In this article, we discuss 10 monthly dividend stocks with over 6% yield. If you want to skip our detailed analysis of these stocks, go directly to 5 Monthly Dividend Stocks with Over 6% Yield.
Monthly dividend stocks are a steady source of passive income for people who plan their retirement around dividends. In this turbulent market, where rising uncertainty is affecting almost every sector, it is prudent to look out for stocks that have a reliable history of offering dividend payouts to investors.
Stock Market Outlook 2022
Tom Lee, the managing partner of Fundstrat Global Advisors, joined CNBC’s ‘TechCheck’ on March 10, to discuss why the foundation for the bull market is still intact. Lee stated that market valuations are historically low, and investors cannot get hurt if they purchase stocks over the next 12 months, despite the uncertain stock market regulations. Although Lee called the market a “no man’s land”, he believes that the S&P 500 will end the year on a higher note.
Wharton School professor Jeremy Siegel stated in a CNBC interview on March 9 that the bigger problem on the horizon for long-term investors is not the rising energy prices, but the Fed using Ukraine as an excuse not to increase rates. According to Siegel, the fundamental issue of inflation goes way beyond oil prices, and it will be a big mistake to avoid raising rates now, since the Fed will have to increase them even more down the road to compensate for rampant inflation. Siegel further broke down the idea of a post-war recession, essentially rejecting the notion by pointing out that the US economy is only 25% dependent on oil for output, which is a drastic decrease as compared to the 1970s. He also added that America is virtually oil independent, since most oil producers are local instead of reliance on imported oil reserves, so the higher oil prices are going back into the US economy, which is currently not reflected in the stock market due to low capitalizations.
Raging staff cuts and unemployment during the COVID-19 pandemic highlighted the need for passive income, and dividend stocks are an effective hedge against inflation, which is why dividend payers are sought after by institutional and retail investors alike. Some of the most well-known dividend paying companies in the market include Microsoft Corporation (NASDAQ:MSFT), PepsiCo, Inc. (NASDAQ:PEP), and Apple Inc. (NASDAQ:AAPL).
However, the focus in this article remains on monthly dividend stocks.
Photo by Nathan Dumlao on Unsplash
Our Methodology
After a careful assessment of monthly dividend payers, we picked companies that yield over 6%. We have mentioned the dividend yields as of March 9, latest dividend payouts, and the hedge fund sentiment around each stock.
Data from 924 elite hedge funds tracked by Insider Monkey in the fourth quarter of 2021 was used to gauge the hedge fund sentiment around the stocks.
Monthly Dividend Stocks with Over 6% Yield
10. Generation Income Properties, Inc. (NASDAQ:GIPR)
Dividend Yield as of March 9: 8.88%
Number of Hedge Fund Holders: N/A
Based in Tampa, Florida, Generation Income Properties, Inc. (NASDAQ:GIPR) is a real estate investment trust that rents out upscale office, industrial, and retail properties to investment grade tenants. The stock has gained almost 22% year-to-date and delivers an 8.88% yield as of March 9.
On January 12, Generation Income Properties, Inc. (NASDAQ:GIPR) declared a $0.054 per share monthly dividend, in line with previous. The dividend was distributed to shareholders on January 30 and February 28. The next dividend payout will take place on March 30, for shareholders of record on March 15.
Maxim analyst Michael Diana on October 11 initiated coverage of Generation Income Properties, Inc. (NASDAQ:GIPR) with a Buy rating and an $11 price target. The analyst remained positive on Generation Income Properties, Inc. (NASDAQ:GIPR)’s “risk-averse yet high-yielding strategy”, citing the REIT’s primarily free-standing, single-tenant commercial properties with diversity of property types, geography, and tenants. The shares trade at a discount to relevant peers despite superior dividend yield, credit ratings, and diversity, the analyst told investors in a bullish thesis.
In addition to Microsoft Corporation (NASDAQ:MSFT), PepsiCo, Inc. (NASDAQ:PEP), and Apple Inc. (NASDAQ:AAPL), Generation Income Properties, Inc. (NASDAQ:GIPR) is a reliable stock for passive income.
9. Stellus Capital Investment Corporation (NYSE:SCM)
Dividend Yield as of March 9: 8.14%
Number of Hedge Fund Holders: 2
Stellus Capital Investment Corporation (NYSE:SCM) is a Houston-based business development company that primarily invests in private middle-market companies. Stellus Capital Investment Corporation (NYSE:SCM) currently has approximately $2.4 billion of assets under management, and the fund prefers to invest in the United States and Canada.
On March 1, Stellus Capital Investment Corporation (NYSE:SCM) reported its fourth quarter results, posting GAAP earnings per share of $0.52, topping market consensus by $0.20. Revenue over the period jumped approximately 30% year-over-year to $17.56 million, outperforming estimates by $1.15 million.
Stellus Capital Investment Corporation (NYSE:SCM) declared on January 14 a $0.0933 per share monthly dividend, in line with previous. The dividend was paid on February 15, and is set to be distributed next on March 15 and April 15, to shareholders of record on February 25 and March 31, respectively. The stock yields 8.14% as of March 9.
Oppenheimer analyst Mitchel Penn on November 1 upgraded Stellus Capital Investment Corporation (NYSE:SCM) to Outperform from Perform with a $15 price target, after the company posted its Q3 results. The analyst cited the “strong” return on equity of 18.6% in the quarter and the company’s “high quality” portfolio for the upgrade.
According to the database of 924 elite hedge funds tracked by Insider Monkey in Q4 2021, Two Sigma Advisors and Marshall Wace LLP were bullish on Stellus Capital Investment Corporation (NYSE:SCM), holding collective stakes in the company worth $1.84 million.
8. BlackRock Income Trust, Inc. (NYSE:BKT)
Dividend Yield as of March 9: 8.17%
Number of Hedge Fund Holders: 2
BlackRock Income Trust, Inc. (NYSE:BKT) is a close ended fixed income mutual fund managed by BlackRock Advisors, LLC. It invests in the fixed income markets of the United States, with a portfolio that includes U.S. government sponsored agency securities, mortgage-backed securities, asset-backed securities, and U.S. treasury obligations. BlackRock Income Trust, Inc. (NYSE:BKT) prefers AAA-rated investment vehicles.
On March 4, BlackRock Income Trust, Inc. (NYSE:BKT) reported a per share monthly dividend of $0.0344, in line with previous. The dividend will be distributed on March 31, to shareholders of record on March 15. BlackRock Income Trust, Inc. (NYSE:BKT) delivers a dividend yield of 8.17% as of March 9.
Of the 924 hedge funds tracked by Insider Monkey in the fourth quarter of 2021, Millennium Management and Citadel Investment Group endorse BlackRock Income Trust, Inc. (NYSE:BKT), with combined stakes of $541,000.
7. PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT)
Dividend Yield as of March 9: 8.76%
Number of Hedge Fund Holders: 3
PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) is a business development company that invests in debt, equity, and loans. PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) caters to private, thinly traded, and small market-cap public middle market companies.
PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) reported its fourth quarter results on February 9, announcing earnings per share of $0.33, exceeding estimates by $0.05. The company’s revenue came in at $26.34 million, up 27% from the prior-year quarter, surpassing market predictions by $5.07 million.
On March 2, PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) announced a $0.095 per share monthly dividend, in line with previous. With a dividend yield of 8.76% as of March 9, the company will pay its dividend on April 1, to shareholders of record on March 17.
McKinley Capital Management owns 97,322 shares of PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) as of December 2021, worth $1.24 million. Overall, the combined stakes held by elite funds in PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) in Q4 2021 amounted to $5 million.
6. Gladstone Commercial Corporation (NASDAQ:GOOD)
Dividend Yield as of March 9: 7.09%
Number of Hedge Fund Holders: 6
Gladstone Commercial Corporation (NASDAQ:GOOD) is a Virginia-based real estate investment trust that acquires and leases out industrial and office properties across the United States. The company has consistently offered monthly dividends since its inception in 2003.
On January 12, Gladstone Commercial Corporation (NASDAQ:GOOD) declared a $0.1254 per share monthly dividend, a 0.1% increase from its prior dividend of $0.1253. The dividend was paid on January 31 and February 28, and the next distribution is scheduled for March 31, to shareholders of record on March 23.
Consistent with its growth strategy of acquiring functional assets, leased to creditworthy tenants across strong industrial locations, Gladstone Commercial Corporation (NASDAQ:GOOD) on February 24 acquired an 80,000 square foot industrial facility in North Carolina for $7.4 million. The property is Gladstone Commercial Corporation (NASDAQ:GOOD)’s ninth industrial acquisition in North Carolina.
According to the fourth quarter database of Insider Monkey, 6 hedge funds were long Gladstone Commercial Corporation (NASDAQ:GOOD), with collective stakes amounting to $59.3 million, compared to 8 funds in the prior quarter, holding stakes in Gladstone Commercial Corporation (NASDAQ:GOOD) worth approximately $50 million. Renaissance Technologies is the largest shareholder of the company, with more than 2 million shares worth $53.4 million.
In addition to famous names like Microsoft Corporation (NASDAQ:MSFT), PepsiCo, Inc. (NASDAQ:PEP), and Apple Inc. (NASDAQ:AAPL), Gladstone Commercial Corporation (NASDAQ:GOOD) is gaining ground amid the ongoing crisis in the world.
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Disclosure: None. 10 Monthly Dividend Stocks with Over 6% Yield is originally published on Insider Monkey.
