While many Baby Boomers have enjoyed a long bull market over the past 35 years, there is a point when income becomes more critical than stock appreciation. The reason is simple: those who leave their careers to enjoy a well-deserved retirement lose the benefits of a regular salary and their jobs, such as 401(k) matching and company-paid healthcare. In addition, many Baby Boomers use their retirement years to travel and enjoy the rewards they have worked hard to achieve throughout their lives. Choosing investments wisely is imperative, and at 24/7 Wall St., we continually seek the best ideas for Baby Boomers and retirees. With the recent attack on Iran and growing geopolitical tensions in the Middle East, now may be the time to seek safety and dependable income rather than risk.
A monthly check from your stock portfolio makes sense for most people with bills and expenses due every 30 days, especially in a world where prices are consistently rising. Items like mortgage payments, rent, utilities, cell phone and internet bills, trash collection, and even grocery bills are always due each month. A steady stream of monthly passive income can be a huge help in meeting those obligations. With the potential for heightened volatility after the attack on Iran, and higher gasoline prices at least in the near term, it makes sense to generate as much monthly income as possible, which can arrive just like Social Security every 30 days.
We screened our 24/7 Wall Street research database for quality companies rated Buy at major Wall Street firms that paid monthly dividends. Five seem like great ideas for Baby Boomer passive income-oriented investors seeking upside appreciation. Plus, by choosing among the safest prices in the monthly dividend arena, investors can sleep a little easier at night.
Why do we cover monthly dividend stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Agree Realty
Agree Realty (NYSE: ADC) is an $ 8+ billion industry leader in the acquisition and development of properties net-leased to retailers. This mid-cap stock offers a reliable 3.87% dividend and strong upside potential. Agree Realty is a publicly traded real estate investment trust (REIT) that acquires and develops properties net-leased to industry-leading, omnichannel retail tenants.
The company’s assets are held by, and all of its operations are conducted directly or indirectly through, the operating partnership of which the company is the sole general partner.
Agree Realty owns over 2,370 single-tenant retail properties leased to investment-grade retailers, including Walmart, Dollar General, and Home Depot. It has a strong dividend safety profile and an investment-grade balance sheet. Importantly, its diversified portfolio, with no tenant accounting for more than 8% of rent, and its focus on e-commerce-resistant sectors like grocery and home improvement, ensure resilience. Plus, for investors concerned with investment safety, its BBB+ credit rating and strong dividend coverage support its reliability.
Its portfolio comprises over 2,370 properties in 50 states, totaling approximately 48.8 million square feet of gross leasable area (GLA). The company’s portfolio has properties located in:
- Texas
- Ohio
- Florida
- Michigan
- Illinois
- North Carolina
- New Jersey
- Pennsylvania
- California
- New York
- Georgia
- Virginia
- Connecticut
- Wisconsin
Agree Realty tenants include these companies and more:
- Walmart
- Dollar General
- Tractor Supply
- Best Buy
- Dollar Tree
- TJX Companies
- O’Reilly Auto Parts
- CVS
- Kroger
- Lowe’s
- Hobby Lobby
- Burlington
- Sherwin-Williams
- Sunbelt Rentals
- Wawa
- Home Depot
- TBC Corporation
- Gerber Collision
Wells Fargo has an Overweight rating with an $83 target price.
Healthpeak Properties
This leading company invests in real estate in the healthcare industry, including senior housing, life sciences, and medical offices. Healthpeak Properties (NYSE: DOC) is a fully integrated REIT with a solid 6.97% dividend. The stock is recommended by Morningstar’s chief U.S. market strategist, who rates it a five-star stock trading at a discount to fair value with a very dependable yield.
The company acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery.
Healthpeak Properties segments include:
- Lab
- Outpatient medical
- Continuing care retirement community (CCRC)
The Outpatient medical segment owns, operates, and develops outpatient medical facilities, hospitals, and laboratory facilities.
The lab segment properties contain laboratory and office space and are leased primarily to:
- Biotechnology
- Medical device and pharmaceutical companies
- Scientific research institutions
- Government agencies
- Organizations involved in the life science industry
Its CCRC segment comprises a retirement community offering independent living, assisted living, memory care, and skilled nursing units, providing a continuum of care within an integrated campus.
Evercore ISI has an Outperform rating with a $19 target price.
Main Street Capital
Main Street Capital (NASDAQ: MAIN) has helped over 200 private companies grow or transition by providing flexible private equity and debt capital solutions. This stock is a favorite across Wall Street and comes with a substantial 5.49% dividend. Main Street Capital is a private equity firm that provides equity capital to lower-middle market companies. Unlike most of its peers, it has a strong record of supporting its regular monthly dividend through multiple cycles, including periods when many business development companies (BDCs) were forced to reset payouts. It holds much less debt than regulators allow, earning a BBB- investment-grade credit rating, and is one of the few monthly dividend stocks to earn a “Safe” Dividend Safety Score.
The firm also provides debt capital to middle-market companies for:
- Acquisitions
- Management buyouts
- Growth financings
- Recapitalizations
- Refinancing
The firm seeks to partner with entrepreneurs, business owners, and management teams and generally provides “one-stop” financing options within its lower-middle-market portfolio.
Main Street Capital typically invests in lower-middle-market companies with annual revenues between $10 million and $150 million. The firm’s middle-market debt investments are in businesses generally larger than its lower middle-market portfolio companies. It also creates majority and minority equity.
Royal Bank of Canada has an Outperform rating and a $66 target price.
PennantPark Floating Rate
This BDC invests in middle-market companies in the United States. Often overlooked by Wall Street, PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) offers a substantial 14.60% monthly dividend yield. It seeks to invest in floating-rate loans through private, thinly traded, or small-cap public middle-market companies. It should be noted that floating-rate loans provide some protection in higher-rate environments. The company ranks among the top monthly dividend stocks by expected total return.
It primarily invests in the United States, with limited exposure to non-U.S. companies. The fund typically invests between $2 million and $20 million.
The fund also invests in:
- Equity securities
- Preferred stock
- Common stock
- Warrants or options received in connection with debt investments or through direct investments
It primarily invests between $10 million and $50 million in senior secured loans and mezzanine debt. It seeks to invest in companies not rated by national rating agencies. The fund invests 30% in non-qualifying assets, such as:
- Investments in public companies whose securities are not thinly traded or do not have a market capitalization of less than $250 million
- Securities of middle-market companies located outside of the United States
- High-yield bonds
- Distressed debt
- Private Equity
- Securities of public companies that are not thinly traded
- Investment companies as defined in the 1940 Act
Under normal conditions, the fund expects at least 80% of its net assets plus any borrowings for investment purposes to be invested in floating-rate loans and investments with similar economic characteristics, including cash equivalents invested in money market funds. It expects to represent 65% of its portfolio through senior secured loans.
Keefe, Bruyette & Woods has an Outperform rating with a $10 price target.
Realty Income
This REIT invests in free-standing, single-tenant commercial properties. Realty Income (NYSE: O) is an ideal stock for growth and income investors seeking a safer contrarian idea for the rest of 2026, with a dependable 4.85% dividend. It is considered the gold standard of monthly dividend stocks. Realty Income has been paying dividends since 1969 and has built a reputation as one of the more durable income stocks across market cycles.
The company acquires and manages freestanding commercial properties that generate rental income under long-term net-lease agreements with its commercial clients. It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries.
The company owns or holds interests in approximately 15,621 properties in all 50 states and:
- The United Kingdom
- France
- Germany
- Ireland
- Italy
- Portugal
- Spain
With clients doing business in 89 industries, its property types include retail, industrial, gaming, and other types, such as agriculture and office. Its primary industry concentrations include:
- Grocery stores
- Convenience stores
- Dollar stores
- Drug stores
- Home improvement stores
- Restaurants
- Quick service
Deutsche Bank has a Buy rating with a $69 target price.
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