Monthly dividend payers are gaining popularity due to their reliable and consistent income streams. Five high-yielding stocks are highlighted in this review, offering dividend payments every month. EPR Properties stands out with a dividend yield of 7.8%, despite facing challenges from the impact of COVID-19 on its various experiential real estate holdings. Apple Hospitality REIT follows with a dividend yield of 6.8%, focusing on select-service hotels and benefiting from a resurgence in the hospitality industry as interest rates ease. Permian Basin Royalty Trust offers a dividend yield of 6.5% and provides investors with exposure to royalty interests in oil and gas assets without the hassle of a K-1 tax form.
Gladstone Investment Corporation presents an enticing dividend yield of 8.6% and is a business development company that specializes in providing capital to small and midsize businesses. Their consistent dividend payments are supported by their strong track record of net asset value growth. Lastly, Main Street Capital boasts an impressive dividend yield of 8.2% and is considered a blue-chip in the BDC industry. Despite trading at a significant premium to NAV, Main Street Capital delivers best-in-class returns and consistently pays out regular monthly dividends along with occasional special dividends.
Monthly dividend payers offer income investors several advantages, including a more predictable stream of income that aligns with monthly expenses. These stocks generally provide higher yields compared to quarterly dividend payers and offer a compounding edge over time. However, it is essential for investors to conduct thorough due diligence on each monthly dividend payer to ensure they are financially stable and have the potential for growth. By carefully selecting high-quality monthly dividend stocks, investors can build a diversified income portfolio that meets their financial goals and provides a steady stream of income throughout retirement.
Despite the benefits of monthly dividend payers, investors should approach these stocks with caution and conduct in-depth analysis to ensure they are reliable dividend payers. Stocks like EPR Properties, Apple Hospitality REIT, Permian Basin Royalty Trust, Gladstone Investment Corporation, and Main Street Capital offer attractive dividend yields ranging from 6.5% to 8.6% but require scrutiny to confirm their long-term sustainability. By evaluating key financial metrics, growth prospects, and industry trends, income investors can identify the best monthly dividend stocks to bolster their investment portfolios and secure a reliable income stream for the future.
