In this article, we discuss 10 monthly dividend stocks to buy in April. If you want to check out some more stocks that pay monthly dividends, click 5 Monthly Dividend Stocks to Buy in April.
To protect their portfolios from the volatile market amid fears of an upcoming recession running high, investors are making the shift from growth plays to reliable, high dividend stocks to safeguard their investments. Michael Hunstad, the head of quantitative strategies at Northern Trust Asset Management, noted that dividend strategies have outperformed the broader market in 2021 and year-to-date in an inflationary and rising rates environment.
According to Hunstad, the dividend payers trade at relatively inexpensive prices and earnings multiples, despite their strong performance record. Dividends are supported by improved profits and strong financial positions of companies, which has led many dividend payers to increase and reinstate previously slashed dividends.
Dividends have played a vital role in the S&P 500 returns over the years. In 1960, 84% of the total S&P returns were attributed to reinvested dividends and compounding. From 1930 to 2021, dividend returns accounted for approximately 40% of the total S&P returns. In the 1990s, companies were focused entirely on growth and most of them preferred to reinvest dividends rather than distribute them to shareholders. However, when the dot-com bubble hit the market in the early 2000s, investors turned back to basic investing fundamentals such as price to earnings ratios and dividend yields.
Investors usually seek out big dividend names like Apple Inc. (NASDAQ:AAPL), Walmart Inc. (NYSE:WMT), and Microsoft Corporation (NASDAQ:MSFT), but in this article, we focus on monthly dividend stocks to consider in April.
Image by Nattanan Kanchanaprat from Pixabay
Our Methodology
We selected stocks that pay monthly dividends, and most of these companies received positive analyst ratings, offer strong business fundamentals, and have attractive yields. Data from 924 elite hedge funds tracked by Insider Monkey at the end of December 2021 was used to gauge the hedge fund sentiment around the stocks.
The list is ranked according to the dividend yields, from lowest to highest.
Monthly Dividend Stocks to Buy in April
10. STAG Industrial, Inc. (NYSE:STAG)
Dividend Yield as of April 6: 3.50%
Number of Hedge Fund Holders: 22
STAG Industrial, Inc. (NYSE:STAG) is a real estate investment trust that owns and manages a portfolio of single-tenant, industrial properties across the United States. The stock delivers a dividend yield of 3.50% as of April 6.
On January 10, STAG Industrial, Inc. (NYSE:STAG) declared a $0.1217 per share quarterly dividend, a 0.7% increase from its previous dividend of $0.1208. The dividend was paid on February 15 and March 15. The next payment is scheduled on April 18, to shareholders of the company as of March 31.
Baird analyst David Rodgers upgraded STAG Industrial, Inc. (NYSE:STAG) on January 11 to Outperform from Neutral with a price target of $48, down from $49, as part of a broader note on the industrial REIT outlook in 2022. He expects a moderation of performance based on short-term valuation, interest rate sentiment, normalized consumer spending, and fewer labor challenges.
According to Insider Monkey’s Q4 data, 22 hedge funds were bullish on STAG Industrial, Inc. (NYSE:STAG), compared to 17 funds in the last quarter. The total stakes owned in the fourth quarter amounted to $525.3 million, versus $219.3 million the previous quarter. Stuart Zimmer’s Zimmer Partners held the leading position in the company, with 2.85 million shares worth $136.6 million.
In addition to Apple Inc. (NASDAQ:AAPL), Walmart Inc. (NYSE:WMT), and Microsoft Corporation (NASDAQ:MSFT), STAG Industrial, Inc. (NYSE:STAG) is a significant dividend payer to look out for.
9. Apple Hospitality REIT, Inc. (NYSE:APLE)
Dividend Yield as of April 6: 3.56%
Number of Hedge Fund Holders: 22
Apple Hospitality REIT, Inc. (NYSE:APLE) is a Virginia-based real estate investment trust that owns and manages a portfolio of upscale hotels in the United States. Apple Hospitality REIT, Inc. (NYSE:APLE) owns 219 hotels located in 86 markets across 36 states in the country.
The company reported full-year 2021 revenue of approximately $934 million, compared to a revenue of $602 million in 2020. The net income rebounded strongly in 2021, amounting to $18.8 million, versus a loss of $173.2 million in the prior year.
On March 31, Apple Hospitality REIT, Inc. (NYSE:APLE) declared a $0.05 per share monthly dividend, in line with previous. The dividend will be distributed on April 18, to shareholders of the company as of April 4. Apple Hospitality REIT, Inc. (NYSE:APLE)’s dividend yield on April 6 stood at 3.56%.
Barclays analyst Anthony Powell raised the price target on Apple Hospitality REIT, Inc. (NYSE:APLE) to $21 from $19 and maintained an Overweight rating on the shares on March 1. The analyst cited Apple Hospitality REIT, Inc. (NYSE:APLE)’s strong operating results, leading sub-sector dividend, and latest acquisition activity for the target upgrade.
Among the hedge funds tracked by Insider Monkey, 22 funds held long positions in Apple Hospitality REIT, Inc. (NYSE:APLE), up from 15 funds in the prior quarter. Michael Weinstock’s Monarch Alternative Capital is the leading shareholder of the company, with 5.2 million shares worth $85.3 million.
8. Whitestone REIT (NYSE:WSR)
Dividend Yield as of April 6: 3.61%
Number of Hedge Fund Holders: 11
Whitestone REIT (NYSE:WSR) is an American real estate investment trust that invests in income generating community-oriented retail and mixed-use properties across Houston, Chicago, Dallas, and Phoenix. Colliers analyst David Toti initiated coverage of Whitestone REIT (NYSE:WSR) with a Buy rating and a $15 price target on April 6.
On February 22, Whitestone REIT (NYSE:WSR) announced a $0.04 per share monthly dividend, an 11.6% increase from its last dividend of $0.0358. The dividend is payable on April 14, to shareholders of record on April 4. Whitestone REIT (NYSE:WSR)’s dividend yield on April 6 stood at 3.61%.
Whitestone REIT (NYSE:WSR)’s 2021 revenue came in at $126.1 million, compared to $119 million in the previous year. The net income in 2021 doubled to $12 million from $6 million in the last year, indicating the company’s financial stability to continue dividend payments in the near-term.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 11 funds reported owning stakes worth $39.3 million in Whitestone REIT (NYSE:WSR), compared to 13 funds in the third quarter, holding stakes in the company valued at $39.1 million. James Dondero’s Highland Capital Management held the biggest position in Whitestone REIT (NYSE:WSR), with 2.2 million shares worth approximately $23 million.
7. Agree Realty Corporation (NYSE:ADC)
Dividend Yield as of April 6: 4.03%
Number of Hedge Fund Holders: 26
Agree Realty Corporation (NYSE:ADC) is a real estate investment trust that has developed around 40 community shopping centers throughout the Midwestern and Southeastern United States, which are leased to retail customers.
On March 14, Agree Realty Corporation (NYSE:ADC) announced a $0.227 per share monthly dividend, in line with previous. The dividend will be distributed on April 14, to shareholders of the company at the close of business on March 31. Agree Realty Corporation (NYSE:ADC)’s dividend yield on April 6 stood at 4.03%.
Agree Realty Corporation (NYSE:ADC)’s revenue for 2021 was $339.3 million, compared to $248.6 million in the previous year. The net income in 2021 came in at $122.3 million, up from $91.4 million in 2020. The cash and cash equivalents at the end of 2021 amounted to $43.3 million, compared to $6.1 million in the last year. The stronger financial position in 2021 suggests that dividend payments are likely to continue in the near future.
On April 1, Morgan Stanley analyst Ronald Kamdem initiated coverage of Agree Realty Corporation (NYSE:ADC) with an Overweight rating and a $75 price target. The analyst noted that Agree Realty Corporation (NYSE:ADC)’s tenants are top quality and its focus on internet-resistant tenants with its vertically integrated platform is differentiated. He also sees an attractive entry point with the stock’s premium multiple having declined almost 40% after the pandemic.
Among the hedge funds tracked by Insider Monkey, 26 funds placed long calls on Agree Realty Corporation (NYSE:ADC) at the end of December 2021, up from 20 funds in the previous quarter. The hedge funds in Q4 owned collective stakes worth over $200 million. Billionaire Israel Englander’s Millennium Management is the biggest shareholder of the company, with 1.17 million shares valued at $83.5 million.
6. Realty Income Corporation (NYSE:O)
Dividend Yield as of April 6: 4.13%
Number of Hedge Fund Holders: 30
Realty Income Corporation (NYSE:O) is one of the most popular monthly dividend stocks among retail and institutional investors alike. Headquartered in San Diego, California, Realty Income Corporation (NYSE:O) is a real estate investment trust that leases and rents out single-tenant commercial establishments throughout the United States, the United Kingdom, and Spain.
Realty Income Corporation (NYSE:O) declared on March 16 a $0.247 per share monthly dividend, a 0.2% increase from its last dividend of $0.246. The dividend will be distributed on April 15, to shareholders of the company as of April 1. Realty Income Corporation (NYSE:O) has consistently raised its dividend payments for 28 years, and the stock yields 4.13% as of April 6.
According to Insider Monkey’s fourth quarter database, Matthew Barrett’s Glendon Capital Management held the largest position in the company, with 1.85 million shares worth approximately $133 million. Overall, 30 hedge funds were bullish on Realty Income Corporation (NYSE:O) at the end of December 2021, compared to 22 funds in the last quarter.
Just like Apple Inc. (NASDAQ:AAPL), Walmart Inc. (NYSE:WMT), and Microsoft Corporation (NASDAQ:MSFT), elite hedge funds are piling into Realty Income Corporation (NYSE:O).
Click to continue reading and see 5 Monthly Dividend Stocks to Buy in April.
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Disclosure: None. 10 Monthly Dividend Stocks to Buy in April is originally published on Insider Monkey.
