We’ll take a look at the top 12 monthly dividend stocks to buy in 2023. Why Your Bills Come Monthly Not Your Dividend Check Monthly dividend stocks are a game changer for income investors. All the changes we have experienced in recent years. Some things are sadly the same. We all have bills to pay and those bills usually come monthly. Be it your mortgage, your car payment, or even your regular phone and utility bills, you are usually expected to make payments every month.
While we are in our working years. This isn’t necessarily a problem as paychecks usually come every two weeks and even for those in retirement social security. if you are lucky a pension payment also comes on a regular monthly schedule but unfortunately, It doesn’t work that way in our investment portfolio.
That’s where monthly dividend stocks come into play. Dividend stocks typically pay quarterly and most bonds pay semi-annually or twice per year, this is a way to make portfolio income lump sum in the form of dividends and interest payments. Monthly dividend stocks that come in clusters can help smooth out that income stream and better align your inflows with your outflows.
We would never recommend buying a stock solely because of its monthly dividend. But monthly dividend stocks can be a nice addition to a portfolio and add a little regularity to an investor’s I, says Rachel Klinger, president of McCann Wealth Strategy, an investment advisor based in the state college of Pennsylvania.
12 Best High Yield Monthly Dividend Stocks to Buy In 2023
Income Stream Today we’re going to look at 12 of the best monthly dividend stocks to buy for 2023. You’ll notice some similarities in selections, as monthly dividend stocks tend to be concentrated in smaller sectors like real estate.
Investment trusts (REITs) and business development companies (BDCS) tend to be more income-oriented than growth-oriented in these sectors and produce yields that are significantly higher than the market average. But the yield on the S&P 500 in the market is currently at 1.7 percent which is certainly welcome. The list isn’t particularly diversified, it doesn’t constitute a complete portfolio.
In other words, you shouldn’t buy too many stocks with monthly dividends, but they do allow exposure to a handful of niche sectors that provide some income stability. Let’s add Take a look and see if any of these monthly payers suit your investment style.
SL Green Realty Corp dividend
SL Green Realty Corporation ticker SLG SL Green is a REIT that invests in office buildings and shopping centers in New York City. is Manhattan’s largest office landlord by October 2022. The company held interest since 64 buildings totaling 34.4 million sq ft are located in SL Green. New York City was established in 1997. The company’s dividend yield till December 2022 was 8.96 percent.
Ellington Financial Inc Stocks
Ellington Financial Incorporated ticker EFC Ellington Financial is a mortgage rate firm that invests in residential loans, commercial mortgages, and commercial loans. A major portion of its portfolio consists of residential mortgages. Provide investment opportunities Ellington has since cut its dividend back to its current level of 15 cents per share in 2019, in line with pre-pandemic levels. The company’s dividend yield till December 2022 was 13.6 percent.
Broadmark Realty Capital Inc monthly dividend stocks
Broadmark Realty Capital Incorporated ticker BRMK Realty Capital is a fundraiser that helps real estate investors and developers get the funds they need. Since its launch in 2010 to build or build residential or commercial real estate, Broadmark has completed over 2 000 transactions and accessed $4.1 billion in the capital. The company has a loan portfolio of $1.6 billion that is active and spread across 24 different states there. The portfolio has 234 active loans and the average loan size is approximately $7 million. The company’s dividend yield as of December 2022 is 15 percent.
Realty Income Corp dividend stocks
Realty Income Ticker Oh Market Cap $39.0 Billion Through December 2022 Yield on Dividends 4.7 Percent Conservative Triple Net Retail Rate Realty Income could be the stock with the highest monthly dividend in stock history. Its official name is the company trademark. Monthly Dividend Company Realty Income is a stock and its share price can be volatile just like any other equity. But it’s still close to a bond. As you are going to get in the stock market in terms of its safety and reliability.
Payout It has steady recurring rental cash flow from its empire of over 11 700 properties which are rented to over 1 100 different tenants in around 80 different industries across all 50 states Puerto Rico UK and Spain. Traffic that is usually safe during a deceleration. Perhaps more importantly, our amazon.com proof that no business is completely free from the risk of competition from amazon.com and other e-coms. Merce’s Titans But Realty Income Comes Closer.
monthly dividend in stock history
Its largest tenants include 7-Eleven, Dollar General, and Lowe’s. Dollar stores and convenience stores, all of which are fairly recession-proof. In some cases, there is actually a profit from trading in a recession which is good because the yield curve is inverted. It was for most of 2022. The real possibility of a recession in 2023 is 4.7 percent of real income at real prices, which isn’t a monster windfall, but it’s much higher than both the broad market as well as the 3.5 percent ladder in 10-year Treasuries.
That’s the raw yield. Not what we’re looking for here. Rather, Realty Income has made 629 consecutive monthly dividend payments and extended it through December 2022 due to consistency and growth. Dividends for 100 consecutive quarters make it a proud member of the S&P 500 dividend elite since going public in 1994. Its dividend has grown at a compound annual growth rate of 4.4 percent, while today it is less than the rate of inflation. This is well ahead of inflation over that time period regardless of whether the FED manages to get inflation under control anytime soon. Realty Income’s history suggests that it should be able to keep its dividend growth rate ahead of inflation.
Stag Industrial Inc dividend stocks
Market cap $5.9 billion as of December 2022 Yield on dividends 4.4 percent Realty Income is pretty close to amazon.com’s evidence. But fellow monthly dividend payer Stag industrially benefits from the rise of Internet commerce Stag. Makes some investments in logistics and light industrial properties that you know are warehouse properties.
You can see the frequent comings and goings of 18-wheelers near the airport. This is exactly the same property. Which drives industrial procurement and is growing e-commerce by leaps and bounds. Which are a given and Stag is set up to leverage roughly 40 percent of the Stag Industrial portfolio.
One who handles e-commerce fulfillment or other activity. In fact, the biggest tenant of the amazon.com STAG is e-commerce. Which has spiked during the pandemic for obvious reasons and as stores reopen. The effects of that initial spike have dissipated somewhat over the past two years.
Yet the trend towards e-commerce is clear. Living around it is likely that we are doing a large percentage of our shopping online. This trend only goes in one direction. However, there is still a lot of room for development. As it may seem, less than 15 percent of retail sales are done online.
The US Census Bureau also has several different logistics companies. Stags management thinks their market is worth about a trillion dollars. In other words, it’s unlikely Stag will run out of opportunities anytime soon Stag Industrial isn’t sexy but it is one of the best monthly Dividend stocks to buy with plenty of growth for 2023 and its 4% plus yield is competitive in this market.
Gladstone Commercial Corporation monthly dividend stocks
The market cap is $755.4 million as of December 2022 The yield on the dividend was 8.1 percent for another gritty industrial play. Consider a Stag stock such as Gladstone Commercial. It has a large portfolio of logistics and light industrial properties.
About 54% of its rental revenue comes from industrial properties. 42 percent comes from office real estate. The remaining four percent is split among retail properties. Three percent and medical office one percent With such a diversified portfolio there hasn’t been the crazy volatility of the past few years.
It was too tough to handle till 30th September 2022. Reed had a portfolio of 137 properties spread across 27 states for at least 112 different tenants since 2012. Gladstone Commercial has grown its portfolio by 15 per year in a steadily planned manner. Its occupancy is 97.0 percent. and has never fallen below 95.0 percent. Its largest tenant makes up only four percent o the. f its portfolio and almost half of its tenants are publicly traded companies which is not bad. Gladstone Commercial is also one of the companies that have paid dividends every month since January 2005 and the company currently earns a juicy 8%. Is.
EPR Properties dividend stocks
The market cap is $3.1 billion as of December 2022 The yield on the dividend was 8.1 percent. 2022 was a year of adjustment. It was painful in the stock market because we had to contend with the normalization of monetary policy by the Fed and a lot of elimination. Help in times of pandemic but it brought back a lot of normality in our lives and as we get ready to enter 2023. Which should be positive for EPR properties.
EPR owns a diverse and eclectic portfolio of movie theater amusement parks. Topgolf and many other EPRs specialize in experiences on those things. Should be a major tailwind in 2023. The more we reintroduce these things into our lives the more the tenants of EPR benefit from before the pandemic. TheEPR Properties was a consistent dividend payer and raiser. Its tenants were facing a crisis.
Existential crisis EPR ended its dividend in 2020. However, this cut was short-lived and its monthly dividend was restored in July 2021 and then increased in March 2022. A recession and when discretionary spending often takes a hard hit inflation doesn’t help on that front and neither does the tight labor market which makes help hard to come by. EPR’s large allocation to movie theater properties and films has slowed down. EPR is a good potential turnaround play with an attractive yield and the potential for significant dividend growth in the coming years if you’re willing to take a modest amount of risk to bounce back to pre-covered levels.
LTC Properties Inc dividend stocks
LTC Market cap is $1.6 billion as of December 2022. The yield on dividends was 5.7 percent for a final conventional reading. Consider LTC Properties shares. LTC is a REIT with a portfolio that is evenly split between senior living properties and skilled nursing facilities during the pandemic.
It was clear that the people living in Reid were having a tough time. The increased risk had made senior living in nursing homes less attractive, and the national labor shortage has only added fuel to the fire. It may be a while before the industry returns to its full former glory. -Pandemic Health But the long-term demographic trends here are simply unstoppable and LTC sports an attractive turnaround in 2023.
Senior living properties are not affected by the labor shortage and virus scare because most of their tenants are young and do not require medical care. They also provide an attractive active lifestyle for many seniors. This hasn’t fundamentally changed with the vast majority of baby boomers now retired or living empty-handed. The case for investing in senior living properties almost speaks for itself.
Skilled nursing may take longer to recover. Home care can be a viable option for many seniors who need assistance but either cannot afford it. Or who are reluctant to live in a nursing home. But eventually, there comes a point where there are few alternatives to nursing home care. Importantly, long-term demographic trends favor an increase in LTC. The baby boomer is the peak of the generation. Too young to require long-term care from the early 60s to the present day. But demand will continue to grow with more boomers in need of these services during the next two decades, and 5.7 percent LTC is one of the higher-yielding monthly dividend stocks on this list.
AGNC Investment Corp
AGNC market cap is $5.6 billion as of December 2022 yield on a dividend of 14.8 percent AGNC investment is a Reit. While this is very different from the likes of Realty Income Stag or any of the others on this list of monthly dividend stocks, instead of the properties themselves, AGNC holds a portfolio of mortgage securities.
This gives it the same tax benefits as a Reit. Pays no federal income tax. As long as the company distributes at least 90% of its net income as dividends. But mortgage rates, also known as M’s, have a very different return profile. REITs are designed as income vehicles with capital gains.
This isn’t really a priority, as they yield a whopping 14.8 percent in the monster-yielding case. One reason for this is that ANGC invests exclusively in agency mortgage-backed securities. Which means bonds and other securities. Issued by Fannie Mae Freddie Mac Ginny Mae or federal home loan banks makes it one of the safest plays in this space. EST rates in 2022 wreak havoc on a lot of income investing especially mortgage rates like AGNC. Shares hit bottom in October.
It has since run higher in contrast to equity REITs which are backed by real estate mortgage REITs. Markets are really at the mercy of yields if the yield curve inverts for a long time, then ANGC may be at risk of a dividend cut. Dividend cuts are common in this space, yet with a yield of around 15%, ANGC may reduce its payout. And yet can play very competitive yield.
Dynex Capital Inc dividend stocks
DX has a market cap of $597.58 million as of December 2022, with a yield on dividends of 11.9 percent. Along the same lines let’s look at Dynax Capital as ANGC Dynax is a mortgage rate. About 94% of its portfolio is invested in agency residential mortgage-backed securities bonds. out of mortgages for ordinary Americans, but there is also exposure to commercial mortgage-backed securities.
A small allocation to non-agency securities It’s important to remember that the mortgage reading sector has been a roller coaster during the chaos of the past several years. The pandemic caused many mortgage REITs to lose a lot of money and some even went out of business. Dynex is one of the survivors and apparently any mortgage rate can survive the chaos.
The bond market of recent years is one that could possibly survive the apocalyptic Dynex trades. Sporting a discount of 11 to book value and a juicy yield of around 12 percent, we may see some more volatility in the space as the Federal Reserve continues to raise rates higher. But for now, it looks like one of the best monthly dividend stocks to buy if you’re looking for a seriously high yield.
Main Street Capital Corp- dividend stocks
The core market cap was $2.9 billion as of December 2022, with a yield on dividends of 7.1 percent. Business Development Companies BDCS are those places. Where Main Street becomes Wall Street. BDCS provides debt and equity capital to most middle-market companies.
These are the entities that have got a little bit. Too big to get financing from bank loans and retain earnings. But not big enough yet. BDCs exist to warrant an initial public offering. The aptly named Main Street Capital Gap is a best-in-class BDC located in Houston Texas. Some of the stocks on this list Main Street have been a turnaround play in the past two years that haven’t been particularly easy for Maine’s portfolio companies.
Many smaller firms were less able to navigate the lockdown than their larger peers. But the company persevered, and today it’s Main Street’s monthly dividend plan is stronger than ever. It pays a small dividend every month and then uses any excess money. Paying special dividends twice a year keeps Maine out of trouble.
Prevents it from cutting its dividend over the years. While its earnings may be down temporarily as far as monthly dividends go, the stock’s regular payout on Main Street works out to a respectable 7.1 percent and that doesn’t include the special dividend. Main Street raised its monthly dividend earlier this year and managed to pay out an additional 17 cents per share in special dividends. The recession may slow down additional growth and special dividends for a few quarters, but don’t expect it to slow down Main Street for a long.
Prospect Capital Corporation Stocks
PSEC market value of $3.0 billion as of December 2022. The yield on the dividend was 9.3 percent for another high-yielding monthly payment. Has been publicly traded since 2004. It has been wildly volatile over the two decades. Prospect Capital is objectively cheap as it trades at just 77% to book value. This may be somewhat subjective, but 23 gives us a good degree. It’s safe to say that even under conservative assumptions, the company is selling for less than the value of its underlying portfolio. It has a very healthy yield of 9.0 percent or more. As a general rule insider buying is a good sign when the management team is using their own money to buy shares.
This shows the commitment towards the alignment of the interests of the company during the last two years. The management team purchased more than 31 million P-Sex shares combined. These were not stock options or executive stock grants. These are shares that insiders bought in their brokerage accounts, with CEO John Berry holding 69 million shares today. That concludes our list of the top 12 monthly Dividend Stocks to Buy in 2023.
Always do your due diligence and research before buying any stock or investing in the market.