List of Stocks That Pay Monthly Dividends

As with stocks and many mutual funds, most ETFs pay their dividends quarterly—once every three months. While there are many ETFs that pay out regular dividends, we look at just eight of them here. The last benefit of monthly dividend stocks is that they allow investors to have – on average – more cash on hand to make opportunistic purchases.

As always, it is important to do your due diligence on any fund before committing your hard-earned cash. At quarter end, Ellington had $36.7 million of cash and cash equivalents, and $7.4 million of other unencumbered assets. Book value per share declined from the previous quarter to $8.31, a 1.1% sequential decrease. On May 11th, 2023, Ellington Residential reported its first quarter results for the period ending March 31st, 2023. Ellington achieved adjusted distributable earnings of $2.8 million in the quarter, leading to adjusted earnings of $0.21 per share, which does not cover the dividend paid in the period.

The dividend per share calculation shows the amount of dividends distributed by the company for each share of stock during a certain time period. Keeping tabs on a company’s DPS allows an investor to see which companies are able to grow their dividends over time. Dover last raised its payout in August 2022, when it upped the quarterly outlay by 1% to 50.5 cents per share. The P&C insurer most recently lifted its quarterly payout in January 2023, by 8.7% to 75 cents per share.

How to Compare Dividend Stocks

This dividend stalwart and its various predecessors have strung together uninterrupted payouts since 1882. To its credit, XOM was one of the few energy companies that didn’t cut or suspend its payout amid the pandemic-caused crash in oil prices. Rowe Price (TROW) have been losing market share to indexed funds of the type Vanguard offers, but the company still boasts a massive (and growing) $1.3 trillion in assets under management (AUM). Praxair raised its dividend for 25 consecutive years before its merger, and the combined company continues to be a steady dividend payer. Prior to the merger, Linde, now headquartered in Dublin, raised its dividend every year since 2014.

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STAG Industrial Inc. (STAG) is a REIT focused on acquiring and operating industrial properties in the United States. It invested $1.3 billion in 2021 alone, acquiring 74 buildings totaling 12.9 million square feet. Overall, its enterprise value is $8.38 billion as of April 4, with 562 buildings totaling 111.7 million square feet. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all available deposit, investment, loan or credit products.

• Companies with long histories of annual dividend growth also offer some peace of mind.
• The company has paid a cash dividend every year since going public in 1948 – or 67 consecutive years.
• Ellington achieved adjusted distributable earnings of $2.8 million in the quarter, leading to adjusted earnings of $0.21 per share, which does not cover the dividend paid in the period.
• Although high on the surface, the P/E ratio of 34.9 is good compared to the REIT industry in the U.S. at 45.2.
• MMM notes that it has returned more than $14 billion to shareholders through dividends and share repurchase over the past three years.
• Shares have outperformed the S&P 500 on an annualized total return basis over the past one- and three-year periods, but are laggards over the past five, 10 and 15 years.

Click here to instantly download your free spreadsheet of all 84 monthly dividend stocks now, along with important investing metrics. The popularity of dividends experienced fluctuations over the years due to economic conditions, market trends, and investor preferences. However, paying dividends has been a long-standing practice in the financial world as they remained a fundamental component of investment returns. Dividend income represented nearly 41% of the S&P 500’s total returns from 1930 to 2022, as we reported in our article, 25 Things Every Dividend Investor Should Know.

S&P Global

A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. As a senior writer at AOL’s DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities. Founded in 1928, Genuine Parts has long made returning cash to shareholders a priority. Founded in 1912, Illinois Tool Works (ITW) makes construction products, car parts, restaurant equipment and more. While ITW sells many products under its namesake brand, it also operates businesses including Foster Refrigerators, ACME Packaging Systems and the Wolf Range Company.

Keeping tabs on how many consecutive years a company has managed to raise its dividend per share is one way to gauge the reliability of a dividend stock. Its dividend is the second lowest on this list, and it also has the lowest yearly dividend growth rate, near 7%. HSY has the lowest dividend yield on this list, but it has been steadily increasing the dividend amount by almost 10% per year. EPS is steady, having grown 11% per year over the last five years, and analysts expect 9.1% yearly EPS over the next five. Merck has the highest historical EPS growth on this list, but analysts expect the company’s growth to slow to an average of 10.5% over the next five years.

High-Yield Monthly Dividend Stock #2: Hugoton Royalty Trust (HGTXU)

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. Investors can receive the dividends directly as income or they can elect to re-invest their dividend payment to buy additional shares of the company’s stock. This ability to receive regular income is the primary reason dividend stocks appeal to income-oriented investors.

Ample free cash flow and a low payout ratio should reassure shareholders that the annual dividend increases will keep coming. Most income investments, such as bonds do not provide a regular source of income. Bonds will typically make semi-annual payments despite no longer being based on paper coupons as they did in the past. Many stocks pay regular quarterly dividends, but that is not always helpful for investors dealing with recurring monthly medical expenses and other regular bills. This is when monthly dividend paying stocks can support reliable cash flow. Of course, investors need to look at a company’s history of paying monthly dividends.

An elevated payout ratio means there’s less margin for error to continue paying the dividend if business results suffer a temporary (or permanent) decline. The company has paid dividends since 1956 and has boosted its annual payout for 66 consecutive years, including its last increase – a 1% bump to 52 cents per share quarterly – declared in October 2022. It’s no secret that generating recurring passive income is a solid opportunity but some of the companies with a regular payout cycle can be more niche and therefore more risky.

The company acquires and manages residential mortgage–backed securities (RMBS) backed by prime jumbo, Alt–A, manufactured housing, and subprime residential mortgage loans. Prospect Capital Corporation is a Business Development Company, or BDC, that provides private debt and private equity to middle–market https://g-markets.net/helpful-articles/forex-trading-vs-stock-trading/ companies in the U.S. The company focuses on direct lending to owner–operated companies, as well as sponsor–backed transactions. Gladstone Commercial Corporation is a REIT that specializes in single-tenant and anchored multi-tenant net leased industrial and office properties across the U.S.

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Income investors who want cash flow buy dividend stocks, although the best dividend stocks deliver good long-term appreciation in addition to income. Even better, 3M has been delivering annual dividend increases to investors for 65 years. The most recent hike came in early February 2023 when the company bumped the quarterly payout by a penny to $1.50 per share. JNJ’s diversification across mutiple segments adds fortitude to this defensive dividend stock, and that helps income investors sleep better at night.

Its current investment portfolio contains $6.7 billion worth of assets, and the company claims its market potential exceeds $100 billion. The 20 stocks on this list have not been vetted for dividend safety, meaning each investor should understand the unique risk factors of each company. Due to its pure upstream nature, Hugoton is highly sensitive to the cycles of gas prices. Between April 2018 and October 2020, the costs of the trust exceeded its revenues due to suppressed gas prices. As a result, Hugoton did not offer any distributions during that period. Even worse, when gas prices began to recover in late 2020, the trust had to wait for its revenues to offset past losses.

However, it’s only outperformed the S&P 500 by 1.5% per year over the last 10 years. We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions.

Top 9 Best-Performing Stocks: July 2023

The resources below will give you a better understanding of monthly dividend stock investing. Those are three issues that investors counting on dividends should pay particular attention to, but those are in addition to other issues that you need to analyze when investing in individual stocks. These issues are less pertinent when you buy the best dividend ETFs, however. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.