Best Stocks That Pay Dividends Monthly
Are you looking for the best stocks that pay dividends monthly? If so, you have come to the right place. In fact, many investors want consistent returns on a more regular basis. Let’s take a closer look at the top five companies you may want to consider.
Finding the Best Stocks That Pay Dividends Monthly
Dividend stocks are extremely popular. However, not all of them are healthy choices for your portfolio. It’s always important to consider a company’s performance, earnings reports and recent news before making an investment.
In general, there are many household names that pay out dividends. They include AT&T (NYSE: T), Altria Group (NYSE: MO), PepsiCo (Nasdaq: PEP), Target Corp. (NYSE: TGT) and Exxon Mobil (NYSE: XOM).
These giants traditionally pay out dividends on a quarterly basis. This means you receive a payment four times a year. Most dividend stocks follow this same process.
Yet there are exceptions. That’s why it’s important to discover the best stocks that pay dividends monthly. If you are looking for a more frequent payout, consider these five companies going forward.
5. AGNC Investment Corp.
AGNC Investment Corp. (Nasdaq: AGNC) is a real estate investment trust (REIT) based in Maryland. The company invests in mortgage-backed securities. Specifically, it focuses on home loans that are backed by the U.S. government through entities such as Fannie Mae.
Its monthly dividend payout is down from $0.18 per share in 2018 to $0.12 today. But its current yield is 8.9%. While the housing market always comes with some degree of uncertainty, this is one of the top stocks that pay dividends monthly.
4. Horizon Technology Finance Corp.
Horizon Technology Finance Corp. (Nasdaq: HRZN) provides financing for tech startups. And tech startups are taking off left and right. As a result, Horizon stock hit an all-time high of $17.56 in recent weeks.
Its monthly dividend is as consistent as any on this list. Horizon has paid $0.10 per share on a monthly basis since 2016 and has a current yield of 8%.
3. Prospect Capital
Prospect Capital (Nasdaq: PSEC) is a business development company (BDC) that makes debt and equity investments in a wide range of sectors, including healthcare, consumer goods and more.
It has more than $5.7 billion in assets and a track record of consistent payouts to investors. The current yield is 9.7% at $0.06 per share. This is, without a doubt, one of the best stocks that pay dividends monthly.
2. Pembina Pipeline
Pembina Pipeline (NYSE: PBA) is an energy infrastructure company that works primarily in Western Canada and the U.S. It focuses on the transportation and storage of crude oil, natural gas and natural gas liquids.
Like most companies, Pembina endured a massive downturn in its stock due to the COVID-19 pandemic. But its quickly regained momentum, and its dividend hasn’t been affected. The current monthly payout is $0.21 per share at a 6.82% yield.
1. Realty Income
Realty Income (NYSE: O) is known as one of the top stocks that pay dividends monthly. In fact, its tagline is “The Monthly Dividend Company.”
It’s paid 609 consecutive monthly dividends with a 15.2% average return and 4.4% compound annual growth. Moreover, Realty Income recently announced the acquisition of Vereit Inc. (NYSE: VER) in an all-stock transaction and merger. This move will help scale the company even further and drive growth into the future.
Investing in Dividend Stocks
Dividend stocks can be a great addition to your portfolio. To learn more about dividends and building wealth, sign up for the Wealthy Retirement e-letter below. The experts at Wealthy Retirement can help you build a portfolio that can prepare you for retirement.
Dividends are a great way to protect yourself in retirement. And the best stocks that pay dividends monthly may be the perfect fit for you.
About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.