Sure Dividend

• Annual Valuation Return: 3.4%
• Dividend Yield: 7.5%

EPR Properties is a specialty real estate investment trust, or REIT, that invests in properties in specific market segments that require industry knowledge to operate effectively.

It selects properties it believes have strong return potential in Entertainment, Recreation, and Education. The portfolio includes about $7 billion in investments across 350+ locations in 44 states, including over 200 tenants.

Source: Investor Presentation

EPR posted first quarter earnings on May 1st, 2024. The company posted adjusted funds-from-operations of $1.12 per share.

In the year-ago period, adjusted FFO-per-share was $1.30. Revenue was down 2.4% year-over-year to $167 million.

EPR enjoys high occupancy rates, which afford it pricing power and higher margins over time. Recent results seem to indicate that the worst is behind EPR, and the Regal restructuring is a big step forward.

Click here to download our most recent Sure Analysis report on EPR (preview of page 1 of 3 shown below):

Cheap Monthly Dividend Stock #4: Prospect Capital (PSEC)

• Annual Valuation Return: 3.8%
• Dividend Yield: 13.1%

Prospect Capital Corporation is a Business Development Company, or BDC, that provides private debt and private equity to middle–market companies in the U.S.

The company focuses on direct lending to owner–operated companies, as well as sponsor–backed transactions. Prospect invests primarily in first and second lien senior loans and mezzanine debt, with occasional equity investments. 

Source: Investor Presentation

Prospect posted third quarter earnings on May 8th, 2024. Net investment income came to $94.4 million, off from just under $97 million in the December quarter, and down from $102.2 million a year ago.

As a percentage of total net investment income, interest income was 91%, slightly lower than prior quarters.

On a per-share basis, NII came to 23 cents, down from 24 cents in the December quarter, and down from 26 cents in the March period a year ago.

NAV declined from $9.48 in the March quarter last year to $8.99, but up slightly from $8.92 in the December quarter.

Click here to download our most recent Sure Analysis report on PSEC (preview of page 1 of 3 shown below):

Cheap Monthly Dividend Stock #3: Apple Hospitality REIT (APLE)

• Annual Valuation Return: 4.3%
• Dividend Yield: 6.4%

Apple Hospitality REIT is a hotel REIT that owns a portfolio of hotels with tens of thousands of rooms located across dozens of states.

It franchises its properties out to leading brands, including Marriottbranded hotels, Hilton-branded hotels, and Hyatt-branded hotels.

As of December 31, 2023, Apple Hospitality owned 225 hotels with a total of 29,900 guest rooms across 88 markets in 38 states.

Source: Investor Presentation

For the fourth quarter, Apple Hospitality REIT, Inc. reported strong operating performance, with increases in Comparable Hotels Revenue per Available Room (RevPAR) and Average Daily Rate (ADR) for both the fourth quarter and full year of 2023 compared to the same periods in 2022.

Comparable Hotels Occupancy remained steady in the fourth quarter but increased for the full year, outperforming industry averages according to STR data.

Click here to download our most recent Sure Analysis report on APLE (preview of page 1 of 3 shown below):

Cheap Monthly Dividend Stock #2: Itaú Unibanco (ITUB)

• Annual Valuation Return: 6.6
• Dividend Yield: 4.6%

Itaú Unibanco is a very large bank that is headquartered in Brazil. ITUB is a large-cap stock with a market capitalization above $44 billion.

Itaú Unibanco conducts business in more than a dozen countries around the world, but the core of its business is in Brazil. It has significant operations in other Latin American countries and select businesses in Europe and the US.

Its scale is huge in relation to other Latin American banks. Itaú is the largest financial conglomerate in the Southern Hemisphere, the world’s 10th–largest bank by market value, and the largest Latin American bank by assets and market capitalization.

Source: Investor Presentation

It’s not uncommon for banks like Itaú Unibanco to try to cater to every type of consumer and business, just like major US banks have done by offering a range of services such as deposits, loans, insurance products, equity investing, and more, in order to attract customers. What sets Itaú Unibanco apart is its focus on emerging economies such as Brazil. However, emerging markets have struggled for many years. This is a cause for concern as economic growth is crucial for a bank’s expansion, and without it, Itaú Unibanco may face challenges in producing profit expansion.

Regarding its dividend, Itaú Unibanco has a conservative approach. The bank pays out dividends to shareholders based on its projected earnings and losses, with the goal being the ability to continue to pay the dividend under various economic conditions. Along with providing its recent quarterly results, the company also slightly increased its monthly dividend from $0.0033 per share to $0.0034 per share. Still, the yield is quite low at 0.83%. Thus, Itaú Unibanco isn’t a pure income stock by any means, as its yield is simply too small to be attractive to most income investors.

Click here to download our most recent Sure Analysis report on ITUB (preview of page 1 of 3 shown below):

Cheap Monthly Dividend Stock #1: U.S. Global Investors (GROW)

• Annual Valuation Return: 4.6
• Dividend Yield: 18.7%

U.S. Global Investors began more than 50 years ago as an investment club. Today, it is a publicly-traded registered investment advisor that looks to provide investment opportunities in niche markets around the world. The company provides sector-specific exchange-traded funds and mutual funds, as well as an interest in cryptocurrencies.

U.S. Global Investors reported operating revenues of $2.6 million for the quarter ending March 31, 2024, a decline from $3.6 million the previous year. Net income remained nearly flat due to decreased advisory fees, lower investment income, and reduced assets under management (AUM).

Average AUM was $1.8 billion, with AUM at $1.7 billion by the end of the quarter. The company’s shareholder yield was 8.32%, reflecting its commitment to shareholder value through dividends and share repurchases.

Click here to download our most recent Sure Analysis report on GROW (preview of page 1 of 3 shown below):

Final Thoughts

Although monthly dividend stocks may appear appealing for generating a steady income stream, it’s crucial to bear in mind that not all dividend stocks are created equal.

Each stock carries its own set of risks, and the greater the risk, the more probable it is that shares will appear undervalued.

Investors should scrutinize the cheap valuation of monthly dividend stocks. Nevertheless, our list can serve as an excellent starting point for investors seeking potential opportunities for undervalued investments in the realm of monthly dividend stocks.

Don’t miss the resources below for more monthly dividend stock investing research.

• The Monthly Dividend Stocks List
• 20 Highest Yielding Monthly Dividend Stocks
• 10 Safest Monthly Dividend Stocks
• 3 Top ‘Hold Forever’ Monthly Dividend Stocks

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

• Dividend Kings: 50+ years of rising dividends
• Dividend Champions: 25+ years of rising dividends
• Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
• Dividend Achievers: 10+ years of rising dividends and in the NASDAQ
• High Dividend Stocks: 5%+ dividend yields
• Blue Chip Stock: Kings, Aristocrats, and Achievers
• MLPs: List of MLPs and more
• REITs: List of REITs and more
• BDCs: List of BDCs and more