In this article, we will be taking a look at 10 dividend stocks to increase your monthly income.
End-of-the-month expenses are something everyone dreads. Being able to make good on your rental agreements, paying the bills, getting groceries to get you through the next month, and a range of other everyday things can start to seem incredibly harrowing when you just so happen to be running low on cash. As such, investing in dividend stocks like AbbVie Inc. (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), McDonald’s Corporation (NYSE: MCD), and Verizon Communications (NYSE: VZ) can become a saving grace for many, especially if the dividend stocks in question pay monthly dividends. These stocks are not only good for income investors looking to make money on the side by investing the money they already have, but are also valuable investments for those looking to get themselves through times of financial distress.
In light of the above, it is unsurprising that dividend stocks, in general, are highly popular among many investors today. Come the coronavirus pandemic, in particular, many were drawn to dividends in light of their efficacy in the face of inflation and financial crunches. It is no secret that dividend stocks are often used as hedges against inflation, as historically, these stocks have grown their yields faster than inflation rates have grown. This July, the above was put into more perspective through a Reuters article that mentioned that the stagnation of the Treasury yield and its expected poor performance in the second half of 2021 was leading to investors considering dividend stocks to meet their income needs. This is coming in light of expectations that dividend payouts in the S&P 500 will grow by about 6% in 2021, according to Goldman Sachs. Additionally, analysts are estimating that the leading payers in the dividend field will most likely be financial companies like Goldman Sachs and others. It has been calculated that the total buy-back and dividend payouts from these companies will cross the $130 billion mark, as well.
Another interesting development in the dividends area is the growing attraction towards dividend exchange-traded funds, or ETFs, in comparison to regular stocks and mutual funds. A Wall Street Journal article from this September has mentioned that this pull towards dividend ETFs may be coming in light of the fact that there are currently about 143 US dividend ETFs, with a combined value of assets totaling over $281 billion. Added to this is the fact that dividend ETFs offer a wide variety of benefits to investors, including higher payouts, greater diversification, and more tax efficiency, when compared to regular stocks and ETFs. The above all resulted in the estimated value of about $25 billion being poured into dividend ETFs from the start of 2021 through July 31st, according to Morningstar.
Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Without further ado, let’s take a look at the 10 dividend stocks to increase your monthly income.
Our Methodology
We have selected monthly dividend stocks with yields 2% and above. Insider Monkey tracks the data of about 873 hedge funds, and we have also used this data to pick dividend stocks that are highly popular among hedge funds today. For each stock, we have mentioned its yield and the number of hedge funds holding a stake in it, ranking them from the lowest to the highest dividend yield. Finally, we have used analysts’ ratings to determine which stocks are favorably placed in analyst and investor circles, picking stocks with mostly positive ratings and strong fundamentals.
Dividend Stocks to Increase Your Monthly Income
10. Gladstone Land Corporation (NASDAQ: LAND)
Number of Hedge Fund Holders: 6
Dividend Yield: 2.28%
Gladstone Land Corporation (NASDAQ: LAND) is a real estate investment trust that acquires and owns farmland and farm-related properties in US agricultural markets. The company ranks 10th on our list of dividend stocks to increase your monthly income and also leases properties to unrelated third-party farmers.
Berenberg has a Hold rating on shares of Gladstone Land Corporation (NASDAQ: LAND), alongside a raised price target of $25, as of this May.
In the second quarter of 2021, Gladstone Land Corporation (NASDAQ: LAND) had an FFO of $0.13, missing estimates by $0.01. The company’s revenue was $16.89 million, up 33.67% year over year and beating estimates by $0.28 million.
By the end of the second quarter of 2021, 6 hedge funds out of the 873 tracked by Insider Monkey held stakes in Gladstone Land Corporation (NASDAQ: LAND) worth roughly $5.4 million. This is compared to 6 hedge funds in the previous quarter with a total stake value of approximately $7.1 million.
Like AbbVie Inc. (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), McDonald’s Corporation (NYSE: MCD), and Verizon Communications (NYSE: VZ), Gladstone Land Corporation (NASDAQ: LAND) is a smart investment option for dividend investors today.
9. Shaw Communications Inc. (NYSE: SJR)
Number of Hedge Fund Holders: 23
Dividend Yield: 3.08%
Shaw Communications Inc. (NYSE: SJR), a Canadian telecommunications company, offers telephone, internet, television, and mobile services to its consumers. The company ranks 9th on our list of dividend stocks to increase your monthly income and is based in Calgary, Alberta.
In the fiscal third quarter of 2021, Shaw Communications Inc. (NYSE: SJR) had an EPS of $0.57, beating estimates by $0.30. The company’s revenue was $1.11 billion, up 14.94% year over year and beating estimates by $37.96 million.
By the end of the second quarter of 2021, 23 hedge funds out of the 873 tracked by Insider Monkey held stakes in Shaw Communications Inc. (NYSE: SJR) worth roughly $697 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $384 million.
8. SLR Senior Investment Corp. (NASDAQ: SUNS)
Number of Hedge Fund Holders: 1
Dividend Yield: 3.33%
SLR Senior Investment Corp. (NASDAQ: SUNS), a business development company, specializes in leveraged, middle-market companies in the US. It ranks 8th on our list of dividend stocks to increase your monthly income.
This June, Oppenheimer placed an Outperform rating and a $16 price target on shares of SLR Senior Investment Corp. (NASDAQ: SUNS).
By the end of the second quarter of 2021, 1 hedge fund out of the 873 tracked by Insider Monkey held stakes in SLR Senior Investment Corp. (NASDAQ: SUNS) worth roughly $1.4 million. This is compared to 3 hedge funds in the previous quarter with a total stake value of approximately $2.2 million.
7. STAG Industrial, Inc. (NYSE: STAG)
Number of Hedge Fund Holders: 15
Dividend Yield: 3.48%
STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust (REIT) that acquires and operates single-tenant, industrial properties throughout the US, having developed a strategy that allows investors to balance income and growth. The company ranks 7th on our list of dividend stocks to increase your monthly income.
RBC Capital holds an Outperform rating on shares of STAG Industrial, Inc. (NYSE: STAG), alongside a raised price target of $46 as of this August.
In the second quarter of 2021, STAG Industrial, Inc. (NYSE: STAG) had an FFO of $0.52, beating estimates by $0.02. The company’s revenue was $138.43 million, up 17.69% year over year and beating estimates by $4.07 million.
By the end of the second quarter of 2021, 15 hedge funds out of the 873 tracked by Insider Monkey held stakes in STAG Industrial, Inc. (NYSE: STAG) worth roughly $232 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $173 million.
6. Realty Income Corporation (NYSE: O)
Number of Hedge Fund Holders: 23
Dividend Yield: 3.95%
Realty Income Corporation (NYSE: O), another REIT, invests in freestanding, single-tenant, commercial properties, subject to NNN leases, in the US, Puerto Rico, and the UK. It ranks 6th on our list of dividend stocks to increase your monthly income.
This August, Mizuho placed a Buy rating on Realty Income Corporation (NYSE: O). The firm also raised its price target on the stock to $81.
In the second quarter of 2021, Realty Income Corporation (NYSE: O) had an FFO of $0.88, beating estimates by $0.01. The company’s revenue was $464.28 million, up 19.28% year over year and beating estimates by $31.06 million.
By the end of the second quarter of 2021, 23 hedge funds out of the 873 tracked by Insider Monkey held stakes in Realty Income Corporation (NYSE: O) worth roughly $221 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $183 million.
Like AbbVie Inc. (NYSE: ABBV), Johnson & Johnson (NYSE: JNJ), McDonald’s Corporation (NYSE: MCD), and Verizon Communications (NYSE: VZ), Realty Income Corporation (NYSE: O) is a smart investment option for dividend investors today.
5. SL Green Realty Corp. (NYSE: SLG)
Number of Hedge Fund Holders: 21
Dividend Yield: 5.13%
SL Green Realty Corp. (NYSE: SLG) is a Manhattan-based office REIT, the largest of its kind in the area. It acquires, manages, and maximizes the value of Manhattan commercial properties. The company ranks 5th on our list of dividend stocks to increase your monthly income.
This June, Deutsche Bank reiterated a Hold rating on shares of SL Green Realty Corp. (NYSE: SLG), while also raising its price target on the stock to $77.
In the second quarter of 2021, SL Green Realty Corp. (NYSE: SLG) had an FFO of $1.60, missing estimates by $0.02. The company’s revenue was $184.61 million, beating estimates by $2.09 million.
By the end of the second quarter of 2021, 21 hedge funds out of the 873 tracked by Insider Monkey held stakes in SL Green Realty Corp. (NYSE: SLG) worth roughly $144 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $162 million.
4. Main Street Capital Corporation (NYSE: MAIN)
Number of Hedge Fund Holders: 8
Dividend Yield: 6.06%
Main Street Capital Corporation (NYSE: MAIN), a private equity firm, specializes in equity capital to lower middle market companies. The company ranks 4th on our list of dividend stocks to increase your monthly income and provides debt capital to middle market companies for the purposes of acquisition, management buyout, growth financing, recapitalization, and refinancing.
As of this February, Raymond James holds an Outperform rating on shares of Main Street Capital Corporation (NYSE: MAIN). The firm also has a $41 price target on the stock.
In the second quarter of 2021, Main Street Capital Corporation (NYSE: MAIN) had an NII of $0.62, beating estimates by $0.05. The company’s revenue was $67.29 million, up 29.39% year over year and beating estimates by $5.22 million.
By the end of the second quarter of 2021, 8 hedge funds out of the 873 tracked by Insider Monkey held stakes in Main Street Capital Corporation (NYSE: MAIN) worth roughly $18.7 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $34 million.
3. Pembina Pipeline Corporation (NYSE: PBA)
Number of Hedge Fund Holders: 15
Dividend Yield: 6.19%
Pembina Pipeline Corporation (NYSE: PBA) is a provider of transportation and midstream services, operating in the energy industry. The company operates through its Pipelines, Facilities, and Marketing & New Ventures segments, and ranks 3rd on our list of dividend stocks to increase your monthly income.
RBC Capital holds an Outperform rating on shares of Pembina Pipeline Corporation (NYSE: PBA) as of this August.
In the second quarter of 2021, Pembina Pipeline Corporation (NYSE: PBA) had an EPS of $0.37, missing estimates by $0.07. The company’s revenue was $1.56 billion, up 63.99% year over year and beating estimates by $361.48 million.
By the end of the second quarter of 2021, 15 hedge funds out of the 873 tracked by Insider Monkey held stakes in Pembina Pipeline Corporation (NYSE: PBA) worth roughly $116 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $75 million.
2. LTC Properties, Inc. (NYSE: LTC)
Number of Hedge Fund Holders: 10
Dividend Yield: 6.68%
LTC Properties, Inc. (NYSE: LTC) is a healthcare REIT investing in seniors housing and healthcare properties. The company ranks 2nd on our list of dividend stocks to increase your monthly income.
As of February, Capital One holds an Equal Weight rating on shares of LTC Properties, Inc. (NYSE: LTC),alongside a $44 price target.
In the second quarter of 2021, LTC Properties, Inc. (NYSE: LTC) had an FFO of $0.57, missing estimates by $0.07. The company’s revenue was $38.13 million, up 33.88% year over year but also missing estimates by $4.26 million.
By the end of the second quarter of 2021, 10 hedge funds out of the 873 tracked by Insider Monkey held stakes in LTC Properties, Inc. (NYSE: LTC) worth roughly $9 million. This is compared to 7 hedge funds in the previous quarter with a total stake value of approximately $7 million.
1. Broadmark Realty Capital Inc. (NYSE: BRMK)
Number of Hedge Fund Holders: 12
Dividend Yield: 7.88%
Broadmark Realty Capital Inc. (NYSE: BRMK) is next and last on our list of dividend stocks to increase your monthly income, ranking 1st. The company underwrites, funds, services, and manages the short-term and first deed of trust loans to fund the development of residential or commercial properties in the US.
B. Riley holds a Buy rating and a $12.05 price target on shares of Broadmark Realty Capital Inc. (NYSE: BRMK), as of this April.
In the second quarter of 2021, Broadmark Realty Capital Inc. (NYSE: BRMK) had an FFO of $0.18, missing estimates by $0.02. The company’s revenue was $29.18 million, up 0.39% year over year but also missing estimates by $2.7 million.
By the end of the second quarter of 2021, 12 hedge funds out of the 873 tracked by Insider Monkey held stakes in Broadmark Realty Capital Inc. (NYSE: BRMK) worth roughly $91 million. This is compared to 12 hedge funds in the previous quarter with a total stake value of approximately $99 million.
See also 10 Best Biotech Stocks To Invest In and 10 Best Dividend Stocks Under $20.
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Disclosure: None. 10 Dividend Stocks to Increase Your Monthly Income is originally published on Insider Monkey.
