In the world of investments, monthly dividend stocks stand out as a reliable option for those seeking a steady income stream. These stocks provide a predictable and consistent cash flow, offering investors more frequent payments compared to quarterly or semi-annual dividend stocks. This consistent income can help cover living expenses and supplement other sources of income.
However, not all monthly dividend stocks are created equal. Some may carry a higher level of risk, as evidenced by instances where companies have had to cut or eliminate their dividends to maintain their more frequent payouts. In this article, we will delve into the top 10 monthly dividend stocks from our Sure Analysis Research Database with the safest dividends, based on our Dividend Risk Score rating system.
Here are the 10 safest monthly dividend stocks ranked in order based on their Dividend Risk Scores, with their respective dividend yields and payout ratios:
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Realty Income Corporation (O)
- Dividend Yield: 5.5%
- Payout Ratio: 76%
Realty Income is a real estate investment trust with over 11,100 properties, boasting a diverse tenant base across various industries. Its consistent earnings and monthly dividend payments make it a top contender in the world of monthly dividend stocks.
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U.S. Global Investors, Inc. (GROW)
- Dividend Yield: 3.4%
- Payout Ratio: 45%
U.S. Global Investors, with a history spanning over 50 years, offers investment opportunities in niche markets and cryptocurrencies. Though operating revenues declined recently, the company remains committed to shareholder value through dividends and share repurchases.
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Phillips Edison & Company, Inc. (PECO)
- Dividend Yield: 3.5%
- Payout Ratio: 49%
This grocery-anchored REIT reported strong Q1 results with total revenues increasing by 6.8% year-over-year. With a 30-year history and a focus on neighborhood shopping centers, the company’s dividends are backed by a robust business model.
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Whitestone REIT (WSR)
- Dividend Yield: 3.6%
- Payout Ratio: 50%
Whitestone, a retail REIT with a diversified tenant base, saw growth in occupancy rates and revenue in Q1 2024. The company’s guidance for 2024 points to steady growth in the coming quarters.
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STAG Industrial, Inc. (STAG)
- Dividend Yield: 3.8%
- Payout Ratio: 62%
STAG Industrial, focused on single-tenant industrial properties, exceeded analysts’ expectations in Q1 2024. Despite a slight slip in occupancy rates, the REIT’s growth trajectory looks promising.
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Apple Hospitality REIT, Inc. (APLE)
- Dividend Yield: 6.6%
- Payout Ratio: 59%
APLE, a hotel REIT, reported solid Q1 results, with growth in net income and operating income. Despite a slight decline in Comparable Hotels Adjusted Hotel EBITDA, the company’s acquisitions and strategic sales position it for future success.
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Modiv Industrial (MDV)
- Dividend Yield: 7.8%
- Payout Ratio: 68%
Modiv Industrial’s focus on net-lease properties comes with challenges, as seen in the decline in AFFO for Q4 2023. However, the company’s strategic approach to industrial, retail, and office properties remains resilient.
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EPR Properties (EPR)
- Dividend Yield: 7.6%
- Payout Ratio: 70%
EPR Properties, with investments in Entertainment, Recreation, and Education segments, posted its first quarter earnings showing a decrease in revenue year-over-year. However, the company remains optimistic about its future prospects.
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Main Street Capital (MAIN)
- Dividend Yield: 5.7%
- Payout Ratio: 71%
MAIN, a Business Development Company providing capital to middle market companies, reported first-quarter results reflecting growth in net investment income and distributable net investment income. The company’s diversified portfolio positions it well for future success.
- Agree Realty (ADC)
- Dividend Yield: 4.5%
- Payout Ratio: 74%
ADC, an integrated REIT with a focus on retail property management, reported an increase in Core FFO per share in Q1 2024. Despite the challenges in the market, the company’s monthly dividend reflects its commitment to stable and consistent payouts.
Monthly dividend stocks offer investors a compelling opportunity to generate income consistently throughout the year. While the 10 stocks highlighted above represent some of the safest options based on our analysis, it is essential for investors to conduct thorough research and due diligence before making any investment decisions.
Investing in monthly dividend stocks carries inherent risks, but with careful consideration and a diversified portfolio, investors can benefit from a reliable income stream and potential capital appreciation.
To explore more monthly dividend stock investing research and other compelling investment ideas, check out the additional resources below. Thank you for reading, and feel free to reach out with any feedback or questions.
