In this article, we will be taking a look at 10 monthly dividend stocks to buy in December. To skip our detailed analysis of dividend investing, you can go directly to see the 5 Monthly Dividend Stocks to Buy in December.
Real estate and financial sector are some of the most lucrative options available to investors at present, especially those on the lookout for dividends. While big tech names like Apple Inc. (NASDAQ:AAPL), NVIDIA Corporation (NASDAQ:NVDA), and Advanced Micro Devices, Inc. (NASDAQ:AMD), among others, have been some of the most popular investment options out there, these two sectors are steadily gaining speed and relevance to come up to par with the tech sector as well.
Top bank stocks in Canada, for instance, have recently announced impressive yield increases after radio silence on that front for almost two years. The road to recovery in the aftermath of the coronavirus pandemic is thus highlighted by their current average dividend yield of 3.3% compared to the 2.5% global sector median figure.
From the banking sector, big names like Royal Bank of Canada, The Toronto-Dominion Bank, and The Bank of Nova Scotia are responsible for the increases. The real estate sector is no different. A Wall Street Journal article from this September shed light on billions of dollars being flooded into that sector, particularly in real estate investment trusts, or REITs, so far in 2021. As of September, REITs and the real estate sector were beginning to be treated as a viable and profitable alternative to bonds, especially in light of the fact that they were up nearly 30% as of September 2021.
The above is especially of interest to income investors, since both the financials and real estate sectors are renowned for being heavy dividend payers. Investor sentiment towards these sectors can also be particularly telling, and can indicate to new investors about where it may be worth it to stick their money.
Bloomberg’s research on the portfolios of members of Tiger 21, which is a group of wealthy investors having an average of $100 million in assets, shows how this is true. For example, as of this February, about 27% of these wealthy investors’ money was going into real estate, with two other large chunks going into public and private equities, at 22% and 26%, respectively. The focus on real estate then shows us that this sector is not only lucrative because of the plentiful dividend payments it offers, but is also continuing to retain its relevance and popularity among major investor circles.
Without further ado, let’s take a look at the 10 monthly dividend stocks to buy in December.
Our Methodology
Using Insider Monkey’s data, we have consulted hedge fund data for 867 hedge funds to pick dividend stocks with monthly dividends that are popular among hedge funds today. We have also consulted analysts’ ratings to pick those stocks with mostly positive responses. Finally, we have mentioned the number of hedge funds holding stakes in each stock alongside its dividend yield. The stocks are ranked from the lowest to the highest dividend yield.
Monthly Dividend Stocks to Buy in December
10. Global Water Resources, Inc. (NASDAQ:GWRS)
Number of Hedge Fund Holders: 3
Dividend Yield: 1.6%
Global Water Resources, Inc. (NASDAQ:GWRS) is a water resource management company. The company deals with regulated water, wastewater, and recycled water utilities in metropolitan Phoenix, Arizona. It has grown its dividend yield for the last 5 years, making it one of the best monthly dividend stocks to buy in December.
In the third quarter of 2021, Global Water Resources, Inc. (NASDAQ:GWRS) had an EPS of $0.07, beating estimates by $0.01. The company’s revenue was $11.40 million, up 6.01% year over year.
By the end of the third quarter of 2021, three hedge funds out of the 867 tracked by Insider Monkey held stakes in Global Water Resources, Inc. (NASDAQ:GWRS) worth roughly $8.3 million. This is compared to two hedge funds in the previous quarter with a total stake value of approximately $6.9 million.
Like Apple Inc. (NASDAQ:AAPL), NVIDIA Corporation (NASDAQ:NVDA), and Advanced Micro Devices, Inc. (NASDAQ:AMD), Global Water Resources, Inc. (NASDAQ:GWRS) is a stock elite hedge funds are eyeing this year.
9. Gladstone Land Corporation (NASDAQ:LAND)
Number of Hedge Fund Holders: 7
Dividend Yield: 1.87%
Gladstone Land Corporation (NASDAQ:LAND) is a real estate investment trust based in Virginia. The company was founded in 1997 and has raised its dividend for seven years so far.
B. Riley’s Craig Kucera just this November raised the price target on shares of Gladstone Land Corporation (NASDAQ:LAND). The analyst also holds a Buy rating on the stock.
The FFO for Gladstone Land Corporation (NASDAQ:LAND) in the third quarter was $0.17, beating estimates by $0.02. The revenue for the company was $19.59 million, up 40.05% year over year and beating estimates by $1.64 million. Gladstone Land Corporation (NASDAQ:LAND) has gained 18.92% in the past six months and 98.05% year to date.
Insider Monkey’s data shows that seven hedge funds held stakes in Gladstone Land Corporation (NASDAQ:LAND) in the third quarter of 2021, worth $7.9 million. In the previous quarter, six hedge funds held stakes in the company worth $5.4 million.
8. Stag Industrial Inc (NYSE:STAG)
Number of Hedge Fund Holders: 17
Dividend Yield: 3.4%
Stag Industrial Inc (NYSE:STAG) is another real estate investment trust on our list. The company acquires and operates single-tenant, industrial properties throughout the US. Having also raised its dividend yield for the past seven years, it is among the most noteworthy monthly dividend stocks to buy in December.
This November, RBC Capital analyst Michael Carroll reiterated an Outperform rating on shares of Stag Industrial Inc (NYSE:STAG). The analyst also raised his price target on the stock to $50.
The company’s earnings history shows an FFO of $0.53, beating estimates by $0.02, and a revenue of $142.11 million, up 21.16% year over year and beating estimates by $1.70 million, for the third quarter. Stag Industrial Inc (NYSE:STAG) has also gained 18.61% in the past six months and 42.33% year to date.
Our data shows 17 hedge funds long in Stag Industrial Inc (NYSE:STAG) in the third quarter. Their total stake value was $219 million. In the previous quarter, 15 hedge funds were long in the stock, with a total stake value of $232 million.
Like Apple Inc. (NASDAQ:AAPL), NVIDIA Corporation (NASDAQ:NVDA), and Advanced Micro Devices, Inc. (NASDAQ:AMD), Stag Industrial Inc (NYSE:STAG) is a stock many investors are piling into.
7. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 20
Dividend Yield: 4%
Agree Realty Corporation (NYSE:ADC) has raised its dividend yield for the past nine years, making it a popular choice for investors looking for monthly dividend stocks to buy in December. The real estate investment trust is publicly traded and acquires and develops properties net leased to industry-leading retail tenants.
RBC Capital’s Brad Heffern holds an Outperform rating on shares of Agree Realty Corporation (NYSE:ADC) as of this September, alongside an $80 price target.
The third quarter earnings report for Agree Realty Corporation (NYSE:ADC) shows an FFO of $0.92, beating estimates by $0.02. The company’s revenue was $87.54 million, up 37.18% year over year and beating estimates by $0.23 million. Agree Realty Corporation (NYSE:ADC) has also gained 6.76% year to date and 5.20% in the past year.
Out of 867, 20 hedge funds were long Agree Realty Corporation (NYSE:ADC) in the third quarter, with a total stake value of $155 million.
6. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Dividend Yield: 4.3%
Realty Income Corporation (NYSE:O) is also known as the Monthly Dividend Company. This S&P 500 real estate investment trust provides its stockholders with a reliable monthly income in the form of dividends and utilizes over 6,500 real estate properties to meet its ends. The company has raised its dividend yield for 24 years.
Analyst Brad Heffern at RBC Capital this September initiated coverage of shares of Realty Income Corporation (NYSE:O). The analyst holds an Outperform rating on the stock. Heffern also placed a price target of $79 on the stock at the same time.
According to Realty Income Corporation’s (NYSE:O) third quarter earnings report, the company had an FFO of $0.85 in that quarter. The company’s revenue was $486.34 million, up 26.70% year over year and also beating estimates by $27.36 million.
In the third quarter, 22 hedge funds held stakes in Realty Income Corporation (NYSE:O) worth $275 million. In the second quarter, 23 hedge funds were long in the stock with a total stake value of $221 million.
Like Apple Inc. (NASDAQ:AAPL), NVIDIA Corporation (NASDAQ:NVDA), and Advanced Micro Devices, Inc. (NASDAQ:AMD), Realty Income Corporation (NYSE:O) is a stock popular among individual investors and hedge funds alike.
Click to continue reading and see 5 Monthly Dividend Stocks to Buy in December.
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Disclosure: None. 10 Monthly Dividend Stocks to Buy in December is originally published on Insider Monkey.
