When building your stock portfolio is it crucial to get a good mix of investments that allow you to grow your wealth in both the short-term and the long-term so you can better plan for retirement and your financial future as well. One way to help get the returns you are looking for is by considering adding some stock that pays monthly dividends to your list.
Top Stocks That Pay Monthly Dividends
If you are considering giving stocks that pay dividends a try, below are nine stocks that you want to consider.
- Shaw Communications Inc.
- Main Street Capital
- InvescoKBW High Dividend Yield Financial Portfolio ETF
- Pembina Pipeline Corporation
- Whitestone REIT
- Vermillion Energy
- Gladstone Commercial Corporation
- LTC Properties
1. Shaw Communications Inc.
A Canadian company that has been steadily growing its dividends for more than a decade is Shaw Communications. The cable company offers a wide range of services, including Wi-Fi, video services, broadband internet, and digital phone services. While the company experienced a small hiccup from 2013 through 2015, they were able to come back strong in 2016, and they have seen a consistent rise in net income ever since.
While the price fluctuated between a low of $16.37 in 2016 and had a high of $27 two years before, the price has remained steady at just over $19.00 in recent years, and during this time, the company was able to provide nice monthly dividends each month to investors. The company boasts an average volume of 660,792, a market cap of over $9.85 billion, and a dividend and yield of 4.56%.
2. Main Street Capital
Main Street Capital, a business development company that provides growth capital for businesses in the middle-market realm, has a market value of $2.4 billion and a dividend yield of 5.9%. The primary services the company provides are funding for companies to expand, buyout management, or recapitalize.
They have a solid plan to minimize the risk of their portfolio by keeping their average loan size small and being sure to lend over a diverse range of industries. While they lend an average of $11.4 million, no one company represents more than 2.7% of it. They have continued to build their assets just over 6% each year, and have an annual return rate of 16% over the past five years.
Main Street’s dividends have never been cut, and on average regular payouts have grown about 7% since their first initial public offering in 2007.
3. Invesco KBW High Dividend Yield Financial Portfolio ETF
Invesco KBW High Dividend Yield Financial Portfolio ETF boasts an impressive dividend yield of 8.4% and a market value of $345.1 million. The company invests just over 90% of its assets into a portfolio of the stocks and bonds of banks, insurance, and other diversified financial service firms. Their current portfolio has over 37 holdings with a heavy concentration of them being mortgage REITs, with some of them being Western Asset Mortgage Capital Corp and Orchard Island Capital.
The fund was launched roughly nine years ago and has had the same fund managers since its start. While dividend payouts have varied, they seem to be on the rise with $1.20 two years ago and $2.07 this past year.
4. Pembina Pipeline Corporation
A company that provides both transportation and midstream services for the North American energy industry, Pembina Pipeline Corporation is another stock that has paid an average dividend over the past years of just over 5%. The company revolves around three main businesses, including pipeline, facilities, and new ventures. It not only has a reliable monthly dividend payment history but also has a long track record of consistently growing dividends.
They soon plan to commence building a world-class natural gas storage and export facilities to transport oil from the North American continent to as far as Asia, where demand is continuing to rise. For stock owners, this means that they should be able to expect continued growth and reliable dividend payments for the foreseeable future.
5. Whitestone REIT
With a market value of $542.1 million and an average dividend yield of 8.4%, Whitestone REIT is definitely a stock to watch. The company owns a multitude of shopping centers located in one of the fastest-growing areas in the country: the Sunbelt states of Austin, Phoenix, San Antonio, and the Dallas-Fort Worth area. Their portfolio is made up of 72 retail centers, as well as over 6 million square feet of space that are available to be leased and valued at just over $1 billion.
They pride themselves on keeping a well-diversified tenant list with professional holding in the entertainment, health and wellness, restaurants, specialty, and grocery industries. They have been on a continued pattern of growth since going public in 2010 and has seen annual growth rates between 20 and 25%. They have been paying their shareholders dividends since the beginning and have maintained a pretty consistent payout of around $0.95 per share.
6. Vermillion Energy
Another Canadian firm to make the list of top companies that payout dividends is Vermillion Energy. The company has a market value of around $4.7 billion and an average dividend yield of 6.8%. The company owns a number of oil and gas-producing assets across the regions of both Australia and North America. One of their biggest holdings that represents 60% of their production is Wyoming’s Powder and River Basin, and the gas-rich Canadian Manville play. In Australia, their primary holdings are the well-known Wandoo Field.
They have continued to grow through acquisitions such as Saskatchewan company Spartan Energy, which expanded them to secure even more attractive drilling areas, which was able to increase their production to 100,000 barrels per day.
The company began paying dividends to investors back in 2003 and has since raised the dividends four times, with the last increase being around 7%.
7. Gladstone Commercial Corporation
Gladstone Commercial Corporation is a company that operates net leased office and industrial properties. They are a good investment opportunity for those seeking regular monthly dividend income as they have steadily made dividend payouts for over the past 15 years. They have not only consistently paid dividends on their common stock over the years, but have also made monthly cash distributions on its Series B Preferred Stock for 151 months, and on its Series D Preferred Stock for 36 months consecutively.
The price per share has consistently hovered in the mid- to high-20s. The company boasts a market capitalization of $660.41 million and a dividend yield of 6.88%
8. LTC Properties
A healthcare REIT that makes the top list of stocks that reliably pay monthly dividends is LTC Properties. They invest primarily in assisted living and skilled nursing care facilities and own more than 205 properties across 29 states. The company has an estimated market value of $1.8 million and an average dividend yield of 4.9%.
With the population of seniors steadily increasing until it has doubled over the next 30 years, it makes this an industry definitely poised to climb. Through the previous 12 quarters, LTC Properties has steadily provided for a $0.19 per month dividend but is expected to see dividend growths over the next few years. They began making dividend payouts more than 24 years ago consistently. Though the past five years, they have shown a significant increase with a 4.1% bump in distribution last year alone.
9. Realty Income
Realty Income is another company that rounds out our list of good stocks to invest in to secure a monthly dividend. The company is valued at $17.1 billion and has an average dividend yield of 4.5%. They are a solid company to invest in for dividend returns as they have been paying daily dividends to shareholders for 24 years in a row. They are also known as one of nine REITs that garners a credit rating of “A.”
The company’s portfolio consists of more than 5,400 properties in 49 states as well as Puerto Rico. They have focused half of their holdings on the retail grocery and drug store industry, with top tenants being large competitors such as Walmart, Kroger, and Walgreen’s
For investors looking to secure stock that can provide them with consistent monthly dividends, Realty Income can be a great option as its earnings have continued to grow at an average rate of 5% over the past 20 to 22 years. Their dividend payments have also risen considerably, with a recent hike of 4.3% this past year. The future looks bright for Realty Income and it is expected to close out this year with the acquisition of over $1.5 billion in acquisitions.
Adding stocks that provide you with monthly dividends is a great way to gain some consistent income while continuing to build your wealth. To make the most out of your investments, it is vital to have a diversified portfolio with a mix of conservative, moderate, and high yield stocks, as well as having some stocks that allow you to earn a little on your investment each month. The nine stocks above are good options to get started as they are showing growth potential and have been consistent in the dividends that they provide for shareholders. Looking to learn a little more about dividend-paying stocks? Download our free e-book, or sign up for our webinar today.