Monthly Dividend Payouts: A Key to Budgeting Success
For investors seeking predictable income streams, monthly dividend payouts can be a game-changer. By receiving regular infusions of capital, individuals can better align their investments with their monthly expenses, such as rent, utilities, and other bills. While most dividend-paying companies distribute funds quarterly, some standout firms offer monthly payouts.
Real Estate Investment Trusts (REITs): A Rich Source of Monthly Dividends
REITs are particularly well-suited for monthly dividend payments, as they are required to distribute at least 90% of their taxable income to shareholders in order to maintain their favorable tax status. This makes them an attractive option for income-focused investors.
Two REITs with Impressive Track Records
Among the top REITs offering monthly dividends are Realty Income and Stag Industrial. Both companies boast impressive histories of increasing their payouts, making them attractive options for investors seeking reliable income streams.
Realty Income: The Monthly Dividend Stock
Realty Income, founded 55 years ago, has increased its dividend annually for 30 consecutive years. With a diverse portfolio of nearly 15,500 commercial properties, the company generates approximately 80% of its rental income from the retail sector. However, it mitigates the risks associated with online shopping by renting to tenants with strong omnichannel presences or those that continue to thrive in physical stores.
Stag Industrial: A Leader in Industrial Properties
Stag Industrial, with its focus on industrial properties, has built a reputation for consistently raising dividends since its IPO in 2011. The company’s portfolio consists mainly of warehouses and distribution centers, which are in high demand due to the growing importance of e-commerce.
Key Metrics and Performance
Both Realty Income and Stag Industrial have demonstrated strong performance in recent quarters. Realty Income reported a 99% occupancy rate and a 5% increase in renewed leases, while Stag Industrial saw a 4.4% growth in same-store cash net operating income.
Dividend Yields and Growth Potential
Realty Income offers a 5.5% dividend yield, significantly higher than the S&P 500’s 1.2%. Stag Industrial’s current dividend yield stands at 4%. With their histories of increasing payouts, investors can expect continued growth in their dividend income.
Investing in Monthly Dividend Stocks
Before investing in Realty Income or Stag Industrial, consider the broader market landscape and the potential for long-term growth. By doing so, investors can create a diversified portfolio that balances income generation with capital appreciation.
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