4 Dividends That Pay Monthly (Up to 12% Per Year)

By Brett Owens

If youaEURtmre planning to retire (or are currently retired), I urge you to become intimately familiar with monthly dividend stocks . They offer the ultimate consideration: income payments that actually line up with your monthly bills .

Today, IaEURtmm going to help get you started by introducing you to four monthly dividend payers that yield up to 12%. But first: WhataEURtms so great about this type of stock?

When you pay your bills aEUR" be it the mortgage, the electricity, the TV aEUR" you donaEURtmt sit down at the kitchen table to do that every quarter. You do it every single month. But most dividend stocks donaEURtmt keep the same kind of schedule. American stocks typically pay shareholders once every three months.

Monthly dividend stocks, however, help you to tackle regular expenses without worrying about fluctuations in payouts depending on timing. And these every-30-day payers also have a couple of additional benefits, too:

  • ItaEURtms a sign of stability: Promising a dividend check every single month is a bold promise that a company wouldnaEURtmt make if it wasnaEURtmt serious about keeping (and even raising) the payout.
  • Faster gains. Even if you have 20 or 30 years left to retirement, a monthly payout can be put back to work more quickly than a quarterly one. A monthly payer, in fact, can generate thousands of dollars more in additional returns via reinvested dividends over the course of a couple decades than a quarterly payer with the same yield.

Are all monthly dividend stocks perfect? Far from it. Today, IaEURtmm going to show you four payers yielding between 4% and 12%. Two should make your wish list, while two are proof that even monthly dividends arenaEURtmt always perfect.

LTC Properties ( LTC )

Dividend Yield: 5.8%

LTC Properties ( LTC ) is one of the more interesting plays in the real estate investment trust space, combining health care and retirement properties in a way thataEURtms tailor-made to capture the potential of the aging Baby Boomers.

Specifically, LTC Properties has a total of 208 properties across 29 states that includes 105 assisted living facilities and 96 skilled nursing facilities, with the remaining seven properties classified as simply aEURoeother.aEUR

The companyaEURtms fourth-quarter and full-year earnings report didnaEURtmt exactly include screamingly positive results. Q4 funds from operations declined by a penny per share from the year-ago period to 77 cents per share, though for the whole year, FFO improved from $3.06 per share in 2016 too $3.10 per share in 2017.

Still, shares have hemorrhaged more than 25% since July of last year, with some of that coming amid the malaise of the broader REIT space. That has LTC selling at less than 13 times FFO, and yielding nearly 6%.

That should give investors plenty to think about, especially when you consider that LTCaEURtms properties naturally benefit immensely from the aging of AmericaaEURtms Boomers, and have the added bonus of being located in areas that have high demand for senior health care services. Also appealing is a low debt burden of around 30% of its market capitalization, as well as a dividend that represents less than 75% of FFO.

Wall Street sometimes lets momentum get the best of it, and that appears to be the case in LTC Properties. This REIT is positioned for growth yet value-priced aEUR" and a substantial monthly dividend only makes it look that much better.

Global Net Lease ( GNL )

Dividend Yield: 12.6%

At first blush, Global Net Lease ( GNL ) looks like a prime opportunity.

You canaEURtmt ask for more diversification than what GNL offers. This real estate investment trust boasts 321 single-tenant properties it leases out to 100 tenants across 41 industries in eight countries, including the U.S., the U.K., Germany and Finland. The industry diversification is outstanding, with financial services the largest slice of the pie at just 14%; but its properties span everything from aerospace to healthcare to utilities. Moreover, its tenants include stable companies such as FedEx ( FDX ) , Family Dollar and ING Groep ( ING ) , but no one of them makes up more than 5% of straight-line rent.

Moreover, the stock has been battered to the tune of about 30% in a year, driving its yield to well over 12%.

But aEUR

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics