In this article, we discuss 15 best monthly dividend stocks to buy right now. You can skip our detailed analysis of dividend stocks and their previous performance, and go directly to read 5 Best Monthly Dividend Stocks To Buy Right Now.
The significance of dividend equities extends beyond general perceptions; they have demonstrated exceptional performance under specific market conditions. Ethan Wu, a financial reporter at Financial Times, spoke about dividend stocks and their performance in his recent podcast. Here are some comments from the reporter:
“And just to underscore your point about how important dividends have been to returns in US stocks, I took a look just yesterday in the Unhedged newsletter at the past century, right, using this great S&P database. And their numbers show that in the past century, since 1926, if you were a buy-and-hold investor of the S&P 500, fully 38 percent of your total return came from just collecting those dividends and plowing them right back into stocks.”
In our article titled 25 Things Every Dividend Investor Should Know, we referred to data by BlackRock, which revealed that dividends from US companies have grown annually by an average of 3.7% over the last 150 years, surpassing the annual average inflation rate of 2%. Wisdom Tree’s data also confirms the notion that dividends have consistently outpaced inflation rates. According to their research from 1957 to 2022, dividends have shown an annual average growth of 5.7%, exceeding inflation by over 2%. Similarly, from 1990 to 2022, dividends from the S&P 500 grew by 5.61%, while inflation lagged behind at 2.64% over the same period. These findings emphasize dividends’ capacity to serve as a hedge against inflation, potentially enhancing investors’ purchasing power over time.
Dividend stocks lost ground in 2023 mainly because investors favored tech stocks. However, companies remained committed to their shareholder responsibilities as global dividends reached an unprecedented high of $1.66 trillion in 2023, according to a report by Janus Henderson’s Global Dividend Index. This figure showed a notable 5.6% increase from 2022 and an 18.6% surge from the pre-Covid levels of 2019. The report also mentioned how US companies remained consistent in their dividend payments, with nearly 95% of those in the index either increasing their payouts or holding them steady last year.
Companies that raise their dividends regularly also catch investors’ attention as these strategies have generated better returns over the years. One of the main reasons for this performance is that these companies have strong cash flow, which mainly signifies their ability to maintain and grow their dividends over an extended period. Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) are some of the best dividend stocks that have been raising their payouts for decades. Moreover, these companies have strong balance sheets and solid cash generation, positioning them to raise their dividends in the coming years as well. In this article, we will take a look at companies that pay monthly dividends to shareholders.
15 Best Monthly Dividend Stocks To Buy Right Now
Our Methodology:
For this list, we reviewed a list of companies providing monthly dividends to their shareholders from Sure Dividend. Among these, we specifically chose businesses with robust dividend practices, consistently maintaining their payouts across multiple years. The majority of these selected companies operate within the Real Estate Investment Trust (REIT) sector, as they are required to allocate 90% of their income towards dividends. The stocks are ranked in ascending order of the number of hedge funds having stakes in them, according to Insider Monkey’s database of 933 hedge funds as of Q4 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Global Water Resources, Inc. (NASDAQ:GWRS) is an Arizona-based water supply company that provides related services to its consumers. On March 28, the company declared a monthly dividend of $0.0251 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 growing its dividends for the past nine years. The stock has a dividend yield of 2.47%, as of April 14.
At the end of Q4 2023, 4 hedge funds tracked by Insider Monkey reported having stakes in Global Water Resources, Inc. (NASDAQ:GWRS), compared with 5 in the previous quarter. These stakes have a total value of over $6.2 million. Among these hedge funds, Royce & Associates was the company's leading stakeholder in Q4.
U.S. Global Investors, Inc. (NASDAQ:GROW) is an American investment advisory company that provides investment management services and related products. It is one of the best dividend stocks on our list as the company has never missed a dividend since 2007. The company offers a monthly dividend of $0.0075 per share and has a dividend yield of 3.20%, as of April 14.
As of the close of Q4 2023, 4 hedge funds in Insider Monkey's database held stakes in U.S. Global Investors, Inc. (NASDAQ:GROW), down slightly from 5 in the preceding quarter. The overall value of these stakes is over $2.2 million.
Gladstone Commercial Corporation (NASDAQ:GOOD) is next on our list of the best dividend stocks that pay monthly dividends. The real estate investment trust company specializes in acquiring, owning, and managing office properties. The company currently pays a monthly dividend of $0.10 per share for an impressive dividend yield of 9.08%.
Gladstone Commercial Corporation (NASDAQ:GOOD) was a part of 5 hedge fund portfolios at the end of Q4 2023, the same as in the previous quarter, according to Insider Monkey's database. The stakes held by these hedge funds have a total value of over $25.7 million. CastleKnight Management was the largest stakeholder of the company.
Dynex Capital, Inc. (NYSE:DX) is an American real estate investment trust company that invests in mortgage-backed securities and related assets. On April 12, the company announced a monthly dividend of $0.12 per share, which fell in line with its previous dividend. It has been making regular dividend payments to shareholders since 2008, which makes it one of the best dividend stocks on our list. The stock's dividend yield on April 14 came in at 13.2%.
At the end of December 2023, 6 hedge funds in Insider Monkey's database held stakes in Dynex Capital, Inc. (NYSE:DX), down from 10 in the previous quarter. These stakes have a total value of over $19.3 million.
ARMOUR Residential REIT, Inc. (NYSE:ARR) is a Florida-based real estate investment trust company that invests in residential mortgage-backed securities. The company was included in 6 hedge fund portfolios at the end of Q4 2023, compared with 7 in the previous quarter, as per Insider Monkey's database. The stakes held by these hedge funds have a total value of roughly $20 million.
ARMOUR Residential REIT, Inc. (NYSE:ARR), one of the best dividend stocks that pay monthly dividends, offers a monthly dividend of $0.24 per share. The company has been paying uninterrupted dividends to shareholders since 2010. As of April 14, the stock has a dividend yield of 15.64%.
An American real estate investment trust company, LTC Properties, Inc. (NYSE:LTC) specializes in senior housing and healthcare properties. The company's monthly dividend currently comes in at $0.19 per share for a dividend yield of 7.21%, as recorded on April 14.
With a collective stake value of over $27.3 million, 11 hedge funds in Insider Monkey's database owned positions in LTC Properties, Inc. (NYSE:LTC) in the fourth quarter of 2023. In the previous quarter, 11 funds held stakes in the company, worth over $9.9 million in total.
Prospect Capital Corporation (NASDAQ:PSEC) is a New York-based business development company that provides debt and equity financing to middle-market companies across the country. The company announced a monthly dividend of $0.06 per share on March 25, which was in line with its previous dividend. It has been paying regular dividends to shareholders for the past 79 consecutive months. With a dividend yield of 13.38% as of April 14, PSEC is one of the best dividend stocks on our list.
The number of hedge funds holding stakes in Prospect Capital Corporation (NASDAQ:PSEC) grew to 12 in Q4 2023, from 9 in the previous quarter, as per Insider Monkey's database. These stakes are worth over $14.3 million in total. Among these hedge funds, Marshall Wace LLP was the company's leading stakeholder in Q4.
An American business development company, Main Street Capital Corporation (NYSE:MAIN) is next on our list of the best dividend stocks that pay monthly dividends to shareholders. The company paid regular dividends to shareholders since 2007 and currently offers a monthly dividend of $0.24 per share. The stock has a dividend yield of 6.14%, as of April 14.
Insider Monkey's database of Q4 2023 indicated that 13 hedge funds held stakes in Main Street Capital Corporation (NYSE:MAIN), up from 12 in the previous quarter. These stakes have a total value of over $52.8 million.
Phillips Edison & Company, Inc. (NASDAQ:PECO) is an Ohio-based real estate investment trust company that owns and operates shopping centers in the US. The company started paying dividends in 2021 and has raised its payouts every year since then, which makes PECO one of the best dividend stocks on our list. The company pays a per-share dividend of $0.0975 every month and has a dividend yield of 3.55%, as of April 14.
Phillips Edison & Company, Inc. (NASDAQ:PECO) ended the fourth quarter of 2023 with 14 hedge fund positions, jumping from 9 in the previous quarter, according to Insider Monkey's database. The stakes held by these hedge funds have a collective value of nearly $70 million.
AGNC Investment Corp. (NASDAQ:AGNC) ranks sixth on our list of the best dividend stocks with monthly payouts. The real estate investment trust company has never missed a dividend since the initiation of its dividend policy in 2008. It currently offers a monthly dividend of $0.12 per share and has a dividend yield of 15.47%, as of April 14.
According to Insider Monkey's database of Q4 2023, 14 hedge funds held stakes in AGNC Investment Corp. (NASDAQ:AGNC), down from 18 in the previous quarter. These stakes have a total value of more than $43.4 million. Among these hedge funds, Holocene Advisors was the company's leading stakeholder in Q4.
