In this article, we discuss 10 monthly dividend stocks to buy in September. You can skip our detailed analysis on dividend investing, and go directly to read 5 Monthly Dividend Stocks to Buy in September.
Dividend stocks are on investors’ radars due to rising inflation and the risks of a possible recession. Investors are holding onto defensive securities with stable cash flows and strong fundamentals to deal with the market volatility smoothly. The companies that offer monthly dividends are appealing to investors as payouts every month are helpful in efficient budgeting.
Dividend stocks have proved to be income-generating assets in times of market clampdown. According to S&P Dow Jones Indices and Bureau of Economic Analysis data, dividend payments as a part of personal income surged to 7.3% in the first quarter this year, compared with 3.2% in the first quarter of 1980. Ross Frankenfield, a managing director of Harbor Capital Advisors, talked to Wall Street Journal about dividend investments and said that investors are turning to dividend companies to generate fixed income in these times. According to Howard Silverblatt, senior index analyst for S&P Dow Jones Indices, the companies in the index will spend over $500 billion in dividends this year and over $1 trillion on share buybacks, which takes the total to $1.5 trillion. This shows that companies are steadily raising their dividends to attract income investors.
Dividend stocks have delivered positive returns in the past, making up 32% of the monthly total return of the S&P 500 from 1926 to June 2021, as reported by S&P Dow Jones Indices. The report further mentioned that dividend income represented over one-half of the total return of the broader index in decades like the 1940s and 1970s. In inflationary periods, dividend stocks become famous as they promise regular income to investors. According to a report by Wall Street Journal, the S&P 500 dividend growth has outpaced inflation since 2000, becoming a lucrative opportunity for investors. Some of the dividend stocks that are gaining traction amongst investors include The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG) due to their consistent dividend growth. However, in this article, we will discuss monthly dividend stocks to buy in September.
Our Methodology:
In this article, we selected dividend stocks with monthly payouts. These companies have strong financials and solid balance sheets, which is rewarding for investors in times of financial uncertainty. The stocks are ranked according to their dividend yields, as recorded on September 5.
Monthly Dividend Stocks to Buy in September
10. Realty Income Corporation (NYSE:O)
Dividend Yield as of September 5: 4.39%
Realty Income Corporation (NYSE:O) is an American real estate investment trust that invests in single-tenant commercial properties in the US. In Q2 2022, the company’s AFFO per share grew by 10.2% to $0.97 per share. Its revenue for the quarter stood at $810.4 million which showed a 74.9% year-over-year growth. In addition to this, the company also invested nearly $1.7 billion in 237 properties.
On August 16, Realty Income Corporation (NYSE:O) declared a monthly dividend of $0.2475 per share, in line with its previous dividend. The company has been raising its dividends consistently since its IPO in 1994. As of September 5, the stock’s dividend yield came in at 4.39%.
In June, Jefferies reiterated its Buy rating on Realty Income Corporation (NYSE:O), mentioning that the REIT sector has delivered robust returns during past stagflation periods.
As per Insider Monkey’s Q2 2022 database, 19 hedge funds owned stakes in Realty Income Corporation (NYSE:O), down from 22 in the previous quarter. The consolidated value of these stakes is over $200.7 million. Citadel Investment Group was the company’s leading stakeholder in Q2.
In addition to famous dividend stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG), Realty Income Corporation (NYSE:O) is a prominent stock for monthly income.
9. STAG Industrial, Inc. (NYSE:STAG)
Dividend Yield as of September 5: 4.83%
STAG Industrial, Inc. (NYSE:STAG) is a Boston-based real estate investment trust that invests in industrial properties throughout the US. In July, Ladenburg raised its price target on the stock to $35.50 with a Buy rating on the shares, appreciating the company’s performance this year.
In Q2 2022, STAG Industrial, Inc. (NYSE:STAG) reported revenue of $161.5 million, showing a 16.7% year-over-year growth. The company’s net operating income also grew by 18.6% to $129 million. Moreover, its cash and cash equivalents came in at $12.6 million and its total assets amounted to $6.1 billion.
STAG Industrial, Inc. (NYSE:STAG) has been raising its dividends consistently for the past 4 years. It currently pays a monthly dividend of $0.1217 per share and has a dividend yield of 4.83%, as of September 5.
As per Insider Monkey’s Q2 2022 database, 27 hedge funds owned nearly $380 million worth of stakes in STAG Industrial, Inc. (NYSE:STAG). In the previous quarter, 21 hedge funds owned stakes in the company, worth $528.6 million.
Carillon Tower Advisers mentioned STAG Industrial, Inc. (NYSE:STAG) in its Q1 2022 investor letter. Here is what the firm has to say:
“U.S. and around the world, and the higher inflation this cycle than in 2000. Labor inflation and general labor availability were again concerns for many companies. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Stag Industrial (NYSE:STAG), a warehouse REIT focused on rural distribution properties, fell as interest rates rose and fear of an economic slowdown gripped markets.”
8. Apple Hospitality REIT, Inc. (NYSE:APLE)
Dividend Yield as of September 5: 5.44%
Apple Hospitality REIT, Inc. (NYSE:APLE) is a Virginia-based real estate investment trust that owns one of the most diverse portfolios of room-focused hotels in the US. On August 17, the company announced a 40% hike in its monthly dividend to $0.07 per share. As of September 5, the stock’s dividend yield stood at 5.44%.
At the end of Q2 2022, Apple Hospitality REIT, Inc. (NYSE:APLE) reported nearly $1.6 million in cash and cash equivalents and its total assets came in at $4.7 billion. The company’s revenue for the quarter showed a 23.1% year-over-year growth at $337.6 million. Its total credit facility stood at $1.2 billion.
In August, Wells Fargo upgraded Apple Hospitality REIT, Inc. (NYSE:APLE) to Equal Weight while lifting the stock’s price target to $17.
The number of hedge funds tracked by Insider Monkey owning stakes in Apple Hospitality REIT, Inc. (NYSE:APLE) jumped to 20 in Q2 2022, from 17 in the previous quarter. The combined value of these stakes is over $112 million. Israel Englander, Steve Cohen, and Jim Simons were the company’s leading stakeholders in Q2.
7. Main Street Capital Corporation (NYSE:MAIN)
Dividend Yield as of September 5: 6.39%
An American principal investment firm, Main Street Capital Corporation (NYSE:MAIN) raised its monthly dividend by 2.31% in August to $0.22 per share. In addition to this, the company also announced a supplemental dividend of $0.10 per share. The stock’s dividend yield was recorded at 6.39% on September 5.
In Q2 2022, Main Street Capital Corporation (NYSE:MAIN) reported a net asset value of $25.3 per share and a net investment income of $54.7 million. The company’s revenue for the quarter stood at $85.2 million, up 26.6% from the same period last year. It ended the quarter with $43.4 million in cash and cash equivalents.
At the end of June 2022, 5 hedge funds tracked by Insider Monkey owned stakes in Main Street Capital Corporation (NYSE:MAIN), down from 9 in the previous quarter. The collective value of these stakes is over $19.3 million.
6. EPR Properties (NYSE:EPR)
Dividend Yield as of September 5: 7.82%
EPR Properties (NYSE:EPR) is a Missouri-based real estate investment trust that invests in amusement parks, movie theatres, and other entertainment properties. In August, BofA maintained a Buy rating on the stock as entertainment companies are reopening after the pandemic, which would contribute to its revenue.
EPR Properties (NYSE:EPR) reported revenue of $160.4 million, up from $125.3 million during the same period last year. The company’s cash on hand stood at $168.3 million and had $1 billion in the credit facility. In the first six months of the year, it paid $27.1 million in dividends, compared with $24.9 million at the end of December 2021.
EPR Properties (NYSE:EPR) has been raising its dividends consistently for the past 10 years. It currently pays a monthly dividend of $0.275 per share, with a dividend yield of 7.82%, as recorded on September 5. The company can be a good addition to dividend portfolios among The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG).
At the end of Q2 2022, 22 hedge funds tracked by Insider Monkey reported owning stakes in EPR Properties (NYSE:EPR), compared with 25 in the previous quarter. The consolidated value of these stakes is over $144.1 million. Renaissance Technologies was the company’s largest stakeholder in Q2.
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Disclosure. None. 10 Monthly Dividend Stocks to Buy in September is originally published on Insider Monkey.