- Monthly dividend stocks have been a reliable form of investment for decades. Dividends provide stability, growth, and long-term value for investors who buy dividend-yielding stocks.
- Gladstone Commercial (GOOD): Buys properties that provide short-term growth opportunities to its customers. The company’s portfolio consists of 129 properties across 27 states as of 2021.
- AGNC Investment (AGNC): Deals in mortgage-backed securities and other real estate-related assets.
- Prospect Capital (PSEC): Offers different packages and services for business owners. It also caters to entrepreneurs, offering loans and high-interest rates and acquisition opportunities.
- LTC Properties (LTC): Has been around for a long time, and it invests heavily in both the housing and healthcare industries.
- Broadmark Realty Capital (BRMK): Concentrates on providing high-quality services for investors and developers.
Monthly dividend stocks are a type of stock provided by companies that typically have reliable business models and generate enough cash flow to pay out dividends. These companies offer their shares to investors, and the business pays out a portion of the profits from the company’s revenue each quarter to shareholders. While some stocks may offer dividends that are just pennies, others can be as high as $100 or more.
When the market is behaving unpredictably, it’s imperative for you to maintain sensitive funds in dividend-paying stocks because they generally provide a reliable source of income.
Here are five monthly dividend stocks you should know about if you’re looking to build a portfolio with them:
| GOOD | Gladstone Commercial | $19.04 |
| AGNC | AGNC Investment | $11.92 |
| PSEC | Prospect Capital | $7.63 |
| LTC | LTC Properties | $37.69 |
| BRMK | Broadmark Realty Capital | $7.21 |
Gladstone Commercial (GOOD)
Gladstone Commercial (NASDAQ:GOOD) invests in office and industrial properties that provide short-term growth opportunities for companies operating in primary and secondary markets. They focus on high-quality properties.
As of 2021, Gladstone’s portfolio consists of 129 properties across 27 states. They offer a rigorous evaluation of tenant credit strength that has helped them maintain occupancy near 95%. Therefore, what they’ve gained by having a diverse portfolio and focusing on many aspects of their business over time has contributed to their success.
In addition, Gladstone Capital pays a monthly dividend of $0.0675, allowing shareholders to receive 12 dividends per year. Despite outstanding issues, the latest increase came in April 2022, and the dividend has increased throughout the pandemic. Hence, it shows the strength of this company among monthly dividend stocks.
AGNC Investment (AGNC)
A publicly-traded company, AGNC Investment (NASDAQ:AGNC), invests in mortgage-backed securities and other real estate-related assets.
AGCN is a mortgage real estate investment trust (mREIT) that provides investors with a “passive” income stream — as long as the investment is held. The corporation pays out 90% of its taxable income to shareholders and can reinvest the other 10%. AGNC’s mandate guarantees a relatively consistent dividend, and they pay you back with 12 cents every month.
As an mREIT, AGNC invests in the market by buying mortgages or mortgage-related securities. This is different from investing in residential real estate directly. There is a reduced risk of losing money with these investments with federal backing. In other words, the company’s business model is very secure.
Prospect Capital (PSEC)
Prospect Capital (NASDAQ:PSEC) does a lot of things for small and medium business owners. They offer loans, high-interest rates, and acquisition opportunities for those looking to start their businesses. Its target market consists of middle-market enterprises and private equity financial backers.
The company has also invested in several industries, including lending, real estate, and more. It currently holds loan securitization of over 127 companies with 39 different types of investments.
REITs and business development companies (BDCs) share some similar benefits, as both offer a minimum of 90% of their taxable profit as dividends. The revenue is paid out monthly with a 6 cents per share high standard rate.
LTC Properties (LTC)
LTC Properties (NYSE:LTC) has been in business for a long time and invests heavily in the senior housing and health care industries. They own over 200 properties around the country, which provide affordable living to older Americans who need it most. The properties comprise over 15,000 units across 32 states of the US.
Just over 50% of the company’s portfolio comprises land for senior housing, and the remaining percentage includes skilled nursing facilities. The former was hit particularly hard by the pandemic. However, things are now getting back to normal.
Therefore, investors can rest easy investing in LTC stock. Although the company has seen a significant increase in revenue, they’ve also seen an increase in demand for its services. Healthcare demand is rising and will cost a lot of money. This is caused by the increasing ability to prevent illness as well as due to an aging population.
Broadmark Realty Capital (BRMK)
Broadmark Realty Capital (NYSE:BRMK) is a company that concentrates on providing high-quality services for investors and developers. They offer short-term loans to fund residential or commercial properties backed by real estate. One of the biggest benefits is that they can offer property as collateral, so you don’t have to inject equity.
The company has a $1.6 billion loan portfolio spread across 20 states. But it doesn’t end here. In the first quarter, the company made new originations of $189.6 million, a very healthy number.
Finally, the company also declared a cash dividend of 7 cents per share for two forthcoming periods. Overall, the dividend yield stands at 11.32%, putting it firmly in the top categories of monthly dividend stocks.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.