Title: Two Stocks That Generously Dole Out Monthly Dividends
Investors value total dividends, and receiving regular payments, like monthly ones, can significantly aid budgeting. Monthly dividend-paying companies, especially Real Estate Investment Trusts (REITs), can be a goldmine. REITs are required to distribute at least 90% of their taxable income as dividends to maintain their favorable tax status.
Finding reliable monthly dividend payers among REITs can be enlightening. Two prominent options are Realty Income and Stag Industrial, both known for their unwavering dividend increases.
Starting the monthly dividend journey, we meet Realty Income, nicknamed "The Monthly Dividend Stock." Established five decades ago, the company has a robust tradition of annual dividend increases, clocking up an impressive 30-year streak.
A significant portion of Realty Income's rental income, around 80%, derives from the retail sector, which may seem intimidating given e-commerce dominance. However, the company ensures minimal risk by renting to companies with strong omnichannel strategies or brick-and-mortar businesses that still hold considerable appeal, such as grocery stores, dollar stores, and drugstores.
Realty Income's performance remains commendable despite the e-commerce surge. With a near-100% occupancy rate and lease renewals at 5% above previous rates, the company exhibits strong property management skills. Consequently, its adjusted funds from operations continue to grow steadily.
Monthly dividend payments are a constant for Realty Income, with periodic increases. In late 2024, it boosted its monthly dividend from $0.263 to $0.2635, while the figure for early 2024 was $0.256. Realty Income boasts a higher dividend yield (5.5%) than the S&P 500 (1.2%).
Next in line is Stag Industrial, a REIT specializing in industrial properties, predominantly warehouses and distribution centers. The e-commerce boom has driven increased demand for such assets, and Stag Industrial's portfolio is no exception.
Same-store cash net operating income saw a 4.4% increase in 2024. Occupancy was an impressive 97.1%, demonstrating the company's ability to manage its portfolio efficiently. Stag Industrial's history of annual dividend increases dates back to its public debut in 2011.
The company typically raises dividends in January, with the next increase likely imminent. The current monthly dividend payout is $0.1233, a slight increase from $0.1225 the previous year. Stag Industrial offers a 4% dividend yield.
[1] Source: Corporate financial data[2] Source: Corporate financial data[3] Source: Fortune article, "How mutual funds rank in 2023"[4] Source: Realty Income's dividend history, as reported on the company's investor relations website[5] Source: STAG Industrial's Investor Relations website[6] Source: Corporate financial data[7] Source: Corporate financial data[8] Source: Bloomberg, "Realty Income Corporation (O)"[9] Source: Bloomberg, "STAG Industrial Inc. (STAG)"
Investing in reliable monthly dividend payers, such as Realty Income and Stag Industrial, can be a strategic move in finance for those seeking consistent income streams. Realty Income, often referred to as "The Monthly Dividend Stock," has maintained a 30-year streak of annual dividend increases, providing a higher dividend yield than the S&P 500.
