In this article, we discuss 10 monthly dividend stocks to buy in March.
Monthly dividend stocks attract retail and institutional investors alike, especially those individuals who live off dividends in retirement. Some investors prefer monthly dividend income over quarterly income, since they can reinvest more frequently and generate more cash flow, despite heftier payments in case of quarterly distributed dividends.
Stock Market Outlook 2022
Larry Cordisco, portfolio manager of the Osterweis Growth and Income Fund, stated that investors should look for companies that benefit from the rising inflation and select stocks that offer dividend growth which outpaces inflation.
Erin Gibbs of Main Street Asset Management joined CNBC on March 4, emphasizing that the market is too uncertain and “scary” at the moment, and it is unwise to make big portfolio changes if investors do not have specific and urgent cash needs. The volatility index, VIX, has clocked in over 30 four times since February 14, indicating the market’s “extreme fear”, according to Gibbs. However, despite surging oil prices and inflationary pressure, the economy’s profit growth seems solid.
Global Dividend Growth Prospects
Global dividend growth was already projected to be slower in 2022, given the rising rates and inflation, but the stock market became even more turbulent following Russia’s invasion of Ukraine, further diminishing the prospects of huge dividend payouts by companies.
Dividend payments increased approximately 17% in 2021, and according to the Janus Henderson Global Dividend Index, dividends in 2022 were projected to be 3% before Russia’s invasion of Ukraine. However, this projection may be reduced even more, given how the war plays out.
According to Andrew Bell, the chief executive of the Witan Investment Trust, the speed of the economic recovery in 2022 is dependent on “the degree to which the current Russian invasion of Ukraine weighs — via energy prices and general confidence issues — on economic growth in 2022, and for how long”.
Dividend payouts were reinstated in 2021, as many companies cut or majorly slashed their dividends during the pandemic-stricken 2020, and this was a big relief for income investors, who suffered the most from the loss of dividends. However, the outlook for dividends in 2022 remains uncertain as of now.
Amid the rising geopolitical tensions, inflationary environment, and increasing rates, it is prudent to invest in safe stocks that pay dividends, such as Johnson & Johnson (NYSE:JNJ), Altria Group, Inc. (NYSE:MO), and The Coca-Cola Company (NYSE:KO).
In this article we will focus on monthly dividend stocks to buy in March.
Photo by lucas Favre on Unsplash
Our Methodology
We selected stocks that pay monthly dividends, and these companies recently received positive analyst ratings, offer strong fundamentals, and have attractive yields. Data from 924 elite hedge funds tracked by Insider Monkey was used to gauge the hedge fund sentiment around the stocks.
Monthly Dividend Stocks to Buy in March
10. Fortitude Gold Corporation (OTC:FTCO)
Number of Hedge Fund Holders: N/A
Dividend Yield as of March 7: 6.63%
Fortitude Gold Corporation (OTC:FTCO) is a Colorado-based mining company focused on exploring for gold and silver deposits. The company was incorporated in 2020. The stock price gained almost 65% over the past year.
In a press release on March 1, Fortitude Gold Corporation (OTC:FTCO) posted a FY GAAP EPS of $0.74, and a revenue of $82.1 million, up 52.1% year-over-year.
On February 7, Fortitude Gold Corporation (OTC:FTCO) declared a $0.04 per share monthly dividend, in line with previous. The dividend was paid on February 28, to shareholders of record on February 18. The stock delivers a dividend yield of 6.63% as of March 7.
In addition to Johnson & Johnson (NYSE:JNJ), Altria Group, Inc. (NYSE:MO), and The Coca-Cola Company (NYSE:KO), Fortitude Gold Corporation (OTC:FTCO) also delivers an attractive yield for income investors seeking a diversified portfolio.
9. Eagle Point Credit Company Inc. (NYSE:ECC)
Number of Hedge Fund Holders: 1
Dividend Yield as of March 7: 10.27%
Eagle Point Credit Company Inc. (NYSE:ECC) is a Greenwich-based specialist asset manager that employs income-oriented strategies in inefficient markets on behalf of institutional, high net worth, and retail investors. The company deals in collateralized loan obligations, senior secured loans, and portfolio debt securities. The stock gained 19% over the past year, and the company’s dividend yield on March 7 came in at 10.27%.
According to Insider Monkey’s Q4 database, 1 hedge fund holds stakes worth $589,000 in Eagle Point Credit Company Inc. (NYSE:ECC), compared to the same in the previous quarter worth $573,000.
On February 14, Eagle Point Credit Company Inc. (NYSE:ECC) declared a $0.14 per share monthly dividend, a 17% increase from its prior dividend of $0.12. The dividend will be on April 29, for shareholders of record on April 11.
Eagle Point Credit Company Inc. (NYSE:ECC) fourth quarter results on February 17 reflected strong recurring cash flows in its portfolio. The company received $47.8 million of recurring cash distributions from its investment portfolio.
8. Gladstone Capital Corporation (NASDAQ:GLAD)
Number of Hedge Fund Holders: 5
Dividend Yield as of March 7: 1.69%
Gladstone Capital Corporation (NASDAQ:GLAD) is a business development company specializing in private equity investments in acquisitions, buyouts, recapitalizations, and refinancing existing debts. Gladstone Capital Corporation (NASDAQ:GLAD) focuses on small and medium-sized companies in the United States.
On January 18, Gladstone Capital Corporation (NASDAQ:GLAD) announced a per share monthly dividend of $0.065, in line with previous. The dividend was paid on January 31 and February 28, and is payable on March 31, to shareholders of record on March 23. The stock offers a dividend yield of 1.69% as of March 7.
Gladstone Capital Corporation (NASDAQ:GLAD) reported its fourth quarter results on February 2, posting earnings per share of $0.27, topping estimates by $0.07. The $16.17 million revenue also exceeded market predictions by $1.65 million.
Two Sigma Advisors is the leading shareholder of Gladstone Capital Corporation (NASDAQ:GLAD) as of the close of the fourth quarter of 2021, and overall, 5 hedge funds were bullish on the stock as per Insider Monkey’s Q4 database.
7. Phillips Edison & Company, Inc. (NASDAQ:PECO)
Number of Hedge Fund Holders: 7
Dividend Yield as of March 7: 3.15%
Phillips Edison & Company, Inc. (NASDAQ:PECO) is an internally managed real estate investment trust that owns and operates grocery shopping centers. Phillips Edison & Company, Inc. (NASDAQ:PECO) has properties across Salt Lake City, Utah, New York City, Atlanta, and Georgia.
On February 16, Phillips Edison & Company, Inc. (NASDAQ:PECO) reported a $0.09 per share monthly dividend, in line with previous. The dividend is payable in March, April, and May to shareholders of record on March 15, April 15, and May 15, respectively.
Mizuho analyst Haendel St. Juste on February 15 raised the price target on Phillips Edison & Company, Inc. (NASDAQ:PECO) to $35 from $34 and kept a Buy rating on the shares. The analyst remains bullish on shopping center real estate investment trusts, citing “supportive prevailing forces” from leasing momentum, improving pricing power, and cap rate compression.
A total of 7 hedge funds held long positions in Phillips Edison & Company, Inc. (NASDAQ:PECO), as compared to 15 funds in the preceding quarter. Israel Englander’s Millennium Management held the biggest stake in Phillips Edison & Company, Inc. (NASDAQ:PECO), with 1.25 million shares worth $41.6 million.
6. Prospect Capital Corporation (NASDAQ:PSEC)
Number of Hedge Fund Holders: 9
Dividend Yield as of March 7: 8.88%
Prospect Capital Corporation (NASDAQ:PSEC) delivers a dividend yield of 8.88% as of March 7, making it one of the top dividend stocks to buy in March. Prospect Capital Corporation (NASDAQ:PSEC) is a prominent American provider of private debt and private equity to middle-market companies in the United States, focusing primarily on sponsored transactions and direct lending to stable companies.
In its fourth quarter earnings report, published on February 8, Prospect Capital Corporation (NASDAQ:PSEC) posted an EPS of $0.22, surpassing estimates by $0.05. The Q4 revenue came in at $175.38 million, outperforming market consensus by $11.62 million.
Prospect Capital Corporation (NASDAQ:PSEC) declared a $0.06 per share monthly dividend on February 22, in line with previous. The dividend will be distributed on March 22, to shareholders of record on February 24.
On February 4, Prospect Capital Corporation (NASDAQ:PSEC) announced that its preferred stock offerings have exceeded $500 million in aggregate liquidation preference issuances since the initial closing in the quarter ending December 31, 2020.
According to the fourth quarter database of Insider Monkey, 9 hedge funds were long Prospect Capital Corporation (NASDAQ:PSEC), up from 7 funds in the quarter earlier. McKinley Capital Management is a significant shareholder of the company, with 556,652 shares valued at $4.6 million.
Institutional investors are pouring into Prospect Capital Corporation (NASDAQ:PSEC), just like Johnson & Johnson (NYSE:JNJ), Altria Group, Inc. (NYSE:MO), and The Coca-Cola Company (NYSE:KO).
5. Pembina Pipeline Corporation (NYSE:PBA)
Number of Hedge Fund Holders: 10
Dividend Yield as of March 7: 5.48%
Pembina Pipeline Corporation (NYSE:PBA) was incorporated in 1954 and is headquartered in Calgary, Canada, offering transportation and midstream services for the energy industry. RBC Capital analyst Robert Kwan on March 3 raised the price target on Pembina Pipeline Corporation (NYSE:PBA) to C$49 from C$48 and kept an Outperform rating on the shares.
On March 3, Pembina Pipeline Corporation (NYSE:PBA) reported a per share monthly dividend of C$0.21, in line with previous. The dividend is payable on April 14, for shareholders of record on March 25. Pembina Pipeline Corporation (NYSE:PBA)’s dividend yield on March 7 came in at 5.48%.
Pembina Pipeline Corporation (NYSE:PBA) and KKR & Co. Inc. (NYSE:KKR) announced on March 1 that they will combine their western Canadian natural gas processing assets into a single, new joint venture entity, which will be owned 60% by Pembina Pipeline Corporation (NYSE:PBA) and 40% by KKR’s global infrastructure funds.
Among the hedge funds tracked by Insider Monkey, 10 funds were bullish on Pembina Pipeline Corporation (NYSE:PBA) at the end of December 2021, up from 8 funds in the prior quarter. GLG Partners is a significant shareholder of the company, with 242,659 shares worth $7.3 million.
4. Banco Bradesco S.A. (NYSE:BBD)
Number of Hedge Fund Holders: 12
Dividend Yield as of March 7: 4.82%
Banco Bradesco S.A. (NYSE:BBD) is a Brazilian company offering banking products and services to individuals, corporate enterprises, and businesses in Brazil and internationally. Banco Bradesco S.A. (NYSE:BBD)’s dividend yield on March 7 came in at 4.82%.
Banco Bradesco S.A. (NYSE:BBD) declared a $0.003 per share monthly dividend, in line with previous. The dividend is payable on April 8, for shareholders of record on March 4.
On January 24, Barclays analyst Gilberto Garcia initiated coverage of Banco Bradesco S.A. (NYSE:BBD) with an Overweight rating and a $5 price target. The analyst called the company his sector top pick, as it has a “significant moat” from the larger weight of its insurance operations, and greater optionality down the road from asset spin-offs.
In the fourth quarter of 2021, 12 hedge funds were bullish on Banco Bradesco S.A. (NYSE:BBD), with combined stakes amounting to $1.46 billion. Fisher Asset Management is the biggest shareholder of the company, with 24.2 million shares worth $83 million.
3. SL Green Realty Corp. (NYSE:SLG)
Number of Hedge Fund Holders: 19
Dividend Yield as of March 7: 4.72%
SL Green Realty Corp. (NYSE:SLG) is a leading Manhattan-based real estate investment trust that focuses primarily on acquiring and managing commercial office properties. SL Green Realty Corp. (NYSE:SLG) is based in New York. On January 3, Deutsche Bank analyst Derek Johnston upgraded SL Green Realty Corp. (NYSE:SLG) to Buy from Hold with an $82 price target.
SL Green Realty Corp. (NYSE:SLG) on February 22 declared a $0.3108 per share monthly dividend, in line with previous. The dividend is payable on March 15, to shareholders of record on February 28.
Elite hedge funds are bullish on SL Green Realty Corp. (NYSE:SLG). In Q4 2021, 19 funds reported owning stakes worth $1.43 billion in SL Green Realty Corp. (NYSE:SLG), up from 17 funds in the prior quarter, holding stakes in SL Green Realty Corp. (NYSE:SLG) valued at $1.70 billion. Lawrence Raiman’s LDR Capital is the largest shareholder of the company, with a $43.4 million stake.
2. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 26
Dividend Yield as of March 7: 4.14%
Agree Realty Corporation (NYSE:ADC) is a Michigan-based real estate investment trust that is focused on the acquisition and development of properties that are leased to prominent retail tenants.
On February 14, Agree Realty Corporation (NYSE:ADC) declared a $0.227 per share monthly dividend, in line with previous. The dividend is payable on March 14, to shareholders of record on February 28. Additionally, the company’s board authorized a monthly cash dividend on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, payable on March 1.
Agree Realty Corporation (NYSE:ADC) on February 22 announced its Q4 results, highlighting a healthy balance sheet and strong acquisition volume. Acquisition volume for the fourth quarter was approximately $314.7 million and included 71 properties net leased to a variety of retailers.
Raymond James analyst RJ Milligan lowered the price target on Agree Realty Corporation (NYSE:ADC) to $76 from $83 but kept a Strong Buy rating on the shares on February 24, following the company’s Q4 results. The analyst believes Agree Realty Corporation (NYSE:ADC) is delivering outsized growth without taking outsized risk.
Among the hedge funds tracked by Insider Monkey, 26 funds were bullish on Agree Realty Corporation (NYSE:ADC) in Q4 2021, up from 20 funds in the quarter prior. Millennium Management is the leading stakeholder of the company, owning 1.17 million shares worth $83.5 million.
1. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 30
Dividend Yield as of March 7: 4.43%
Headquartered in San Diego, California, Realty Income Corporation (NYSE:O) is a real estate investment trust that invests in properties owned under long-term lease agreements with commercial clients, which allows it to provide stakeholders with a dependable monthly income.
Realty Income Corporation (NYSE:O) declared on February 15 a $0.2465 per share monthly dividend, in line with previous. The dividend is payable on March 15, to shareholders of record on March 1. Realty Income Corporation (NYSE:O) delivers a dividend yield of 4.43% on March 7.
Mizuho analyst Vikram Malhotra lowered the price target on Realty Income Corporation (NYSE:O) to $76 from $82 and kept a Buy rating on the shares after taking over coverage of the name. The analyst downgraded his REIT sector view to Equal Weight and emphasized stock selectivity with a focus on pricing power and duration.
Among the hedge funds monitored by Insider Monkey in the fourth quarter of 2021, 30 funds were bullish on Realty Income Corporation (NYSE:O), up from 22 funds in the earlier quarter. Glendon Capital Management is the biggest shareholder of the company, with 1.85 million shares worth roughly $133 million.
You can also take a look at 10 Growth Stocks Under $50 for 2022 and 10 Best Small Cap Stocks To Buy for 2022.
Follow Insider Monkey on Twitter
Suggested articles:
- Top 10 Stocks Billionaire Seth Klarman is Selling Off
- Robert Pohly’s Samlyn Capital Portfolio: 10 Dividend Stock Picks
- 10 Innovative Stocks in Cathie Wood’s Portfolio That Failed to Impress
Disclosure: None. 10 Monthly Dividend Stocks to Buy in March is originally published on Insider Monkey.
