3 Monthly Dividend Stocks to Consider

by Simon Hopes Author

Not all stocks are created equally. Some provide only the value of the stock itself, while others pay a regular income to the investor. Deciding how to best invest your money and the importance of not only the value of the return but the type of return is key when creating your investment portfolio. Learn what you need to know about monthly dividend stocks and a few excellent companies to consider investing in. 

What Is a Monthly Dividend Stock?

Monthly dividend stocks are stock shares in companies that pay their investors a consistent return on a monthly basis. Stocks that offer dividends often pay quarterly rather than monthly, but for those investors who know about monthly dividends, they can use them to pay for monthly expenses like rent or utilities. Establishing a payout that matches the frequency of these monthly bills can be a solid investment. 

How Does a Monthly Dividend Stock Work? 

Stocks that pay dividends provide their investors with two forms of value. The first is the stock share itself. You, as the investor, still maintain the value of that stock and can choose to sell it to get the money back as cash. In addition to the share value, monthly dividend stocks also pay out a cash income every month. This money comes from profits the company makes through the course of business. Some monthly dividends have a different value every month depending on how much the company earns, while others guarantee a certain amount of money with every payout. 

When considering purchasing a stock share with monthly dividends, you should assess two metrics: the market value and the dividend yield. The market value, also known as market capitalization, helps establish a consistent valuation system for all companies trading on the stock market. You can determine a company's market value by multiplying their current share price by its number of outstanding shares. The dividend yield is a percentage that divides the company's market value per share by the dividend per share. 

3 Monthly Dividend Stocks Worth Consideration

If you're interested in diversifying your investment portfolio with stocks that pay monthly dividends, you'd do well to consider these well-vetted companies: 

Realty Income Corp.

Realty Income Corp. is a real estate investment trust, or REIT, that's well known in the industry for delivering consistent monthly dividends to its many investors.  

Stag Industrial

Stag Industrial, like Realty Income Corp., is a REIT. However, Stag Industrial deals, for the most part, in e-commerce, making it a strong company with a positive forecast for consistent ROI. 

Main Street Capital 

Main Street Capital is another popular player in the monthly dividend field. It's a business development company, or BDC, that helps middle-market companies access capital funding they might not be able to secure on their own. 

Monthly dividend stocks can help you both diversify your investment portfolio and provide a steady income stream for monthly bills. These three monthly dividend companies in particular are a solid choice for many investors. 

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Created on Jul 1st 2020 15:11. Viewed 483 times.

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