In this article, we discuss 14 best monthly dividend stocks to buy according to analysts. You can skip our detailed discussion on dividend stocks and their performance over the years, and go directly to read 5 Best Monthly Dividend Stocks to Buy According to Analysts.
While it's tempting to focus on the largest dividends or highest yields, cash flow shows how sustainable the dividends are. The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Exxon Mobil Corporation (NYSE:XOM) are some of the best dividend stocks with sustainable dividends and decades-long dividend growth streaks.
Despite the strong recovery of the stock market in 2023, several dividend stocks have faced challenges. This is because the market's recent surge has mainly favored companies related to artificial intelligence. Sectors like healthcare, energy, and financial services, which usually offer reliable and lasting dividend returns, have not performed as well in comparison. However, experts suggest that investors shouldn’t overreact to this temporary decline. Dan Lefkovitz, a strategist for Morningstar Indexes, spoke about dividend stocks and their potential comeback in his recent interview. Here are some remarks from the analyst:
“Overall, dividend performance this year has been lackluster. The great thing about dividend investing is that it’s got a great track record. Plus, investors get paid while they wait for performance to turn around.”
Mr. Lefkovitz’s statement agrees with the historical performance of dividend stocks as they represented over 40% of the stock market's total gains from 1930 to 2022. Specifically, the performance of dividend stocks remains stable during periods of high-interest rates. Last year, dividend stocks outperformed the broader market when the US Federal Reserve hiked interest rates seven times.
According to a paper published by Morningstar in July 2023, during high-interest rate periods like the mid-1970s in the US, stocks that paid dividends performed better than the overall market. When interest rates decreased from the mid-1980s to the mid-1990s, the performance of stocks with high yields compared to the market was flat. However, when the Feds lowered rates in the late 1990s due to the Asian financial crisis, dividend-paying stocks didn’t benefit at all. That said, the impact of interest rates on dividend stocks is hard to predict.
In view of this discussion, we will focus on monthly dividend stocks to buy according to analysts.
14 Best Monthly Dividend Stocks to Buy According to Analysts
For this list, we first screened for monthly dividend stocks with yields above 3%, as of August 6. After that, we found the average price targets and ratings of these stocks placed by Wall Street analysts and other investment firms. From the resultant list, we picked 14 stocks with the highest upside potential based on their price targets. The stocks are ranked in ascending order of upside potential.
SL Green Realty Corp. (NYSE:SLG) is a real estate investment trust company that mainly invests in commercial properties across the US. On July 20, the company announced a monthly dividend of $0.2708 per share, which was in line with its previous dividend. It is one of the best dividend stocks on our list as the company has been paying uninterrupted dividends to shareholders for 25 years running. The stock's dividend yield on August 6 stood at 8.89%.
Other popular dividend stocks gaining investors' attention include The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Exxon Mobil Corporation (NYSE:XOM).
As of the close of Q1 2023, 21 hedge funds owned stakes in SL Green Realty Corp. (NYSE:SLG), up from 20 in the previous quarter, according to Insider Monkey's database. These stakes have a consolidated value of roughly $112 million.
Main Street Capital Corporation (NYSE:MAIN) is next on our list of the best dividend stocks that offer monthly dividends. The capital market company has been making regular dividend payments to shareholders since 2007 and currently offers a monthly dividend of $0.235 per share, having it raised by 2.2% on August 2. Moreover, the company has been paying supplemental dividends for seven consecutive quarters. As of August 6, the stock's dividend came in at 6.51%.
Main Street Capital Corporation (NYSE:MAIN) reported strong Q2 2023 earnings, reporting a total investment income (TII) of $127.6 million. The TII showed a roughly 50% growth from the same period last year. At the end of the quarter, it had over $70.8 million available in cash and cash equivalents, up from $49.1 million six months ago.
At the end of March 2023, 9 hedge funds tracked by Insider Monkey held stakes in Main Street Capital Corporation (NYSE:MAIN), down from 11 in the previous quarter. These stakes have a consolidated value of nearly $23 million.
STAG Industrial, Inc. (NYSE:STAG) focuses on the acquisition and operation of industrial properties throughout the US. According to analysts, the stock has an upside potential of 7.85%. It is one of the best dividend stocks on our list as it has been raising its dividends for 11 consecutive years. It offers a monthly dividend of $0.1225 per share for a dividend yield of 4.09% on August 6.
In the second quarter of 2023, STAG Industrial, Inc. (NYSE:STAG) posted revenue of $171.7 million, up 6.3% from the prior-year quarter. The company produced $87.2 million in cash available for distribution. Moreover, its net income attributable to common stockholders came in at $51.6 million, compared with $32.3 million during the same period last year.
At the end of Q1 2023, 15 hedge funds tracked by Insider Monkey held investments in STAG Industrial, Inc. (NYSE:STAG), with a total value of over $121 million. With over 1.5 million shares, Waterfront Capital Partners was the company's leading stakeholder in Q1.
AGNC Investment Corp. (NASDAQ:AGNC) engages in the operation of real estate investment trusts. The company offers a monthly dividend of $0.12 per share and has a dividend yield of 14.41%, as of August 6. Since its IPO in 2008, the company has paid over $12.4 billion in dividends to shareholders, which makes it one of the best dividend stocks on our list.
At the end of March 2023, 24 hedge funds tracked by Insider Monkey held stakes in AGNC Investment Corp. (NASDAQ:AGNC), up from 22 a quarter earlier. The total value of these stakes is over $184 million.
An American real estate investment trust company, Dynex Capital, Inc. (NYSE:DX) is next on our list of the best dividend stocks. The Virginia-based company mainly invests in mortgage loans. It currently pays a monthly dividend of $0.13 per share and has a dividend yield of 12 .08%, as of August 6. The company has a 15-year run of paying regular dividends to shareholders.
As per Insider Monkey's database of Q1 2023, 11 hedge funds owned stakes in Dynex Capital, Inc. (NYSE:DX), compared with 13 in the previous quarter. Their total stake value is over $45.5 million.
Gladstone Investment Corporation (NASDAQ:GAIN) is an American business development company that specializes in investing in small and middle-sized businesses. The company provides capital and financial support to these companies to help them grow and succeed.
In its recently-announced second-quarter earnings, Gladstone Investment Corporation (NASDAQ:GAIN) reported a total investment income of $20.3 million, which fell by 2.4% from the same period last year. The company's net investment income for the quarter came in at over $8.4 million.
Gladstone Investment Corporation (NASDAQ:GAIN), one of the best dividend stocks, paid a supplemental dividend of $0.12 per share in June. It currently offers a monthly dividend of $0.08 per share for a dividend yield of 7.22%, as recorded on August 6.
As of the close of Q1 2023, 5 hedge funds tracked by Insider Monkey owned stakes in Gladstone Investment Corporation (NASDAQ:GAIN), compared with 6 in the previous quarter. These stakes have a total value of over $3.2 million. Among these hedge funds, Two Sigma Advisors was the company's leading stakeholder in Q1.
Gladstone Land Corporation (NASDAQ:LAND) is a Virginia-based real estate investment trust company that specializes in owning and managing farmland properties. On June 16, the company announced a monthly dividend of $0.046 per share, consistent with its previous dividend. It is one of the best dividend stocks on our list with an 8-year dividend growth track record under its belt. The stock offers a dividend yield of 3.33%, as of August 6.
The number of hedge funds tracked by Insider Monkey owning stakes in Gladstone Land Corporation (NASDAQ:LAND) grew to 9 in Q1 2023, from 7 in the previous quarter. These stakes have a total value of over $12.5 million. Ken Griffin's Citadel Investment Group was one of the company's largest stakeholders in Q1.
Agree Realty Corporation (NYSE:ADC) is next on our list of the best dividend stocks with monthly payouts. The Michigan-based real estate investment trust company has been growing its dividends consistently for the past 12 years. It currently pays a per-share dividend of $0.243 every month, for a dividend yield of 4.50%, as recorded on August 6.
Agree Realty Corporation (NYSE:ADC) reported revenue of $130 million in the second quarter of 2023, which showed a 24% growth from the same period last year. The company's dividends during the quarter represented payout ratios of approximately 75% of core FFO per share.
Out of 943 hedge funds tracked by Insider Monkey, 22 elite funds had stakes in Agree Realty Corporation (NYSE:ADC) at the end of Q2 2023. These stakes are worth $382.6 million in total. With nearly 1.3 million shares, Zimmer Partners was the company's leading stakeholder.
EPR Properties (NYSE:EPR) ranks sixth on our list of the best dividend stocks that pay monthly dividends. The real estate investment trust currently pays a monthly dividend of $0.275 per share and has a dividend yield of 7.65%, as of August 6.
EPR Properties (NYSE:EPR) reported strong earnings in the second quarter of 2023, with its revenue jumping by 7.8% on a year-over-year basis to $173 million. The company ended the quarter with roughly $100 million in cash and cash equivalents.
EPR can be added to dividend portfolios alongside The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), and Exxon Mobil Corporation (NYSE:XOM) because of its monthly payouts.
Insider Monkey's database of Q1 2023 showed that 19 hedge funds held investments in EPR Properties (NYSE:EPR), with a collective value of over $146 million.
