Monthly dividend stocks are one of my favorite investing strategies, and I recommend them for those who are seeking consistent income streams.
These stocks are ideal because instead of paying dividends quarterly, the companies they represent pay their investors monthly. This frequent payout can be particularly attractive for investors looking to supplement their regular income or seek more regular cash flow.
This predictable cash flow can help cover monthly expenses for retirees or those living off investments. But monthly dividend stocks are also ideal for investors who are focused on building passive income streams. Investors can gradually increase their holdings over time by reinvesting dividends or using them to cover living expenses.
In fact, monthly dividend stocks are perfect for investors who want to monitor their holdings.
By taking the monthly payout and reinvesting right away, those investors are capitalizing more quickly than an investor who is getting a quarterly payout, potentially accelerating the growth of their investment portfolios.
We’re using the Dividend Grader tool to look for some of the best monthly dividend stocks on the market. If you look forward to a regular payday, these stocks are for you.
Modiv Industrial (MDV)
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Modiv Industrial (NYSE:MDV) is a real estate investment trust (REIT) that invests in industrial manufacturing facilities.
It has more than 40 properties scattered across 16 U.S. states and is quickly growing its industrial holdings.
Modiv bought more than $214 million in industrial assets in 2023, and plans to continue buying this year, but it will wait for the right opportunity.
“We believe that there will be no shortage of assets to acquire, and we believe this because we have no shortage of the patience needed to wait for the right opportunities,” management said in its earnings report for the fourth quarter.
REITs are one of the most popular monthly dividend stocks because they come with significant tax benefits. Because they distribute at least 90% of their taxable income, REITs aren’t subject to corporate income taxes.
For its part, MDV has a dividend yield of 6.9%. The stock is up 20% so far in 2024 and gets a “B” rating in the Portfolio Grader.
Main Street Capital (MAIN)
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Main Street Capital (NYSE:MAIN) is an equity firm that invests in lower and middle market companies. It has invested in over 200 companies in its history.
For instance, on March 19, it announced an investment in Gulf Manufacturing, a maker of products for the oil and gas industry.
The $40 million investment will help Gulf Manufacturing purchase another company, Maass Global Group, which manufactures bars, pipes, and other materials.
Earnings for the fourth quarter included $129.3 million in revenue, up 14% from the previous year. Earnings per share were $1.12, up from $1.03 in the same quarter last year.
MAIN stock is up 6% so far this year and pays a dividend yield of 6.3%. It gets a “B” rating in the Dividend Grader.
Grupo Aval (AVAL)
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Grupo Aval (NYSE:AVAL) is a holding company in Columbia. The company primarily operates in the financial sector, with investments in stocks, bonds and other financial instruments.
The company operates subsidiaries that offer traditional banking services, pension and fund management, investment banking and real estate investing.
It has four commercial banks, a private pension and severance fund manager and a merchant bank. It also operates in Central America as Banco de Bogata.
While Columbia saw a slowdown in 2023, with GDP growth of only 0.6%, Grupo Aval did see some bright spots. The banks saw an increase in market share for gross loans, commercial loans, consumer loans and mortgages.
As the oil industry improves and Columbia’s GDP growth returns to normal levels, AVAL should provide a solid return. In the meantime, its dividend yield of 9.1% is appealing for income investors.
AVAL stock gets a “B” rating in the Dividend Grader.
PennantPark Floating Rate Capital (PFLT)
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That brings us to the business development company PennantPark Floating Rate Capital (NYSE:PFLT). BDCs, like REITs, distribute 90% of income to shareholders, making them attractive for investors seeking a consistent monthly income.
PennantPark’s investment portfolio includes $1.27 billion in assets, primarily through middle market companies with first-lien debt.
This is important for investors who want a sure thing, because PennantPark’s customers guarantee their debts through collateral that can be taken should they fall behind in their payments.
In the fourth quarter, PennantPark invested $302.6 million in 13 new and 34 existing portfolio companies. Those investments carry an average interest rate of nearly 12%, giving the company a solid income stream.
PFLT has a dividend yield of 10.9%. It gets a “B” rating in the Dividend Grader.
Gladstone Investment Corp. (GAIN)
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Gladstone Investment Corp. (NASDAQ:GAIN) is a BDC that invests in mature lower middle market companies. It targets businesses with earnings before interest, taxes, depreciation, and amortization of $4 million to $15 million.
The company is currently investing in 25 businesses across the country, including manufacturers, consumer products companies and business services.
In the third quarter of its fiscal 2023 year (ending Dec. 31, 2023), Gladstone earned $9.7 million in net income, or 28 cents per share, compared to a loss of $1.7 million and 5 cents per share in the same quarter a year ago. Revenue for the quarter was $23.1 million.
GAIN stock offers a monthly dividend yield of 6.9% and a “B” rating in the Dividend Grader.
Gladstone Capital Corp. (GLAD)
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Gladstone Investment Corp. and Gladstone Capital Corp. (NASDAQ:GLAD) are related.
While Gladstone Investment seeks majority ownership of companies to create value and improve operations, Gladstone Capital supports company buyouts and provides capital to help them grow.
The company targets companies that have annual revenue between $20 million and $150 million and EBITDA between $3 million and $25 million.
The typical investment in each company is between $8 million to $40 million to finance a buyout, debt refinancing, expansion or recapitalization.
Its portfolio includes 38 companies representing the automotive, consumer, manufacturing, business services and aerospace sectors.
Revenue for the quarter ending Dec. 31, 2023 was $23.2 million, down 2% from a year ago. But net income of $11.9 million was an 8.6% improvement from last year.
GLAD provides a dividend yield of 9.5%. Like its counterpart, it also gets a “B” rating in the Dividend Grader.
Oxford Square Capital (OXSQ)
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Oxford Square Capital (NASDAQ:OXSQ) is a BDC based in Greenwich, Connecticut. The company invests in corporate debt securities and collateralized loan obligation structured investments that own corporate debt securities.
A CLO is a security that is backed by a pool of debt. Oxford Square receives debt payments from the underlying loans of the CLO, but then takes the risk if the borrowers default.
CLOs usually include se?or or secured debt, which gives Oxford a guarantee that it could recoup its losses should that happen, however.
In 2023 the company brought in $51.8 million in investment income, up from $43.1 million a year ago. Net income was $27.3 million versus $20.6 million in 2022, and earnings were 51 cents per share versus 42 cents per share in 2022.
OXSQ stock provides a huge dividend yield of 13.8%. It gets a “B” rating in the Dividend Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
