I could not find a list that provides details about monthly dividend stocks, so I decided to create the ultimate review of monthly dividend stocks on Invest Like Dad. The goal is to offer you the necessary information about the companies to help you narrow down a list of companies to research further and invest.
Most companies pay their dividends quarterly, but a few companies pay them monthly. The main reason why people like monthly paying companies is for more regular income. Another reason could be that monthly companies grow faster through reinvestment compared to dividend companies. The downside is growth will be more limited as the companies focus more on dividend than growth.
I excluded non US listed companies such as:
|Choice Properties Real Estate Investment Trust|
|Chorus Aviation Inc.|
|Dream Industrial Real Estate Investment Trust|
|Dream Office Real Estate Investment Trust|
|Exchange Income Corporation|
|Granite Real Estate Investment Trust|
|Inter Pipeline Ltd.|
|TransAlta Renewables Inc.|
|Superior Plus Corp.|
I really hope this monthly dividend stock list is helpful for you and if I missed any please let me know!
American Finance Trust, Inc. (AFIN)
American Finance Trust is a publicly-traded REIT focused on managing and acquiring a high quality single and multi-tenant property portfolio that is service retail-focused. Almost 80% of April’s rent was paid, and the additional 20% is being handled under deferral agreements or negotiation with deferrals until 2021. This is proof of stable management to ensure future success.
With the current situation, it is not surprising that the stock has dropped over 40% so far this year. AFIN also was not profitable in Q4 2019 nor Q1 2020.
The company announced and recently implemented a dividend cut to $0.85 per share, from $1.10 per share previously. This change went into effect Q2 2020. The company did this to preserve capital and strengthen its cash flow by $6.8 million per quarter.
Industry exposure as of Q1 2020:
Last but not least, the only bright spot right now is that AFIN has a strong core in its top 20 tenants. Those tenants represent 56% of the rent received in April 2020, and 97% of them paid.
I think this is a decent company to invest in as the company has a reasonably strong portfolio and is managing the risk quite well. I believe this company is worth a more in-depth look.
AGNC Investment Corp. (AGNC)
AGNC Investment Corp. operates as a mortgage REIT. The primary investment AGNC invests in are government mortgage-backed securities (MBS). These are mortgages such as Fannie Mae and Freddie Mac, which are done through repurchase agreements. The benefit of investing in MBS is that the government protects AGNC from defaulting, making these mortgages lower-risk investments.
AGNC has benefited from interest rates going down and would be negatively affected by rising interest rates. They have decreased their dividend a few times over the years, but it still is a reliable company.
With the dividend reduction in Q2 2019 and the significant losses in Q1 2020, I believe there is a possible dividend cut coming, and the price may drop some more. I think there are better investments on this list but overall not a bad company.
Apple Hospitality REIT, Inc. (APLE)
Apple Hospitality is a REIT that focuses on hotels. It is the most significant hotel player in the game, with over 235 hotels in 34 states! It has some of the following names in its portfolio, including Hampton Inn & Suites, Courtyard by Marriott, Hilton Garden Inn, and Residence Inn, to name a few.
Due to the immediate collapse of the hotel and travel industry, APLE is struggling, but it has made some defensive moves by suspending the dividend. March 2020 was the last dividend, and APLE will restart the dividend once profits start as it is required for REIT to payout 90% of profits.
This is an exciting investment opportunity as the company has the chance to rebound once travel resumes. There will be some pain for investors along the way, though! Depending on your risk tolerance, this could be an excellent long term investment.
ARMOUR Residential REIT, Inc. (ARR)
ARMOUR is a REIT that invests in leveraged mortgage-backed securities and loans. The vast majority of Armour’s investments are long term, fixed-rate residential mortgage-backed securities or RMBS. These are issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae.
The company has been discussing switching to a quarterly dividend, but due to the economic downturn, it has decided to lower its dividend and continue paying it monthly. Based on the fact that the company has said it is interested in switching to a quarterly dividend, I would not recommend this company for monthly income.
Grupo Aval Acciones y Valores SA (AVAL)
Grupo Aval is a Colombian holding company that is controlled by Luis Carlos Sariento, who owns 80% of the company. The holding company is well-diversified as it engages in banking, telecommunications, and real estate.
I do not know much about the company and thus will not provide judgment. If you want to research them more, here is a link to the investor relations page.
Broadmark Realty Capital, Inc. (BRMK)
Broadmark Realty Capital Inc. is a business development corporation that provides loans that are secured by real estimate to fund acquisitions, renovations, rehabilitation, or property development. BRMK was founded in 2010 and has written over 1,000 loans worth about $2.4 billion.
The company has been able to grow extremely fast, as shown by the chart above. What has blown my mind is that the company is debt-free.
I am interested in BMRK and will do more research as it is a solid company.
Chatham Lodging Trust (CLDT)
Chatham Lodging Trust is a REIT that focuses on upscale extended-stay hotels and select-service hotels. It currently owns around 134 hotels.
Chatham’s properties are strategically located in major markets that have high barriers to entry. The locations attract both business and leisure guests.
The company has suspended its dividend to allow more financial flexibility as I mentioned with APLE that CLDT is probably in the same boat that it could be an excellent rebound opportunity.
Colony Credit Real Estate, Inc. (CLNC)
Colony Credit Real Estate, Inc. is a REIT that focuses on originating, acquiring, financing, and managing commercial real estate debt and real estate investments.
The company is well diversified across different industries and investment types. On top of the defensive nature of the investments, the company has suspended its dividend to conserve cash.
I am neutral on this company.
Capitala Finance Corp. (CPTA)
Capitala is an asset management firm with about $3 billion in assets. They focus on providing capital to lower and middle-market businesses in North America. The company is well-diversified, with business services being its most substantial exposure at 22%.
Capitala has also suspended its dividend, and I do not find their business exciting and a little too risky for me.
Cross Timbers Royalty Trust (CRT)
Cross Timbers is a company that pays royalties on properties in Texas, Oklahoma, and New Mexico. This trust was created back in 1991 to collect and distribute the monthly profits. The profits are made from gas properties, and those gains change month to month based on sales volume and prices. The seven properties are oil-producing.
I am not a huge fan of oil companies, and as such, I am not interested in investing in this company. Also, a side note that since this is a royalty trust, it does not have consistent dividends as they vary based on profits month to month.
Dynex Capital, Inc. (DX)
Dynex Capital, Inc. is a mortgage REIT that invests in mortgages and securities on a leveraged basis. Dynex Capital also invests in both Agency MBS and non-Agency MBS and CMBS.
So while I was digging into the company, something that stuck out to me was that the company had a net income loss 4 of the last five quarters. While I could investigate more to see why they are losing money, I will move on to the next one as it is not for me.
Ellington Financial, Inc. (EFC)
Ellington Financial Inc. operates as a mortgage finance company. The Company invests in residential and commercial mortgage and asset-backed securities, consumer loans, collateralized loan obligations, non-mortgage, and mortgage-related derivatives, and equity investments.
They are reasonably diversified between residential and commercial mortgages. Unlike some of the other REITs, this company is managed by an external manager Ellington Financial Management LLC, who is part of the Ellington family of SEC-registered investment advisors.
All in all, I am not very interested in researching the company further.
EPR Properties (EPR)
This is a fascinating REIT that focuses on properties that build experiences. The industries that this REIT manages were hit extremely hard by the COVID-19 shutdowns. It appears that the majority of the businesses will be able to start opening in the summer and continue to open until Q4 2020.
EPR has about $1.2 billion in cash and has suspended its dividend starting after its May dividend. Its total debt is $3.1 billion, but none of the debt matures until 2022. Financially speaking, the company is in a strong position, and this puts this company in a great place to benefit from a rebound in the economy.
I am very interested in this company and think it is an interesting rebound play.
Enerplus Corp. (ERF)
Enerplus Corporation is one largest independent oil and gas producers in Canada. The company holds oil and natural gas property interest in the United States and western Canada.
As you can see from the chart above, the company is in an excellent position financially. While the company is financially stable and once COVID-19 lockdowns end and demand for oil rebounds, this company will be positioned well.
Again, I am personally not interested in oil stocks.
Gladstone Investment Corp. (GAIN)
Gladstone Investment Corporation is a BDC that focuses on investing in buyouts of lower middle-market businesses in the United States. The company is invested in 3 industries: Manufacturing, business services/distribution, and consumer products.
GAIN has strict investment criteria for up to $30 million of debt or equity that GAIN will provide in each transaction. The businesses that get selected are market leaders in stable industries with profitable operations. The management team of the business is also reviewed to ensure they have a proven track record during various economic cycles.
GAIN is an excellent company that is very transparent in its operations. Additionally, they have a strong management team that is very disciplined in their investments. This company is worth a more in-depth look and possible investment.
Great Elm Capital Corp. (GECC)
Great Elm Capital Corp. is a BDC that invests in the debt instruments of middle-market companies with a focus on catalyst-driven opportunities. 88% of the investments are debt, and 12% are equity. The company is diversified but is heavily weighted in the wireless and internet sector, which account for 34% of its investment portfolio.
Like many other companies, GECC has taken steps to increase available cash by modifying its dividend. Starting in the third quarter of 2020, their distributions will be paid in shares of common stock to maximize liquidity and strengthen their balance sheet.
I will pass on this business as the dividend is ok, but the actual profitability of the business is low. Q1 2020, the company had a net loss of $1.12. and the previous four quarters resulted in a net gain of $0.12.
Gladstone Capital Corp. (GLAD)
Gladstone Capital Corporation is a BDC that partners with management teams, entrepreneurs, and private equity sponsors to provide financing solutions for lower middle-market companies nationwide.
GLAD has an interactive website page about its investments, which I recommend viewing if you want to do more research on where this fund has its money allocated. https://gladstonecapital.com/portfolio/
The whole Gladstone fund group is worth a deeper dive of researching.
Gladstone Commercial Corp. (GOOD)
Gladstone Commercial Corporation is a REIT that specializes in single-tenant and anchored multi-tenant net leased industrial and office properties nationwide. The chart below shows the fund is invested around the US, and if you visit the website, you can see the specific information about each property in the state. https://www.gladstonecommercial.com/properties/commercial-portfolio/
The whole Gladstone fund group is worth a deeper dive of researching.
Gold Resource Corp. (GORO)
Gold Resource Corporation is well you guessed it a company that focuses on gold and silver production. They target projects that require a lower operating cost to maximize the return on capital. Currently, GORO has two mining operations. One is in Mexico that works six sites, and the second is in Nevada, which consists of four locations.
The company has no long term debt except some financing for mining equipment, which comes to just about $2.2 million. It has paid consistent monthly dividends since 2010. Also, the company has been profitable and delivering consistent returns. I recommend you check out a presentation of theirs. https://www.goldresourcecorp.com/content/grc-presentation.pdf
This company is a very well-run company, but it is probably a little overvalued with less than a 1% dividend. I like the business, but the dividend is super low. It would cost almost $5,000 of GORO stock to have the dividend buy another stock each month.
U.S. Global Investors, Inc. (GROW)
US Global Investors is an investment manager who specializes in gold, precious metals, natural resources, and emerging markets. A newer specialty of theirs is digital currencies. The company was founded as an investment club and became a registered investment advisor in 1968.
Frank Holmes, who is the CEO, has a controlling interest in the company and has been leading this company since 1989. This is good since management is motivated to make you money too.
The company has consistently paid dividends for the past ten years, and it yields about 2%. Unlike some of the other companies that are cutting their dividends, GROW approved a $2.75 million share repurchase plan. In Q1 2020, the company purchased $68,000 worth of shares.
The company lost almost $1.6 million in Q1 2020, and since they invest in a lot of volatile investments, the returns are up and down. For me, this is not a sleep well at night investment. They do post a lot of interesting investment information in their company presentations. Check out one of their presentations: http://www.usfunds.com/media/files/pdfs/webcast/earningswebcasts/2020-earnings/Q3-2020-GROW-Webcast.pdf
Global Water Resources, Inc. (GWRS)
Global Water Resources is a water company. It owns, operates, and manages water, wastewater and recycled water utilities in strategically located communities, principally in metropolitan Phoenix, Arizona.
This is an exciting company to me as they have increased revenue and dividend over the years and is a safer play, it seems. I am invested in AWK, which has been a good investment, and this company appears similar. People always need water!
Harvest Capital Credit Corp. (HCAP)
Harvest Capital Credit Corp is a BDC that provides customized financing to small and midsized businesses located throughout North America. HCAP targets companies with a history of consistent profitability and opportunistic asset-based transactions in situations where collateral coverage mitigates recent operational under-performance.
The loans range in size from $2.0 million to $15.0 million, or larger amounts through its limited partner relationships, and equity co-investments of up to $1.0 million.
HCAP took a hit in Q12020 but otherwise is a profitable company. Also, they did not suspend their dividend, and there is a possibility to lock in a high yield depending on how much you bet business will rebound from COVID-19. I might consider this company after Q2 results, which will probably be wrong.
Horizon Technology Finance Corp. (HRZN)
Horizon Technology Finance Corporation operates as an externally managed, closed-end, non-diversified management investment company. The Company lends and invests in development-stage companies within the technology, life science, healthcare information and services, and cleantech industries.
The company has a vast market available to invest in. From a diversity perspective, the company is very heavily invested in technology compared to their other investments, but all the industries are strong performers in the COVID-19 world.
This company is not a high profile BDC but is a strong performing stock with a good dividend. I will research this stock some more and consider making an investment. This is a good one to review.
Itaú Unibanco Holding SA (ITUB)
Itau Unibanco Holding S.A. manages deposits and offers retail, commercial, corporate, and private banking services. The Bank offers consumer loans, financial management, insurance, pension plans, treasury services, mortgage loans, lease financing, securities brokerage, and foreign exchange services.
I will be frank that since the bank is located in Brazil, all of the presentations and documents are in Spanish, and as I can find some translated texts, it is harder to research. Based on that I would rather not invest just because of having trouble researching and understanding the company.
Gladstone Land Corp. (LAND)
Gladstone Land Corporation is a REIT that specializes in purchasing farms and farm-related properties and leasing them to farmers. LAND targets farmland for fruit and produce, ranging between a purchase price of $2 million to $40 million leases typically range between 3 to 15 years with options to extend.
Market conditions tend to drive rental rates, prior rent on the property, and a capitalization rate based on our purchase price. For example, if the land cost $1 million for a farm, then the initial annual rent would be $50,000 or 5% of the purchase price.
This is a reliable company, but you have to consider how you feel about produce and fruit farming in the US as the company is not diversified at all. Probably not a bad one to invest in overall as worst case the land itself is worth a fair amount of money.
For me, the monthly dividend is ok on LAND, but I would look into and research the preferred stock as it has double the yield and still pays monthly.
LTC Properties, Inc. (LTC)
LTC Properties is an REIT that:
- Operators – regional, growth-oriented
- Deal size – $2 million to $100 million
- Geography – contiguous US
- Property types – Independent Living, Assisted Living, Memory Care, Skilled Nursing
- Deal structures – NNN Lease, Joint Venture, Mezzanine, Preferred Equity, Bridge, Construction Loans, Unitranche
The good thing about LTC is that the long term care facilities are in high demand and that demand will only grow. It is a well-run company that is worth a more in-depth look.
Main Street Capital Corp. (MAIN)
MAIN is a highly ranked BDC to invest in, and there are a few reasons why. One of the reasons is the commitment to its dividend as well as growing its dividend. Many companies on this list have steady dividends but do not necessarily grow theirs. Check out this chart for MAIN:
Another reason to like MAIN is how well diversified the business is:
MAIN is a great company, and I have owned it in the past. The biggest problem with MAIN is that it usually trades at a premium. If you can get MAIN at a fair price, then it is a worthwhile investment for sure!
Mesa Royalty Trust (MTR)
Mesa Royalty Trust owns property Kansas, New Mexico, and Colorado. The Trust owns the interest but does not engage in any operations. Any gas produced from the properties is made available for sale.
I am not a huge fan of Trusts personally and especially gas/oil ones.
Realty Income Corp. (O)
Realty Income Corp is a REIT, and it is the King of monthly dividend stocks. This has a similar problem as MAIN in that it almost always trades at a premium as the company is run by excellent management and has a fantastic track record.
As a REIT, there is concern about rent payments, which boils down to who is renting the properties. The top 20 tenants are listed below as well as some other break downs, and you will see how strong the tenant base is:
While you can see O is heavily weighted to retail, the majority of the retailers are AMAZON proof. I will be researching them more and probably investing as it is a great entry point in the $50-60 range.
OFS Credit Co., Inc. (OCCI)
OFS Credit Company, Inc. is a closed-end investment management company. The company’s investment goal is to generate income, with a secondary intention to create capital appreciation. It will achieve this through collateralized loan obligation (“CLO”) equity and subordinated debt securities. The company’s investment activities are managed by OFS Capital Management, LLC, an investment adviser.
The company reports its quarterly results in a one page flyer which you can find here: https://ir.ofscreditcompany.com/news-and-events/presentations
Feel free to research this one, but I need to research more about the company to be able to determine if it is a good one or not.
Orchid Island Capital, Inc. (ORC)
Orchid Island Capital is a Mortgage REIT that focuses on residential mortgages backed by government agencies like others on this list. Reviewing the EPS chart below, you can see the ups and downs. I think this company would be a fair investment to do for short term trading to cash in on dividend and price movement. For a longer-term investment, I believe there are better options on this list.
I am not sure if I am missing something, but the company provides a comparison vs. its peers, which confirms it has not performed as well as its peers.
Oxford Square Capital Corp. (OXSQ)
Oxford Square Capital is a BDC that invests in corporate debt securities and collateralized loan obligation (“CLO”) structured finance investments that principally own corporate debt securities. Half of the companies’ investments are in business services and the healthcare industry. The breakdown of asset type though, is pretty evenly mixed.
Pembina Pipeline Corp. (PBA)
Pembina Pipeline is a Canadian company that operates in the oil & gas transportation and storage infrastructure industry. It also has a natural gas processing business that operates in Canada too.
This company has created value through the acquisition and is well balanced between Crude, NGL, & gas. I think it is an interesting company, but I am not interested in investing in a pipeline company.
Permian Basin Royalty Trust (PBT)
The Permian Basin Royalty Trust is an oil and natural gas royalty trust based in Dallas, Texas. It is one of the largest royalty trusts in the United States.
Again being a trust, the distributions change monthly based on the oil & gas royalties that are paid. I am not a huge fan of these, but if you are interested in this, it could provide a good income.
PennantPark Floating Rate Capital Ltd. (PFLT)
PennantPark Floating Rate Capital Ltd provides primarily first-lien debt. PFLT invests in middle-market companies located mainly in the U.S., with proven management teams, competitive market positions, healthy cash flow, growth potential, and viable exit strategies.
PFLT has a disciplined approach to ensure that investments attain attractive returns to risk proportions. Another way that they work to reduce risk is also that the portfolio is highly diversified.
PermRock Royalty Trust (PRT)
PermRock Royalty Trust has a perpetual interest in oil and natural gas producing properties. The Trust was established in 2017. In May 2018, in connection with the Trust’s IPO, Boaz Energy conveyed to the Trust an 80% net profits interest (NPI) carved out of a subset of Boaz Energy’s oil and natural gas leaseholds. The NPI is the principal (basically only) asset of the Trust.
Prospect Capital Corp. (PSEC)
Prospect Capital is, without a doubt, one of the largest multi-line BDCs, providing debt financing to private middle-market companies and investing in other credit-related strategies. Founded in 2004, PSEC is one of the largest BDCs with ~$5.8 billion in capital under management.
PSEC is well diversified in over 40 different industries, which you can see below.
The management team has high expenses, and from the chart below, you can see that over the past year that the assets have decreased over the past year.
While I have owned PSEC in the past there are better BDC companies on this list to invest in.
Permianville Royalty Trust (PVL)
Permianville Royalty Trust is a trust that was formed represents the right to distribute 80% of the net profits resulting from oil and natural gas sales in primarily non-operated assets of both conventional properties in Texas, Louisiana, and New Mexico as well as unconventional assets in the Permian and Haynesville basins.
I should note that the trust has cut its dividend twice in 2020. Be sure to research prior to investing in a stock.
Pacific Coast Oil Trust (ROYT)
This is another trust, but I will not add any additional details as it is trading for under $0.30 and has not paid its monthly dividend for almost a year. I would not recommend this stock.
Sabine Royalty Trust (SBR)
Sabine Royalty Trust is a trust formed to receive Sabine Corporation’s royalty and mineral interests, including landowner’s fees, overriding royalty interests, minerals (other than administrative rights, bonuses and delay rentals), production payments and any other similar, non-participatory interest, in specific oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma and Texas (the Royalty Properties).
Shaw Communications, Inc. (SJR)
Shaw Communications is a Canadian company that specializes in network and content. Shaw connected its first cable customer back in 1971. Since then, its family of companies has grown to become Western Canada’s leading network and content experience company, delivering the highest-quality consumer, business, and content products.
Its business and cable businesses are pretty stable, but the wireless business has grown its revenue by almost 25%. This is a great business and one worth researching more!
San Juan Basin Royalty Trust (SJT)
The Trust was created in 1980 by a Trust indenture between Southland Royalty and The Fort Worth National Bank. According to the agreement, Southland Royalty conveyed to the Trust a 75% net overriding royalty interest from Southland Royalty’s oil and gas leasehold and royalty interest in New Mexico. This net overriding royalty interest is the principal asset of the Trust.
As stated before, these trusts vary their distributions by year based on earnings as you can see below, this trust is no different.
Again I am personally not interested in the oil trusts.
STAG Industrial, Inc. (STAG)
STAG Industrial, Inc. is a REIT that focuses on the acquisition and operation of single-tenant industrial properties, primarily in the United States. This strategy of targeting these industrial properties has allowed STAG to provide investors a great balance of income plus growth.
If you want to learn more about their facilities and how they solve their customer needs check out this link.
STAG has grown the leased square feet since its IPO and now has 57 leases spread all across the US. Check out the chart below:
STAG is a strong REIT and definitely worth some additional research and possible investment.
Solar Senior Capital Ltd. (SUNS)
Solar Senior Capital is a BDC that invests primarily in middle-market companies with senior secured loans. Solar Senior Capital’s investment goal is to maximize its current income consistent with the preservation of capital. Solar Senior Capital does this by applying private equity style investing to credit. Solar Senior Capital maintains this investment philosophy through a disciplined approach to rigorous monitoring.
SUNS has cut its dividend slightly in June 2020. Before this cut, SUNS had maintained its dividend since 2012 without any cuts.
Vermilion Energy, Inc. (VET)
Vermilion is an energy producer that creates value through the acquisitions, exploration, development, and optimization of properties located in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by moderate organic production growth and value-adding acquisitions.
Vermilion targets growth opportunities in production primarily through the exploitation of light oil and liquids-rich natural gas in Canada and the United States, the exploration and development of high impact natural gas opportunities in the Netherlands and Germany, and through oil drilling and workover programs in France and Australia. Vermilion holds a 20% operated interest in the Corrib gas field in Ireland.
VET announced in April 2020 that it had suspended its monthly dividends. They have cut their dividend to ensure they have funding for their expenditures.
Whitestone REIT (WSR)
Whitestone REIT is a pure-play retail REIT that focuses on high quality “e-commerce resistant” retailers based on neighborhood, community, and lifestyle retail centers principally located in the largest, fastest-growing and most affluent markets in the Sunbelt.
Whitestone’s mix of tenants provides necessities, services, and entertainment to communities in which they are located. Whitestone’s properties are primarily located in Phoenix, Austin, Dallas-Fort Worth, Houston, and San Antonio, which are among the fastest-growing US population centers with highly educated workforces, high household incomes, and strong job growth.
These are the tenants:
I hope you enjoyed the Ultimate Review of Monthly Dividend Stocks, and if you have any feedback, please let me know. Based off the list the following monthly dividend stocks that interest me and I will research further:
- GLAD Funds
This post is my opinion, which is strictly for information & educational purposes only. The post is not intended to provide any investment advice. Please seek your own duly licensed professional for investment advice as they will be able to consider your situation. Please read my Terms & Conditions Page for a full disclaimer.