In this article, we discuss 12 monthly dividend stocks with over 5% yield. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Monthly Dividend Stocks with Over 5% Yield.
During periods of financial instability, investors often focus on stocks that generate consistent income to stabilize their earnings. Dividend stocks have a history of performing well because they offer a reliable source of income. Numerous studies have underscored the significance of dividend stocks. By examining Bloomberg data spanning the last two decades, it was observed that when stocks paying dividends performed better than the Russell 1000 Value index, those without dividends tended to perform worse, and vice versa, occurring approximately 56% of the time. Sterling Capital's report highlighted that, over the twenty-year period, dividend-paying stocks tended to outperform on a quarterly basis more often than they underperformed, in contrast to stocks without dividends.
After distributing record dividends in the previous year, U.S. companies continue to demonstrate resilience this year. According to the most recent quarterly report from Janus Henderson, a U.K.-based fund manager that analyzes the world's top 1,200 publicly traded companies by market value, it was found that 98% of surveyed U.S. companies did not reduce their dividends. This figure stands in contrast to the global trend, where 89% of companies worldwide did not trim their dividends. The report also mentioned that the growth of dividends in the US has been slowing for eight consecutive quarters, reflecting concerns about the economy after the Federal Reserve aimed to control inflation through higher interest rates. Despite this slowdown, the U.S. is on track to achieve a record payout for 2023, with $146.6 billion distributed in the third quarter.
Ben Lofthouse, head of global equity income at Janus Henderson, has given a positive outlook on dividend stocks this year, despite a weakness in global dividends. Here is what he said:
"It is quite common and well-understood by investors that commodity dividends will rise and fall with the cycle, however, so this weakness does not suggest wider malaise."
The frequency at which dividends are paid, whether monthly or quarterly, can impact an investor's cash flow and financial planning. For those seeking regular income, more frequent dividend payments can provide a steady stream of funds. Quarterly dividends, in particular, are common among many companies. Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Chevron Corporation (NYSE:CVX) are some of the best dividend stocks that pay quarterly dividends to shareholders. However, we will discuss dividend stocks that pay monthly dividends and have yields above 5%.
12 Monthly Dividend Stocks with Over 5% Yield
Daily newspaper economy stock market chart
Our Methodology:
We looked through a list of companies that pay monthly dividends and picked those with yields above 5% as of November 15. While analysts don't usually recommend stocks with extremely high dividend yields because they may indicate financial issues, we chose companies with a consistent history of stable dividends despite their high yields. The stocks are ranked in ascending order of their dividend yields, as of November 15.
Agree Realty Corporation (NYSE:ADC) is an American real estate investment trust company that primarily focuses on the development and acquisition of retail properties. On November 9, the company declared a monthly dividend of $0.247 per share, growing it by 2.9% in October this year. This marked the company's 13th consecutive year of dividend growth, which makes ADC one of the best dividend stocks on our list. The stock has a dividend yield of 5.11%, as of November 15.
ADC can be added to dividend portfolios alongside some of the best quarterly dividend stocks, such as Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Chevron Corporation (NYSE:CVX).
At the end of Q2 2023, 29 hedge funds tracked by Insider Monkey owned stakes in Agree Realty Corporation (NYSE:ADC), up from 22 in the previous quarter. These stakes have a consolidated value of over $418.7 million. Among these hedge funds, Millennium Management was the company's leading stakeholder in Q2.
An American real estate investment trust company, Apple Hospitality REIT, Inc. (NYSE:APLE) focuses on acquiring and owning hotel properties. The company invests in upscale, select-service hotels and owns a diversified portfolio of hotels across the country. In the third quarter of 2023, the company reported revenue of $385.2 million, which showed a 13% growth from the same period last year. It ended the quarter with over $35.3 million available in cash and cash equivalents.
Apple Hospitality REIT, Inc. (NYSE:APLE), one of the best dividend stocks on our list, currently pays a monthly dividend of $0.08 per share. The stock's dividend yield on November 15 came in at 5.74%.
As of the end of Q2 2023, 17 hedge funds in Insider Monkey's database owned stakes in Apple Hospitality REIT, Inc. (NYSE:APLE), compared with 18 in the previous quarter. These stakes are collectively valued at over $62.6 million.
Realty Income Corporation (NYSE:O) is a California-based REIT that specializes in commercial real estate, particularly in the retail and commercial sectors. The company's portfolio includes a diverse range of tenants, covering various industries, including convenience stores, drugstores, supermarkets, and other retail and commercial enterprises.
Realty Income Corporation (NYSE:O) offers a monthly dividend of $0.256 per share and has a dividend yield of 5.89%, as of November 15. In 2023, the company stretched its dividend growth streak to 29 years, which makes O one of the best dividend stocks on our list.
As of the end of June 2023, 24 hedge funds tracked by Insider Monkey owned stakes in Realty Income Corporation (NYSE:O), up from 22 in the preceding quarter. The overall value of these stakes is more than $243.6 million. Marshall Wace LLP was the largest stakeholder of the company in the second quarter.
LTC Properties, Inc. (NYSE:LTC) focuses on investing in senior housing and healthcare properties. The company typically enters into long-term lease agreements with healthcare operators, and these operators are responsible for the day-to-day management and operations of the facilities.
In the third quarter of 2023, LTC Properties, Inc. (NYSE:LTC) posted revenue of over $49.3 million, up 13.3% from the same period last year. At the end of the quarter, the company had over $11.3 million available in cash and cash equivalents.
LTC Properties, Inc. (NYSE:LTC) has a 31-run of paying regular dividends to shareholders. The company offers a monthly dividend of $0.19 per share and has a dividend yield of 6.89%, as of November 15.
Insider Monkey's database of Q2 2023 showed that 8 hedge funds owned stakes in LTC Properties, Inc. (NYSE:LTC), down from 10 in the previous quarter. These stakes have a collective value of over $7.4 million.
Main Street Capital Corporation (NYSE:MAIN) is a business development company that provides capital and financial solutions to lower-middle-market and middle-market companies. On November 1, the company announced a 2.1% hike in its monthly dividend to $0.24 per share. This was the company's third consecutive monthly dividend increase, which makes MAIN one of the best dividend stocks on our list. The stock has a dividend yield of 6.92%, as of November 15.
Main Street Capital Corporation (NYSE:MAIN) reported a total investment income of $123.2 million in the third quarter of 2023, which saw a 25.3% growth from the same period last year. As of September 30, the company had over $77 million available in cash and cash equivalents.
The number of hedge funds tracked by Insider Monkey owning stakes in Main Street Capital Corporation (NYSE:MAIN) grew to 12 in Q2 2023, from 9 in the previous quarter. The collective value of these stakes is more than $51.3 million.
SL Green Realty Corp. (NYSE:SLG) is a real estate investment trust company that primarily focuses on the acquisition, ownership, management, and development of commercial real estate properties, particularly office buildings. On October 20, the company announced a monthly dividend of $0.2708 per share, which was consistent with its previous dividend. The company holds a 25-year track record of paying regular dividends to shareholders. The stock's dividend yield on November 15 came in at 9.34%.
As per Insider Monkey's database of Q2 2023, 22 hedge funds in Insider Monkey's database owned stakes in SL Green Realty Corp. (NYSE:SLG), growing from 21 in the previous quarter. These stakes are worth nearly $154 million in total. With over 2 million shares, Alyeska Investment Group was the company's leading stakeholder in Q2.
Gladstone Capital Corporation (NASDAQ:GLAD) is a Virginia-based real estate investment trust company that focuses on providing debt and equity financing to small and medium-sized businesses in the US. It currently pays a monthly dividend of $0.0825 per share, having raised it by 3.1% in July. With a dividend yield of 9.76% as of November 15, GLAD is one of the best dividend stocks on our list.
In addition to Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Chevron Corporation (NYSE:CVX), GLAD can be added to dividend portfolios because of its monthly payouts.
At the end of Q2 2023, 5 hedge funds in Insider Monkey's database owned stakes in Gladstone Capital Corporation (NASDAQ:GLAD), which remained unchanged from its previous quarter. The total value of these stakes is nearly $11 million.
