In this article, we discuss 12 high growth monthly dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 High Growth Monthly Dividend Stocks to Buy.
In 2010, American companies collectively paid out a relatively modest sum of $197 billion in dividends. Fast forward to 2023, this figure has soared significantly, reaching an impressive $588 billion. The threefold surge in dividend payments over the years could be attributed to various factors. Companies might be enjoying healthier profits due to improved business strategies, expanded markets, or enhanced operational efficiency. Additionally, investors’ inclination towards dividend stocks might have increased due to high interest rates in the market, driving them towards seeking stable income-generating assets like dividend-paying stocks.
Dividends have long been a key factor in the total return of the overall market. From 1930 to 2022, dividends typically made up 41% of the S&P 500 Index’s total return. Daniel Wiener, the former head of RWA Wealth Partners, mentioned in his interview with Barron’s that in 2023, the S&P 500 total return index reached seven new peaks, factoring in dividends.
“Over the 36 years since S&P has calculated at total return index, dividends have added almost 2.4% per annum to investors’ returns. That’s significant and reflects both the power and the compounding value of those payouts,” Wiener said.
Additionally, Barron’s mentioned that the seven major tech stocks, often referred to as the Magnificent Seven, make up over a quarter of the S&P 500’s total value. Surprisingly, these stocks had relatively low average yields, with Microsoft, Apple, and Nvidia offering payouts of 0.81%, 0.51%, and 0.03% respectively. Moreover, Amazon.com, Alphabet, Meta Platforms, and Tesla don’t pay any dividends at all. Despite the dominance of these tech giants, dividend payments managed to contribute to pushing the S&P 500 to reach record highs.
When investors dive into dividend stocks, their attention often centers on companies that have a track record of consistently increasing their dividends. These particular stocks have not only demonstrated reliable dividend growth but have also showcased strong performance over time. A report by T. Rowe Price highlighted that between the late 1980s and the end of 2022, companies within the Russell 1000 Index that consistently increased their dividends outperformed the broader benchmark. Notably, these dividend-growing stocks not only showed better performance but also displayed lower volatility, adding a layer of stability to their appealing track record.
The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) stand out as notable examples of companies that have consistently increased their dividends over time. Alongside their impressive dividend growth, these companies have achieved substantial revenue growth in the past. In this article, we will discuss some of the best high growth stocks that pay monthly dividends.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology:
To make this list, we first examined a list of companies and focused on those that distribute monthly dividends to their shareholders. Subsequently, we narrowed down our selection to include only those companies that exhibited a revenue increase of over 10% in the latest quarter compared to the corresponding quarter of the previous year. This way, we wanted to find companies that not only share their profits with investors but also demonstrate significant and consistent growth in their earnings each quarter. The stocks are ranked in ascending order of their quarterly revenue growth on a year-over-year basis. We also mentioned hedge fund sentiment data for these stocks where available. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
12. LTC Properties, Inc. (NYSE:LTC)
Quarterly Revenue Growth (yoy): 13.3%
LTC Properties, Inc. (NYSE:LTC) is an American real estate investment trust company that specializes in senior housing and healthcare properties. The company typically owns and finances these properties, leasing them to healthcare providers or operators. On January 2, it declared a monthly dividend of $0.19 per share, which was in line with its previous dividend. As of January 8, the stock has a dividend yield of 7.18%.
Though monthly dividend stocks offer good income to shareholders, The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some popular dividend stocks that pay quarterly dividends.
LTC Properties, Inc. (NYSE:LTC) is one of the best high growth stocks on our list as the company reported revenue of $49.3 million in the third quarter of 2023, which showed a 13.3% growth from the same period last year. As of September 30, the company had over $11.3 million available in cash and cash equivalents.
11. Prospect Capital Corporation (NASDAQ:PSEC)
Quarterly Revenue Growth (yoy): 16.6%
Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that primarily invests in middle-market companies in the US. The company offers various financial services, including debt and equity investments, often taking both minority and majority stakes in the companies they invest in.
In the third quarter of 2023, Prospect Capital Corporation (NASDAQ:PSEC) posted revenue of $236.6 million, up 16.6% from the same period last year. It is among the best high growth stocks on our list.
Prospect Capital Corporation (NASDAQ:PSEC) has made regular dividend payments for the past 77 consecutive months. It currently offers a monthly dividend of $0.06 per share and has a dividend yield of 11.75%, as of January 8.
The number of hedge funds holding stakes in Prospect Capital Corporation (NASDAQ:PSEC) grew to 9 in Q3 2023, from 4 in the preceding quarter, as per Insider Monkey’s database. The consolidated value of these stakes is over $5.4 million. McKinley Capital Management owned the largest stake in the company among these hedge funds.
10. EPR Properties (NYSE:EPR)
Quarterly Revenue Growth (yoy): 17.3%
EPR Properties (NYSE:EPR) is an American real estate investment trust company, based in Missouri. The company primarily invests in properties related to entertainment, such as megaplex theatres, entertainment retail centers, and family entertainment centers. The company pays a monthly dividend of $0.275 per share and has a dividend yield of 7.18%, as recorded on January 8.
EPR Properties (NYSE:EPR), one of the best high growth stocks on our list, reported a 17.3% growth in its third-quarter revenue on a year-over-year basis. The company’s revenue of nearly $190 million also beat analysts’ estimates by $25.7 million. At the end of the quarter, it has $173 million available in cash and cash equivalents.
As of the end of the third quarter of 2023, 15 hedge funds tracked by Insider Monkey reported having stakes in EPR Properties (NYSE:EPR), down from 19 in the previous quarter. These stakes have a total value of over $153 million.
9. Ellington Financial Inc. (NYSE:EFC)
Quarterly Revenue Growth (yoy): 22.4%
Ellington Financial Inc. (NYSE:EFC) is a specialized financial company that primarily operates as a real estate investment trust and mortgage finance firm. The company’s revenue for the third quarter showed a 22.4% growth from the same period last year at $96.2 million. It offers a per-share dividend of $0.09 per share every month and has a dividend yield of 8.82%, as recorded on January 8.
The number of hedge funds holding stakes in Ellington Financial Inc. (NYSE:EFC) jumped to 9 in Q3 2023, from 6 in the previous quarter. The consolidated value of these stakes is over $33.8 million.
8. PennantPark Floating Rate Capital Ltd. (NYSE:PFLT)
Quarterly Revenue Growth (yoy): 24.1%
An American business development company, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is next on our list of the best high growth stocks to buy. The company invests in floating-rate loans and other debt securities issued by middle-market companies. In addition to this, it also specializes in providing financing solutions to support the growth, operations, and acquisitions of these companies.
On January 3, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) announced a monthly dividend of $0.1025 per share, which fell in line with its previous dividend. The stock’s dividend yield on January 8 came in at 9.75%. The company has been paying regular dividends to shareholders since 2016.
In its fiscal Q4 2023 earnings, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) posted revenue of $35.7 million, which saw a 24.1% growth from the prior-year period. The company ended the quarter with roughly $100 million available in cash and cash equivalents.
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) was a part of 9 hedge fund portfolios at the end of Q3 2023, which remained unchanged from the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of more than $17.6 million.
7. Realty Income Corporation (NYSE:O)
Quarterly Revenue Growth (yoy): 24.2%
Realty Income Corporation (NYSE:O), an American real estate investment trust company, is often considered a pioneer in paying monthly dividends among publicly traded companies. The company’s portfolio largely consists of properties leased to a diverse range of commercial tenants. On December 12, it announced a 0.2% hike in its monthly dividend to $0.2565 per share. So far, the company has consistently paid dividends for 639 months in a row on its common stock since it started operating 54 years ago. Additionally, it has raised the dividend 122 times since it became a publicly listed company in 1994.
Realty Income Corporation (NYSE:O) generated $1.04 billion in revenue in the third quarter of 2023, which showed a 24.2% growth from the same period last year. The company’s strong dividend and revenue growth make it one of the best high growth stocks on our list.
At the end of the third quarter of 2023, 23 hedge funds in Insider Monkey’s database held stakes in Realty Income Corporation (NYSE:O), compared with 24 in the preceding quarter. The total value of these stakes is nearly $150 million. Among these hedge funds, Balyasny Asset Management was the company’s leading stakeholder in Q3.
6. Agree Realty Corporation (NYSE:ADC)
Quarterly Revenue Growth (yoy): 24.3%
Agree Realty Corporation (NYSE:ADC) specializes in acquiring, owning, and developing properties primarily leased to retail tenants in the US. The company focuses on acquiring and managing a diverse portfolio of properties that cater to various industries within the retail sector. In the third quarter of 2023, the company’s revenue showed a 24.3% year-over-year growth at $136.8 million, which makes ADC one of the best high growth stocks on our list. Moreover, its revenue also surpassed analysts’ consensus by $1.84 million. The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some other stocks that have shown strong performances in the past.
Agree Realty Corporation (NYSE:ADC) offers a monthly dividend of $0.247 per share, having raised it by 2.9% in October this year. The dividend paid out makes up roughly 74% of the Core FFO per share and around 73% of the AFFO per share. As of January 8, the stock has a dividend yield of 4.69%.
Insider Monkey’s database of Q3 2023 showed that 28 hedge funds owned stakes in Agree Realty Corporation (NYSE:ADC), down slightly from 29 in the preceding quarter. These stakes have a total value of over $223.4 million. Alyeska Investment Group was one of the leading stakeholders of the company in Q3.
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Disclosure. None. 12 High Growth Monthly Dividend Stocks to Buy is originally published on Insider Monkey.