In this article, we discuss 5 best monthly dividend stocks to buy in August. If you want to read our detailed analysis of dividend stocks and their importance, go directly to read 10 Monthly Dividend Stocks to Buy in August.
5. Pembina Pipeline Corporation (NYSE:PBA)
Dividend Yield as of August 2: 5.15%
Pembina Pipeline Corporation (NYSE:PBA) is a Canadian pipeline transport company that specializes in transportation and storage infrastructure.
In Q1 2022, the company reported $655 million in operating cash flow, up from $456 million during the same period last year. The company’s free cash flow also grew to $476 million in Q1, from $438 million in the prior-year period. It paid $347 million in dividends during the quarter, which shows that the company is generating enough money to cover its dividend payments. Pembina Pipeline Corporation (NYSE:PBA) pays a monthly dividend of C$0.21 per share, with a dividend yield of 5.15%, as of August 2.
In June, Canaccord raised its price target on Pembina Pipeline Corporation (NYSE:PBA) to C$56 and maintained a Buy rating on the shares.
Pembina Pipeline Corporation (NYSE:PBA) was a popular buy among elite funds in Q1 2022, according to Insider Monkey’s data. 19 hedge funds owned stakes in the company at the end of March, up from 10 in the previous quarter. These stakes are collectively valued at nearly $135 million.
ClearBridge Investments mentioned Pembina Pipeline Corporation (NYSE:PBA) in its Q1 2022 investor letter. Here is what the firm has to say:
“On a regional basis, the U.S. and Canada were the top contributors to quarterly performance. Pembina Pipeline, which provides transportation and midstream services for the energy industry in North America, was also up on greater LNG demand. The hiring of Scott Burrows as permanent CEO and Jaret Sprott as COO and reaffirmation of its corporate strategy also boosted investor sentiment. On an individual stock basis, the largest contributors to absolute returns in the quarter includes Pembina Pipeline.”
4. Main Street Capital Corporation (NYSE:MAIN)
Dividend Yield as of August 2: 5.80%
Main Street Capital Corporation (NYSE:MAIN) is a Texas-based principal investment firm that provides long-term debt and equity capital solutions to middle market companies.
Main Street Capital Corporation (NYSE:MAIN) reported cash from operating activities at $24.4 million, up from $20.7 million during the same period in 2021. The company had cash and cash equivalents of nearly $18 million at the end of Q1, with total assets standing at over $3.78 billion. Main Street Capital Corporation (NYSE:MAIN) paid $15.5 million in dividends during the quarter, which also includes its supplemental dividend of $0.075 per share.
On August 2, Main Street Capital Corporation (NYSE:MAIN) declared a 2.3% hike in its monthly dividend to $0.22 per share. The company also announced a special dividend of $0.10 per share, which marked the company’s third consecutive year of paying supplemental dividends to shareholders. As of August 2, the stock’s dividend yield came in at 5.80%.
At the end of Q1 2022, 9 hedge funds tracked by Insider Monkey owned stakes in Main Street Capital Corporation (NYSE:MAIN), the same as in the previous quarter. These stakes are collectively valued at over $48.4 million. Israel Englander and Ken Griffin were amongst the company’s prominent stakeholders in Q1.
3. SL Green Realty Corp. (NYSE:SLG)
Dividend Yield as of August 2: 7.44%
SL Green Realty Corp. (NYSE:SLG) is a New York-based real estate investment trust company that invests in shopping centers and office buildings in New York.
At the end of Q1 2022, SL Green Realty Corp. (NYSE:SLG) reported cash and cash equivalents of nearly $190 million, with its total assets amounting to over $10.7 billion. The company’s same-store cash net operating income stood at $150.5 million, up from $138 million in the previous quarter. It paid $24.4 million in dividends to shareholders during the quarter.
SL Green Realty Corp. (NYSE:SLG) holds a strong history of dividend payments, raising its dividend consecutively for the past 11 years. It currently pays a monthly dividend of $0.3108 per share, which has a yield of 7.44%, as of August 2.
Due to work from home and hybrid work policies, the demand for office spaces is at risk. In view of this, Deutsche Bank lowered its price target on SL Green Realty Corp. (NYSE:SLG) in July to $57 but kept a Buy rating on the shares.
At the end of Q1 2022, 18 hedge funds owned stakes in SL Green Realty Corp. (NYSE:SLG), down from 19 in the previous quarter. These stakes are valued at over $130.8 million.
2. Fortitude Gold Corporation (OTC:FTCO)
Dividend Yield as of August 2: 7.91%
Fortitude Gold Corporation (OTC:FTCO) is a Colorado-based gold producer that focuses on projects with low operating costs and stronger returns.
Fortitude Gold Corporation (OTC:FTCO) initiated its dividend policy in 2021 and currently pays a monthly dividend of $0.04 per share. Ever since starting its dividend payments, the company has raised its payout once in October 2021 by 14%. Moreover, the company paid $11.5 million in dividends last year, which covered 46% of its net income. With this current balance sheet, Fortitude Gold Corporation (OTC:FTCO) is well-positioned to continue its dividends for the next five years smoothly, according to analysts. As of August 2, the stock’s dividend yield came in at 7.91%.
1. Stellus Capital Investment Corporation (NYSE:SCM)
Dividend Yield as of August 2: 8.39%
Stellus Capital Investment Corporation (NYSE:SCM) is an American investment management firm that also operates as a business development company.
In Q1 2022, Stellus Capital Investment Corporation (NYSE:SCM) reported $62.9 million in cash from operating activities, up from $26 million in the previous quarter. The company ended the quarter with cash and cash equivalents of over $24.6 million and total assets of $866.6 million. On July 14, Stellus Capital Investment Corporation (NYSE:SCM) declared a monthly dividend of $0.0933 per share, with an additional dividend of $0.02 per share. The company’s dividends are well-covered with a payout ratio of 88%. As of August 2, the stock’s dividend yield came in at 8.39%.
At the end of the first quarter of 2022, 2 hedge funds in Insider Monkey’s database owned stakes in Stellus Capital Investment Corporation (NYSE:SCM), valued at roughly $1.6 million. With stakes worth over $1.4 million, Two Sigma Advisors was the company’s largest stakeholder in Q1.
You can also take a look at 11 Best Crypto Stocks To Buy Now and 10 Small-Cap Stocks to Buy According to Billionaire Steve Cohen
