Seeking Steady Payments? Try these 3 High-Yield Monthly Dividend Stocks
Monthly dividend stocks stand out for income investors seeking regular income streams. Instead of the typical quarterly or semi-annual dividend payouts, these stocks disburse dividends every month, totaling 12 payments annually. This attribute makes them particularly appealing, especially when they also promise high yields. In the realm of monthly dividends, here are three standout stocks known for their high-yield distributions.
Main Street Capital
Main Street Capital operates as a business development company (BDC), focusing on providing long-term debt and equity capital to lower to middle-market companies. These companies generally boast annual revenues ranging between $10 million and $150 million. Main Street Capital’s investments often facilitate management buyouts, recapitalizations, growth financings, refinancings, and acquisitions. As of the end of the first quarter, Main Street Capital’s portfolio included a mix of lower-middle-market companies, middle-market companies, and various private loan investments.
The first-quarter financials revealed an 11% increase in net investment income, reaching $89.8 million, up from $81.0 million in the prior year. This performance translates into a continuous dividend payout, with the company declaring monthly dividends of $0.245 for the third quarter of 2024, marking a 6.7% increase from the previous year. Additionally, shareholders benefited from a supplemental $0.30 dividend paid in June. Presently, Main Street Capital offers a dividend yield of 5.8%.
Gladstone Capital
Gladstone Capital, another BDC, prefers investing in small- to medium-sized businesses through a mix of equity and high-yield debt instruments. With loans usually ranging between $7 million and $30 million, the company’s investment strategy is designed to generate significant returns. The second-quarter earnings highlighted a 3.3% increase in total investment income, largely due to a rise in interest income. The net assets from operations saw a substantial gain, supported mainly by unrealized appreciation in the portfolio.
With a portfolio yield on the rise, currently standing at 14%, Gladstone Capital’s ability to cover expenses and distribute earnings to shareholders grows stronger. The company’s growth in earnings can also be attributed to the expanding portfolio size and higher spreads. Gladstone Capital boasts a current yield of 8.4% for investors seeking high monthly dividend payments.
Apple Hospitality
Apple Hospitality distinguishes itself in the real estate sector as a hotel REIT, owning a substantial portfolio of 225 hotels across 38 states. Operating under renowned brands like Marriott, Hilton, and Hyyt, Apple Hospitality reported significant growth in its first-quarter results, including a 64.2% increase in net income and a 45.4% rise in operating income. Despite challenges like the pandemic and new competition models like AirBnB, the demand for traditional hotel services is recovering.
Apple Hospitality not only benefits from strong brand affiliation and prime locations but also from a highly effective business model. Its conservative approach to debt management and strategic share repurchases position it well for adverse economic periods. Currently, the stock offers a 6.3% dividend yield, providing attractive returns for income-focused investors.
In conclusion, these three monthly dividend stocks offer compelling high-yield opportunities for investors seeking steady and reliable income streams. With unique strategies and robust financial performances, Main Street Capital, Gladstone Capital, and Apple Hospitality REIT stand out as top picks for dividend investors.
