Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the actual return on an investment or a portfolio has income and stock appreciation.
Most stocks pay quarterly dividends, which is acceptable for many who reinvest dividends. However, many investors rely on dividends as part of an income stream. For that, getting a monthly dividend payout is more beneficial. Typically, real estate investment trusts, business development companies, and closed-end funds are among the investment vehicles that pay distributions monthly.
We screened our 24/7 Wall St. research database, looking for companies rated Buy at major Wall Street firms that paid monthly dividends. We found six that look like great ideas for passive income-oriented investors looking for upside appreciation.
AGNC Investment
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This company has paid solid monthly dividends for years, and the current yield is 14.72%. AGNC Investment Corp. (NASDAQ: AGNC) operates as a real estate investment trust (REIT) in the United States.
The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency.
AGNC funds its investments primarily through collateralized borrowings structured as repurchase agreements. The company has elected to be taxed as a REIT under the Internal Revenue Code 1986. It would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
EPR Properties
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This REIT invests in some of the most popular entertainment companies and pays a solid 7,32% dividend. EPR Properties (NYSE: EPR) is a leading experiential net lease REIT specializing in select enduring experiential properties in the real estate industry.
The company focuses on real estate venues that create value by facilitating out-of-home leisure and recreation experiences where consumers spend their time and money.
The company has nearly $5.7 billion in total investments across 44 states. They adhere to rigorous underwriting and investing criteria centered on key industry, property, and tenant-level cash flow standards. Senior management believes their focused approach provides a competitive advantage and the potential for stable and attractive returns.
Gladstone Commercial
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This company was hit hard as interest rates charged higher and is still offering one of the best entry points in over a year and a strong 8.97% dividend. Gladstone Commercial Corp. (NASDAQ: GOOD) is focused on acquiring, owning, and operating net leased industrial and office properties across the United States.
Gladstone owns a diversified portfolio of 121 office and industrial properties in 27 states and leased to 106 tenants. The company has grown its portfolio consistently, disciplined at 18% per year since the IPO in 2003.
They match long-term leased properties with long-term debt to lock in the spread to create a durable, stable cash flow stream to fund monthly distributions to shareholders. Current occupancy stands at 96.5%, and occupancy has never dipped below 95.0% since our IPO in 2003.
Most importantly for investors, Gladstone has a track record of success, exhibited by a history of solid distribution yields, consistent occupancy greater than 95.0%, and 10+ years of paying continuous monthly cash distributions.
Main Street Capital
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This company is a favorite across Wall Street and offers a solid 6.52% dividend. Main Street Capital Corp. (NASDAQ: MAIN) is a private equity firm specializing in equity capital to lower-middle market companies. The firm also provides debt capital to medium-market companies for acquisitions, management buyouts, growth financings, recapitalizations, and refinancing.
The firm seeks to partner with:
- Entrepreneurs
- Business owners
- Management teams
Typically, the company provides “one-stop” financing alternatives within its lower middle market portfolio.
Main Street Capital typically invests in lower middle market companies, generally with annual revenues between $10 million and $150 million. The firm’s medium market debt investments are made in businesses generally more significant than its lower middle market portfolio companies.
Realty Income
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This is an ideal stock for growth and income investors looking for a safer inflation-busting idea for 2024 that pays a stable 5.45% dividend. Realty Income Corp. (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.
The company is structured as a REIT, and the cash flow from over 13,250 real estate properties owned under long-term lease agreements with commercial tenants support its monthly dividends.
The company has declared 640 consecutive common stock monthly dividends throughout its 54-year operating history and increased the dividend 122 times since Realty Income’s public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.
SL Green Realty
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This is a leading large-cap office REIT that top analysts on Wall Street prefer now and is a solid (and somewhat) contrarian play with a hefty 6.67% dividend. SL Green Realty Group (NYSE: SLG) is a fully integrated REIT that focuses primarily on acquiring, managing, and maximizing the value of Manhattan commercial properties.
As of September 30, 2023, SL Green held interests in 59 buildings totaling 32.5 million square feet. This included ownership interests in 28.8 million square feet of Manhattan buildings and 2.8 million square feet securing debt and preferred equity investments.
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