6 Monthly Dividend Stocks to Buy

[Editor’s note: This article was previously published in January 2019. It has been updated and republished.]

Most dividend stocks pay their shareholders quarterly, but a few dividend-yielding stocks offer monthly distributions. The group is small: less than 100, with many of the offerings being exchange-traded funds (ETFs) or closed-end actively managed funds. And so investors looking for monthly dividend stocks to buy are limiting their universe quite a bit.

And there are quite a few attractive dividend-yielding stocks that pay out monthly. Several offer compelling cases for both their upside and safe dividends, with attributes that go beyond simply the timing of their distributions.

These six stocks all fit that bill, offering not only monthly dividends but potential share price appreciation and reasonable payout ratios.

Compare Brokers

Realty Income (O)

Realty Income (NYSE:O) is the best-known of the monthly dividend payers, to the point that it has trademarked the slogan “The Monthly Dividend Company.”

In terms of past performance, the monthly payouts have been just the cherry on top of a delicious sundae. O stock has returned — including dividends — an average of 15.8% annually since 1994, according to a recent investor presentation. It has been one of the best-performing real estate investment trusts in the market over that stretch.

O stock has become much more expensive over the past few months, bouncing more than 19% from February lows. But there’s still a nice bull case at the moment. O yields a bit over 3.7%,

The portfolio looks both safe and nicely diversified, with Walgreens Boots Alliance (NASDAQ:WBA) and FedEx (NYSE:FDX) being its two largest tenants. Considering Realty Income’s track record, it’s worth staying long.

Compare Brokers
Source: Shutterstock

LTC Properties (LTC)

Like Realty Income, senior housing and healthcare property REIT LTC Properties (NYSE:LTC) has bounced nicely off recent lows. And like with O stock, there’s still a solid bull case for LTC even after recent gains.

With the “baby boom” generation aging, demand should stay strong. Meanwhile, LTC still yields 5.06%, though growth has been below that of most dividend-yielding stocks (it has been held flat for about two years now).

There are some risks here: investors are concerned that changing healthcare insurance reimbursement policies will impact LTC’s tenants. The stock actually hit a five-year low earlier this year as a result. But sentiment has improved — and should continue to do so. With LTC still trading at a reasonable 11.56 P/E, the bounce could continue. Add to that a 5.o6% yield, paid monthly, and it’s definitely worth a look.

Compare Brokers
Source: Shutterstock

Shaw Communications (SJR)

Canadian telecommunications company Shaw Communications (NYSE:SJR) hasn’t posted particularly strong performance over the past few years. SJR actually has declined nearly 10% over the past five years — and has lost about 10% of its value over the past year alone.

There are some concerns about the wireless industry in Canada, much as there are in the U.S. But Shaw is growing nicely, with revenue up so far this year. Margin expansion hasn’t followed yet, but as Shaw continues to take market share, profit growth may follow.

But with a 4.34% dividend yield and an 20.04x forward price-to-earnings multiple, SJR isn’t pricing in much improvement. With 5G a potential catalyst in the mid-term, there’s a nice case for SJR stock at current levels.

Dividends are announced in Canadian dollars, which can affect the payouts received by American investors. Still, a monthly dividend, a 4%-plus yield and a potential upside provide a nice combination here.

Compare Brokers
Source: Marriott Select Service Hotels via Flickr (Modified)

Apple Hospitality REIT (APLE)

Apple Hospitality REIT (NYSE:APLE) owns 241 hotels in the U.S. — 115 of the hotels operate under the Marriott (NASDAQ:MAR) banner, with the remaining 126 flying under the Hilton (NYSE:HLT) flag.

Those two strong brands underpin a strong portfolio. Geographic diversification limits downside risk as well. With an impressive 7.55% yield paid monthly, that makes APLE one of the best dividend-yielding stocks in terms of monthly income.

The story admittedly isn’t perfect. Growth has been relatively meager, and APLE’s dividend has stayed at 10 cents per share per month since a 2015 IPO. Investors would have been much better off buying either MAR or HLT, both of which have better than doubled from early 2016 lows.

But for income-focused investors, APLE looks like a strong pick.

Compare Brokers
Source: Shutterstock

Pembina Pipeline (PBA)

Pembina Pipeline (NYSE:PBA) is the biggest company on this list and the riskiest. Pipeline companies generally are lower-risk plays in the oil and gas space, but Pembina does have some concerns. Canadian oil stocks have struggled of late, and Pembina levered up to acquire Veresen last year.

That said, there’s still a lot to like here. Earnings increased in the double-digits last year, largely due to the acquisition. PBA pays a solid 4.69% dividend. Valuation is relatively reasonable against U.S. rivals like Kinder Morgan (NYSE:KMI) and Plains All American Pipeline (NYSE:PAA).

If Pembina can continue to grow once the Veresen acquisition is fully integrated, there should be nice upside on top of the 4%-plus yield.

Compare Brokers
Source: Shutterstock

STAG Industrial (STAG)

STAG Industrial (NYSE:STAG) isn’t necessarily a spectacular stock, but it’s one that can drive steady long-term returns along with monthly payouts. The company leases industrial buildings to single tenants and has a nicely diversified portfolio from both a customer and geographic standpoint. The average lease length currently is nearly five years, which should keep recent dividend growth intact.

Longer-term, there are minor concerns. Valuation isn’t necessarily cheap, at over 15 forward P/E. An economic downturn could lead to lease cancellations or even customer bankruptcies. Investors focused on value might want to wait for a cheaper price than the current stock price of $28.71.

But investors looking for growing monthly dividend payouts don’t have a ton of options, and STAG very well might be the best one.

As of this writing, Vince Martin did not hold a position in any of the aforemen

Seth Rogen launches weed company 'to make it easier for people to learn to love cannabis'

Comedy movie moguls Seth Rogen and Evan Goldberg announced Wednesday the launch of Houseplant, a recreational Canadian cannabis company in collaboration with Ontario-based grower Canopy Growth.

"Houseplant is the result of years of experience and dedication, with each element and expression thoughtfully designed to make it easier for people to learn to love cannabis as much as Houseplant does," stated a press release from the new company.

Rogen and Goldberg, both of whom were born in Vancouver, have teamed up on popular films projects including "Superbad," "Pineapple Express" and "The Interview." And now cannabis.

"Houseplant is a passion we've brought to life through drive and dedication," Rogen said in a press release. "Every decision we've made for the business reflects the years of education, first-hand experience and respect we have for cannabis."

The first strain of cannabis the new company will introduce with Canopy Growth is Houseplant Sativa and will be available for purchase in early April through regulated retailers and online in British Columbia. The company added that Houseplant Hybrid and Houseplant Indica strains, along with softgels and pre-rolled joints, will follow throughout the year

"We are so proud to be launching in Canada, our home," Goldberg added. "After spending five years diligently preparing for the launch of this company, we're excited to be able to share our passion for cannabis with Canadians in this way."

Steve Jennings | Getty Images S(L-R) Evan Goldberg and Seth Rogen.

While Houseplant said that its excited to make cannabis education "the center of its mission," Canadian partner and cannabis giant Canopy Growth adds yet another celebrity duo to its growing list of business partnerships.

Last month, Canopy said that it's working with lifestyle authority and television personality Martha Stewart to develop hemp-derived CBD products. Meanwhile, its partnership with Stewart stemmed from an earlier relationship with fellow entertainer and cannabis icon Snoop Dogg.

Canopy's subsidiary Tweed began selling three varieties of cannabis in 2016 under the "Leafs by Snoop" brand, including varieties dubbed "Sunset," "Ocean View" and "Palm Tree" in a nod to the rapper's California heritage.