Ian Bezek
·3 min read
A great part of owning dividend stocks is the dependable income stream. Investors can rely on their blue chip companies sending them a dividend payment every three months.
However, for retirees and other folks that rely on the income, it can be a long time between those quarterly dividend payments. For people living off their portfolio’s yield, it can be helpful to have income coming in more frequently.
Thankfully, there are monthly dividend stocks. These are companies which, as the name would suggest, send out dividends 12 times a year rather than three. The more frequent pace of dividends make it easier to plan one’s finances around this income. Here are three great monthly dividend stocks with which to upgrade your portfolio’s income stream today.
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Realty Income (O)
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Realty Income (NYSE:O) is arguably the gold standard among monthly dividend payment companies. Indeed, the company even trademarked the term to denote its early adoption of this strategy.
At first, some analysts looked at the monthly dividend idea as a gimmick. However, Realty Income has backed up its policy with decades of strong results.
The real estate investment trust’s (REIT) triple-net REIT business gives it financial security amid changing macroeconomic conditions. The company has increased its dividend for more than 25 consecutive years, making it a Dividend Aristocrat. That’s particularly impressive for a real estate company, given the 2008 financial crisis and COVID-19 shocks caused so many other real estate firms to have to trim their dividends.
Realty Income doesn’t have the highest dividend yield out there of the monthly-pay companies. But its consistency combined with frequent dividend increases make O stock a gold standard for the sector.
STAG Industrial (STAG)
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STAG Industrial (NYSE:STAG) is an industrial REIT that owns various warehouse and logistics assets.
With an enterprise value of nearly $10 billion, STAG is a large REIT and in fact, is the only industrial real estate owner with properties across each Tier 1 market in the United States. This gives it a lot of flexibility and bargaining power when making rental agreements with its tenants.
While the commercial real estate market as a whole is struggling lately, some sectors are faring better. Industrial is one of the better performers thanks to reshoring and supply chain efforts.
All this should allow STAG’s existing properties to perform well and give it reasonable opportunities to grow the business as well. Shares seem reasonably valued today and offer a 3.9% dividend yield, paid monthly, as well.
Global Water Resources (GWRS)
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While REITs make up a large chunk of the monthly dividend stock universe, there are some options in other industries as well.
Take, for example, Arizona water utility Global Water Resources (NASDAQ:GWRS). Global Water operates various municipal water systems in the greater Phoenix and Tucson area.
Management wisely realized that Arizona was a fast-growing state with a great number of new residents and industrial activity. Global Water will deliver water to the new Inland Port Arizona, which is proving to be a promising industrial facility for companies including consumer staples and electric vehicle firms.
Additionally, Arizona has dozens of subscale water utilities serving a small number of people and businesses. Global Water is using an aggressive merger and acquisition campaign to roll up these providers and build a greater utility for both the region and the company’s shareholders. GWRS stock currently offers a 2.4% dividend yield, paid monthly, which should rise over time as Arizona’s economy continues to expand.
On the date of publication, Ian Bezek held a long position in GWRS stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
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