In this article, we discuss the 5 monthly dividend stocks to buy in May. If you wish to read our detailed analysis of these stocks and the latest market situation, go directly to 10 Monthly Dividend Stocks to Buy in May.
5. EPR Properties (NYSE:EPR)
Number of Hedge Fund Holders: 22
Dividend Yield (as of April 29): 6.28%
EPR Properties (NYSE:EPR) is a real estate investment trust which owns and manages entertainment-themed properties such as ski resorts, casinos and movie theatres across the United States. The firm temporarily ceased its dividend payments during the pandemic in 2020, but with tourism picking up after the Covid lockdowns, EPR Properties (NYSE:EPR) is well-positioned to enjoy future growth and stability, and offers an impressive yield of 6.28% as of April 29. The firm declared on April 14 a $0.275 per share monthly dividend, which was in-line with previous.
Investors were seen buying up on EPR Properties (NYSE:EPR) in the fourth quarter of 2021, with 22 hedge funds reporting bullish bets on the company shares, as compared to 19 hedge funds a quarter ago. Arrowstreet Capital, the largest shareholder of EPR Properties (NYSE:EPR) during the fourth quarter, held 1.11 million shares of the REIT worth $53.14 million.
As of April 29, EPR Properties (NYSE:EPR) has jumped 10.08% in the last 12 months, and 8.49% in the year to date. The company posted $154.91 million in revenue for the fourth quarter, which showed an increase of 65.83% from the year-ago quarter and also beat analysts’ expectations by $14.5 million.
4. Main Street Capital Corporation (NYSE:MAIN)
Number of Hedge Fund Holders: 9
Dividend Yield (as of April 29): 6.41%
Main Street Capital Corporation (NYSE:MAIN) is a Texas-based business development company which offers capital to lower middle market companies in return for stakes or debt offerings. It also offers services such as management buyouts, refinancing, family estate planning and recapitalizations. On April 29, Main Street Capital Corporation (NYSE:MAIN) declared $0.215 per share in quarterly dividend, which was in-line with previous. This brings the firm’s dividend yield to shareholders at 6.41%.
Hovde Group analyst Bryce Rowe in March initiated coverage of Main Street Capital Corporation (NYSE:MAIN) with a ‘Market Perform’ rating and a $44 price target. The company recently invested $36.4 million in Jorgensen Laboratories, a supplier of equipment and supplies to the veterinary profession, in order to facilitate its recapitalization.
Of the 924 hedge funds being tracked by Insider Monkey as of the fourth quarter of 2021, 9 were long Main Street Capital Corporation (NYSE:MAIN) with overall positions worth $31.97 million. This shows growing investor confidence in the firm over the previous quarter where 5 hedge funds held $26 million worth of company shares. Millennium Management held roughly 236,000 shares of Main Street Capital Corporation (NYSE:MAIN) during the fourth quarter with a price tag of $10.6 million, making it the top shareholder of the firm.
3. Gladstone Capital Corporation (NASDAQ:GLAD)
Number of Hedge Fund Holders: 5
Dividend Yield (as of April 29): 6.95%
Gladstone Capital Corporation (NASDAQ:GLAD) is up next on our list of monthly dividend stocks to buy in May. It is a business development company which invests in small and medium-sized businesses in the United States. In early April, Raymond James analyst Robert Dodd initiated coverage of Gladstone Capital Corporation (NASDAQ:GLAD) with a ‘Market Perform’ rating, whilst noting that although recent performance has been solid, he views the shares as fairly valued at current levels.
On April 13, Gladstone Capital Corporation (NASDAQ:GLAD) declared a $0.0675 per share monthly dividend, a 3.8% increase from its prior dividend of $0.0650. This will be payable on April 29, for shareholders of record until April 22. This brings the company’s yield to 6.95% as of April 29.
Reporting its fourth quarter earnings on February 2, Gladstone Capital Corporation (NASDAQ:GLAD) posted an EPS of $0.27, outperforming estimates by $0.07. Quarterly revenue of $16.17 million showed a jump of 25.5% from the year-ago quarter and also beat consensus estimates by $1.65 million.
Two Sigma Advisors held 164,000 shares of Gladstone Capital Corporation (NASDAQ:GLAD) in Q4 2021 with a price tag of $1.89 million which made it the largest shareholder of the firm. In total, 5 hedge funds were long on the company shares in the fourth quarter, up from 4 in the preceding quarter.
2. Sabine Royalty Trust (NYSE:SBR)
Number of Hedge Fund Holders: 4
Dividend Yield (as of April 29): 7.74%
Up next on our list of monthly dividend stocks to buy this month is Sabine Royalty Trust (NYSE:SBR), a Texas-based firm which holds royalty and mineral interests in various oil and gas properties across the United States. As energy prices and inflation on an upward trajectory, Sabine Royalty Trust (NYSE:SBR) is well-positioned to benefit from these trends. As of April 29, the firm’s shares have registered an uptick of 81.81% in the last year, and 49.75% in the year to date.
On April 6, Sabine Royalty Trust (NYSE:SBR) declared a monthly dividend of $0.7302 per share, which was an increase of 56.3% from its previous dividend of $0.4672. The firm yielded a dividend of 7.74% as of April 29.
4 out of 900+ elite hedge funds tracked by Insider Monkey in the fourth quarter of 2021 were bullish on Sabine Royalty Trust (NYSE:SBR) shares, with combined stakes worth $4.96 million. The same number of hedge funds held positions in the company a quarter earlier as well. Royce & Associates, the top shareholder of Sabine Royalty Trust (NYSE:SBR) in the fourth quarter, held a $3.4 million stake in the company consisting of roughly 83,000 shares.
1. Dynex Capital, Inc. (NYSE:DX)
Number of Hedge Fund Holders: 4
Dividend Yield (as of April 29): 9.61%
Dynex Capital, Inc. (NYSE:DX) ranks first on our list of monthly dividend stocks to buy in May 2022. The real estate investment trust invests primarily in mortgage-backed securities (MBS) that are backed by the United States government or a U.S. government-sponsored entity. As of April 29, it offers shareholders an impressive yield of 9.61%
JonesTrading analyst Jason Stewart on April 28 maintained a ‘Buy’ rating on the company shares, and revised the price target to $19 from $20. Stewart notes that the firm reported strong Q1 book value performance and will continue to increase its leverage through 2022. He reduced the price target owing to uncertainty in the macro environment, but notes that it still represents a 40% total return opportunity.
4 hedge funds were long Dynex Capital, Inc. (NYSE:DX) in Q4 2021, as compared to 7 hedge funds a quarter ago. Out of all the hedge funds tracked by Insider Monkey, Ken Griffin’s Citadel Investment Group was the top shareholder of the firm during the fourth quarter, with roughly 87,000 shares valued at $1.44 million.
You can also take a look at 10 Best Dividend Paying Stocks to Buy Under $50 and 15 Largest AI Companies in the World.
