In this article, we discuss 10 high yield monthly dividend stocks. If you want to skip our detailed analysis of dividend investing and these stocks, go directly to 5 High Yield Monthly Dividend Stocks.
The global COVID-19 pandemic weighed heavily on dividend investing in 2020, but the economy started to improve in 2021, post national lockdowns to control the virus from spreading and the massive vaccine rollout worldwide. In the second quarter of 2021, dividend payments amounted to $471.7 billion, gaining 26% as compared to the prior-year quarter, and just 6.8% lower than 2019 dividend payouts. Overall, the 2021 dividends were projected to clock in at roughly $1.4 trillion.
According to the Global Dividend Index, dividend payments declined 12.2% in 2020 to $1.26 trillion. However, due to the economic recovery in 2021 and projected economic conditions for 2022, many companies are expected to reinstate their previous dividend payouts, and the stocks which are yielding on the lower end of the spectrum can potentially increase their yields in the coming years.
Dividend investing has always been a popular strategy among seasoned and amateur investors alike, and it will continue to remain a solid source of income for traders who have a longer investment horizon. Utilities, banks, real estate, and casualty insurance sectors are set to take advantage of the soaring residential property market, as rising home prices will reflect in better margins and earnings, and consequently result in improved dividend payouts.
The most notable dividend stocks include Exxon Mobil Corporation (NYSE:XOM), International Business Machines Corporation (NYSE:IBM), and AbbVie Inc. (NYSE:ABBV).
Photo by Dan Dennis on Unsplash
Our Methodology
We selected high yielding stocks that pay monthly dividends, selecting companies with over 5% yield. The securities that were chosen had solid fundamentals, strong earnings, and mostly positive analyst ratings.
We also mentioned the hedge fund sentiment around each stock, which was gauged from 867 funds whose movement was tracked by Insider Monkey in the third quarter of 2021. We ranked the stocks according to the dividend yield.
High Yield Monthly Dividend Stocks
10. Main Street Capital Corporation (NYSE:MAIN)
Dividend Yield as of January 14: 5.85%
Number of Hedge Fund Holders: 5
Main Street Capital Corporation (NYSE:MAIN) is an investment management firm providing long-term debt and equity capital to lower middle market companies, and debt capital to middle market companies. Main Street Capital Corporation (NYSE:MAIN) finances management buyouts, recapitalizations, and acquisitions of companies.
Main Street Capital Corporation (NYSE:MAIN) announced a monthly per share dividend of $0.215, which reflects a 2.4% increase from the prior dividend of $0.210 paid for the third quarter of 2021 and the fourth quarter of 2020. The $0.215 dividend will be paid on January 14, February 15, and March 15, respectively. The company’s board also declared a special cash dividend of $0.10 per share in December 2021.
Raymond James analyst Robert Dodd on November 8 raised the price target on Main Street Capital Corporation (NYSE:MAIN) to $47 from $44 and kept an Outperform rating on the shares.
Among the hedge funds tracked by Insider Monkey in the third quarter of 2021, 5 funds were bullish on Main Street Capital Corporation (NYSE:MAIN), with stakes amounting to $26.1 million, as compared to 8 funds holding stakes worth $18.7 million in Main Street Capital Corporation (NYSE:MAIN) in the preceding quarter.
Robert B. Gillam’s McKinley Capital Management is the largest Main Street Capital Corporation (NYSE:MAIN) stakeholder as of Q3 2021, holding 199,245 shares worth $8.18 million.
In addition to companies like Exxon Mobil Corporation (NYSE:XOM), International Business Machines Corporation (NYSE:IBM), and AbbVie Inc. (NYSE:ABBV) offering quarterly dividend payouts, Main Street Capital Corporation (NYSE:MAIN) is a notable stock that provides monthly dividends.
9. LTC Properties, Inc. (NYSE:LTC)
Dividend Yield as of January 14: 6.21%
Number of Hedge Fund Holders: 9
LTC Properties, Inc. (NYSE:LTC) is a California-based real estate investment trust that focuses its investments primarily on senior housing and the healthcare establishments. LTC Properties, Inc. (NYSE:LTC) invests via sale-leasebacks, mortgage financing, joint-ventures, and structured finance solutions. LTC Properties, Inc. (NYSE:LTC) disclosed that it has originated $46 million in new investments since the beginning of the third quarter of 2021.
On January 3, LTC Properties, Inc. (NYSE:LTC) announced a $0.19 per share monthly dividend, in line with previous. The dividend will be paid on January 31, February 28, and March 31. As of January 14, LTC Properties, Inc. (NYSE:LTC) offers a 6.21% dividend yield.
In its third quarter earnings report, announced on October 28, LTC Properties, Inc. (NYSE:LTC) posted a GAAP EPS of $0.28, missing estimates by $0.12. The $37.47 million revenue also missed estimates by $406,000.
KeyBanc analyst Jordan Sadler upgraded LTC Properties, Inc. (NYSE:LTC) to Overweight from Sector Weight with a $40 price target on January 13. The analyst stated that LTC Properties, Inc. (NYSE:LTC)’s “impending” cash flow recovery now appears poised to take hold across its portfolio.
A total of 9 hedge funds were bullish on LTC Properties, Inc. (NYSE:LTC) in the third quarter, with stakes amounting to $12.1 million, as compared to 10 funds holding stakes worth $8.9 million in LTC Properties, Inc. (NYSE:LTC) in the prior quarter.
Billionaire Israel Englander’s Millennium Management, the largest LTC Properties, Inc. (NYSE:LTC) stakeholder, acquired a position in the company in the third quarter of 2021, buying 129,066 shares worth $4.09 million.
8. Pembina Pipeline Corporation (NYSE:PBA)
Dividend Yield as of January 14: 6.23%
Number of Hedge Fund Holders: 8
Pembina Pipeline Corporation (NYSE:PBA) is a Canadian company offering pipeline transport and storage infrastructure for oil, petroleum, and natural gas across Western Canada.
Pembina Pipeline Corporation (NYSE:PBA) provided 2022 financial guidance and a year-end business update on December 8. The company management sees 2022 adjusted EBITDA of $3.35 billion to $3.55 billion and a 2022 capital investment program of $655 million. Cash flow from operating activities is expected to surpass dividends and the capital investment program in 2022.
On January 6, Pembina Pipeline Corporation (NYSE:PBA) announced a C$0.21 per share monthly dividend, in line with previous, providing a 6.23% yield as of January 14. The dividend will be paid on February 15 to shareholders of record on January 25.
Pembina Pipeline Corporation (NYSE:PBA) announced its Q3 financial results on November 4, posting earnings per share of $0.53, beating estimates by $0.01. Revenue over the period jumped 43.45% from the prior-year quarter to $1.72 billion, surpassing estimates by $218.91 million.
Like Exxon Mobil Corporation (NYSE:XOM), International Business Machines Corporation (NYSE:IBM), and AbbVie Inc. (NYSE:ABBV), Pembina Pipeline Corporation (NYSE:PBA) is also a good option for income investors.
TD Securities analyst Linda Ezergailis on December 10 lowered the price target on Pembina Pipeline Corporation (NYSE:PBA) to C$44 from C$45 and kept a Buy rating on the shares.
In the third quarter of 2021, 8 hedge funds reported owning stakes in Pembina Pipeline Corporation (NYSE:PBA), valued at $62.6 million, as compared to 15 funds in the prior quarter holding stakes worth $116.3 million in Pembina Pipeline Corporation (NYSE:PBA).
John Overdeck and David Siegel’s Two Sigma Advisors is one of the leading Pembina Pipeline Corporation (NYSE:PBA) stakeholders from Q3 2021, with 336,083 shares worth $10.65 million.
7. Gladstone Capital Corporation (NASDAQ:GLAD)
Dividend Yield as of January 14: 6.91%
Number of Hedge Fund Holders: 4
Headquartered in Virginia, Gladstone Capital Corporation (NASDAQ:GLAD) is a business development company that focuses primarily on lending to lower middle market businesses, managing $3.4 billion in assets. Since Gladstone Capital Corporation (NASDAQ:GLAD)’s incorporation in 2001, it has invested into more than 250 deals, worth $2.2 billion.
On January 12, Gladstone Capital Corporation (NASDAQ:GLAD) reported its monthly per share dividend of $0.065, in line with previous. The dividend will be paid on January 31, to shareholders of record on January 21.
Publishing its third quarter financial results on November 15, Gladstone Capital Corporation (NASDAQ:GLAD) posted earnings per share of $0.20, exceeding estimates by $0.01. Revenue for the period gained 14.17% year-over-year, reaching $14.36 million, beating estimates by $628,000.
A total of 4 hedge funds were long Gladstone Capital Corporation (NASDAQ:GLAD) in the third quarter of 2021, with stakes valued at $3.1 million, down from 6 funds in the prior quarter with stakes amounting to $4.06 million in Gladstone Capital Corporation (NASDAQ:GLAD).
6. Sabine Royalty Trust (NYSE:SBR)
Dividend Yield as of January 14: 7.69%
Number of Hedge Fund Holders: 4
Sabine Royalty Trust (NYSE:SBR) owns royalty and mineral interests in notable oil and gas establishments around the United States, with properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. Sabine Royalty Trust (NYSE:SBR)’s shares have returned approximately 21% year-to-date. With a dividend yield of 7.69% on January 14, Sabine Royalty Trust (NYSE:SBR) is a notable high yield monthly dividend stock to invest in.
On January 13, Sabine Royalty Trust (NYSE:SBR) declared a $0.8768 per share monthly dividend, reflecting a 180.4% increase from the prior dividend of $0.3127. The dividend will be paid on January 31, to shareholders of record on January 18.
Among the hedge funds tracked by Insider Monkey as of Q3 2021, 4 funds reported owning stakes in Sabine Royalty Trust (NYSE:SBR), worth $17.74 million. Leonard A. Potter’s Wildcat Capital Management is the biggest stakeholder of the company, holding 314,564 shares valued at $13.3 million.
Just like Exxon Mobil Corporation (NYSE:XOM), International Business Machines Corporation (NYSE:IBM), and AbbVie Inc. (NYSE:ABBV), Sabine Royalty Trust (NYSE:SBR) is a notable stock to diversify an income portfolio.
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Disclosure: None. 10 High Yield Monthly Dividend Stocks is originally published on Insider Monkey.
