE:O) pays a monthly dividend, and it’s so well known for it that the company trademarked its nickname as “The Monthly Dividend Company.”

O is a quality stock. It’s not perfectly safe, but it’s close to bond-market territory with stable rental cash flows and sound operations. Some 11,000 properties in over 1,000 markets give this company the kind of diversification you want in a good real estate investment.

The company houses a great number of retailers and restaurants, for example, FedEx (NYSE:FDX), Home Depot (NYSE:HD), and Walgreens Boots Alliance (NASDAQ:WBA).

Its properties are rather exposed to gyms and theaters, which gave it a high risk during the pandemic. However, it stands in a much better position now.

Dynex Capital (DX)

tiny house figures atop letter blocks spelling out REIT, representing reits to buy. stock predictions

Source: Shutterstock

Dividend Yield: 9.7%

Dynex Capital (NYSE:DX) is a mortgage REIT, but its portfolio is more diverse than other REITs. Its portfolio is mostly made up of Agency Residential Mortgage-backed securities and includes Commercial Mortgage-backed securities and a small number of aligned interests.

It’s important to remember that mortgage REITs were crushed in 2020. In the early stages of the U.S. entering lockdown, it seemed unlikely that many Americans would be able to continue paying their mortgage. Therefore, the reaction from the market was negative and halted any progress for DX in its tracks.

Dynex deserves praise for managing the pandemic and, more importantly, surviving the crisis. It’s still under pressure because of impending interest rate hikes. Therefore it’s available at a steep discount to historical highs.

Main Street Capital Corp. (MAIN)

Two businesspeople holding and pointing at earnings charts.

Source: Shutterstock

Dividend Yield: 7.1%

Investments in public business development companies like Main Street Capital Corporation (NYSE:MAIN) provide you with a diversified portfolio and quarterly distributions. They are also leading companies in their industry and have a proven track record.

In addition, MAIN has significant insider shareholding.

The MAIN investment fund is at risk of seeing more competition in the BDC area, which could drag down the level of return. However, so far, the company has acquitted itself well.

The company has total investments of $5.7 billion and is mostly made up of companies in the lower-middle market with annual revenues between $10 million to $150 million.

Overall, MAIN is a smart and seasoned public company with a solid track record of generating competitive returns through NAV/share appreciation and increasing cash distribution.

It has a strong balance sheet and is well-positioned for future growth. This stock could potentially deliver strong growth and income with the recent dip, making it an attractive option.

Apple Hospitality REIT (APLE)

Source: Shutterstock

Dividend Yield: 3.9%

Apple Hospitality REIT (NYSE:APLE) invests in hotels, restaurants, and other hospitality properties. It’s a solid choice for future property investments.

The hotel industry suffered massive losses regarding occupancy rates and revenue during the pandemic. The pandemic caused a drop in demand and a rise in prices.

However, now people are traveling more, and you can see that through daily passenger throughput numbers. Although the figures are not the same as before the pandemic, they are still quite healthy.

Apple Hospitality owns a large and diverse portfolio of hotels in America. It currently has the following: 219 hotels, more than 28,700 rooms in 86 different markets, all across 36 states. Its portfolio of brands not just limited to Marriott (NASDAQ:MAR) and Hilton (NYSE:HLT).

Apple Hospitality is one of the most well-known hotel chains with a strong brand. You can expect a conservative balance sheet and high-quality hotels. As long as the world keeps needing hotels, this company will keep paying its dividend for years to come.

S.L. Green (SLG)

Image of a man holding a key chain with a key and house attached to the key ring over a office desk in the background

Source: Shutterstock

Dividend Yield: 6.1%

S.L. Green (NYSE:SLG) another REIT and the largest office landlord in New York City. The office sector has been struggling lately, and companies like S.L. Green have managed better than most because they concentrate on owning the highest-quality buildings.

Future leasing projects are thriving. Most of the upcoming leases will be in NYC, as companies have faith that the city will once again become a high-demand location. S.L. Green is on target to hit its lofty leasing target and has set a very aggressive goal for this fiscal year.

Meanwhile, offices in NYC continue to be popular among investors. They provide a reliable income and guarantee attractive returns and low-risk investments. This REIT could sell a select number of its properties to repay debt while investing in other areas. As a result, the REITs maintained that dividends are growing.

S.L. Green has consistently increased its dividend for the last 11 years, an achievement that all companies can be envious of. With a bullish market and new developments appearing to pay off, the company should be able to keep providing higher levels of dividends in the future.

Pembina Pipeline (PBA)

Pipelines in the desert

Source: bht2000 / Shutterstock.com

Dividend Yield: 5%

Pembina Pipeline (NYSE:PBA), which has more than six decades of experience in the energy industry, is the last of today’s monthly dividend stocks. In addition to pipelines, it also operates storage terminals and export facilities, etc.

It generates money through long-term agreements with other energy companies. These contracts help Pembina earn a steady income.

Pembina has a good dividend history and is generally completing energy infrastructure projects rapidly. This could allow Pembina to continue paying out good dividends in the future. Pembina already has many secured projects, and there are lots more in the pipeline. This will contribute to future dividend growth too.

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.

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