In this article, we discuss 10 best stocks that pay monthly dividends. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Best Stocks That Pay Monthly Dividends.
In July 2022, the Consumer Price Index rose 8.5% from a year ago, marking a little slowdown in inflation’s pace from the previous month. Even so, investors are exploring various investment strategies to cope well with market uncertainty. In this regard, dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ) are gaining ground among investors as they have paid uninterrupted dividends to shareholders for decades.
US dividends were affected by the pandemic of 2020 when approximately 190 US-listed companies ceased their dividend payments, according to S&P Global Market Intelligence. The report further mentioned that 61.5% of those companies reinstated their dividends soon after recovering from their losses. Diane Jaffee, a senior portfolio manager at TCW Group, told Wall Street Journal that investors are preferring dividend stocks as this gives them an insight into the respective companies’ financial health. She further asserted that dividend-paying companies usually exhibit confidence, strength, and commitment toward their investors. In the current environment, investors can achieve their economic goal by investing in dividend companies as they tend to perform better in inflationary periods. According to a report by Wisdom Tree, dividends have grown at an annual average rate of 5.7% from 1957 to 2020, compared with a 3.63% growth rate of inflation. Moreover, in the last 64 years, dividend levels have declined in only six years, while stock prices fell in 18 of those years.
In the second quarter of 2022, dividend payments reached their all-time high, amounting to $144.4 billion, according to Bloomberg. Banks and other financials represented two-fifths of the overall growth. In addition to this global quarterly dividends stood at $544.8 billion as 94% of companies in the Janus Henderson Global Dividend Index raised or maintained their dividends. In view of the aforementioned discussion, we’ll discuss 10 best stocks that pay monthly dividends.
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Our Methodology
The stocks mentioned below pay monthly dividends to shareholders. We selected these stocks on the basis of their dividend policies, strong balance sheets, and solid financials.
Best Stocks That Pay Monthly Dividends
10. Itaú Unibanco Holding S.A. (NYSE:ITUB)
Dividend Yield as of August 30: 1.76%
Itaú Unibanco Holding S.A. (NYSE:ITUB) is a Brazilian financial services company that offers retail, commercial, corporate, and private banking services. In Q1 2022, the company reported solid financials, reporting a net income of R$7.4 billion. The company’s revenue for the quarter grew by 11.5% to R$33 billion.
Itaú Unibanco Holding S.A. (NYSE:ITUB) has been making dividend payments since 1980. It currently pays a monthly dividend of $0.003 per share and has a dividend yield of 1.76%, as of August 30.
At the end of Q2 2022, 11 hedge funds tracked by Insider Monkey reported owning stakes in Itaú Unibanco Holding S.A. (NYSE:ITUB), down from 19 in the previous quarter. The collective value of these stakes is nearly $400 million. Orbis Investment Management was the company’s leading stakeholder in Q2, owning stakes worth over $127.7 million.
In addition to famous dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ), Itaú Unibanco Holding S.A. (NYSE:ITUB) can be a good addition to dividend portfolios for monthly income.
9. Global Water Resources, Inc. (NASDAQ:GWRS)
Dividend Yield as of August 30: 2.15%
Global Water Resources, Inc. (NASDAQ:GWRS) is an Arizona-based water resource management company that provides recycled water and wastewater utility services. The company was a part of 5 hedge fund portfolios in Q2 2022, up from 4 in the previous quarter, according to Insider Monkey’s data. The stakes owned by hedge funds hold a collective value of over $6.3 million.
In Q2 2022, Global Water Resources, Inc. (NASDAQ:GWRS) reported a net income of $2.1 million, compared with $2 million in the same period last year. The company’s operating cash flow also grew to $6.5 million, from $5.3 million in the previous quarter. Its revenue showed a 7.3% year-over-year growth at $11.7 million.
Global Water Resources, Inc. (NASDAQ:GWRS) currently pays a monthly dividend of $0.0246 per share, with a dividend yield of 2.15%, as of August 30. The company’s payout ratio stands at 140%, improving from 224% in 2021.
8. Gladstone Land Corporation (NASDAQ:LAND)
Dividend Yield as of August 30: 2.33%
Gladstone Land Corporation (NASDAQ:LAND) is a Virginia-based real estate investment trust company. It has a strong dividend history, growing its dividends 22 times in the past 25 quarters. Moreover, the company has paid over 100 consecutive monthly dividends since its IPO in 2013. It pays a monthly dividend of $0.0456 per share, raising it by 4% in July. The stock’s dividend yield came in at 2.33%, as of August 30.
In Q2 2022, Gladstone Land Corporation (NASDAQ:LAND) reported revenue of $20.29 million while its net income came in at $616,000. The company generated over $5.2 million in free cash flow, up from $4 million in the previous quarter. Its operating cash flow was recorded at $11.8 million, compared with $7.5 million in the preceding quarter.
As of the close of Q2 2022, 9 hedge funds in Insider Monkey’s database owned stakes in Gladstone Land Corporation (NASDAQ:LAND), up from 8 in the previous quarter. These stakes have a collective value of over $11.5 million. Millennium Management owned the largest stake in the company in Q2, worth over $3.8 million.
7. Agree Realty Corporation (NYSE:ADC)
Dividend Yield as of August 30: 3.63%
Agree Realty Corporation (NYSE:ADC) is an American real estate investment trust that specializes in the acquisition and development of properties net leased to retailers in the country. The company was appreciated by Street analysts after its Q2 2022 results. In August, both Truist and RBC Capital raised their price targets on the stock to $84 and $83, respectively.
In Q2 2022, Agree Realty Corporation (NYSE:ADC) reported revenue of $104.8 million, which showed a 27.05% year-over-year growth. At the end of June, the company’s AFFO stood at nearly $149 million, compared with $110 million during the same period last year. It ended the quarter with $26.2 million available in cash and cash equivalents.
Agree Realty Corporation (NYSE:ADC) has been raising its dividends consistently for the past 11 years. The company pays a monthly dividend of $0.234 per share, with a dividend yield of 3.63%, as of August 30. The dividend payments represent a payout ratio of approximately 72% of its FFO.
At the end of June 2022, 19 hedge funds tracked by Insider Monkey reported owning stakes in Agree Realty Corporation (NYSE:ADC), valued at over $110 million. In comparison, 21 hedge funds owned stakes in the company in the previous quarter, with a total value of over $141.5 million.
5. Realty Income Corporation (NYSE:O)
Dividend Yield as of August 30: 4.24%
Realty Income Corporation (NYSE:O) is one of the most popular stocks that pay monthly dividends. The company has been consistently raising its dividends since its IPO in 1994. It currently pays a monthly dividend of $0.2475 per share, with a dividend yield of 4.24%, as of August 30.
In Q2 2022, Realty Income Corporation (NYSE:O)’s revenue presented a 74.9% year-over-year growth at $810.4 million. The company had $172.8 million available in cash and cash equivalents and its total assets amount to nearly $43 billion. In addition to this, its cash position also remained stable as it generated $743 million in free cash flow, up from $513.4 million in the previous quarter.
In June, Jefferies mentioned that REITs are expected to underperform in recessionary periods and the firm lowered its price target on Realty Income Corporation (NYSE:O) to $78 but maintained a Buy rating on the shares.
Ken Griffin’s Citadel Investment Group owned the largest position in Realty Income Corporation (NYSE:O) in Q2 2022, with stakes valued at nearly $61 million. Overall, 19 hedge funds tracked by Insider Monkey owned stakes in the company, worth over $200.7 million.
Realty Income Corporation (NYSE:O) is a good investment option in current times, along with other dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ).
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Disclosure. None. 10 Best Stocks That Pay Monthly Dividends is originally published on Insider Monkey.
