In this article, we discuss 10 monthly dividend stocks to buy in September.
Dividend stocks are on investors’ radars due to rising inflation and the risks of a possible recession. Investors are holding onto defensive securities with stable cash flows and strong fundamentals to deal with the market volatility smoothly. The companies that offer monthly dividends are appealing to investors as payouts every month are helpful in efficient budgeting.
Dividend stocks have proved to be income-generating assets in times of market clampdown. According to S&P Dow Jones Indices and Bureau of Economic Analysis data, dividend payments as a part of personal income surged to 7.3% in the first quarter this year, compared with 3.2% in the first quarter of 1980. Ross Frankenfield, a managing director of Harbor Capital Advisors, talked to Wall Street Journal about dividend investments and said that investors are turning to dividend companies to generate fixed income in these times. According to Howard Silverblatt, senior index analyst for S&P Dow Jones Indices, the companies in the index will spend over $500 billion in dividends this year and over $1 trillion on share buybacks, which takes the total to $1.5 trillion. This shows that companies are steadily raising their dividends to attract income investors.
Dividend stocks have delivered positive returns in the past, making up 32% of the monthly total return of the S&P 500 from 1926 to June 2021, as reported by S&P Dow Jones Indices. The report further mentioned that dividend income represented over one-half of the total return of the broader index in decades like the 1940s and 1970s. In inflationary periods, dividend stocks become famous as they promise regular income to investors. According to a report by Wall Street Journal, the S&P 500 dividend growth has outpaced inflation since 2000, becoming a lucrative opportunity for investors. Some of the dividend stocks that are gaining traction amongst investors include The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG) due to their consistent dividend growth. However, in this article, we will discuss monthly dividend stocks to buy in September.
Photo by Artem Beliaikin on Unsplash
Our Methodology:
In this article, we selected dividend stocks with monthly payouts. These companies have strong financials and solid balance sheets, which is rewarding for investors in times of financial uncertainty. The stocks are ranked according to their dividend yields, as recorded on September 5.
Monthly Dividend Stocks to Buy in September
10. Realty Income Corporation (NYSE:O)
Dividend Yield as of September 5: 4.39%
Realty Income Corporation (NYSE:O) is an American real estate investment trust that invests in single-tenant commercial properties in the US. In Q2 2022, the company’s AFFO per share grew by 10.2% to $0.97 per share. Its revenue for the quarter stood at $810.4 million which showed a 74.9% year-over-year growth. In addition to this, the company also invested nearly $1.7 billion in 237 properties.
On August 16, Realty Income Corporation (NYSE:O) declared a monthly dividend of $0.2475 per share, in line with its previous dividend. The company has been raising its dividends consistently since its IPO in 1994. As of September 5, the stock’s dividend yield came in at 4.39%.
In June, Jefferies reiterated its Buy rating on Realty Income Corporation (NYSE:O), mentioning that the REIT sector has delivered robust returns during past stagflation periods.
As per Insider Monkey’s Q2 2022 database, 19 hedge funds owned stakes in Realty Income Corporation (NYSE:O), down from 22 in the previous quarter. The consolidated value of these stakes is over $200.7 million. Citadel Investment Group was the company’s leading stakeholder in Q2.
In addition to famous dividend stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG), Realty Income Corporation (NYSE:O) is a prominent stock for monthly income.
9. STAG Industrial, Inc. (NYSE:STAG)
Dividend Yield as of September 5: 4.83%
STAG Industrial, Inc. (NYSE:STAG) is a Boston-based real estate investment trust that invests in industrial properties throughout the US. In July, Ladenburg raised its price target on the stock to $35.50 with a Buy rating on the shares, appreciating the company’s performance this year.
In Q2 2022, STAG Industrial, Inc. (NYSE:STAG) reported revenue of $161.5 million, showing a 16.7% year-over-year growth. The company’s net operating income also grew by 18.6% to $129 million. Moreover, its cash and cash equivalents came in at $12.6 million and its total assets amounted to $6.1 billion.
STAG Industrial, Inc. (NYSE:STAG) has been raising its dividends consistently for the past 4 years. It currently pays a monthly dividend of $0.1217 per share and has a dividend yield of 4.83%, as of September 5.
As per Insider Monkey’s Q2 2022 database, 27 hedge funds owned nearly $380 million worth of stakes in STAG Industrial, Inc. (NYSE:STAG). In the previous quarter, 21 hedge funds owned stakes in the company, worth $528.6 million.
Carillon Tower Advisers mentioned STAG Industrial, Inc. (NYSE:STAG) in its Q1 2022 investor letter. Here is what the firm has to say:
“U.S. and around the world, and the higher inflation this cycle than in 2000. Labor inflation and general labor availability were again concerns for many companies. Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Stag Industrial (NYSE:STAG), a warehouse REIT focused on rural distribution properties, fell as interest rates rose and fear of an economic slowdown gripped markets.”
8. Apple Hospitality REIT, Inc. (NYSE:APLE)
Dividend Yield as of September 5: 5.44%
Apple Hospitality REIT, Inc. (NYSE:APLE) is a Virginia-based real estate investment trust that owns one of the most diverse portfolios of room-focused hotels in the US. On August 17, the company announced a 40% hike in its monthly dividend to $0.07 per share. As of September 5, the stock’s dividend yield stood at 5.44%.
At the end of Q2 2022, Apple Hospitality REIT, Inc. (NYSE:APLE) reported nearly $1.6 million in cash and cash equivalents and its total assets came in at $4.7 billion. The company’s revenue for the quarter showed a 23.1% year-over-year growth at $337.6 million. Its total credit facility stood at $1.2 billion.
In August, Wells Fargo upgraded Apple Hospitality REIT, Inc. (NYSE:APLE) to Equal Weight while lifting the stock’s price target to $17.
The number of hedge funds tracked by Insider Monkey owning stakes in Apple Hospitality REIT, Inc. (NYSE:APLE) jumped to 20 in Q2 2022, from 17 in the previous quarter. The combined value of these stakes is over $112 million. Israel Englander, Steve Cohen, and Jim Simons were the company’s leading stakeholders in Q2.
7. Main Street Capital Corporation (NYSE:MAIN)
Dividend Yield as of September 5: 6.39%
An American principal investment firm, Main Street Capital Corporation (NYSE:MAIN) raised its monthly dividend by 2.31% in August to $0.22 per share. In addition to this, the company also announced a supplemental dividend of $0.10 per share. The stock’s dividend yield was recorded at 6.39% on September 5.
In Q2 2022, Main Street Capital Corporation (NYSE:MAIN) reported a net asset value of $25.3 per share and a net investment income of $54.7 million. The company’s revenue for the quarter stood at $85.2 million, up 26.6% from the same period last year. It ended the quarter with $43.4 million in cash and cash equivalents.
At the end of June 2022, 5 hedge funds tracked by Insider Monkey owned stakes in Main Street Capital Corporation (NYSE:MAIN), down from 9 in the previous quarter. The collective value of these stakes is over $19.3 million.
6. EPR Properties (NYSE:EPR)
Dividend Yield as of September 5: 7.82%
EPR Properties (NYSE:EPR) is a Missouri-based real estate investment trust that invests in amusement parks, movie theatres, and other entertainment properties. In August, BofA maintained a Buy rating on the stock as entertainment companies are reopening after the pandemic, which would contribute to its revenue.
EPR Properties (NYSE:EPR) reported revenue of $160.4 million, up from $125.3 million during the same period last year. The company’s cash on hand stood at $168.3 million and had $1 billion in the credit facility. In the first six months of the year, it paid $27.1 million in dividends, compared with $24.9 million at the end of December 2021.
EPR Properties (NYSE:EPR) has been raising its dividends consistently for the past 10 years. It currently pays a monthly dividend of $0.275 per share, with a dividend yield of 7.82%, as recorded on September 5. The company can be a good addition to dividend portfolios among The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG).
At the end of Q2 2022, 22 hedge funds tracked by Insider Monkey reported owning stakes in EPR Properties (NYSE:EPR), compared with 25 in the previous quarter. The consolidated value of these stakes is over $144.1 million. Renaissance Technologies was the company’s largest stakeholder in Q2.
5. Gladstone Capital Corporation (NASDAQ:GLAD)
Dividend Yield as of September 5: 8.16%
Gladstone Capital Corporation (NASDAQ:GLAD) is a Virginia-based business development company that invests in debt and equity securities. The company also provides financing solutions for lower-middle market companies. In fiscal Q3 2022, the company reported a net investment income of $0.2025 per share, compared with $0.195 per share during the same period last year. The company’s total investment income came in at $13.7 million, up 0.8% from the prior-year quarter. At the end of June, it paid over $1.2 million in dividends to shareholders.
On July 18, Gladstone Capital Corporation (NASDAQ:GLAD) declared a monthly dividend of $0.0675 per share, in line with its previous dividend. As of September 5, the stock’s dividend yield stood at 8.16%.
In July, Montgomery Scott initiated its coverage on Gladstone Capital Corporation (NASDAQ:GLAD) with a Neutral rating and a $10 price target.
At the end of Q2 2022, 7 hedge funds tracked by Insider Monkey owned stakes in Gladstone Capital Corporation (NASDAQ:GLAD), growing from 3 in the previous quarter. The collective value of these stakes is over $8.2 million, compared with $3.2 million worth of stakes owned by hedge funds in the preceding quarter.
4. SL Green Realty Corp. (NYSE:SLG)
Dividend Yield as of September 5: 8.41%
SL Green Realty Corp. (NYSE:SLG) is an American real estate investment trust that invests in office buildings and shopping centers in New York. The company pays a monthly dividend of $0.3108 per share and has a yield of 8.41%, as of September 5. In the past five years, the company has raised its dividends at a CAGR of 3%.
In its recently reported Q2 results, SL Green Realty Corp. (NYSE:SLG) posted an FFO of $1.87 and its revenue stood at $201.4 million. At the end of the quarter, the company reported nearly $190 million in cash and cash equivalents, and its total assets amounted to over $10.7 billion. It generated a same-store net operating income of over $150.5 million during the quarter, compared with $138 million in the previous quarter.
In July, Deutsche Bank maintained its Buy rating on SL Green Realty Corp. (NYSE:SLG) but showed concerns regarding office real estate investment trust companies.
At the end of Q2 2022, 18 hedge funds tracked by Insider Monkey owned investments in SL Green Realty Corp. (NYSE:SLG), the same as in the previous quarter. These investments are collectively valued at over $120.7 million. LDR Capital was the company’s major stakeholder in Q2, owning stakes worth over $28.7 million.
3. Sabine Royalty Trust (NYSE:SBR)
Dividend Yield as of September 5: 8.57%
Sabine Royalty Trust (NYSE:SBR) is a Texas-based firm that holds royalty and mineral interests in various oil and gas properties across the country. At the end of Q2 2022, the company reported cash and short-term investments of over $11.2 million and its total assets amounted to over $11.3 million. The company’s distributable income for the quarter came in at $27.3 million. Its royalty income grew by 116% from the prior-year quarter to $15.07 million.
On August 5, Sabine Royalty Trust (NYSE:SBR) declared a monthly dividend of $0.8294 per share, up 50.8% from the same period last year. As of September 5, the stock’s dividend yield stood at 8.57%.
As of the close of Q2 2022, 4 hedge funds tracked by Insider Monkey owned stakes in Sabine Royalty Trust (NYSE:SBR), the same as in the previous quarter. These stakes hold a consolidated value of over $6.8 million. With stakes worth $3.2 million, Royce & Associates was the company’s leading stakeholder in Q2.
2. AGNC Investment Corp. (NASDAQ:AGNC)
Dividend Yield as of September 5: 12.23%
AGNC Investment Corp. (NASDAQ:AGNC) is a Maryland-based real estate investment trust that invests in agency residential mortgage-backed securities on a leveraged basis. The company has been a dividend-payer since 2008, with its payouts holding a cumulative value of over $11.8 billion. It currently pays a monthly dividend of $0.12 per share, with a dividend yield of 12.23%, as recorded on September 5.
In Q2 2022, AGNC Investment Corp. (NASDAQ:AGNC) reported revenue of $315 million, which showed a 35.8% year-over-year growth. The company repurchased 4.7 million of its common shares at a total price of over $51 million. In addition to this, its investment portfolio holds a total value of over $61.3 billion.
In June, Keefe Bruyette upgraded AGNC Investment Corp. (NASDAQ:AGNC) to Market Perform while raising its price target to $13.25.
The number of hedge funds tracked by Insider Monkey owning stakes in AGNC Investment Corp. (NASDAQ:AGNC) jumped to 18 in Q2 2022, from 14 in the previous quarter. The collective value of these stakes is over $192.4 million. Citadel Investment Group owned the largest stake in the company, worth $51.4 million.
1. Broadmark Realty Capital Inc. (NYSE:BRMK)
Dividend Yield as of September 5: 13.48%
Broadmark Realty Capital Inc. (NYSE:BRMK) is a Washington-based specialty real estate finance company that generally provides financial solutions to its consumers. The stock was initiated with a Neutral at Piper Sandler this June and a $7 price target as the company shows long-term investment opportunities in this uncertain environment.
At the end of June 2022, Broadmark Realty Capital Inc. (NYSE:BRMK) reported $36 million in cash and cash equivalents and a fully drawn $135 million in the credit facility. The company’s revenue for the quarter came in at over $28.5 million, of which $22.1 million represented its net income. It paid $9.3 million in dividends during the quarter.
Broadmark Realty Capital Inc. (NYSE:BRMK) currently pays a monthly dividend of $0.07 per share and has a yield of 13.48%, as of September 5.
At the end of Q2 2022, Broadmark Realty Capital Inc. (NYSE:BRMK) was a part of 8 hedge fund portfolios, compared with 7 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these funds hold a total value of over $40.8 million.
You can also take a look at 10 Best and Reliable High Dividend REITs to Buy Now and 10 Semiconductor Stocks that Pay Dividends
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Disclosure. None. 10 Monthly Dividend Stocks to Buy in September is originally published on Insider Monkey.
