Stocks That Pay Monthly Dividends for Steady Income in 2022
Since the beginning of 2022, the Dow Jones has fallen nearly 9%. Many investors are using this time to buy stocks at a discount. Others have doubled down on stocks that pay monthly dividends.
Investing in dividend stocks is one of the best ways to start compounding your wealth. Or, in other words, your money is making money for you. In fact, since 1970, 84% of the total returns from the S&P 500 Index are thanks to reinvesting dividends.
With this in mind, regular payouts can seem like receiving an extra paycheck. It gives you the ability to generate steady income you can rely on.
That said, these opportunities are often found in certain sectors such as REITs. After all, REITs are required to return at least 90% of their income to shareholders.
Considering this, here are the top stocks that pay monthly dividends to give your portfolio a boost.
Stocks That Pay Monthly Dividends – No. 6 SL Green Realty (NYSE: SLG)
- Market Cap: 5.12B
- Dividend Yield: 4.7%
SL Green is based in New York City, one of the hardest areas hit during the pandemic. In fact, SL Green is the largest office realtor in Manhattan. A city that many people thought would go under.
Yet, the company’s clients are some of the biggest companies in the world in Apple, Amazon and Google. So far, SL Green has an interest in 76 buildings, including 27.2 million sq. Ft. in Manhattan. Also, the company is showing its portfolio is rock solid with +93% same-store occupancy through the pandemic.
But the REITs biggest opportunity comes as the 1.2T infrastructure plan promises to “build back better.” In particular, the bill supports NYC regrowth with funds for upgraded subways, buses, and airports. Essentially, this can help boost the attractiveness of SL Green’s properties.
No. 5 PennantPark Floating Rate Capital (Nasdaq: PFLT)
- Market Cap: 512M
- Dividend Yield: 8.72%
For all those believing interest rates will rise sooner rather than later, PennantPark Floating Rate Capital is a good play and should be on your list of stocks that pay monthly dividends. When companies have a hard time keeping up with the bills, they will often take a loan. PennantPark invests in struggling businesses that might not find help elsewhere.
Yet they can charge higher interest rates for taking on the additional risk. Furthermore, the rates are “floating,” or in other words, they vary based on real rates.
Up until now, the fund consists of 110 companies across 45 hand-selected industries. That said, the fund identifies businesses with strong cash flow opportunities and tends to avoid restaurants, fashion and retail.
No. 4 Agree Realty Corporation (NYSE: ADC)
- Market Cap: 4.5B
- Dividend Yield: 4.31%
Agree Realty Corp is another popular REIT focusing on net leased buildings with leading retailers. With this in mind, the company’s biggest clients by portfolio size include:
- Walmart: 6.7%
- Tractor Supply Co: 3.9%
- Dollar General: 3.8%
- Best Buy: 2.8%
Not only that, but its biggest sectors include Grocery (10.6%), Home Improvement (9.4%) and Convenience Stores (7.8%). All of which are some of the lowest risk, highest reward industries, making it one of the best stocks that pay monthly dividends.
As a result, the company provides stable returns to shareholders. Agree’s dividend has grown 5% annually (compounded) over the past ten years.
No. 3 Gladstone Commercial Corp. (Nasdaq: GOOD)
- Market Cap: 863M
- Dividend Yield: 7%
Like Agree Realty, Gladstone also focuses on net leased properties. But, rather than retail clients, Gladstone Commercial focuses on office and industrial clients.
What’s more, the REIT has never seen occupancy fall below 95%, with current levels at 97.7%. Its top tenants include GM, Verizon, and Kane. The diverse portfolio spans several industries such as telecommunications (16%), automotive (13%) and healthcare (9%).
Even with the exceptional growth this year, Gladstone is still managing a 6.45% dividend yield.
Keep reading to discover the top stocks that pay monthly dividends.
Top Stocks That Pay Monthly Dividends – No. 2 Gladstone Land (Nasdaq: LAND)
- Market Cap: 1.18B
- Dividend Yield: 1.57%
Another popular REIT, Gladstone Land, focuses on acquiring farmland in the U.S. So far, the portfolio owns 159 farms across 14 states. The REIT mainly leases its land to high-quality farmers growing healthy foods.
I’ve been saying it all year – farmland will be a hot commodity. Since there’s only so much high-quality farmland available, supply is drying up. And like anything, with low supply and high demand, values are bound to rise.
And on top of this, climate change is making it even harder to farm in certain areas. Although the 1.8% yield may seem low, total returns are over 100% this year.
Top Stocks That Pay Monthly Dividends: No. 1 Reality Income (NYSE: O)
- Market Cap: 38B
- Dividend Yield: 4.57%
Probably the most well-known on this list, Reality Income, is also a member of the S&P 500. Reality is one of the best stocks that pay monthly dividends to investors.
Since 1994, Reality has increased its dividend 112 times, making it a Dividend Aristocrat. Not only that, but its blue-chip status is helping boost the size and scale of the REIT.
Currently, Reality’s top clients include 7-Eleven (5.7%), Walgreens (5.0%) and Dollar General (4.2%). The REIT has returned 15.1% compound annual growth to shareholders with diverse, high-quality holdings since 1994.
Generating Regular Income With Stocks That Pay Monthly Dividends
Investing in a few stocks that pay monthly dividends can give you a steady income. Although investing in dividend stocks doesn’t seem like the fun thing to do, it can build your portfolio more over time.
By reinvesting the dividends, you can start compounding your wealth. Or, in other words, what Albert Einstein referred to as the “8th wonder of the world.”
The most important thing to remember is that the sooner you start earning dividends, the better the results. This is because the longer you give your investment time to multiply, the higher potential returns you can make.
With this in mind, these are some of the top monthly income stocks you can own. High-quality tenants with rock-solid balance sheets are driving these investments to new heights.
About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.