In this article, we discuss 10 best monthly dividend stocks to buy in June. You can skip our detailed analysis of dividend-paying stocks and their total returns over the years, and go directly to read 5 Best Monthly Dividend Stocks to Buy in June.
As major stock exchanges in the US took a spill in the past months, investors are moving towards dividend-paying stocks to protect themselves from a slow economy and rising interest rates. According to a report published by Refinitiv Lipper, investors brought in roughly $7 billion in US dividend funds in January, the highest since October 2006. This complies with the estimate that over 30% of the participants in CNBC’s investor survey said that they would purchase dividend stocks for the rest of 2022.
Companies with consistent dividend payments are viewed as strong by income investors because they promise regular streams of income for them, especially during times of financial instability. According to Ryan Fause, a portfolio manager at Pinnacle Associates, investors tend to move toward dividend stocks when markets become negative, as growth stocks struggle during these times. This has been mentioned in a report that from 1991 to 2015, non-dividend paying stocks returned 4.18% per year, compared with an average annual return of 9.7% of their dividend-paying counterparts during the same period. Moreover, since 1973, dividend growers have delivered strong returns to shareholders relative to the broader market.
Due to the investors’ inclination toward dividend stocks, many companies raised their dividends after the pandemic, with dividend payouts amounting to $1.47 trillion in 2021, up 17% from the previous year. Also, global dividends are expected to hit a new record of over $1.5 trillion in 2022. Some major dividend stocks famous among investors are The Coca-Cola Company (NYSE:KO), Pfizer Inc. (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ), but we will explore some of the best monthly dividend stocks to buy in June.
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Our Methodology
In this article, we discuss the best monthly dividend stocks to buy in June. The list has been compiled by considering the strong business fundamentals of the respective companies, along with analysts’ ratings and dividend yields. In addition to this, hedge fund sentiment around each stock was also observed by using the data of 900+ elite funds tracked by Insider Monkey at the end of March 2022. The stocks mentioned below are ranked from the lowest yield to the highest.
Best Monthly Dividend Stocks to Buy in June
10. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 21
Dividend Yield as of June 7: 4.00%
Agree Realty Corporation (NYSE:ADC) is a Michigan-based real estate investment trust that invests in the properties net leased to the foremost retailers in the US. As of June, the company owns over 1,500 properties spread over 31 million square feet.
On June 2, BofA upgraded Agree Realty Corporation (NYSE:ADC) to Buy with a $78 price target, highlighting the company’s revenue growth and expense assumptions. The firm further mentioned that the REIT sector is expected to outperform due to the market’s focus on hardening monetary conditions and rising risks of a recession.
Agree Realty Corporation (NYSE:ADC) currently pays a monthly dividend of $0.234 per share, increasing it by 3.1% in April. The company has paid uninterrupted dividends for the past 11 years and its 5-year dividend CAGR stands at 6.6%, which makes it one of the best monthly dividend stocks. As of June 7, the stock’s dividend yield was recorded at 4.00%.
In the first quarter of 2022, Agree Realty Corporation (NYSE:ADC) reported solid results, posting an FFO of $0.97, which beat estimates by $0.04. The company generated revenue of $98.3 million, surpassing consensus by $0.84 million.
In addition to The Coca-Cola Company (NYSE:KO), Pfizer Inc. (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ), ADC is an important dividend payer to consider.
According to Insider Monkey’s database for the first quarter of 2022, 21 hedge funds owned stakes in Agree Realty Corporation (NYSE:ADC), down from 26 in the previous quarter. These stakes hold a consolidated value of $141.5 million. Among these hedge funds, Millennium Management was the company’s largest shareholder in Q1 2022, with stakes worth over $50.5 million.
9. STAG Industrial, Inc. (NYSE:STAG)
Number of Hedge Fund Holders: 21
Dividend Yield as of June 7: 4.34%
As the name suggests, STAG Industrial, Inc. (NYSE:STAG) mainly invests in industrial properties throughout the US. The real estate investment trust topped analysts’ expectations in Q1 2022, posting year-over-year growth in rent and net operating income. Moreover, the company reported an FFO of $0.53, which exceeded estimates by $0.01.
At the end of March 2022, 21 hedge funds in Insider Monkey’s database reported owning $528.6 million worth of stakes in STAG Industrial, Inc. (NYSE:STAG). In comparison, 22 hedge funds held stakes in the company in the previous quarter, valued at $525.3 million. With roughly $170 million shares, Zimmer Partners held the largest position in the company in Q1 2022.
STAG Industrial, Inc. (NYSE:STAG) hiked its monthly dividend by 0.7% in January this year and currently pays a dividend of $0.1217 per share every month. As of June 7, the stock’s dividend yield came to be recorded at 4.34%. Earlier this year, Baird presented a positive outlook on Industrial REIT as their demand remains exponentially strong. The firm upgraded STAG Industrial, Inc. (NYSE:STAG) to Outperform, with a $48 price target.
8. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Dividend Yield as of June 7: 4.42%
An American real estate investment trust, Realty Income Corporation (NYSE:O) mainly invests in commercial properties in the US, Spain, and the UK. On May 4, the company reported solid quarterly earnings, posting an FFO of $0.98 and revenue of $807 million, which surpassed analysts’ estimates by $0.01 and $58.6 million, respectively.
In May, Realty Income Corporation (NYSE:O) announced a monthly dividend of $0.247 per share, consistent with its previous dividend. The company raised its monthly dividend by 0.2% in March, which was its 115th consistent dividend hike in the past 53 years. The stock’s dividend yield was recorded at 4.42% on June 7.
On May 23, Wolfe Research appreciated the performance of Realty Income Corporation (NYSE:O) as it outperformed its peers through March this year. However, as the sector lacks pricing power due to high inflation, the firm downgraded the stock to Peer Perform and kept a $73 price target.
The number of hedge funds tracked by Insider Monkey owning stakes in Realty Income Corporation (NYSE:O) in Q1 2022 stood at 22, declining from 30 in the previous quarter. The consolidated value of the stakes held by 22 funds was roughly $285 million, down from nearly $400 million worth of stakes held by hedge funds in Q4 2021.
7. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 7
Dividend Yield as of June 7: 5.96%
LTC Properties, Inc. (NYSE:LTC) is a California-based healthcare REIT that invests in senior housing and other health-related properties. Recently, the company announced an investment of over $37 million for four assisted living communities, which will have a combined total of 217 units in North Carolina.
According to Insider Monkey’s Q1 2022 database, LTC Properties, Inc. (NYSE:LTC) was included in 7 hedge fund portfolios, compared with 8 funds in the previous quarter. The collective value of these stakes is over $16 million, showing considerable growth from $7 million worth of stakes held by hedge funds in Q4 2021.
LTC Properties, Inc. (NYSE:LTC) did not raise its dividend since 2016 but maintained regular dividend payouts over the years. The company pays a monthly dividend of $0.19 per share, with a dividend yield of 5.96%, recorded on June 7.
On June 3, Capital One reinstated its coverage of LTC Properties, Inc. (NYSE:LTC) with an Equal Weight rating and a $41 price target, up from $39. The firm showed confidence in the company’s portfolio and its investment prospects in 2023. LTC is up 9.73% year-to-date, as of the market close of June 7.
6. SL Green Realty Corp. (NYSE:SLG)
Number of Hedge Fund Holders: 18
Dividend Yield as of June 7: 6.43%
SL Green Realty Corp. (NYSE:SLG) is a fully integrated REIT, holding interests in 71 buildings totaling 34.7 million square feet. In April, the company hiked its monthly dividend by 0.3% to $0.3108 per share. The stock’s dividend yield was recorded at 6.43% on June 7.
At the end of Q1 2022, LDR Capital was the major stakeholder of SL Green Realty Corp. (NYSE:SLG), with stakes worth roughly $50 million. Overall, 18 hedge funds tracked by Insider Monkey owned positions in the New York-based company, down from 19 in the previous quarter. The collective value of these stakes is over $130.8 million.
On April 20, SL Green Realty Corp. (NYSE:SLG) reported its Q1 2022 earnings, posting an FFO of $1.65, which beat expectations by $0.01. The company generated revenue of roughly $188 million, exceeding the market consensus by $24.3 million. Moreover, SL Green Realty Corp. (NYSE:SLG) also reported a 9.3% year-over-year growth in its same-store cash net operating income.
In May, Goldman Sachs appreciated the newly built office space by SL Green Realty Corp. (NYSE:SLG) and set a $79 price target on the stock, with a Buy rating on the shares. Along with SLG, analysts are also positive about other major dividend stocks, such as The Coca-Cola Company (NYSE:KO), Pfizer Inc. (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ).
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Disclosure. None. 10 Best Monthly Dividend Stocks to Buy in June is originally published on Insider Monkey.
