3 High-Yield Dividend Stocks That Pay Investors Each Month
These names allow investors to streamline their passive income cash flow to fit their monthly expenses.
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Monthly dividend stocks could be appealing for investors looking for recurring income. By purchasing dividend stocks that pay distributions to shareholders each month, investors can streamline their passive income cash flow to fit their monthly expenses.
The following three monthly dividend stocks provide income each month, and have high dividend yields.
An Agreeable Dividend Stock
Agree Realty Corp. ADC is an integrated real estate investment trust (REIT) focused on ownership, acquisition, development, and retail property management. Richard Agree founded Agree Development Company in 1971, which is the predecessor to Agree Realty Corp.
Agree has developed over 40 community shopping centers throughout the Midwestern and Southeastern United States. The company owns more than 1,800 properties located in 48 states, containing approximately 38.1 million square feet of gross leasable space.
The company's business objective is to invest in and actively manage a diversified portfolio of retail properties net leased to industry tenants. Agree Realty has a market capitalization of $5.7 billion, and the company has been paying a growing dividend for 11 consecutive years.
On February 13, Agree Realty reported fourth-quarter results for 2023. In the fourth quarter, the company invested $199 million in 70 retail net lease properties, completed four development projects, and maintained a balanced balance sheet. Key financial metrics include unchanged net income per share at $0.44, a 3.4% increase in Core Funds from Operations (Core FFO) per share to $0.99, and a 5.2% increase in Adjusted Funds from Operations (AFFO) per share to $1.00.
Net income for Q4 2023 increased by 12.9% to $44.1 million, and Core FFO and AFFO saw significant increases of 16.8% and 18.8%, respectively. For the full year, net income advanced 12.1%, Core FFO grew 22.3%, and AFFO saw a substantial 24.2% increase.
Additionally, the company declared a December monthly dividend of $0.247 per common share, reflecting a 2.9% year-over-year increase. For full year 2023, Agree Realty invested or committed $1.34 billion in 319 retail net lease properties and initiated 13 development projects.
Despite a 7.0% decline in net income per share to $1.70, Core FFO per share increased by 1.6% to $3.93, and AFFO per share rose by 3.1% to $3.95. The company declared dividends of $2.919 per share, marking a 4.1% year-over-year increase.
ADC stock currently yields 5.2%.
You're Not Dreaming, This REIT Yields More Than 5%
Dream Industrial Real Estate Investment Trust DREUF owns high-quality light industrial properties and is based in Canada. The trust owns and operates a portfolio of 327 industrial assets, which makes up 71.4 million square feet of gross leasable area across predominantly Canada, with some operation in the United States and Europe.
Most of the portfolio’s gross leasable area is in multi-tenant buildings with the remaining in single-tenant buildings. Dream Industrial currently has a focus on driving occupancy and rental rates, furthering its leasing operations and internal growth.
On February 13, Dream Industrial reported fourth-quarter results for the period ending December 31, 2023. Diluted FFO per unit for 2023 came in at C$0.98, up 10% from 2022. Net asset value (NAV) per unit was C$16.61, down 2.1% compared to December 31st, 2022. Net rental income rose 19% to C$334 million for 2023.
One of the company’s potential growth catalysts is a joint venture. On February 17, Dream Industrial created its joint venture in partnership with GIC, a sovereign wealth fund, which acquired Summit Industrial Income REIT for C$5.9 billion in all cash. The JV is 10% owned by Dream and 90% owned by GIC.
The JV created with GIC to acquire Summit Industrial REIT is transformative for the trust, and was immediately accretive while also improving the growth profile of Dream Industrial. Following the acquisition of Summit Industrial, DREUF’s total portfolio grew from 257 assets to 321 assets, encompassing 70.4 million square feet compared to 47.3 million square feet prior. We expect the trust to grow FFO per share by roughly 4.0% annually over the next five years.
DREUF has a current dividend yield of 5.5%.
'Industrial' Strength Payouts
STAG Industrial STAG is an owner and operator of industrial real estate. It is focused on single-tenant industrial properties and has 563 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.
STAG has incurred credit losses that have been less than 0.1% of its revenues since its IPO. As per the latest data, 53% of the tenants are publicly rated and 31% of the tenants are rated “investment grade.” The trust typically does business with established tenants to reduce risk.
In mid-February, STAG Industrial reported financial results for the fourth quarter of 2023. Core FFO per share grew 5.5% over the prior year’s quarter, from $0.55 to $0.58, 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 while the occupancy rate climbed sequentially from 97.6% to 98.2%.
The REIT provided guidance for 2024, expecting core FFO per share of $2.36-$2.40. We expect FFO per share of $2.39 and note that the REIT has not missed the analysts’ estimates for 24 quarters in a row.
STAG has grown its FFO per share at a 6.2% average annual rate over the last decade and at a 4.9% average annual rate over the last five years. The U.S. industrial market is more than $1 trillion in size and STAG Industrial still has a market share that is less than 1% of its target market, which includes the top 60 markets of the country.
The REIT has ample room to continue to grow for years. As STAG has proved fairly resilient to the ongoing economic slowdown, we expect it to grow its FFO per share at a 5.0% annual rate.
STAG currently yields 4.0%.
At the time of publication, Ciura had no positions in any stocks mentioned.