Hello everyone,
Investing in dividend stocks is really great to build your financial freedom. But sometimes, companies are paying their dividends yearly or semi-yearly. But you have bills every month. It can be interesting to invest in monthly dividend stocks to earn every month. More over, it helps you to accelerate the process of compound interests.
Here’s my best 3 monthly dividend stocks :
Realty Income
Realty Income is a REIT (“Real Estate Investment Trusts”). This US company has a slogan : “The monthly dividend company”.
It has paid a dividend every month without interruption since its IPO in 1994. Its market capitalization is around 25 billion dollars. Its current yield is around 4% and it increases its dividend by an average of 5% every year, which more than covers inflation, a good point.
As for the company, its turnover is in continuous growth and it does not intend to stop there.
As for its share price, it is largely bullish despite a few declines since its introduction, nothing to worry about here. In fact, it has almost returned to its pre-crisis level.
Realty Income ($O) is currently priced at $70 per share.
The company pays a secure dividend as its business model is based primarily on corporate space, it does not invest in residential areas at the time of writing.
Realty Income has over 6,500 premises that it leases to over 600 companies in different sectors, which is important because it diversifies its assets. The average lease term is about 9 years. During the crisis, the company recovered 93% of the rent due.
All in all, a solid and diversified company, paying a monthly dividend with an interesting yield. For me, this is a stock that will increase in value over the years while paying us the Grail: the monthly dividend.
LTC
We remain in the United States with a stock working in a sub-field of real estate: health care.
LTC Properties is a company that builds and rents retirement homes and nursing homes in the United States. We are in a buoyant sector with a growing life expectancy. The annual yield is about 6% per year with a monthly dividend (of course). This company has been paying a monthly dividend since 2001 without interruption.
Its sales have been growing strongly for more than 10 years.
The market capitalization of LTC Properties is over 2 billion dollars, which makes it a rather solid company.
Its stock price is also very bullish as its value has increased by more than 2 times in less than 10 years.
We can see that the stock is close to its pre-crisis levels.
The monthly dividend is moreover increased by almost 3% per year, covering inflation, a good point again.
However, the company is very dependent on the governance of the country. More than 45% of the turnover of LTC Properties comes from the government. However, the budget allocated to the American social security system changes according to the party in power. The Democrats are more “social” than the Republicans, which can cause strong growth or stagnation.
However, I am not worried about this company that has demonstrated extremely strong fundamentals and will continue to grow over time.
Main Street Capital
We’re still in the U.S., but we’re moving into the finance sector.
Main Street Capital specializes in lending to small and medium-sized businesses with annual revenues between $10 million and $150 million. The company currently has more than 200 clients in a wide range of industries. The annual yield is 8% per year with a monthly dividend paid continuously since 2006. The dividend increases by an average of 5% per year covering inflation as well, a good point.
Sales are up overall despite a temporary difficulty in 2020: the Covid-19.
Despite this, the company continues to attract investors with a market capitalization of over 3 billion dollars. The share price is very good and has even exceeded its pre-crisis level.
All in all, a compelling company with a strong balance sheet. A second must-have for your dividend portfolios.
I would also like to add that I think we are dealing with a growth stock here. I wouldn’t be surprised to see its value continue to grow over the next few years, especially with the massive investment schemes our company is currently experiencing.
Conclusion
Here’s my 3 favorites monthly dividends stocks. I hope you’ll find them interesting. I had more monthly dividends stocks in my portfolio, if you want me to share them, feel free to add a comment :)
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