In this article, we discuss 10 monthly dividend stocks with over 5% yield. If you want to skip our detailed analysis of these stocks, go directly to 5 Monthly Dividend Stocks with Over 5% Yield.
Dividend paying stocks are considered to be a reliable hedge against the rising inflation that is expected to last for the foreseeable future. Stable dividend stocks offer a passive stream of income over a long-term horizon for investors looking to retire comfortably, or for individuals who like additional income pouring in. Investors looking for monthly dividend income usually select real estate investment trusts or dividend ETFs, since they offer attractive yields and their payout is usually based on a per month basis.
According to Kevin Mahn, the president and chief investment officer at Hennion and Walsh Asset Management, since the S&P 500 had its best 3-year performance run since 1999 in 2021, returning more than 72%, the overall market became highly overvalued. The average price to earnings ratio at the end of 2021 clocked in at over 26. The Fed decided to end tapering by the end of first quarter of 2022, and declared that there might be multiple interest rate hikes in the near future, amounting to 25 basis points.
This announcement by the Fed naturally rattled many investors, some of whom thought it would be best to cut their losses short, take what profits they can get, and exit the stock market until the investing environment is more stable. However, Kevin Mahn suggested that these defensive investors should not deviate from their usual risk tolerance and mix up their portfolios with income stocks that are value-oriented. He noted that dividend paying securities will enable investors to earn some money even when the market is not outperforming historical estimates, stay in the trades, and benefit from the upside when the market rebounds, which he expects will happen soon.
The most notable dividend stocks that are endorsed by elite hedge funds include Microsoft Corporation (NASDAQ:MSFT), Johnson & Johnson (NYSE:JNJ), and PepsiCo, Inc. (NASDAQ:PEP).
Image by Nattanan Kanchanaprat from Pixabay
Our Methodology
We selected stocks that distribute dividends monthly, offering yields of over 5%. We have discussed the latest dividend payouts for each company, in addition to mentioning the hedge fund sentiment around each stock, which was gauged from a total of 867 elite funds monitored by Insider Monkey in the third quarter of 2021.
Monthly Dividend Stocks with Over 5% Yield
10. Gladstone Investment Corporation (NASDAQ:GAIN)
Dividend Yield as of January 27: 5.84%
Number of Hedge Fund Holders: 6
Gladstone Investment Corporation (NASDAQ:GAIN) is a private equity fund that primarily acquires stable lower middle market companies, offering both equity and debt capital to its clients, investing up to $30 million in a single transaction. Gladstone Investment Corporation (NASDAQ:GAIN) seeks to provide monthly dividends and potential capital gains to its shareholders.
On January 12, Gladstone Investment Corporation (NASDAQ:GAIN) declared a $0.075 per share monthly dividend, in line with previous. Additionally, the company declared a supplemental distribution of $0.120 per share. The dividend will be distributed on January 31, to shareholders of record on January 21.
Gladstone Investment Corporation (NASDAQ:GAIN) published its financial results for the quarter ending September 2021 on November 2. The company posted GAAP earnings per share of $0.85, beating estimates by $0.52. Revenue over the period jumped 56.57% to $18.54 million, outperforming estimates by $1.87 million.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 6 funds were bullish on Gladstone Investment Corporation (NASDAQ:GAIN), with stakes totaling $3.6 million. John Overdeck and David Siegel’s Two Sigma Advisors is the largest shareholder of Gladstone Investment Corporation (NASDAQ:GAIN), with a $1.93 million stake.
9. LTC Properties, Inc. (NYSE:LTC)
Dividend Yield as of January 27: 6.50%
Number of Hedge Fund Holders: 9
LTC Properties, Inc. (NYSE:LTC) is a real estate investment trust based in California with a portfolio of assets including senior housing and healthcare establishments in the United States. LTC Properties, Inc. (NYSE:LTC) uses a number of structured finance solutions to fund its projects.
LTC Properties, Inc. (NYSE:LTC) on January 3 declared a monthly per share dividend of $0.19, in line with previous. The dividend will be paid on January 31, to shareholders of record on January 21. As of January 27, LTC Properties, Inc. (NYSE:LTC) delivers a dividend yield of 6.50%.
On January 13, KeyBanc analyst Jordan Sadler upgraded LTC Properties, Inc. (NYSE:LTC) to Overweight from Sector Weight with a $40 price target. The analyst disclosed in a research note for investors that LTC Properties, Inc. (NYSE:LTC)’s “impending” cash flow recovery should positively impact its entire portfolio. He is maintaining the apartment and retail real estate investment trust sectors at Overweight for 2022 and keeping industrial, data center, self storage, healthcare, and triple net REITs at Sector Weight.
As of the third quarter of 2021, Israel Englander’s Millennium Management is the largest LTC Properties, Inc. (NYSE:LTC) stakeholder, owning 129,066 shares worth $4.09 million. Overall, 9 hedge funds were bullish on LTC Properties, Inc. (NYSE:LTC) in Q3 2021, with stakes totaling $12.1 million.
Hedge funds are taking an interest in LTC Properties, Inc. (NYSE:LTC) as of Q3 2021, in addition to Microsoft Corporation (NASDAQ:MSFT), Johnson & Johnson (NYSE:JNJ), and PepsiCo, Inc. (NASDAQ:PEP).
8. Gladstone Capital Corporation (NASDAQ:GLAD)
Dividend Yield as of January 27: 7.41%
Number of Hedge Fund Holders: 4
Gladstone Capital Corporation (NASDAQ:GLAD) is a business development company that delivers flexible debt capital solutions to lower middle market businesses. Gladstone Capital Corporation (NASDAQ:GLAD) lends with the purpose of assisting with private equity buyouts, acquisitions, or to support a company’s growth plans.
On January 12, Gladstone Capital Corporation (NASDAQ:GLAD) declared a $0.065 per share monthly dividend, in line with previous. The dividend is payable on January 31, to shareholders of record on January 21. Gladstone Capital Corporation (NASDAQ:GLAD) delivers a dividend yield of 7.41% as of January 27.
Gladstone Capital Corporation (NASDAQ:GLAD) posted its third quarter earnings on November 15, announcing a GAAP EPS of $0.98, beating estimates by $0.72. The $14.36 million revenue for the period outperformed estimates by $628,000.
In Q3 2021, 4 hedge funds were long Gladstone Capital Corporation (NASDAQ:GLAD), with stakes totaling $3.1 million, as compared to 6 funds in the preceding quarter, with stakes in Gladstone Capital Corporation (NASDAQ:GLAD) worth over $4 million. McKinley Capital Management is one of the leading stakeholders of the company, with 94,964 shares, valued at $1.07 million.
7. Horizon Technology Finance Corporation (NASDAQ:HRZN)
Dividend Yield as of January 27: 8.33%
Number of Hedge Fund Holders: 1
Horizon Technology Finance Corporation (NASDAQ:HRZN) is headquartered in Connecticut, and the company operates a venture lending platform that offers structured debt products to life science and technology companies. Horizon Technology Finance Corporation (NASDAQ:HRZN) has invested more than $2.3 billion in venture loans to over 285 growing companies since 2004.
On October 26, Horizon Technology Finance Corporation (NASDAQ:HRZN) declared a $0.10 per share monthly dividend, in line with previous. The dividend will be distributed on January 14, February 16, and March 16, respectively. Horizon Technology Finance Corporation (NASDAQ:HRZN) also declared a special dividend of $0.05, which was paid on December 15.
Riley analyst Sarkis Sherbetchyan raised the price target on Horizon Technology Finance Corporation (NASDAQ:HRZN) on October 21 to $15.50 from $14.50 and kept a Neutral rating on the shares ahead of its Q3 results. The company exceeded market consensus estimates on third quarter earnings and revenue on October 26.
Two Sigma Advisors holds a $2.54 million stake in Horizon Technology Finance Corporation (NASDAQ:HRZN) as of Q3 2021, owning 156,197 shares of the company.
6. SLR Senior Investment Corp. (NASDAQ:SUNS)
Dividend Yield as of January 27: 8.92%
Number of Hedge Fund Holders: 1
SLR Senior Investment Corp. (NASDAQ:SUNS) commenced operations in 2011 and operates as a business development company that invests primarily in senior secured loans of private middle market companies, offering debt financing solutions. SLR Senior Investment Corp. (NASDAQ:SUNS) aims to generate income which is distributed to shareholders on a monthly basis.
On January 2, SLR Senior Investment Corp. (NASDAQ:SUNS) declared a $0.10 per share monthly dividend, in line with previous. The dividend is payable on February 2, to shareholders of record on January 20. SLR Senior Investment Corp. (NASDAQ:SUNS) offers a dividend yield of 8.92% on January 27.
In June 2021, Oppenheimer analyst Mitchel Penn assumed coverage of SLR Senior Investment Corp. (NASDAQ:SUNS) with an Outperform rating and a $16 price target.
The third quarter database of Insider Monkey suggests that 1 hedge fund holds a $1.09 million stake in SLR Senior Investment Corp. (NASDAQ:SUNS).
While stocks like Microsoft Corporation (NASDAQ:MSFT), Johnson & Johnson (NYSE:JNJ), and PepsiCo, Inc. (NASDAQ:PEP) deliver quarterly dividends, SLR Senior Investment Corp. (NASDAQ:SUNS) is a good play for monthly dividend income.
Click to continue reading and see 5 Monthly Dividend Stocks with Over 5% Yield.
Suggested articles:
- Market Crash Predictions and 10 Stocks to Buy for Bad Times
- Leon Cooperman’s Performance in 2021: 10 Best Stock Picks
- 10 Best Dividend Stocks According to Thomas Steyer’s Farallon Capital
Disclosure: None. 10 Monthly Dividend Stocks with Over 5% Yield is originally published on Insider Monkey.
