In this article, we will take a look at some of the best dividend stocks that pay monthly dividends.
Despite common perceptions, 2024 turned out to be a strong year for dividends, even though the Dividend Aristocrats Index underperformed the broader market. Throughout the year, US companies consistently maintained or raised their dividend payouts. In addition, several major tech firms introduced dividends, demonstrating that companies can balance both growth and shareholder returns. By September 30, 2024, around 80% of the companies in the S&P index were paying dividends—a level that has remained relatively stable over the past decade. Notably, the technology sector accounted for nearly 24% of dividend-paying companies, up from 13% a decade ago, while the healthcare and industrial sectors also saw an increase in dividend issuers. This broader adoption of dividends has expanded investment opportunities, allowing equity-income investors to access high-growth and innovative companies. Given these trends, analysts remain optimistic about dividend performance moving into 2025.
Also read: 8 Best Value Dividend Stocks to Invest in According to Warren Buffett
Dividend stocks have long been a popular choice for investors, regardless of how often payouts are distributed. Companies carefully determine their dividend schedules, with annual or semi-annual payments offering larger sums but lacking consistency. While most major firms prefer quarterly payouts for their practicality, some choose monthly distributions, which many investors favor for their steady income stream. Monthly dividends provide immediate cash flow, making financial planning easier and offering a sense of stability, similar to a paycheck. Moreover, a reduction in monthly dividends tends to have a less noticeable short-term impact. However, while companies that pay dividends monthly often offer higher yields, they have historically struggled to maintain consistent payout policies over time.
Dividend stocks have consistently generated strong returns over time, regardless of their payment frequency. Historically, dividends made up about 40% of the market’s total return between 1936 and 2012. However, over the past decade, their contribution dropped to just 16%, according to a research note from BofA Securities published late last year. Looking ahead, Ohsung Kwon, a US equity strategist at BofA Securities, expects dividends to play a larger role in overall returns compared to the previous ten years.
Analysts point out that dividend growth has historically been closely tied to earnings performance. With strong earnings growth in 2024, they expect an even better showing in 2025. Goldman projects an 11% rise in earnings per share this year, up from an estimated 8% last year, which is likely to drive a 7% increase in dividends, compared to a 6% bump in 2024. Meanwhile, Kwon holds an even more bullish view, predicting a 12% jump in dividends this year, driven by accelerating earnings growth.
Analysts reassure investors not to be concerned about the widening gap between dividend stocks and the broader market. Chris O’Keefe, a portfolio manager at Logan Capital Management, views this divergence as an attractive entry point for those looking to invest in dividend stocks. Other analysts echo this sentiment, highlighting a positive outlook for dividend-paying companies. The Dividend Aristocrats Index, which tracks 66 companies with at least 25 years of consecutive dividend growth, has struggled to keep pace with the broader market since 2020. Dividend stocks saw renewed interest in 2022 as fears of a recession led investors toward defensive sectors like utilities and consumer goods. However, the rally was short-lived. By 2023, rising interest rates made bonds and money-market funds more appealing than dividend yields, prompting companies to conserve cash amid economic uncertainty. In 2024, many of the same high-growth stocks that surged during the pandemic have once again driven the market to record levels. That being said, dividend stocks have maintained steady performance over time and continue to be a strong long-term investment option. Given this, we will take a look at some of the best dividend stocks that pay monthly dividends.
Photo by Artem Beliaikin on Unsplash
Our Methodology:
For this list, we reviewed a list of companies providing monthly dividends to their shareholders. Among these, we specifically chose businesses with robust dividend practices, consistently maintaining their payouts across multiple years. The majority of these selected companies operate within the Real Estate Investment Trust (REIT) sector, as they are required to allocate 90% of their income towards dividends. From that list, we picked 15 stocks with the highest number of hedge fund investors, using Insider Monkey’s Q3 2024 database of 900 hedge funds and their holdings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15. Gladstone Land Corporation (NASDAQ:LAND)
Number of Hedge Fund Holders: 5
Gladstone Land Corporation (NASDAQ:LAND) is a Virginia-based real estate investment trust company that owns and acquires farmlands and farm-related properties. The stock has struggled over the past year, declining by nearly 25%. This downturn was driven by lower crop prices, which impacted some of the company’s tenants. As a result, the company reclaimed 20 farms, leaving some vacant while taking direct management of others. In addition, it adjusted certain lease agreements, opting for reduced initial rental rates in exchange for a greater share of future crop revenues.
That said, investors may not need to be overly concerned about this issue, as Gladstone Land Corporation (NASDAQ:LAND) expects to resolve it by year-end. The company anticipates stronger revenue in the latter half of 2025, coinciding with the harvest season, which should support continued dividend growth.
Gladstone Land Corporation (NASDAQ:LAND) has maintained a strong track record of rewarding shareholders, having paid 141 consecutive monthly dividends and raising payouts 35 times over the past 39 years. The company currently pays a monthly dividend of $0.0467 per share and has a dividend yield of 5.20%, as of January 29.
Gladstone Land Corporation (NASDAQ:LAND) experienced strong results in the third quarter of 2024, particularly from its annual row crop farms in California and Florida, where both property values and rental income saw an uptick. However, several permanent crop farms in the western regions faced challenges, including declining crop prices, rising input costs, and concerns over water availability. In response, the company introduced a new leasing strategy for some of these farms, offering tenants a cash allowance to help with expenses in exchange for a larger share of the gross crop proceeds. While intended as a short-term measure, this approach is considered the most beneficial for these farms, given their history of strong yields, reliable crop insurance, and improving crop prices.
At the end of Q3 2024, 5 hedge funds tracked by Insider Monkey held stakes in Gladstone Land Corporation (NASDAQ:LAND), compared with 9 in the previous quarter. The consolidated value of these stakes is more than $6.5 billion. Among these hedge funds, Citadel Investment Group was the company’s leading stakeholder in Q3.
14. PennantPark Floating Rate Capital Ltd. (NYSE:PFLT)
Number of Hedge Fund Holders: 7
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is an American business development company that provides senior secured first lien notes. On January 3, the company declared a monthly dividend of $0.1025 per share, which was in line with its previous dividend. It is one of the best dividend stocks on our list as the company has been making regular dividend payments since 2011. The stock supports a dividend yield of 11.20%, as of January 29.
A significant portion of PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) loans carry floating interest rates, which aligns with its name. As of September 30, its portfolio totaled $1.98 billion, with around $1.75 billion allocated to first-lien credit across 158 businesses. The remainder of the portfolio comprised other loan types and dividend income from its investment holdings.
In the fourth quarter of 2024, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) recorded net investment income exceeding $55.5 million, marking a 55.3% increase from the previous year. The company’s investment portfolio approached $2 billion, while net assets surpassed $877 million. It maintained holdings in 158 companies, with an average investment size of $12.6 million and a weighted average yield of 11.5% on debt investments. The portfolio was primarily allocated to first-lien secured debt (88%), with less than 1% in second-lien secured and subordinated debt, and 12% in preferred and common equity. As of September 30, 2024, more than 99% of the investments within PennantPark Senior Secured Loan Fund I LLC (PSSL) were first-lien-secured debt.
As of the close of Q3 2024, 7 hedge funds in Insider Monkey’s database held stakes in PennantPark Floating Rate Capital Ltd. (NYSE:PFLT), compared with 9 in the previous quarter. These stakes are worth over $30.8 million in total. Balyasny Asset Management was the company’s leading stakeholder in Q3.
13. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Fund Holders: 7
Main Street Capital Corporation (NYSE:MAIN) ranks thirteenth on our list of the best dividend stocks that pay monthly dividends. The American business development company provides customized debt and equity financing to lower-middle-market companies and debt capital to middle-market companies. In the third quarter of 2024, the company reported a total investment income of $136.8 million, reflecting an 11% increase from the same period last year. The company made investments totaling $51.6 million in its lower middle market (LMM) portfolio, including an $11.2 million investment in a new LMM portfolio company. In addition, Main Street Capital’s cash position remained robust, with cash and cash equivalents rising to $84.4 million by the end of the quarter, up from $60 million at the close of December 2023.
In the past 12 months, Main Street Capital Corporation (NYSE:MAIN) has surged by over 33%, significantly outperforming the broader market. The company demonstrates strong cost efficiency, with an annualized Operating Expenses to Assets Ratio of 1.3%. This ratio, which measures non-interest operating expenses as a percentage of the average total assets for the quarter, remained consistent for both the quarter and the twelve-month period ending September 30, 2024.
Main Street Capital Corporation (NYSE:MAIN) is one of the best dividend stocks on our list as the company has maintained its reputation for paying supplemental dividends to shareholders. In its Q3 earnings report, the company declared a supplemental dividend of $0.30 per share, which marked the company’s thirteenth consecutive quarter of additional dividends, in addition to the eight increases made to its regular monthly dividends since the fourth quarter of 2021. It currently pays a monthly dividend of $0.25 per share and has a dividend yield of 4.95%, as of January 29.
Insider Monkey’s database of Q3 2024 indicated that 7 hedge funds owned stakes in Main Street Capital Corporation (NYSE:MAIN), compared with 8 in the previous quarter. The consolidated value of these stakes is over $21 million.
12. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Number of Hedge Fund Holders: 8
ARMOUR Residential REIT, Inc. (NYSE:ARR) is a real estate investment trust company, based in Florida. The company mainly invests in mortgage-backed securities. The company is committed to promoting homeownership across a wide range of Americans. The company’s approach to creating value for shareholders centers around strategically investing in and managing a diversified, leveraged portfolio of mortgage-backed securities (MBS). In addition, the company focuses on maintaining steady dividends for common shares, prioritizing alignment with long-term objectives rather than responding to short-term market fluctuations.
In the third quarter of 2024, ARMOUR Residential REIT, Inc. (NYSE:ARR)’s Agency MBS portfolio grew to $12.4 billion, compared to $8.9 billion in the previous quarter. It also reported net repurchase agreements totaling $10.2 billion, with 41.4% of these agreements managed through its affiliate, BUCKLER Securities LLC. The company’s debt-to-equity ratio was recorded at 7.74:1.
ARMOUR Residential REIT, Inc. (NYSE:ARR) is one of the best dividend stocks on our list as the company has never missed a dividend in the past 14 years. Currently, it pays a monthly dividend of $0.24 per share and has a dividend yield of 15.55%, as of January 29.
According to Insider Monkey’s database of Q3 2024, 8 hedge funds held stakes in ARMOUR Residential REIT, Inc. (NYSE:ARR), up from 7 in the previous quarter. These stakes have a total value of nearly $8.2 million. Among these hedge funds, Millennium Management was one of the company’s leading stakeholders in Q3.
11. Ellington Financial Inc. (NYSE:EFC)
Number of Hedge Fund Holders: 9
Ellington Financial Inc. (NYSE:EFC) is a Connecticut-based specialty finance company that acquires and manages a range of financial assets, including those related to mortgages, consumers, corporations, and other financial sectors. The company’s main goal is to deliver appealing, risk-adjusted returns to its shareholders by investing in opportunities that are expected to provide appropriate rewards for the associated risks. Since the start of 2025, the stock has surged by nearly 3%.
In the third quarter of 2024, Ellington Financial Inc. (NYSE:EFC) expanded its investment portfolio by leveraging its strong balance sheet to grow its high-yielding loan assets. The company saw a 26% increase across its non-QM loan, residential transition loan, commercial mortgage bridge loan, HELOC, and closed-end second-lien loan portfolios. This growth led to a slight rise in leverage, while the company reduced its Agency portfolio and preserved capital for future investments.
Ellington Financial Inc. (NYSE:EFC)’s cash position also remained robust, supporting its ability to maintain solid dividend payments. By the end of the quarter, the company had nearly $218 million in cash and cash equivalents, up from $198.5 million at the end of June 2024. Its total assets grew to nearly $16 billion, an increase from $15.3 billion in the same period last year.
On January 9, Ellington Financial Inc. (NYSE:EFC) declared a monthly dividend of $0.13 per share, which was in line with its previous dividend. Overall, the company has been paying regular dividends to shareholders for the past 15 years, which makes EFC one of the best dividend stocks on our list. The stock’s dividend yield on January 29 came in at 12.48%.
The number of hedge funds tracked by Insider Monkey owning stakes in Ellington Financial Inc. (NYSE:EFC) grew to 9 in Q3 2024, from 5 in the previous quarter. These stakes have a consolidated value of more than $45.4 million. With over 1.1 million shares, Levin Easterly Partners was the company’s leading stakeholder in Q3.
10. Orchid Island Capital, Inc. (NYSE:ORC)
Number of Hedge Fund Holders: 11
Orchid Island Capital, Inc. (NYSE:ORC) is an American specialty finance company, based in Florida. With a dividend yield of 18.11%, as of January 29, ORC is one of the best dividend stocks that pay monthly dividends. On January 8, it declared a monthly dividend of $0.12 per share, which was in line with its previous dividend. The company has been a reliable monthly dividend payer since its IPO in 2013. It initially paid out over $4.6 million in cumulative dividends in 2013, and this amount grew to more than $81 million by the end of 2023. Over this period, Orchid Island Capital returned approximately $658 million to its shareholders in dividends.
Orchid Island Capital, Inc. (NYSE:ORC) maintains a positive outlook on future investments, expecting that promising opportunities will continue to emerge. It believes total returns could strengthen if the Federal Reserve begins to loosen monetary policy, especially if banks increase their participation in the Agency RMBS market. However, even in the absence of these factors, the current investment environment remains favorable, with hedged net interest spreads providing solid support for existing dividend levels.
Insider Monkey’s database of Q3 2024 showed that 11 hedge funds held stakes in Orchid Island Capital, Inc. (NYSE:ORC), up from 10 in the previous quarter. These stakes have a total value of over $11.7 million. Jim Simons’ Renaissance Technologies was the company’s leading stakeholder in Q3.
9. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 13
LTC Properties, Inc. (NYSE:LTC) ranks ninth on our list of the best dividend stocks that pay monthly dividends. The California-based real estate investment trust company invests in senior housing and healthcare facilities through sale-leasebacks. In the third quarter of 2024, the company posted $55.7 million in revenue, marking a 13% increase from the same period a year earlier. This growth was driven by earnings from previously transitioned portfolios, higher income from loan originations, funding for construction loans in 2024, and increased rental income. However, lower revenue from property sales partially offset these gains. As previously announced, the company committed $26.1 million toward a mortgage loan to support the construction of a 116-unit senior living community in Illinois, which will include independent living, assisted living, and memory care services. The borrower has already contributed $12.3 million in equity to initiate construction, with the full loan amount expected to be utilized by early 2025.
LTC Properties, Inc. (NYSE:LTC) experienced a strong quarter in terms of cash flow. By the end of September, its cash and cash equivalents exceeded $35 million, an increase from $20.2 million at the close of 2023. This stable financial position has allowed the company to maintain consistent monthly dividend payments since 2005, following its history of quarterly distributions since 1992. Its monthly dividend comes in at $0.19 per share for a dividend yield of 6.8%, as of January 29.
JMP Securities recently upgraded LTC Properties, Inc. (NYSE:LTC) to Market Outperform while keeping a price target of $40 per share. The firm noted that the company’s operators have fully recovered from the challenges posed by the pandemic, eliminating prior concerns about cash flow. This rebound represents a key achievement for LTC, strengthening its financial stability and supporting future growth prospects.
LTC Properties, Inc. (NYSE:LTC) was included in 13 hedge fund portfolios at the end of Q3 2024, up from 12 in the previous quarter, as per Insider Monkey’s database. The stakes held by these funds are worth more than $75 million in total. Among these hedge funds, Balyasny Asset Management was the company’s largest stakeholder in Q3.
8. Phillips Edison & Company, Inc. (NASDAQ:PECO)
Number of Hedge Fund Holders: 18
Phillips Edison & Company, Inc. (NASDAQ:PECO) is an American real estate investment trust company that owns and develops shopping centers throughout the country. The company reported strong earnings in the third quarter of 2024, with revenues amounting to $165.5 million, reflecting an 8.56% increase from the previous year and surpassing analysts’ expectations by $2.11 million. By the end of the quarter, the company held nearly $6.5 million in cash and cash equivalents, an improvement from $4.8 million at the close of December 2023. Its total assets reached approximately $5 billion, showing a slight increase from $4.8 billion at the end of the previous year.
Phillips Edison & Company, Inc. (NASDAQ:PECO) credits its continued strong performance to a focused approach of owning well-located, high-quality neighborhood shopping centers anchored by leading grocers in their respective markets. This property-level success highlights the strength of its integrated operating platform and the expertise of its experienced team. Benefiting from a solid operating environment and the stability of its tenants, the company has raised its full-year 2024 earnings forecast for Core FFO per share. In addition, it has increased its 2024 acquisitions target to a range of $275 million to $325 million, net of property sales. With ample resources and borrowing capacity, the company remains well-positioned to acquire additional assets as attractive opportunities arise.
Phillips Edison & Company, Inc. (NASDAQ:PECO) is one of the best dividend stocks on our list as the company initiated its dividend policy in 2021 and has paid regular dividends since then. It currently offers a monthly dividend of $0.1025 per share and has a dividend yield of 3.38%, as of January 29.
The number of hedge funds tracked by Insider Monkey owning stakes in Phillips Edison & Company, Inc. (NASDAQ:PECO) grew to 18 in Q3 2024, from 14 in the previous quarter. The collective value of these stakes is nearly $116 million. With nearly 1.5 million shares, Alyeska Investment Group was the company’s leading stakeholder in Q3.
7. Apple Hospitality REIT, Inc. (NYSE:APLE)
Number of Hedge Fund Holders: 19
Apple Hospitality REIT, Inc. (NYSE:APLE) is an American real estate investment trust company, based in Virginia. The company mainly operates in hotel properties across the US. In December, BMO Capital began covering the stock with an Outperform rating and set a price target of $18. An analyst highlighted the company as the largest REIT specializing in select-service lodging, noting its well-diversified, high-quality portfolio. In a research note, the firm expressed a positive outlook, citing its defensive characteristics and potential to gain from rising revenue per available room (RevPAR).
During the third quarter of 2024, business travel demand continued to recover gradually, while leisure travel remained strong, supporting stable operating performance across the portfolio. Apple Hospitality REIT, Inc. (NYSE:APLE) ‘s Comparable Hotels saw a roughly 1% increase in RevPAR compared to the same period in 2023. Early estimates for October suggested occupancy levels near 80%, along with further growth in the average daily rate (ADR). The company reported $378.8 million in revenue for the quarter, reflecting a 5.75% increase year over year, while operating income rose 2% from the previous year to $77.7 million.
Apple Hospitality REIT, Inc. (NYSE:APLE) has also attracted investor interest due to its dividend payments. The company has consistently distributed dividends since 2008 and has a track record of providing additional payouts to shareholders. Currently, it issues a monthly dividend of $0.08 per share and has also declared a supplemental dividend of $0.05 per share. The stock has a dividend yield of 6.24%, as of January 29.
According to Insider Monkey’s database of Q3 2024, 19 hedge funds owned stakes in Apple Hospitality REIT, Inc. (NYSE:APLE), the same as in the previous quarter. These stakes are valued at over $98.4 million in total. Among these hedge funds, Balyasny Asset Management was the company’s leading stakeholder in Q3.
6. EPR Properties (NYSE:EPR)
Number of Hedge Fund Holders: 23
EPR Properties (NYSE:EPR) is a Missouri-based real estate investment trust company that leases its properties to various entertainment and educational businesses, including amusement parks, movie theaters, and ski resorts, across the US and Canada. Analysts have been critical of the company’s business model, as it focuses exclusively on experiential assets. During the coronavirus pandemic, owning properties related to entertainment and group activities proved difficult. As a result, the company reduced its dividend in 2020 and eventually eliminated it after reporting a significant $156 million net loss for the year. However, the dividend was reinstated in the second half of 2021.
While movie theater operators continue to face challenges, other tenants of EPR Properties (NYSE:EPR) are in a much stronger position than before the pandemic. Rent coverage outside of theaters has improved from 1.9 times in 2019 to 2.1, indicating a notable increase in the ability of rental income to cover property ownership costs. Moreover, by the end of Q3 2024, the company achieved a 99% occupancy rate. This was achieved by selling vacant theater properties, adding more non-theater tenants in the experiential sector, and expanding its portfolio in education-related properties.
In the quarter, EPR Properties (NYSE:EPR) sold two theater properties and one early childhood education center, generating $8.7 million in net proceeds. The company’s cash position remained strong, ending the quarter with over $35.3 million in cash and total assets approaching $5.7 billion.
EPR Properties (NYSE:EPR), one of the best dividend stocks on our list, has never missed a dividend since its IPO in 1997. The company shifted its dividend policy to monthly payouts in 2013. Its monthly dividend currently comes in at $0.285 per share for a dividend yield of 7.39%, as of January 29.
At the end of Q3 2024, 23 hedge funds tracked by Insider Monkey held stakes in EPR Properties (NYSE:EPR), worth over $247.4 million. Jim Simons’ Renaissance Technologies was the firm’s leading stakeholder in Q3.
5. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 23
Realty Income Corporation (NYSE:O) is an American real estate investment trust company that invests in single-tenant commercial properties in the country. The company performed well in 2024, exceeding initial expectations. The diversified REIT was set to achieve approximately 5% growth in adjusted funds from operations (FFO). At the start of the year, it completed the $9.3 billion acquisition of Spirit Realty, a move expected to be highly accretive. In addition, the company raised its full-year investment outlook from $2 billion to $3 billion.
Realty Income Corporation (NYSE:O) specializes in acquiring commercial properties, leasing them, and passing the rental income on to its investors. By the end of Q3 2024, the company owned 15,457 properties across the US, UK, and six European countries, up from 13,458 properties at the end of 2023. This growth was largely driven by its acquisition of Spirit Realty in January 2024. The company mainly leases properties to retail businesses that maintain strong performance even during economic downturns.
On January 14, Realty Income Corporation (NYSE:O) declared a monthly dividend of $0.264 per share, which was consistent with its previous dividend. A key factor behind the company’s is its strong financial position, backed by an investment-grade balance sheet. The company’s large scale also provides it with easier access to capital markets, allowing it to secure favorable debt terms for growth. Furthermore, the company has consistently increased its payouts since going public in 1994, which makes it one of the best dividend stocks that offer monthly payouts. The stock offers a dividend yield of 5.86%, as of January 29.
According to Insider Monkey’s database of Q3 2024, 23 hedge funds, growing from 19 in the previous quarter, held stakes in Realty Income Corporation (NYSE:O). These stakes have a consolidated value of more than $163.5 million in total. With over 1.7 million shares, AEW Capital Management was the company’s leading stakeholder in Q3.
4. SL Green Realty Corp. (NYSE:SLG)
Number of Hedge Fund Holders: 24
SL Green Realty Corp. (NYSE:SLG) ranks fourth on our list of the best monthly dividend stocks. The American real estate investment trust company is the largest office landlord in Manhattan. The company focuses on acquiring, managing, and increasing the value of commercial properties in the area. As of December 31, 2024, SL Green owned interests in 54 properties, totaling 30.6 million square feet. This portfolio included ownership stakes in 27 million square feet of Manhattan office buildings and 2.8 million square feet in properties securing debt and preferred equity investments.
In its recently announced Q4 2024 earnings, SL Green Realty Corp. (NYSE:SLG) reported revenue of $157 million, which showed a 4% growth from the same period last year. For the fourth quarter and the full year of 2024, same-store cash net operating income (NOI), which includes the company’s share of same-store cash NOI from unconsolidated joint ventures, saw a decline of 2.7% and 1.2%, respectively, excluding lease termination income, when compared to the same periods in 2023. However, Manhattan’s same-store office occupancy improved, reaching 92.5% as of December 31, 2024, including leases that were signed but had not yet commenced.
SL Green Realty Corp. (NYSE:SLG) experienced a reduction in its dividend last year, primarily due to decreased occupancy rates during the pandemic. However, with the company’s recovery now underway, investors can be more confident in the consistency of its monthly dividend payments. In December 2024, the company announced a 3% increase in its monthly dividend, raising it to $0.2575 per share. The stock supports a dividend yield of 4.89%, as of January 29.
With a collective stake value of more than $224.6 million, 24 hedge funds held positions in SL Green Realty Corp. (NYSE:SLG) at the end of Q3 2024, according to Insider Monkey’s database. In the previous quarter, 20 funds held investments in the stock.
3. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 24
AGNC Investment Corp. (NASDAQ:AGNC) is an American real estate investment trust company that mainly invests in mortgage-backed securities, which function similarly to bonds. Unlike property-owning REITs, which operate much like managing large-scale rental properties, AGNC focuses on securities that are traded daily. These investments are impacted by changes in interest rates as well as factors in the property market, such as housing demand and loan repayment trends. Since the start of 2025, the stock has surged by nearly 6%.
AGNC Investment Corp. (NASDAQ:AGNC) presents a strong investment opportunity despite the risks involved. Unlike traditional REITs that own and lease properties, this mortgage REIT invests in mortgage-backed securities, similar to the structure of a mutual fund. The company’s value is closely tied to the performance of its mortgage securities portfolio. As of December 31, 2024, the company’s investment portfolio was valued at $73.3 billion. This portfolio included $65.5 billion in Agency MBS, $6.9 billion in net forward purchases and sales of Agency MBS in the “to-be-announced” (TBA) market, and $0.9 billion in credit risk transfer (CRT) and non-Agency securities, along with other mortgage credit investments.
AGNC Investment Corp. (NASDAQ:AGNC) is one of the best dividend stocks on our list as the company has been a regular dividend payer since its IPO in 2008. Later, the company shifted to monthly payouts in 2014. Since its public listing, the company has paid out $13.4 billion in dividends to its shareholders. At present, it provides a monthly dividend of $0.12 per share and has an attractive dividend yield of 14.65%, as of January 29.
The number of hedge funds tracked by Insider Monkey owning stakes in AGNC Investment Corp. (NASDAQ:AGNC) grew to 24 in Q3 2024, from 19 in the previous quarter. These stakes have a total value of more than $230.3 million.
2. STAG Industrial, Inc. (NYSE:STAG)
Number of Hedge Fund Holders: 26
An American real estate investment trust company, STAG Industrial, Inc. (NYSE:STAG) has a diversified portfolio of industrial properties, including warehouses and light manufacturing facilities. On January 10, the company declared a 1% hike in its monthly dividend to $0.1242 per share. It is one of the best dividend stocks on our list as the company has been making regular dividend payments to shareholders since 2011. As of January 29, the stock has a dividend yield of 4.40%.
STAG Industrial, Inc. (NYSE:STAG)’s properties are leased to top-tier tenants under long-term agreements, with rents rising by an average of 2.8% annually in 2024. The growing demand for industrial real estate, fueled by the expansion of e-commerce and the shift toward reshoring manufacturing, has enabled the company to secure substantially higher rental rates as existing leases come to an end. In 2024, new and renewed leases for the same spaces are experiencing rental hikes of 30%.
In the third quarter of 2024, STAG Industrial, Inc. (NYSE:STAG) reported a revenue of $190.7 million, which showed a 6.4% increase from the same period last year. This figure surpassed analysts’ expectations by $1.82 million. The company generated $88.0 million in Cash Available for Distribution during the quarter. In addition, it acquired six properties totaling 613,839 square feet for $113.0 million, yielding a Cash Capitalization Rate of 6.7% and a Straight-Line Capitalization Rate of 7.2%. By the end of September 2024, the company achieved an overall occupancy rate of 97.1%, with the operating portfolio reaching a 97.8% occupancy rate.
The number of hedge funds tracked by Insider Monkey owning stakes in STAG Industrial, Inc. (NYSE:STAG) stood at 26 in Q3 2024, down from 28 in the previous quarter. The total value of these stakes is nearly $142 million. Alyeska Investment Group was one of the company’s leading stakeholders in Q3.
1. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 26
Agree Realty Corporation (NYSE:ADC) is an American real estate investment trust company that is recognized as a prominent player in the retail industry, with major tenants like Walmart, Tractor Supply, Dollar General, Best Buy, TJX, Dollar Tree, Lowe’s, and Kroger, which together account for approximately one-third of the REIT’s annual rental income. The remaining two-thirds of the income is generated from other stable businesses. In the past 12 months, the stock has delivered a nearly 19% return to shareholders.
As of September, Agree Realty Corporation (NYSE:ADC) maintained an impressive 99.6% occupancy rate across its portfolio. In the third quarter of 2024, the company generated $154.3 million in revenue, marking a nearly 13% increase from the previous year. In addition, it invested approximately $237 million in 93 retail net lease properties during the quarter.
Agree Realty Corporation (NYSE:ADC) operates efficiently, with tenants shouldering most of the property-related operating costs. Over the past decade, the company has demonstrated strong growth, raising its dividend by approximately 6% per year. Its portfolio has also seen significant expansion, growing from 130 properties in late 2013 to 2,271 properties by the end of the third quarter of 2024. It is one of the best dividend stocks on our list as the company has been paying uninterrupted dividends since its IPO in 1994. The company currently offers a monthly dividend of $0.253 per share and has a dividend yield of 4.22%, as of January 29.
The number of hedge funds tracked by Insider Monkey owning stakes in Agree Realty Corporation (NYSE:ADC) grew to 26 in Q3 2024, from 23 in the previous quarter. These stakes are worth roughly $565 million in total.
Overall Agree Realty Corporation (NYSE:ADC) ranks first on our list of the best dividend stocks that pay monthly dividends. While we acknowledge the potential for ADC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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