8 Best Monthly Dividend Stocks in 2023

This means that as rates rise, the company has a much larger increase in net interest income, but the reverse is true as well. For the three months ended December 31, 2021 investment income was $26.3 million, which was attributable to $20.1 million from first lien secured debt and $6.2 million from other investments. The increase in investment income compared to the same period in the prior year was primarily due to the increase in the cost yield of the company’s debt portfolio. On February 8th, 2023 PennantPark Floating Rate Capital Ltd. announced financial results for the first fiscal quarter ended December 31, 2022. The Board of Directors declared a distribution of $0.10 per share, an increase of 5.3% from the most recent distribution. For the three months ended December 31, 2022 investment income was $31.3 million, which was attributable to $27.6 million from first lien secured debt and $3.7 million from other investments.

AFFO was $6.9 million, or $0.68 per diluted share, compared with AFFO of $2.4 million, or $0.27 per diluted share, in the prior-year period. Again, much of the $4.5 million increase ($3.8 million) in AFFO was primarily attributable to the early termination fee discussed above. As a result, the AFFO per share for FY2022 was also quite elevated, coming in at $2.22 compared to $1.52 last year. Sabine owns over 2 million acres in some of the most prominent producing basins, including the Permian (44% of total acres), Gulf Coast (17%), and Anadarko (13%). Orchid Island Capital has a long history of double-digit dividend cuts since the externally-managed mortgage REIT went public in 2013, including a 29% reduction announced in August 2022. This inevitable profit squeeze over a full economic cycle can quickly stress dividend coverage since mortgage REITs are required to pay out the vast majority of their profits.

The company renamed what was previously called core earnings to adjusted distributable earnings starting in 2022. Ellington achieved adjusted distributable earnings of $3.3 million in the quarter, leading to adjusted earnings of $0.25 per share, which covers the dividend paid in the period. As a result of a higher total investment income and lower expenses, NII amounted to $6.5 million, or $0.13/share, compared to $5.6 million or $0.11 sequentially. On March 21st, 2023, Oxford Square reported its Q and full-year results for the period ending December 31st, 2022.

Even investors who do not need the benefit of regular income can benefit from re-investing their monthly dividends to buy additional shares. Furthermore, they provide more frequent psychological boosts to investors during down markets by giving them monthly cash flow. As a result, investors may be less likely to sell at inopportune times when holding monthly dividend stocks rather that quarterly dividend stocks or even stocks that pay no dividend at all. Most income investments, such as bonds do not provide a regular source of income.

Best monthly dividend stocks

Alpine began paying monthly dividends in 2022 as well, giving it a short track record for investors to trust. Firm Capital Property Trust , a Canadian REIT formed in 1988, owns over 60 commercial properties spanning retail, industrial, apartments, and manufactured housing. The micro-cap company’s properties are spread across Canada, and only one tenant exceeds 5% of rent. Firm Capital has raised its monthly dividend every year since 2012 but maintains an aggressive payout ratio.

• These companies experience a drop in the price of their shares, and this causes the dividend yield to become abnormally high.
• The Board of Directors declared a distribution of $0.10 per share, an increase of 5.3% from the most recent distribution.
• As stated above, a dividend is paid out of a company’s profit before it makes it to the bottom line as retained earnings.
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Assuming all other fundamentals were the same, income-oriented investors would prefer to invest in Company B because of the slightly higher payout despite Company A having a higher yield. Gladstone Commercial has also been one of the most consistent monthly dividend stocks, paying one uninterrupted since January 2005. The tricky thing with dividend yield is that some investors chase this number. But sometimes, the yield is high because the company is in financial trouble.

The company’s adjusted funds from operations per share is lower today than it was back then, with management reaping the majority of benefits in the form of higher compensation. These properties are leased to more than 1,500 retail tenants, including restaurants, grocers, financial services firms, salons, and medical practices. Further complicating PSEC’s outlook is its investment portfolio, which has less exposure to first-lien secured loans compared to most of its peers. This creates greater potential for credit losses during downturns when defaults rise. PSEC has done this for years, with the resulting dilution and management fees causing the firm’s net asset value to steadily decline.

Monthly Dividend Stock #14: PennantPark Floating Rate Capital

As with stocks and many mutual funds, most ETFs pay their dividends quarterly—once every three months. However, ETFs that offer monthly dividend returns are also available. While there are many ETFs that pay out regular dividends, we look at just eight of them here. Investors should note many monthly dividend stocks are highly speculative. On average, monthly dividend stocks tend to have elevated payout ratios.

BDCs provide debt and equity capital mostly to middle-market companies. These are entities that have gotten a little big to get financing from bank loans and retained earnings, but aren’t quite big enough yet to warrant an initial public offering . Senior living properties face less pressure from the labor shortage and lingering virus fears in that the tenants are generally younger and live independently without medical care. They also offer an attractive, active lifestyle for many seniors, and that hasn’t fundamentally changed. With the bulk of the Baby Boomers now retired empty nesters, the investment case for senior living properties essentially makes itself.

Operating expenses, including G&A, for the same periods, were $2.26 million and $1.68 million, respectively. Higher operating expenses were driven primarily by increases in G&A expenses, recoverable expenses and depreciation/amortization from recent acquisitions, and compensation costs. Production of oil decreased -12% due to timing of sales and natural decline while production of gas edged up 1% over last year’s quarter.

Is Costco Stock as Valuable as a Membership?

Also, the current portfolio appears to be overall healthy, with a weighted average credit rating of 3.1 out of 4, with 4 being the lowest risk. Specifically, 97% of HRZN’s portfolio is rated at 3 or higher and it had no investments on non-accrual as of the last reported quarter. What’s even better than quarterly pay is monthly pay, which enables investors to achieve a higher level of financial resilience, by being able to match monthly cash outflows with recurring income. This brings me to the following 2 picks for income investors, which when combined, average a 7.6% yield paid monthly. To date, the REIT has declared 631 consecutive common stock monthly dividends throughout its 53-year operating history. Most recently, it declared a monthly cash dividend of $0.2545 per share from $0.2485 per share.

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• Modiv owns over 40 commercial properties spanning the industrial, office, and retail sectors.
• AGNC Investment is a REIT, but a specific type called a mortgage REIT, which owns mortgages on real estate rather than the properties themselves.
• Their distribution is approved by the company’s board of directors and is paid in cash or shares.
• The firm’s portfolio contains mostly second-lien secured debt and CLO equity, with first-lien debt making up the remainder.

The trust does not provide any guidance for the running year, but CRT is on track to post 8-year high DCF this year. The best recession-proof stocks can withstand high inflation and rising interest rates that threaten to push the economy into a downturn in 2023. Flagship Communities REIT owns over 60 manufactured housing communities in Midwest U.S. markets. The Canadian-based REIT benefits from operating in a recession-resistant, highly-fragmented industry with opportunities for continued acquisitive growth. However, Sabine’s reserves have had a similar estimated life span for decades.

Invesco Preferred ETF (PGX)

One advantage of JEPI over JEPQ is that JEPQ’s portfolio is more expensive from a valuation perspective. JEPQ’s holdings have an average price-to-earnings multiple of 22.3 versus an average P/E multiple of 19 for JEPI. SDIV isn’t selling options or investing in ELNs like JEPI or JEPQ, which some investors may find preferable.

We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. While we adhere to stricteditorial integrity, this post may contain references to products from our partners. Analyst consensus is the average investment recommendation among Wall Street research analysts. MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts. AGNC invests exclusively in agency mortgage-backed securities, meaning bonds and other securities issued by Fannie Mae, Freddie Mac, Ginnie Mae or the Federal Home Loan Banks.

High-Yield Monthly Dividend Stock #10: Ellington Residential Mortgage REIT (EARN)

The https://forex-world.net/ estimates that the global market opportunity for the single-tenant net-lease real estate it targets is $12 trillion. Meanwhile, it has a strong balance sheet even after completing last year’s acquisitions to continue buying more properties. Because of that, Realty Income should be able to keep expanding its portfolio in 2022 to support continued dividend growth. Realty Income should be able to continue providing investors with a steadily growing monthly income stream in the future. In addition, it bought roughly $6 billion of properties in smaller deals.

Lastly, I continue to see value in HRZN at the current Best monthly dividends of $12.41 with a price to book ratio of 1.06x. As shown below, this sits at the low end of its trading range over the past 5 years. Analysts also have a consensus Buy rating on the stock with an average price target of $13.41, implying potential for strong total returns in the high teens over the next 12 months. EPR () calls itself an experiential REIT, and that’s because it focuses on properties where consumers can have a good time, such as movie theaters, ski resorts and other cultural venues. It’s been investing in experiential properties for more than 20 years, and while it also had to eliminate its dividend during the pandemic, it’s back to making a monthly payout.

Some of its top holdings include Imperial Brands, Omega Healthcare, Arbor Realty, Global Net Lease, Ready Capital, Antero Midstream, and Starwood Properties to name a few. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. As crazy as this might sound, fewer than 15% of retail sales are made online, according to the U.S. Furthermore, the logistical space is highly fragmented, and Stag’s management estimates the value of their market to be around $1 trillion. In other words, it’s unlikely STAG will be running out of opportunities any time soon. General Dynamics is a global aerospace and defense company working in the public and private sectors.

Check out closed-end funds for monthly dividends

Hold the cash reserve in high-yield savings or money market account to earn interest on the balance. The interest income might be more than the dividends you can make on the money. The most important measure to evaluate dividend aristocrats’ stocks is without a doubt the dividend streak.

The portfolio focuses on essential businesses more resilient to e-commerce, such as tire and auto service, grocery stores, home improvement, and convenience stores. The firm’s success begins with its diversified portfolio, which consists of mostly high-yield loans made to more than 150 companies. When deciding which cheap stocks to buy, it’s important to factor in their potential to grow. After two banner years in 2020 and 2021, stocks fell into a bear market in 2022. Many well-known names dropped by more than 20%, and some actually cratered by… Costco Wholesale has been among the most reliable stocks of the past five years.

Mainly known as a purveyor of soft drinks, Coca-Cola also has a broad product line of flavored beverages outside its core soda brand. When building your dividend portfolio, you want to ensure you invest in high-quality stocks. If you only focus on the dividend amount, you could lose a lot of money if the stock loses value. To receive a dividend, you must buy stock in a company that pays dividends. Owning a single share of stock in a company qualifies you to earn a dividend.