Monthly dividend stocks offer investors the opportunity to generate recurring passive income. This frequency better coincides with the timing of many regular bills, so an investor can balance their expenses with dividend income. That makes monthly dividend stocks ideal for retirees or other investors who depend on their portfolios for income.
With monthly Dividend payments Here’s a closer look at the top options for those seeking recurring income from a. Looking for high dividend yield.
Top Monthly Dividend Stocks for 2021
At the last count, nearly 50 stocks were paying a monthly dividend. However, not all of them are worth considering for an investor. Here’s a list of the best monthly dividend stocks to consider in 2021:
Here’s a closer look at each of those top monthly dividend stocks that offer much higher dividend yields than the average stock in the UK S&P 500 (1.3% as of September 16, 2021).
Agree real estate
Agree Realty is a real estate investment trust (REIT), which provide large monthly income stocks as they generate recurring rental income. The company owns freestanding retail properties backed by triple net leases, meaning that tenants are responsible for building insurance, maintenance and property taxes. It focuses on owning real estate that is rented to major retailers like grocery, home improvement, dollar stores, and drug stores that are less prone to disruption from e-commerce or others recession.
While Agree Realty is new to paying monthly dividends – it switched from a quarterly to a monthly payment plan in January 2021 – it has an excellent dividend record overall. This REIT has increased its dividend at an average annual rate of 5% over the past decade.
This uptrend should continue as Agree Realty continues to expand its portfolio. The company expects to acquire up to $ 1.4 billion worth of real estate in 2021, increasing its rental income and dividend payout capacity. Agree Realty has a strong balance sheet to fund further expansion.
Gladstone Land is also a REIT. She specializes in owning arable land and agricultural facilities, which she leases to farmers primarily on a triple net basis. It focuses on farms that grow healthy foods like fruits, vegetables and nuts, as these are less prone to price fluctuations than raw materials like corn, wheat and soy.
Gladstone Land has a solid dividend history. The REIT has increased its payout 23 times in the last 26 quarters and expanded it by more than 50% in this period. It aims to continue increasing its monthly dividend at a rate that outperforms inflation.
The growth of the company is driven by the steadily increasing rental income of existing farms through annual rent increases and the constant purchase of new farms. Gladstone bought 13 farms and more than 20,000 acres of bank water for nearly $ 80 million in the second quarter of 2021. These investments increased his farm portfolio while reducing drought risk for some of his farms.
EPR Properties is another REIT. It specializes in the ownership of adventure properties such as cinemas, dining and performance venues, ski areas and venues. It secures these properties by concluding triple-net leases with the venue operators.
The COVID-19 pandemic had a significant impact on experience real estate. Many of these facilities have had to temporarily close their doors or operate at reduced capacity. This affected their ability to pay rent, forcing EPR Properties to suspend their monthly dividend last year.
However, with vaccines becoming widespread, more people have the confidence to return to the outside of the home experience. For this reason, the tenants of EPR catch up on their rent. This enabled the REIT to resume its monthly dividend in July 2021.
While ERP Properties already offers attractive returns, the REIT could increase this payout in the future as its portfolio expands. It had more than $ 500 million in cash as of mid-2021 and an undrawn $ 1 billion credit facility to buy experiential property.
Pembina Pipeline is a Canadian energy infrastructure company. It operates pipelines, processing plants, storage terminals and export facilities. The company mainly leases the capacity to use its assets to others Energy company in the context of long-term, fixed-interest contracts. These agreements enable Pembina to generate steady cash flow.
Pembina has a solid dividend history as it has steadily grown its payout over the years. It should be able to further increase its dividend in the future as it concludes additional projects to expand the energy infrastructure. The company has an extensive portfolio of secured projects and several more in its development pipeline to fuel future dividend growth.
In addition to continuing to support fossil fuel transportation, Pembina is also investing in low-carbon projects. It is working with another Canadian energy infrastructure company on a carbon dioxide transport and sequestration system that will suit its wind turbines. It is also exploring hydrogen opportunities.
Real estate income
When it comes to monthly dividend stocks, Realty Income is the clear leader. It presents itself as The Monthly Dividend Company, paying 615 consecutive monthly dividends through the end of 2021. Additionally, Realty Income has increased its dividend 112 times since it went public (initial public offering) in 1994, including each of the last 96 quarters in a row. This gives this REIT more than 25 years of dividend hike and qualifies it as a Dividend aristocrat.
Realty Income should continue to offer investors a steadily growing monthly income stream in the future. It was agreed to other REIT. to acquire UNIT (NYSE: VER) in 2021, which should be completed by the end of the year. The transaction will create a $ 50 billion REIT giant while increasing cash flow per share by more than 10%. In addition, she will continue to diversify her portfolio while maintaining the financial flexibility to continue acquiring cash flow properties.
Without VEREIT, Realty Income was well on its way to buying $ 4.5 billion worth of real estate in 2021. With one of the best balance sheets in the business, it has the financial capacity to keep expanding.
SL Green is another REIT and the largest office rental company in New York City. While the city’s office sector has faced some pandemic-related challenges, SL Green has held up relatively well.
This can be seen in the rental collection rate and the company’s leasing activity. She collected 97.9% of the office rent billed in 2020 and 94.8% of the total rent. Meanwhile, in the first six months of 2021, this REIT signed leases for more than 900,000 square feet and at rental rates that are just 1.7% below the expiring rental rates for the same space. The occupancy rate remained at a healthy 93.6%. This demand shows that companies expect to return to their Big Apple offices in the future.
Meanwhile, office buildings remain highly sought after by institutional investors because they generate predictable returns. This enabled SL Green to sell selected properties at attractive prices. It used this money to repay debts, buy back shares, and fund new developments. This REIT was also able to continue to pay a rising dividend. Last year, it saw the tenth consecutive dividend increase, making it a Dividend top performers.
STAG Industrial is another REIT with a monthly dividend. It focuses on owning industrial real estate such as warehouses and light industrial facilities. These traits are in great demand these days as the pandemic accelerated the adoption of e-commerce and increased manufacturing in the US to combat supply chain problems.
STAG has continuously increased its dividend over the years. The growth driver was the ability to consistently expand the portfolio. Since going public a decade ago, STAG has added more than 400 properties to its portfolio.
The company expects this steady expansion to continue, targeting $ 1 billion to $ 1.2 billion in home purchases this year. Added to this is the increasing rental income from the existing properties, and STAG should be able to further increase its monthly dividend.
Invest in monthly dividend stocks for recurring income
Monthly dividend stocks make it easy for investors to generate passive income. You can use this money to cover your monthly expenses or reinvest their dividends and prepare to generate even more recurring cash flow in the future when they need it. While dozens of companies pay monthly dividends, this group of dividend stocks is the best option for those looking for an attractive source of income that should grow in the future.