Below we present the list of 5 Stocks That Pay Dividends Monthly. For our methodology and a more comprehensive list please see 10 Stocks That Pay Dividends Monthly.
5. Pembina Pipeline Corporation (NYSE:PBA)
Number of Hedge Fund Shareholders: 14
Monthly Dividend Payout: $0.1588
Pembina Pipeline Corporation (NYSE:PBA) is one of the steadier monthly dividend payers, boasting a six-year history of dividend growth, though that streak appears to be in jeopardy this year. Nonetheless, the company has continued to make solid monthly payments of between $0.1587 and $0.1676 monthly, with the stock’s overall yield coming out to about 6%. Pembina’s payout ratio stands at 95%. The company grew revenue by over 50% year-over-year in Q2 to CAD3.10 billion, while EPS jumped by CAD0.30 to CAD0.69.
Pembina Pipeline Corporation (NYSE:PBA) has proven popular among hedge funds in recent quarters as oil prices have risen, with ownership of the stock nearly doubling over the last three quarters. Jim Simons’ Renaissance Technologies and Steve Cohen’s Point72 Asset Management are two of the company’s most influential shareholders.
Pembina Pipeline Corporation (NYSE:PBA) was one of the big Q1 winners for the ClearBridge Investments Global Infrastructure Income Strategy, which had to say about the company in its Q1 2022 investor letter:
“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. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Shareholders: 18
Monthly Dividend Payout: $0.12
AGNC Investment Corp. (NASDAQ:AGNC) switched to monthly dividend payments in late 2014, with those payments starting at $0.22. They’ve since been cut multiple times, landing at $0.12 in May 2020, where they’ve stayed since. Despite the dividend being cut nearly in half over the last eight years, AGNC shares still yield a hearty 17.6%, while the company’s payout ratio is just 46%.
AGNC Investment Corp. (NASDAQ:AGNC)’s tangible book value per share fell from $11.43 on June 30 to $9.08 on September 30, due to wider spreads, which still comes in above the stock’s current price of $8.18. The mortgage REIT lost $1.31 per share in Q3 but topped estimates in terms of net spread and dollar roll income per common share, which came in at $0.84, beating estimates by $0.24.
Hedge funds were buying up AGNC Investment Corp. (NASDAQ:AGNC) in droves during late 2019 and early 2020, but there’s a net decline of 50% in smart money ownership of the stock since then. Carl Goldsmith and Scott Klein’s Beach Point Capital Management built an aggressive stake in AGNC during Q3 consisting of 1.5 million shares and giving the fund’s 13F portfolio 4.28% exposure to the stock.
3. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Shareholders: 19
Monthly Dividend Payout: $0.24
Agree Realty Corporation (NYSE:ADC) has a 27-year run of making dividend payments, as well as a nine-year run of dividend growth. The REIT switched to monthly dividend payments at the beginning of 2021, which began at $0.207. They’ve since been raised four times, with the next payment scheduled for November 14 coming in at $0.24. The company’s payout ratio is high however, currently clocking in at 144%. ADC shares yield 4.21%.
Agree Realty Corporation (NYSE:ADC) continues to build its war chest, which could allow it to be aggressive on the growth front while many of its rivals hunker down to manage their leverage during the challenging market conditions. Agree Realty made a secondary offering of 5 million shares at the end of September at $66.85 per share. The company also agreed to settle all outstanding forward equity as of September 30, with the proceeds expected to total $599 million.
Save for a brief blip in Q4, hedge fund ownership of Agree Realty Corporation (NYSE:ADC) has remained extremely steady over the past year and a half. Jeffrey Furber’s AEW Capital Management built a large new stake in the company during Q2 that contained 587,020 shares, while James Morrow’s Calladine Capital Management owned 170,000 shares on June 30 and had 3.63% exposure to ADC in its 13F portfolio.
2. STAG Industrial, Inc. (NYSE:STAG)
Number of Hedge Fund Shareholders: 27
Monthly Dividend Payout: $0.1217
STAG Industrial, Inc. (NYSE:STAG) has a 10-year run going of both dividend payments and dividend growth. The REIT, which invests primarily in single-tenant industrial properties, switched to monthly dividend payments in the fourth quarter of 2013. Its monthly payouts have since been raised from $0.10 to $0.1217 per share. The company’s payout ratio stands at 109%, while its shares yield 4.61%. STAG’s Q3 FFO came in at $0.57, while its revenue was $166.3 million, both of which beat estimates.
Hedge fund ownership of STAG Industrial, Inc. (NYSE:STAG) jumped by 33% during Q2 to hit an all-time high and has nearly doubled over the last year. Stuart J. Zimmer’s Zimmer Partners owned the largest position in the company on June 30 at 4.88 million shares, while Anand Parekh’s Alyeska Investment Group build a new STAG holding of 441,763 shares during Q2.
The Carillon Scout Mid Cap Fund discussed some of the recent pressures weighing on STAG Industrial, Inc. (NYSE:STAG) shares in its Q1 2022 investor letter:
“Labor inflation and general labor availability were again concerns for many companies. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Stag Industrial (NYSE:STAG), a warehouse REIT focused on rural distribution properties, fell as interest rates rose and fear of an economic slowdown gripped markets.”
1. Shaw Communications Inc. (NYSE:SJR)
Number of Hedge Fund Shareholders: 29
Monthly Dividend Payout: $0.0767
Topping the list of dividend stocks that pay monthly is Canadian telecommunications company Shaw Communications Inc. (NYSE:SJR), which is in the midst of a contentious and difficult merger with fellow Canadian telecommunications giant Rogers Communications Inc. (NYSE:RCI). The company has a 35-year run of dividend payments, which fluctuate monthly. The next two payments are scheduled to be for $0.0767 following a $0.0718 payment on October 28. Shaw has a manageable payout ratio of 70% and SJR shares yield 3.68%.
The proposed $26 billion merger between Shaw Communications Inc. (NYSE:SJR) and Rogers received a vote of confidence from Canada’s Minister of Innovation, Science and Industry, Francois-Philippe Champagne, who expressed willingness to approve the deal should certain conditions be agreed upon. Shaw has already agreed to sell Freedom Mobile to Quebecor, with the added stipulation being that the latter company must hold those wireless licenses for at least ten years.
Shaw Communications Inc. (NYSE:SJR) also hit an all-time high in terms of its ownership among the select group of hedge funds tracked by Insider Monkey during Q2, rising by 26% during the quarter. Israel Englander’s Millennium Management owned the largest stake in the company on June 30, while Simon Davies’ Sand Grove Capital Partners more than doubled the size of its SJR holding during the period.
For more of the latest stock picks worth considering for your portfolio, check out 16 Best Penny Stocks To Buy Now and 10 Best Used Car Stocks To Buy Now.
Disclosure: None.
