In this article, we discuss 10 best monthly dividend stocks to buy in June.
As major stock exchanges in the US took a spill in the past months, investors are moving towards dividend-paying stocks to protect themselves from a slow economy and rising interest rates. According to a report published by Refinitiv Lipper, investors brought in roughly $7 billion in US dividend funds in January, the highest since October 2006. This complies with the estimate that over 30% of the participants in CNBC’s investor survey said that they would purchase dividend stocks for the rest of 2022.
Companies with consistent dividend payments are viewed as strong by income investors because they promise regular streams of income for them, especially during times of financial instability. According to Ryan Fause, a portfolio manager at Pinnacle Associates, investors tend to move toward dividend stocks when markets become negative, as growth stocks struggle during these times. This has been mentioned in a report that from 1991 to 2015, non-dividend paying stocks returned 4.18% per year, compared with an average annual return of 9.7% of their dividend-paying counterparts during the same period. Moreover, since 1973, dividend growers have delivered strong returns to shareholders relative to the broader market.
Due to the investors’ inclination toward dividend stocks, many companies raised their dividends after the pandemic, with dividend payouts amounting to $1.47 trillion in 2021, up 17% from the previous year. Also, global dividends are expected to hit a new record of over $1.5 trillion in 2022. Some major dividend stocks famous among investors are The Coca-Cola Company (NYSE:KO), Pfizer Inc. (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ), but we will explore some of the best monthly dividend stocks to buy in June.
Source: PixaBay
Our Methodology
In this article, we discuss the best monthly dividend stocks to buy in June. The list has been compiled by considering the strong business fundamentals of the respective companies, along with analysts’ ratings and dividend yields. In addition to this, hedge fund sentiment around each stock was also observed by using the data of 900+ elite funds tracked by Insider Monkey at the end of March 2022. The stocks mentioned below are ranked from the lowest yield to the highest.
Best Monthly Dividend Stocks to Buy in June
10. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 21
Dividend Yield as of June 7: 4.00%
Agree Realty Corporation (NYSE:ADC) is a Michigan-based real estate investment trust that invests in the properties net leased to the foremost retailers in the US. As of June, the company owns over 1,500 properties spread over 31 million square feet.
On June 2, BofA upgraded Agree Realty Corporation (NYSE:ADC) to Buy with a $78 price target, highlighting the company’s revenue growth and expense assumptions. The firm further mentioned that the REIT sector is expected to outperform due to the market’s focus on hardening monetary conditions and rising risks of a recession.
Agree Realty Corporation (NYSE:ADC) currently pays a monthly dividend of $0.234 per share, increasing it by 3.1% in April. The company has paid uninterrupted dividends for the past 11 years and its 5-year dividend CAGR stands at 6.6%, which makes it one of the best monthly dividend stocks. As of June 7, the stock’s dividend yield was recorded at 4.00%.
In the first quarter of 2022, Agree Realty Corporation (NYSE:ADC) reported solid results, posting an FFO of $0.97, which beat estimates by $0.04. The company generated revenue of $98.3 million, surpassing consensus by $0.84 million.
In addition to The Coca-Cola Company (NYSE:KO), Pfizer Inc. (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ), ADC is an important dividend payer to consider.
According to Insider Monkey’s database for the first quarter of 2022, 21 hedge funds owned stakes in Agree Realty Corporation (NYSE:ADC), down from 26 in the previous quarter. These stakes hold a consolidated value of $141.5 million. Among these hedge funds, Millennium Management was the company’s largest shareholder in Q1 2022, with stakes worth over $50.5 million.
9. STAG Industrial, Inc. (NYSE:STAG)
Number of Hedge Fund Holders: 21
Dividend Yield as of June 7: 4.34%
As the name suggests, STAG Industrial, Inc. (NYSE:STAG) mainly invests in industrial properties throughout the US. The real estate investment trust topped analysts’ expectations in Q1 2022, posting year-over-year growth in rent and net operating income. Moreover, the company reported an FFO of $0.53, which exceeded estimates by $0.01.
At the end of March 2022, 21 hedge funds in Insider Monkey’s database reported owning $528.6 million worth of stakes in STAG Industrial, Inc. (NYSE:STAG). In comparison, 22 hedge funds held stakes in the company in the previous quarter, valued at $525.3 million. With roughly $170 million shares, Zimmer Partners held the largest position in the company in Q1 2022.
STAG Industrial, Inc. (NYSE:STAG) hiked its monthly dividend by 0.7% in January this year and currently pays a dividend of $0.1217 per share every month. As of June 7, the stock’s dividend yield came to be recorded at 4.34%. Earlier this year, Baird presented a positive outlook on Industrial REIT as their demand remains exponentially strong. The firm upgraded STAG Industrial, Inc. (NYSE:STAG) to Outperform, with a $48 price target.
8. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
Dividend Yield as of June 7: 4.42%
An American real estate investment trust, Realty Income Corporation (NYSE:O) mainly invests in commercial properties in the US, Spain, and the UK. On May 4, the company reported solid quarterly earnings, posting an FFO of $0.98 and revenue of $807 million, which surpassed analysts’ estimates by $0.01 and $58.6 million, respectively.
In May, Realty Income Corporation (NYSE:O) announced a monthly dividend of $0.247 per share, consistent with its previous dividend. The company raised its monthly dividend by 0.2% in March, which was its 115th consistent dividend hike in the past 53 years. The stock’s dividend yield was recorded at 4.42% on June 7.
On May 23, Wolfe Research appreciated the performance of Realty Income Corporation (NYSE:O) as it outperformed its peers through March this year. However, as the sector lacks pricing power due to high inflation, the firm downgraded the stock to Peer Perform and kept a $73 price target.
The number of hedge funds tracked by Insider Monkey owning stakes in Realty Income Corporation (NYSE:O) in Q1 2022 stood at 22, declining from 30 in the previous quarter. The consolidated value of the stakes held by 22 funds was roughly $285 million, down from nearly $400 million worth of stakes held by hedge funds in Q4 2021.
7. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 7
Dividend Yield as of June 7: 5.96%
LTC Properties, Inc. (NYSE:LTC) is a California-based healthcare REIT that invests in senior housing and other health-related properties. Recently, the company announced an investment of over $37 million for four assisted living communities, which will have a combined total of 217 units in North Carolina.
According to Insider Monkey’s Q1 2022 database, LTC Properties, Inc. (NYSE:LTC) was included in 7 hedge fund portfolios, compared with 8 funds in the previous quarter. The collective value of these stakes is over $16 million, showing considerable growth from $7 million worth of stakes held by hedge funds in Q4 2021.
LTC Properties, Inc. (NYSE:LTC) did not raise its dividend since 2016 but maintained regular dividend payouts over the years. The company pays a monthly dividend of $0.19 per share, with a dividend yield of 5.96%, recorded on June 7.
On June 3, Capital One reinstated its coverage of LTC Properties, Inc. (NYSE:LTC) with an Equal Weight rating and a $41 price target, up from $39. The firm showed confidence in the company’s portfolio and its investment prospects in 2023. LTC is up 9.73% year-to-date, as of the market close of June 7.
6. SL Green Realty Corp. (NYSE:SLG)
Number of Hedge Fund Holders: 18
Dividend Yield as of June 7: 6.43%
SL Green Realty Corp. (NYSE:SLG) is a fully integrated REIT, holding interests in 71 buildings totaling 34.7 million square feet. In April, the company hiked its monthly dividend by 0.3% to $0.3108 per share. The stock’s dividend yield was recorded at 6.43% on June 7.
At the end of Q1 2022, LDR Capital was the major stakeholder of SL Green Realty Corp. (NYSE:SLG), with stakes worth roughly $50 million. Overall, 18 hedge funds tracked by Insider Monkey owned positions in the New York-based company, down from 19 in the previous quarter. The collective value of these stakes is over $130.8 million.
On April 20, SL Green Realty Corp. (NYSE:SLG) reported its Q1 2022 earnings, posting an FFO of $1.65, which beat expectations by $0.01. The company generated revenue of roughly $188 million, exceeding the market consensus by $24.3 million. Moreover, SL Green Realty Corp. (NYSE:SLG) also reported a 9.3% year-over-year growth in its same-store cash net operating income.
In May, Goldman Sachs appreciated the newly built office space by SL Green Realty Corp. (NYSE:SLG) and set a $79 price target on the stock, with a Buy rating on the shares. Along with SLG, analysts are also positive about other major dividend stocks, such as The Coca-Cola Company (NYSE:KO), Pfizer Inc. (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ).
5. EPR Properties (NYSE:EPR)
Number of Hedge Fund Holders: 25
Dividend Yield as of June 7: 6.56%
EPR Properties (NYSE:EPR) is a leading real estate investment trust which invests in amusement parks, ski resorts, and movie theatres. The company plans on expanding its footprint in Canada, as it recently announced acquiring a waterpark in Ontario for $142 million.
On May 16, EPR Properties (NYSE:EPR) announced a monthly dividend of $0.275 per share, in line with its previous dividend. In March, the company raised its monthly dividend by 10%, coming through as one of the best monthly dividend stocks. The stock offers a dividend yield of 6.56%, as of the close of June 7.
EPR Properties (NYSE:EPR) announced its first-quarter 2022 earnings on May 4, posting an FFO of $1.16, which beat estimates by $0.13. For FY22, the company expects an FFO within the range of $4.39 to $4.55 and also confirmed investment spending guidance between $500 million and $700 million.
The number of hedge funds tracked by Insider Monkey holding stakes in EPR Properties (NYSE:EPR) stood at 25 in Q1 2022, up from 22 in the previous quarter. These stakes hold a collective value of $225.5 million. Among these hedge funds, Israel Englander, Steve Cohen, and Matthew Barrett are some of the major stakeholders of the Missouri-based company in Q1 2022.
4. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Fund Holders: 9
Dividend Yield as of June 7: 6.74%
Main Street Capital Corporation (NYSE:MAIN) is a Texas-based principal investment firm that provides debt and equity capital to lower and middle-market companies. In Q1 2022, the company reported solid results, posting a net investment income of $52.2 million, up from $39.7 million recorded in the same period last year. Its total investment income of $79.4 million showcased a 26.4% year-over-year growth.
On May 3, Main Street Capital Corporation (NYSE:MAIN) declared a monthly dividend of $0.215 per share, consistent with the previous dividend. Along with this, the company also announced a supplemental dividend of $0.075 per share, payable to shareholders on June 30. The inclusion of this special dividend takes the company’s payout ratio to 94%. As of June 7, the stock’s dividend yield came to be recorded at 6.74%.
In March, Hovde Group initiated its coverage on Main Street Capital Corporation (NYSE:MAIN) with a Market Perform rating and a $44 price target.
At the end of Q1 2022, 9 hedge funds in Insider Monkey’s database were bullish on Main Street Capital Corporation (NYSE:MAIN), the same as in the previous quarter. The collective value of these stakes stood at over $48.4 million, up from nearly $32 million worth of stakes held by hedge funds in Q4 2021. Millennium Management held the largest position in the company at the end of March 2022, with stakes valued at roughly $17.8 million.
3. Prospect Capital Corporation (NASDAQ:PSEC)
Number of Hedge Fund Holders: 6
Dividend Yield as of June 7: 9.27%
Prospect Capital Corporation (NASDAQ:PSEC) provides private debt and private equity to middle-market companies in the US and also focuses on direct lending to established companies.
In Q1 2022, Prospect Capital Corporation (NASDAQ:PSEC) posted a net investment income of $87 million, showing growth from $73.4 million recorded during the same period last year. The business development company generated revenue of over $181.4 million, presenting a 13.8% year-over-year growth.
Prospect Capital Corporation (NASDAQ:PSEC) offers a monthly dividend of $0.06 per share. The company reduced its payout by 28% in 2017 but after that, it has managed to sustain its dividends even during the pandemic. In May, the company paid its 60th consecutive dividends to shareholders. The stock’s dividend yield was recorded at 9.27% on June 7.
At the end of March 2022, Prospect Capital Corporation (NASDAQ:PSEC) experienced a decline in the hedge fund positions, as 6 hedge funds tracked by Insider Monkey owned stakes in the company, compared with 9 funds in Q4 2021. These stakes hold a consolidated value of over $18.4 million.
2. Dynex Capital, Inc. (NYSE:DX)
Number of Hedge Fund Holders: 6
Dividend Yield as of June 7: 9.68%
Dynex Capital, Inc. (NYSE:DX) is a real estate investment trust that invests in mortgage-based securities on a leveraged basis. The company currently pays a monthly dividend of $0.13 per share, slashing it by 13% in 2020 due to the pandemic-induced financial instability. As of June 7, the stock offered an attractive yield of 9.68%.
This April, Jones Trading set a $19 price target on Dynex Capital, Inc. (NYSE:DX) with a Buy rating on the shares, as the company book value per common share showed growth from $17.99 to $18.24 in Q1 2022. The firm further expects growth in its book value through 2022.
With stakes worth roughly $19 million, 6 hedge funds in Insider Monkey’s database owned positions in Dynex Capital, Inc. (NYSE:DX) in Q1 2022. In the previous quarter, 4 hedge funds held stakes in the Virginia-based company, valued at over $2 million. Among these hedge funds, Balyasny Asset Management was the company’s largest stakeholder in the first quarter, with stakes worth over $11.6 million.
1. Broadmark Realty Capital Inc. (NYSE:BRMK)
Number of Hedge Fund Holders: 7
Dividend Yield as of June 7: 11.54%
A real estate finance company, Broadmark Realty Capital Inc. (NYSE:BRMK) provides financial solutions to consumers for commercial and residential real estate opportunities throughout the US.
Broadmark Realty Capital Inc. (NYSE:BRMK) currently pays a monthly dividend of $0.07 per share, having raised it by 17% in January 2021. As of the close of June 7, the stock’s dividend yield was recorded at 11.54%, compared with the average dividend yield of 4.46% in the real estate sector.
As per Insider Monkey’s Q1 2022 database, 7 hedge funds reported owning stakes in Broadmark Realty Capital Inc. (NYSE:BRMK), down from 11 in the previous quarter. These stakes hold a consolidated value of over $50 million. Thomas Steyer’s Farallon Capital was the company’s leading shareholder in Q1, holding stakes worth $40.9 million.
You can also take a look at 10 Best Safe Blue Chip Dividend Stocks and 10 Best Stocks to Buy With 50+ Years of Dividend Increases
Follow Insider Monkey on Twitter
Suggested articles:
- Top 10 Dividend Stocks That Pay Monthly
- 10 Best Dividend Stocks Under $20
- 10 Best REIT Stocks with High Dividend Yields
Disclosure. None. 10 Best Monthly Dividend Stocks to Buy in June is originally published on Insider Monkey.
