In this article, we will be taking a look at the 12 best stocks that pay monthly dividends. To skip our detailed analysis of dividend investing, you can go directly to see the 5 Best Stocks That Pay Monthly Dividends.
Dividend investing is a strategy that has long been integrated into investor circles, particularly by those looking to lead a comfortable life well into retirement, for instance. However, just the idea of being able to establish a stable, passive income stream for yourself is enough to tempt one into becoming an income investor. Making more money out of the money you already own is too good of an opportunity to pass up, after all. As such, dividend stocks like The Coca-Cola Company (NYSE: KO), AT&T Inc. (NYSE: T), Exxon Mobil Corporation (NYSE: XOM), and Chevron Corporation (NYSE: CVX) are among some of the most popular stock picks among investors today.
Is Dividend Yield Important?
Research has proven that high-yielding stocks tend to outperform their lower-yield counterparts, and even the market at large, for instance. Wellington Management, in a research cited by Hartford Funds, for instance, has estimated that between 1930 and 2020, high-yielding stocks managed to outperform the S&P 500 index 77.8% of the time, or during 7 out of 10 time periods under study.
In comparison to this significant outperformance, stocks with the lowest yields, at least among those under study, only managed to outperform the S&P 500 index about 44.4% of the time during the same period. These observations thus prove two things: first, the dividend stocks generally tend to outperform the market a decent, and sometimes even impressive number of the times; and second, that higher-yielding dividend stocks have historically proven themselves to be better performers than lower-yielding ones.
Photo by Esther Tuttle on Unsplash
Without further ado, let’s take a look at the 12 best stocks that pay monthly dividends.
Our Methodology
We have selected monthly dividend-paying stocks with dividend yields of 2% and above. Insider Monkey tracks the data of about 873 hedge funds, and we have also used this data to pick dividend stocks that are highly popular among hedge funds today. For each stock we have mentioned its yield and the number of hedge funds holding a stake in it, ranking them from the lowest to the highest number of hedge fund holders.
Best Stocks That Pay Monthly Dividends
12. Dynex Capital, Inc. (NYSE: DX)
Number of Hedge Fund Holders: 9
Dividend Yield: 8.78%
Dynex Capital, Inc. (NYSE: DX) is a real estate investment trust (REIT), based in Virginia, US. The company’s subsidiaries include Issued Holdings Capital Corporation, and it ranks 12th on our list of the best stocks that pay monthly dividends.
By the end of the second quarter of 2021, 9 hedge funds out of the 873 tracked by Insider Monkey held stakes in Dynex Capital, Inc. (NYSE: DX) worth roughly $27 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $24 million.
Like The Coca-Cola Company (NYSE: KO), AT&T Inc. (NYSE: T), Exxon Mobil Corporation (NYSE: XOM), and Chevron Corporation (NYSE: CVX), Dynex Capital, Inc. (NYSE: DX) is a good stock to invest in.
11. LTC Properties, Inc. (NYSE: LTC)
Number of Hedge Fund Holders: 10
Dividend Yield: 6.68%
LTC Properties, Inc. (NYSE: LTC), a healthcare REIT, invests in seniors housing and healthcare properties through sale-leasebacks, mortgage financing, joint ventures, and structured finance solutions including preferred equity and mezzanine lending. The company ranks 11th on our list of best stocks that pay monthly dividends.
By the end of the second quarter of 2021, 10 hedge funds out of the 873 tracked by Insider Monkey held stakes in LTC Properties, Inc. (NYSE: LTC) worth roughly $9 million.
10. Prospect Capital Corporation (NASDAQ: PSEC)
Number of Hedge Fund Holders: 11
Dividend Yield: 8.91%
Prospect Capital Corporation (NASDAQ: PSEC), a business development company, specializes in middle market, mature, mezzanine finance, later stage, emerging growth, and other transactions. The company ranks 10th on our list of the best stocks that pay monthly dividends. It is based in New York.
9. Broadmark Realty Capital Inc. (NYSE: BRMK)
Number of Hedge Fund Holders: 12
Dividend Yield: 7.88%
Broadmark Realty Capital Inc. (NYSE: BRMK) underwrites, funds, services, and manages a portfolio of the short-term and first deed of trust loans to fund the development of residential or commercial properties in the US. The company ranks 9th on our list of the best stocks that pay monthly dividends.
This April, B. Riley’s Matt Howlett began covering shares of Broadmark Realty Capital Inc. (NYSE: BRMK) with a Buy rating and a $12.50 price target.
8. Gladstone Land Corporation (NASDAQ:LAND)
Number of Hedge Fund Holders: 6
Dividend Yield: 2.4%
Gladstone Land Corporation (NASDAQ:LAND), a publicly traded REIT, is next on our list of the best stocks that pay monthly dividends. The company ranks 8th, and acquires and owns farmland in the US to lease properties to third-party farmers.
In the second quarter of 2021, Gladstone Land Corporation (NASDAQ:LAND) had an FFO of $0.13. The company’s revenue was $16.89 million, up 33.67% year over year and beating estimates by $0.28 million.
Like The Coca-Cola Company (NYSE: KO), AT&T Inc. (NYSE: T), Exxon Mobil Corporation (NYSE: XOM), and Chevron Corporation (NYSE: CVX), Gladstone Land Corporation (NASDAQ:LAND) is a notable stock pick among hedge funds.
7. ARMOUR Residential REIT, Inc. (NYSE: ARR)
Number of Hedge Fund Holders: 13
Dividend Yield: 10.98%
ARMOUR Residential REIT, Inc. (NYSE: ARR) is a mortgage REIT that invests in mortgage-backed securities (MBS) in the US. The company ranks 7th on our list of the best stocks that pay monthly dividends and is based in Florida.
B. Riley holds a Neutral rating and an $11.50 price target on shares of ARMOUR Residential REIT, Inc. (NYSE: ARR) as of this July.
In the second quarter of 2021, ARMOUR Residential REIT, Inc. (NYSE: ARR) had an FFO of $0.21, missing estimates by $0.07. The company’s revenue was $16.7 million, beating the previous quarter’s $16.06 million revenue.
6. STAG Industrial, Inc. (NYSE: STAG)
Number of Hedge Fund Holders: 15
Dividend Yield: 3.48%
STAG Industrial, Inc. (NYSE: STAG), a REIT, works to acquire and operate single-tenant, industrial properties throughout the United States. The company ranks 6th on our list of the best stocks that pay monthly dividends and is based in Boston, US.
By the end of the second quarter of 2021, 15 hedge funds out of the 873 tracked by Insider Monkey held stakes in STAG Industrial, Inc. (NYSE: STAG) worth roughly $232 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $173 million.
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Disclosure: None. 12 Best Stocks That Pay Monthly Dividends is originally published on Insider Monkey.
