When someone wants to invest in a particular stock, a common question comes in the mind. Whether the stock pays the dividend or not. It is because the dividend is the source of passive income. Moreover, it gives you a general idea about the company’s performance.
If you are new to stocks, you might be thinking about what actually the dividend is. Informally dividend is the thank you gesture to its loyal shareholders in the form of cash or shares. Formally, a Dividend is the part of the money or additional shares that a company gives regularly to its shareholders from its profits. But it is not mandatory for the company to pay a dividend. The company’s board of directors decide whether to give dividend or not. Here are few things that you need to know about the dividend.
Declaration Date: It is the announcement date of the dividend.
Ex-Dividend date: It is the date on or after which the buyer of the stock is not eligible to get the dividend.
Date of Record: It is the date on which a company identifies its shareholders.
If you want a dividend, you must have to purchase stock two days before the date of record.
Now we will discuss the top 5 monthly paying dividends stocks that we have picked for you.
Pembina Pipeline Corporation (PBA)
Let’s start with stock number 5 which is Pembina Pipeline Corporation with the ticker symbol PBA. It is the leading energy transportation and midstream service provider for more than 65 years. The company owns pipelines that transport hydrocarbons and natural gas products. The company has an 18.15-billion-dollar market cap. Its shares have climbed more than 37% in the past 12 months. First-quarter 2021 revenue grew by 22.38% over the year. Pembina has a 3.38% dividend yield which is relatively good in the covid era. Its three-year dividend growth rate is 18.79% and almost 53% payout ratio based on cash flow. Why this stock is good because oil and gas are the need of almost every segment of life. As the global economy is in the recovery phase, the demand for oil and gas will increase. This change will have a positive impact on Pembina Pipeline. Furthermore, its earnings per share for the second quarter of 2021 are estimated to be increased by 42.88% year over year. So based on these facts, we can say that this low dividend yield stock is less risky as compared to other industry peers.
Prospect Capital Corporation (PSEC)
Prospect Capital Corporation, which trades with ticker symbol PSEC, is on number 4 in our list of monthly paying dividends stocks. It is a business development company that provides financing to middle-market companies. The company has a 3.45-billion-dollar market cap and is doing business in 39 industries. Its portfolio is mostly debt-based and expanded to more than 120 companies. The company’s shares reflect almost 70% growth over the last year which is a good sign. Prospect Capital has quite a high dividend yield of 8.08% however, its dividend has not shown growth in the last three years. The stock is appealing in terms of monthly dividends due to its income potential. As it operates by financing middle-market companies in various industries ranging from candle makers to IT service providers, it generates consistent revenue and pays high yield dividends to its shareholders. Its shares are climbing significantly in this year and therefore it can pay you high dividends along with handsome profits.
AGNC Investment Corp (AGNC)
The third monthly dividend stock that we have picked for you is AGNC Investment Corporation with the ticker symbol AGNC. It is a real estate investment trust company that mainly invests in mortgage-backed securities instead of physical real estate. Due to this reason, AGNC stock is appealing to many investors. The company has a market cap of 8.96 billion dollars. Its shares increased by 33.15% over the last 12 months. By the end of March 2021, the company had a 90.3 billion dollars investment portfolio which is quite massive. The company has made a great comeback in 2021 after an ordinary performance due to covid-19. Its first-quarter 2021 revenue and income surged by more than 140%. So it means that the AGNC stock is now on its way to grow. AGNC dividend yield is 8.44% and the payout ratio is 29.86%. Due to its massive mortgage-backed portfolio, the rising interest rates do not affect the company’s business rather it benefits AGNC. Moreover, the current financial condition is favorable for the company to enhance its portfolio. So based on its safe business nature and financial condition, this stock can prove to be fruitful to you in the future.
STAG Industrial, Inc. (STAG)
The stock number two in our list of monthly dividend stocks is the STAG industrial Incorporation with the ticker symbol STAG. It is the real estate investment trust company acting as the lead in the light industrial and logistic properties. The company has more than a 6 billion market cap. its portfolio is spread across 39 states of the U.S. Approximately 40% portfolio belongs to e-commerce activity and Amazon is its biggest tenant. The company owns 494 buildings covering 99.1 million square feet of area. So you can now imagine how large a portfolio we are talking about.
STAG shares rose almost 35% over the past year. This shows that the company performed exceptionally even in the pandemic era. Its dividend yield is 3.80% and 2.49% three-year dividend growth rate. The payout ratio based on cash flow is 52.11%. Its dividend track record is quite attractive as it is consecutively growing for the last seven years. Its quarterly revenue has been increased 13% over the year. A 16% projected increase for the second quarter of 2021 is a good sign for investors. Now you must have got an idea why this stock is good for you. Furthermore, this stock is safe and consistent so if you are too shy to come out of your comfort zone in terms of investment in stocks, STAG Industrial will suit well to you.
Realty Income Corporation (O)
Realty Income Corporation is another dividend-paying stock to watch in 2021. It is a real estate investment trust company. Although several companies pay monthly dividends, this company is well known for its monthly dividends. That’s why it actually trademarked “The monthly dividend company “ as its official nickname. The companies diversified portfolio includes 6600+ properties and 56 retail and other industries. The company is dealing with more than 600 clients across 50 states, Puerto Rico, and the United Kingdom. Its share jumped 13.39% over the past year. The first-quarter revenue represents almost 7% positive change. The dividend yield for the Reality Income is 4.18%. The three-year dividend growth is 10.41%. Since its listing, it has paid 611 consecutive dividends to its shareholders. The dividend is growing consecutively for the past 27 years which is not an ordinary thing. Even in the pandemic era, its diversified portfolio and discipline helped to maintain the dividend growth streak. Now the economy is coming back to life, we expect that its affected tenants like cinema operators and gyms will be in much better shape financially.