In this article, we discuss 10 best monthly dividend stocks to buy in August.
With high inflation and an increase in interest rates, investors are selling off other asset classes in favor of dividend stocks. Dividend payments have grown over the years, exceeding the inflation rate. According to a report by S&P Dow Jones Indices, the dividend payments of the S&P 500 companies jumped to $511.5 billion in 2021, from $140.1 billion in 2000, which represents a CAGR of 6.4%.
According to analysts, the trend is likely to continue for the rest of the year, as many companies have raised their dividends after recovering from the pandemic of 2020. Global dividend payments are expected to grow by 6.5% in 2022, as reported by IHS Markit. The forecast shows a 10% growth in dividends for US companies. The report further mentioned that dividend stocks outperformed their non-dividend counterparts in the last year and are expected to perform the same in the upcoming years based on earnings estimates. This is also evident through the inflows experienced by SPDR S&P Global Dividend Aristocrats UCITS ETF, which measures the performance of high-yielding dividend companies in the index. The fund’s assets reached $580 million through July, up from $236 million at the end of December. Moreover, the fund is down 4.3% year-to-date, compared with a loss of 14.13% of the broader index during the same period.
Considering the current market environment, investors are advised to consider companies that focus on growing their cash flows and subsequently using those cash flows in dividends. Some of the dividend stocks that are preferred by investors include Exxon Mobil Corporation (NYSE:XOM), The Procter & Gamble Company (NYSE:PG), and PepsiCo, Inc. (NASDAQ:PEP) due to their strong dividend policies and decades of consistent dividend growth. However, we will discuss monthly dividend stocks in this article.
Our Methodology:
The stocks mentioned below pay monthly dividends to shareholders and have strong balance sheets and stable dividends. We considered analysts’ ratings and hedge fund sentiment around each stock, based on Insider Monkey’s Q1 2022 database of 900+ elite funds.
10. U.S. Global Investors, Inc. (NASDAQ:GROW)
Dividend Yield as of August 2: 2.13%
U.S. Global Investors, Inc. (NASDAQ:GROW) is a Texas-based investment management company that manages equities and bond strategies, natural resources, and emerging markets.
At the end of Q1 2022, U.S. Global Investors, Inc. (NASDAQ:GROW) reported $26.8 million in cash and cash equivalents, up 85.4% from the same period last year. Moreover, it also reported a 47.2% year-over-year growth in its net working capital at $31.8 million. U.S. Global Investors, Inc. (NASDAQ:GROW) has been paying consistent monthly dividends since 2007. It currently offers a monthly dividend of $0.0075 per share, with a yield of 2.13%, as of August 2.
At the end of Q1 2022, 6 hedge funds in Insider Monkey’s database owned stakes in U.S. Global Investors, Inc. (NASDAQ:GROW), up from 7 a quarter earlier. These stakes are collectively valued at nearly $4 million. Royce & Associates held the largest stake in the company, worth $3.1 million.
Though U.S. Global Investors, Inc. (NASDAQ:GROW) is down 10.8% year-to-date, the stock is still outperforming the broader index like famous dividend stocks, such as Exxon Mobil Corporation (NYSE:XOM), The Procter & Gamble Company (NYSE:PG), and PepsiCo, Inc. (NASDAQ:PEP).
9. Global Water Resources, Inc. (NASDAQ:GWRS)
Dividend Yield as of August 2: 2.22%
Global Water Resources, Inc. (NASDAQ:GWRS) is an American water resource management company that provides water, wastewater, and recycled water utility services.
Global Water Resources, Inc. (NASDAQ:GWRS) held cash and cash equivalents worth over $11.1 million at the end of Q1 2022, with total assets of over $297.4 million. The company paid $1.67 million in dividends during the quarter, slightly up from $1.65 million paid in the previous quarter. Global Water Resources, Inc. (NASDAQ:GWRS) maintains a 7-year track record of consistent dividend growth and currently pays a monthly dividend of $0.0246 per share. As of August 2, the stock’s dividend yield came in at 2.22%.
The number of hedge funds tracked by Insider Monkey owning stakes in Global Water Resources, Inc. (NASDAQ:GWRS) stood at 4 in Q1 2022, the same as in the previous quarter. The collective value of these stakes is over $7.4 million.
8. Agree Realty Corporation (NYSE:ADC)
Dividend Yield as of August 2: 3.57%
Agree Realty Corporation (NYSE:ADC) is a Michigan-based real estate investment trust company. It has been paying quarterly dividends since it went public in 1994 and shifted to monthly dividends in 2021. The company pays a monthly dividend of $0.234 per share, up 7.8% year-over-year. The stock has a yield of 3.57%, as recorded on August 2. Its payout ratio stands at approximately 70% of its core FFO.
In Q1 2022, Agree Realty Corporation (NYSE:ADC) generated over $61.4 million in free cash flow, up from $60.3 million in the previous quarter. The company had cash and cash equivalents of $24.8 million and total assets of over $5.6 billion at the end of Q1.
In June, Jefferies raised its price target on Agree Realty Corporation (NYSE:ADC) to $82 with a Buy rating on the shares, highlighting the robust returns of REITs during past inflationary periods.
As per Insider Monkey’s database, 21 hedge funds were bullish on Agree Realty Corporation (NYSE:ADC) in Q1 2022, down from 26 in the previous quarter. The stakes owned by these hedge funds are collectively valued at over $141.5 million. Millennium Management was the largest stakeholder of the company in Q1, owning shares worth over $50.5 million.
7. Realty Income Corporation (NYSE:O)
Dividend Yield as of August 2: 4.03%
Realty Income Corporation (NYSE:O) is one of the most prominent REITs that pay monthly dividends to shareholders. The company showed strong financials in Q1 2022, with free cash flow generation of $513.4 million, up from $352 million in the previous quarter. It generates cash flow from 11,200 real estate properties, which also cover its dividends smoothly.
Realty Income Corporation (NYSE:O) has paid consistent dividends in its 53-year history and raised its payouts every year since 1994. The company’s monthly dividend stands at $0.2475 per share, raising it by 0.2% in June. As of August 2, the stock’s dividend yield came in at 4.03%.
In June, Credit Suisse named Realty Income Corporation (NYSE:O) one of its top picks in the sector and initiated its coverage of the stock with an Outperform rating and a $75 price target.
At the end of Q1 2022, 22 hedge funds in Insider Monkey’s database held investments in Realty Income Corporation (NYSE:O), worth $284.8 million. In the previous quarter, 30 hedge funds owned stakes in the company, with a total value of nearly $400 million.
6. STAG Industrial, Inc. (NYSE:STAG)
Dividend Yield as of August 2: 4.47%
STAG Industrial, Inc. (NYSE:STAG) is a real estate investment trust that focuses on the acquisition and operation of industrial properties.
In Q2 2022, STAG Industrial, Inc. (NYSE:STAG) reported solid earnings, with its operating cash flow standing at $102.3 million, up from $88.8 million in the previous quarter. The company generated $77.6 million in free cash flow, compared with $69.2 million at the end of March 2022. In the first six months of the year, STAG Industrial, Inc. (NYSE:STAG) paid over $22.2 million in dividends, up from $21.9 million paid at the end of December 2021.
STAG Industrial, Inc. (NYSE:STAG) has been boosting its dividends consecutively for the past 7 years. The company currently pays a monthly dividend of $0.1217 per share, with a yield of 4.47%, as of August 2.
In July, Ladenburg maintained its Buy rating on STAG Industrial, Inc. (NYSE:STAG) with a $35.5 price target, highlighting the company’s year-to-date performance.
As per Insider Monkey’s Q1 2022 database, 21 hedge funds presented a bullish stance on STAG Industrial, Inc. (NYSE:STAG) and owned stakes worth over $528.6 million. Among these hedge funds, Zimmer Partners was the company’s leading stakeholder in Q1.
In addition to popular dividend stocks like Exxon Mobil Corporation (NYSE:XOM), The Procter & Gamble Company (NYSE:PG), and PepsiCo, Inc. (NASDAQ:PEP), STAG Industrial, Inc. (NYSE:STAG) is also favored by investors as it pays monthly dividends.
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.”
5. Pembina Pipeline Corporation (NYSE:PBA)
Dividend Yield as of August 2: 5.15%
Pembina Pipeline Corporation (NYSE:PBA) is a Canadian pipeline transport company that specializes in transportation and storage infrastructure.
In Q1 2022, the company reported $655 million in operating cash flow, up from $456 million during the same period last year. The company’s free cash flow also grew to $476 million in Q1, from $438 million in the prior-year period. It paid $347 million in dividends during the quarter, which shows that the company is generating enough money to cover its dividend payments. Pembina Pipeline Corporation (NYSE:PBA) pays a monthly dividend of C$0.21 per share, with a dividend yield of 5.15%, as of August 2.
In June, Canaccord raised its price target on Pembina Pipeline Corporation (NYSE:PBA) to C$56 and maintained a Buy rating on the shares.
Pembina Pipeline Corporation (NYSE:PBA) was a popular buy among elite funds in Q1 2022, according to Insider Monkey’s data. 19 hedge funds owned stakes in the company at the end of March, up from 10 in the previous quarter. These stakes are collectively valued at nearly $135 million.
ClearBridge Investments mentioned Pembina Pipeline Corporation (NYSE:PBA) in its Q1 2022 investor letter. Here is what the firm has to say:
“On a regional basis, the U.S. and Canada were the top contributors to quarterly performance. Pembina Pipeline, which provides transportation and midstream services for the energy industry in North America, was also up on greater LNG demand. The hiring of Scott Burrows as permanent CEO and Jaret Sprott as COO and reaffirmation of its corporate strategy also boosted investor sentiment. On an individual stock basis, the largest contributors to absolute returns in the quarter includes Pembina Pipeline.”
4. Main Street Capital Corporation (NYSE:MAIN)
Dividend Yield as of August 2: 5.80%
Main Street Capital Corporation (NYSE:MAIN) is a Texas-based principal investment firm that provides long-term debt and equity capital solutions to middle market companies.
Main Street Capital Corporation (NYSE:MAIN) reported cash from operating activities at $24.4 million, up from $20.7 million during the same period in 2021. The company had cash and cash equivalents of nearly $18 million at the end of Q1, with total assets standing at over $3.78 billion. Main Street Capital Corporation (NYSE:MAIN) paid $15.5 million in dividends during the quarter, which also includes its supplemental dividend of $0.075 per share.
On August 2, Main Street Capital Corporation (NYSE:MAIN) declared a 2.3% hike in its monthly dividend to $0.22 per share. The company also announced a special dividend of $0.10 per share, which marked the company’s third consecutive year of paying supplemental dividends to shareholders. As of August 2, the stock’s dividend yield came in at 5.80%.
At the end of Q1 2022, 9 hedge funds tracked by Insider Monkey owned stakes in Main Street Capital Corporation (NYSE:MAIN), the same as in the previous quarter. These stakes are collectively valued at over $48.4 million. Israel Englander and Ken Griffin were amongst the company’s prominent stakeholders in Q1.
3. SL Green Realty Corp. (NYSE:SLG)
Dividend Yield as of August 2: 7.44%
SL Green Realty Corp. (NYSE:SLG) is a New York-based real estate investment trust company that invests in shopping centers and office buildings in New York.
At the end of Q1 2022, SL Green Realty Corp. (NYSE:SLG) reported cash and cash equivalents of nearly $190 million, with its total assets amounting to over $10.7 billion. The company’s same-store cash net operating income stood at $150.5 million, up from $138 million in the previous quarter. It paid $24.4 million in dividends to shareholders during the quarter.
SL Green Realty Corp. (NYSE:SLG) holds a strong history of dividend payments, raising its dividend consecutively for the past 11 years. It currently pays a monthly dividend of $0.3108 per share, which has a yield of 7.44%, as of August 2.
Due to work from home and hybrid work policies, the demand for office spaces is at risk. In view of this, Deutsche Bank lowered its price target on SL Green Realty Corp. (NYSE:SLG) in July to $57 but kept a Buy rating on the shares.
At the end of Q1 2022, 18 hedge funds owned stakes in SL Green Realty Corp. (NYSE:SLG), down from 19 in the previous quarter. These stakes are valued at over $130.8 million.
2. Fortitude Gold Corporation (OTC:FTCO)
Dividend Yield as of August 2: 7.91%
Fortitude Gold Corporation (OTC:FTCO) is a Colorado-based gold producer that focuses on projects with low operating costs and stronger returns.
Fortitude Gold Corporation (OTC:FTCO) initiated its dividend policy in 2021 and currently pays a monthly dividend of $0.04 per share. Ever since starting its dividend payments, the company has raised its payout once in October 2021 by 14%. Moreover, the company paid $11.5 million in dividends last year, which covered 46% of its net income. With this current balance sheet, Fortitude Gold Corporation (OTC:FTCO) is well-positioned to continue its dividends for the next five years smoothly, according to analysts. As of August 2, the stock’s dividend yield came in at 7.91%.
1. Stellus Capital Investment Corporation (NYSE:SCM)
Dividend Yield as of August 2: 8.39%
Stellus Capital Investment Corporation (NYSE:SCM) is an American investment management firm that also operates as a business development company.
In Q1 2022, Stellus Capital Investment Corporation (NYSE:SCM) reported $62.9 million in cash from operating activities, up from $26 million in the previous quarter. The company ended the quarter with cash and cash equivalents of over $24.6 million and total assets of $866.6 million. On July 14, Stellus Capital Investment Corporation (NYSE:SCM) declared a monthly dividend of $0.0933 per share, with an additional dividend of $0.02 per share. The company’s dividends are well-covered with a payout ratio of 88%. As of August 2, the stock’s dividend yield came in at 8.39%.
At the end of the first quarter of 2022, 2 hedge funds in Insider Monkey’s database owned stakes in Stellus Capital Investment Corporation (NYSE:SCM), valued at roughly $1.6 million. With stakes worth over $1.4 million, Two Sigma Advisors was the company’s largest stakeholder in Q1.
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Disclosure. None. 10 Monthly Dividend Stocks to Buy in August is originally published on Insider Monkey.
