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Top 10 Safest Monthly Dividend Stocks Now


Updated on July 26th, 2024 by Bob Ciura

Monthly dividend stocks can be an attractive investment option for those seeking stable income. That is because monthly dividend stocks provide a predictable and consistent stream of cash flow.

Monthly dividends allow investors to receive more frequent payments than stocks which pay quarterly or semi-annual dividend payouts.

As a result, monthly dividend stocks can help to cover living expenses, or supplement other sources of income.

There are just ~80 monthly dividend stocks that currently offer a monthly dividend payment.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

 

Click here to instantly download your free spreadsheet of all 80 monthly dividend stocks now, along with important investing metrics.

However, not all monthly dividend stocks are equally safe.

There are many examples of monthly dividend stocks reducing or eliminating their dividends. Overall, despite the positive attributes attached to monthly dividend stocks, their risk profile can be elevated as they strive to maintain their more frequent payouts.

In this article, we have analyzed the 10 monthly dividend stocks from our Sure Analysis Research Database with the safest dividends based on our Dividend Risk Score rating system.

The 10 safest monthly dividend stocks below have been arranged in order, based on their Dividend Risk Scores. If there is a tie, their ranking is determined by their payout ratio, with the lowest payout ratio earning a higher place.

Table of Contents

Monthly Dividend Stock #10: Agree Realty (ADC)

Agree Realty Corp. (ADC) is an integrated real estate investment trust (REIT) focused on ownership, acquisition, development, and retail property management. Agree has developed over 40 community shopping centers throughout the Midwestern and Southeastern United States.

On April 23rd, 2024, Agree Realty Corp. reported first quarter results. The company invested $140 million in 50 retail net lease properties and initiated four development projects with a total committed capital of $18 million. Net income per share decreased by 2.4% to $0.43, while Core FFO per share increased by 3.5% to $1.01, and AFFO per share rose by 4.6% to $1.03.

A monthly dividend of $0.250 per common share was declared for April, a 2.9% increase year-over-year. The Company ended the quarter with over $920 million in total liquidity and maintained a strong balance sheet.

Click here to download our most recent Sure Analysis report on Agree Realty Corp. (ADC) (preview of page 1 of 3 shown below):

Monthly Dividend Stock #9: Main Street Capital (MAIN)

Main Street Capital Corporation is a Business Development Company (BDC) that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.

At the end of Q1 2024, Main Street had an interest in 81 lower middle market companies (valued at $2.4 billion), 22 middle market companies ($239 million) and 88 private loan investments ($1.5 billion).

On May 7th, 2024, Main Street Capital announced a 2.1% dividend increase to $0.245 per share paid monthly. On May 9th, 2024, Main Street Capital reported first quarter 2024 results. Net investment income of $89.8 million for the quarter was an 11% increase compared to $81.0 million in Q1 2023.

The corporation generated net investment income per share of $1.05, up 3% year-over-year from $1.02 per share. Distributable net investment income per share totaled $1.11, up 4% from $1.07 in Q1 2023.

Main Street’s net asset value per share increased compared to December 31st, 2023, from $29.20 to $29.54, a 1.2% increase.

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

Monthly Dividend Stock #8: EPR Properties (EPR)

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):

Monthly Dividend Stock #7: Modiv Industrial (MDV)

Modiv Industrial acquires, owns, and actively manages single-tenant net-lease industrial, retail, and office properties in the United States, focusing on strategically essential and mission-critical properties with predominantly investment-grade tenants.

As of its most recent filings, the company’s portfolio comprised 44 properties that occupied 4.6 million square feet of aggregate leasable area.

On March 4th, 2024, Modiv reported its Q4 and full-year results for the period ending December 31st, 2023. For the quarter, total revenues came in at $12.3 million, up 23% year-over-year, excluding the 2022 lease termination fee.

AFFO was $4.5 million, or $0.40 per diluted share, versus AFFO of $6.9 million, or $0.68 per diluted share, in the prior year period.

For the year, AFFO declined to $1.94 from $2.22 in FY2022. The decline in AFFO for both periods was due to higher interest expenses as a result of rising interest rates. For context, in Q4, interest expenses skyrocketed by 149% to $7.05 million.

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

Monthly Dividend Stock #6: Apple Hospitality REIT, Inc. (APLE)

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

Apple Hospitality REIT announced its first-quarter results for 2024. The company reported a net income of $54.1 million, a 64.2% increase from the previous year, with net income per share rising to $0.22.

Operating income grew by 45.4% to $71.6 million, and Adjusted EBITDAre increased by 5.8% to $100.8 million. The company’s average daily rate (ADR) was $153.18, and occupancy remained steady at 72.0%, resulting in a RevPAR of $110.25.

Despite these gains, Comparable Hotels Adjusted Hotel EBITDA slightly declined by 3.2% to $111.7 million. The company acquired the AC Hotel Washington DC Convention Center for $116.8 million and sold two Hilton hotels in Arkansas for $33.5 million.

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

Monthly Dividend Stock #5: STAG Industrial, Inc. (STAG)

STAG Industrial is an owner and operator of industrial real estate. It is focused on single-tenant industrial properties and has ~560 buildings across 41 states in the United States.

The focus of this REIT on single-tenant properties might create higher risk compared to multi-tenant properties, as the former are either fully occupied or completely vacant.

However, STAG Industrial executes a deep quantitative and qualitative analysis on its tenants. As a result, it has incurred credit losses that have been less than 0.1% of its revenues since its IPO.

In late April, STAG Industrial reported (4/30/24) financial results for the first quarter of fiscal 2024. Core FFO per share grew 7% over the prior year’s quarter, from $0.55 to $0.59, exceeding the analysts’ consensus by $0.01, thanks to the sustained strength of the REIT’s tenants and material hikes in rent rates.

Net operating income grew 10% over the prior year’s quarter even though the occupancy rate slipped sequentially from 98.2% to 97.7%.

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

Monthly Dividend Stock #4: Whitestone REIT (WSR)

Whitestone is a retail REIT that owns about 55 properties with about 5.0 million square feet of gross leasable area primarily in top U.S. markets such as Texas and Arizona. Its tenant base is very diversified consisting of 1,453 tenants with no single tenant exceeding 2.1% of annualized base rental revenue.

Whitestone reported its first quarter 2024 results on May 1st, 2024, during which it witnessed an occupancy rate of 93.6% versus 92.7% in Q1 2023. For the quarter, revenue growth was 3.7% to $37.2 million versus Q1 2023. Funds from operations per share (“FFOPS”) dropped 4.2% to $0.23. Same-store net operating income (“SSNOI”) rose 3.1% to $23.9 million.

Also, rental rate growth was 17.0%, down from 20.8% a year ago, supported by a jump in rental rate growth in new leases of 25.9% vs. 9.5% a year ago. Renewal leases growth was 15.0% versus 23.0% a year ago. There were 24 new leases and 46 renewal leases in the quarter.

Whitestone maintained the following forecast for its 2024 guidance: SSNOI growth of 2.5%-4.0% and core FFOPS of $0.98-$1.04. It forecasts an ending occupancy of about 94.3%..

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

Monthly Dividend Stock #3: Phillips Edison & Company, Inc. (PECO)

Phillips Edison & Company is an experienced owner and operator that is exclusively focused on grocery-anchored neighborhood shopping centers. It is a Real Estate Investment Trust (REIT) that operates a portfolio of 271 wholly-owned properties.

The company has a 30-year history, but it began trading publicly only in the summer of 2021. Its management owns 7% of the company, and hence its interests are aligned with those of the shareholders.

On April 25th, 2024, Phillips Edison & Company released its Q1 results for the period ending March 31st, 2024. For the quarter, total revenues came in at $161.3 million, 6.8% higher year-over-year.

Same-store NOI rose by 3.7% to $106.7 million, new and renewal leasing spreads landed at 29.1% and 16.9%, respectively, while occupancy was strong at 97.2% – all of which were encouraging.

Along with only marginally higher interest and operating expenses, Nareit FFO for the quarter advanced by 5% to $80.1 million. Nareit FFO per share was $0.59, up from $0.58 last year.

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

Monthly Dividend Stock #2: U.S. Global Investors, Inc. (GROW)

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):

Monthly Dividend Stock #1: Realty Income Corporation (O)

Realty Income is a real estate investment trust, or REIT, that operates more than 11,100 properties. The trust’s properties are standalone, which makes Realty Income’s locations appealing to a wide variety of tenants, including government services, healthcare services, and entertainment.

Realty Income had long been focused primarily on the U.S., but the trust has recently expanded its operations internationally, with a presence now in both the U.K. and Spain. The trust’s tenants are spread out over more than 70 different industries.

Unlike most companies, Realty Income pays a monthly dividend, including more than 600 payments since going public in 1994.

and entertainment.

Source: Investor Presentation

Realty Income exceeded revenue expectations in the first quarter of 2023, reporting $1.26 billion in revenue following $598 million in investment volume. Its earnings slightly surpassed predictions, with normalized FFO per share reaching $1.05, a penny higher than the analyst estimate.

Realty Income has increased its dividend for 27 years, and is on the exclusive list of Dividend Aristocrats. It is the only monthly dividend stock on the list of Dividend Aristocrats, making it the safest monthly dividend stock today.

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

Final Thoughts

Monthly dividend stocks can be an attractive option for investors seeking a steady source of income throughout the year.

While no investment comes without risk, some monthly dividend stocks have demonstrated a history of financial stability, consistent earnings, and reliable dividend payments.

Our list of the 10 safest monthly dividend stocks includes companies from a variety of industries that rank highly based on their payout ratios and high yields.

Nevertheless, there are numerous other monthly dividend stocks available, each with its unique risk factors. Monthly dividend stocks carry elevated risks, so investors should be sure to conduct thorough research before buying.

Additional Reading

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

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

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.



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