In this article, we discuss 10 high-yield monthly dividend stocks to buy in September. You can skip our detailed analysis of dividend stocks and their returns, and go directly to read 5 High-Yield Monthly Dividend Stocks to Buy in September.
As global stock markets face a challenging environment this year, investors seek solace in income-generating stocks. According to a report published by S&P Dow Jones Indices, the role of dividends as a source of income grew to 6.25% in March 2022, up from 2.88% in December 1981.
Dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ) are gaining ground among investors because they have steadily raised their payouts over the years. In addition to this, investors are also targeting high-yield stocks to boost their earnings in this current environment. Daniel Sotiroff, a senior manager research analyst at Morningstar, talked to Wall Street Journal about dividend stocks and mentioned that investors are pouring money into dividend ETFs as they come with lower fees and are more convenient for them. This can be seen from the recent data that shows dividend ETFs have seen nearly $52 billion worth of inflows in the first eight months of this year.
Historically, quality dividend companies remained big winners during inflationary periods due to their ability to generate steady cash flows. In the past 15 years, the average year-over-year dividend growth rate was 13.7%, compared with a 2.21% growth rate of the US Consumer Price Index, as reported by S&P Dow Jones Indices. The report further mentioned that dividends are expected to experience a 6.7% year-over-year growth over the next four quarters. Another report by CNBC throws light on the positive returns of dividend stocks in comparison with their peers. The report mentioned that dividend-paying companies delivered an annual average return of 9.6% from 1973 to 2021 while the broader market returned 8.2% during the same period.
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Our Methodology
The stocks mentioned below pay monthly dividends to shareholders and have yields above 9%, as recorded on September 6. The companies are ranked from the lowest yield to the highest.
High-Yield Monthly Dividend Stocks to Buy in September
10. Generation Income Properties, Inc. (NASDAQ:GIPR)
Dividend Yield as of September 6: 9.15%
Generation Income Properties, Inc. (NASDAQ:GIPR) is a Florida-based real estate investment trust company that acquires and manages income-producing retail, office, and industrial properties. The company’s portfolio is 100% rent paying and has been since its inception.
In its recently published quarterly earnings, Generation Income Properties, Inc. (NASDAQ:GIPR) reported revenue of $1.4 million, up 41.4% from the same period last year. The company’s net operating income also jumped 28% year-over-year to $1.1 million. It ended the quarter with $3.6 million in cash and cash equivalents.
Generation Income Properties, Inc. (NASDAQ:GIPR) started its dividend policy this year in January. The company pays a monthly dividend of $0.054 per share and has a yield of 9.15%, as recorded on September 6.
In addition to famous dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ), Generation Income Properties, Inc. (NASDAQ:GIPR) can also be added to dividend portfolios because of its monthly payouts.
9. PennantPark Floating Rate Capital Ltd. (NYSE:PFLT)
Dividend Yield as of September 6: 9.52%
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is an American company that invests in middle market companies located in the US and also provides primarily first lien debt. The company was a part of 3 hedge fund portfolios in Q2 2022, compared with 7 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a collective value of over $5.7 million. With $4.4 million worth of stakes, Two Sigma Advisors had the largest position in the company in Q2.
In its Q2 2022 earnings, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) surpassed analysts’ estimates on various accounts. The company posted a net interest income of $0.29 and a total investment income of $25.7 million, beating consensus by $0.01 and $0.96 million, respectively. The company’s cash position also remained strong during the quarter as it had $40.6 million in cash and cash equivalents available for investing and general corporate purposes. For the nine months ended in June, its cash used for operating activities stood at $111.6 million and paid nearly 4 million in dividends.
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT), one of the best high-yield monthly dividend stocks, has a five-year average yield of 9.51%. Though the company has not raised its dividends since 2019, it maintained its payouts over these years. The company currently offers a monthly dividend of $0.095 per share, with a dividend yield of 9.52%, as of September 6.
8. Prospect Capital Corporation (NASDAQ:PSEC)
Dividend Yield as of September 6: 9.77%
Prospect Capital Corporation (NASDAQ:PSEC) is a yield-oriented business development company that makes debt and equity investments in the US middle market. The company is one of the best high-yield monthly dividend stocks as it has been offering dividends to shareholders since its inception in 2004, paying a total of $3.7 billion in dividends. It currently offers a monthly dividend of $0.06 per share, with a dividend yield of 9.77%, as of September 6.
Prospect Capital Corporation (NASDAQ:PSEC) announced its fiscal Q4 results on August 29, posting a net interest income of $0.21, which beat analysts’ estimates by $0.03. The company’s total investment income came in at $184.2 million, which showed a 17.3% year-over-year growth and also surpassed consensus by $8.02 million. At the end of June 2022, it had $35.3 million available in cash and cash equivalents.
As of the close of Q2 2022, 7 hedge funds in Insider Monkey’s database owned stakes in Prospect Capital Corporation (NASDAQ:PSEC), up from 6 in the previous quarter. The collective value of these stakes is over $15.3 million, compared with $18.4 million worth of stakes owned by hedge funds in the preceding quarter.
7. SLR Investment Corp. (NASDAQ:SLRC)
Dividend Yield as of September 6: 11.01%
SLR Investment Corp. (NASDAQ:SLRC) is a New York-based business development company that invests in senior secured loans of private middle market companies to generate current income which is distributed to shareholders. In Q2 2022, the company reported a total investment income of $42.8 million, compared with $35.6 million during the same period last year. At the end of June, it had $28.9 million available in cash and approximately $850 million of available capital.
SLR Investment Corp. (NASDAQ:SLRC) has been offering dividends to shareholders for over a decade now. The company currently pays a monthly dividend of $0.1367 per share, with a dividend yield of 11.01%, as recorded on September 6. The stock’s five-year average dividend yield stood at 8.85%, which makes it one of the best high-yield monthly dividend stocks.
In July, Keefe Bruyette maintained its Market Perform rating on SLR Investment Corp. (NASDAQ:SLRC) with a $16.50 price target. The firm mentioned that the recent pullback in business development companies can be a good opportunity for investors in this current environment.
As of the close of Q2 2022, 7 hedge funds tracked by Insider Monkey reported owning stakes in SLR Investment Corp. (NASDAQ:SLRC), up from 6 in the previous quarter. These stakes hold a collective value of over $11.4 million. D. E. Shaw, James Morrow, and Israel Englander were some of the company’s major stakeholders in Q2.
6. Oxford Square Capital Corp. (NASDAQ:OXSQ)
Dividend Yield as of September 6: 11.48%
Oxford Square Capital Corp. (NASDAQ:OXSQ) is an American investment management company that also operates as a business development company. At the end of Q2 2022, 2 hedge funds in Insider Monkey’s database owned stakes in the company, compared with 5 in the previous quarter. These stakes hold a consolidated value of over $1.2 million.
At the end of June 2022, Oxford Square Capital Corp. (NASDAQ:OXSQ) reported a strong cash position. The company had $23.2 million available in cash and cash equivalents, compared with $9 million at the end of December. Its total investment income for the quarter came in at $9.94 million, which showed a 27.4% year-over-year growth. Moreover, its net investment income for the quarter amounted to $4.3 million or $0.09 per share.
Oxford Square Capital Corp. (NASDAQ:OXSQ) currently pays a monthly dividend of $0.035 per share and has a yield of 11.48%, as recorded on September 6. The company can be a good investment opportunity for income investors among other famous dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ).
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Disclosure. None. 10 High-Yield Monthly Dividend Stocks to Buy in September is originally published on Insider Monkey.
