The Best Monthly Dividend Stocks

Bluerock Residential Growth REIT Inc (NYSEMKT:BRG)

Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) operates as a real estate investment trust. Its business is raising capital and acquiring a diverse portfolio of residential real estate assets. The company investment objective is to acquire and develop a diversified portfolio of real estate investments, with a focus on well-located, Class A apartment properties with strong and stable cash flows. The company was founded on July 25, 2008 and is headquartered in New York, NY.

BRG is another mixed bag.  Since their founding in 2008, BRG has grown significantly and has achieved their goal of acquiring a diverse portfolio of class A properties. But it has a few negatives that keep me from taking a position in this REIT. It is externally managed which often makes it difficult for management to be fully aligned with the goals and objectives of the company and its share holders. I strongly prefer internal management.

Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) is getting closer but has not yet been able to consistently cover their dividend which is a lofty 10.2% yield.  Because it is small, it has no credit rating so its cost of capital is higher than its larger and better established competitors. The price-to-earnings ratio is not a meaningful metric for REIT evaluation so I have not listed it in the spreadsheet above. All that said, given the progress that BRG has made since 2008, it may be a candidate for the risk tolerant investor.

Solar Senior Capital Ltd (NASDAQ:SUNS)

Solar Senior Capital Ltd (NASDAQ:SUNS), as a BDC, invests in middle market companies across the globe, primarily in the US with companies having EBITDA in the range of $20 – $100 million. The fund targets companies operating in the fields of diversified financial services, communications equipment, insurance, health care services, software, food products, specialty retail, professional services, internet software and services, air freight and logistics distributors, IT services, automotive retail, healthcare technology, hotels, restaurants and leisure, containers and packaging, capital markets, footwear, aerospace and defense industrial conglomerates and diversified consumer services. It provides financing in the form of senior secured loans, mezzanine loans and equity securities with an investment size of $5 – $30 million.

Solar Senior Capital Ltd (NASDAQ:SUNS) is a small cap BDC just barely covering their 9.3% yield dividend. Their P/E is on the high side at 18.8.  Shares of SUNS might be suitable for investors with a higher risk tolerance but it is not a sleep well at night (SWAN) investment in that it should be closely monitored for any signs of financial stress.

Gladstone Commercial Corporation (NASDAQ:GOOD)

Gladstone Commercial Corporation (NASDAQ:GOOD) is an externally managed real estate investment trust that invests in and owns net leased industrial, commercial and retail property and selectively makes long-term industrial and commercial mortgage loans. Its portfolio consists primarily of single-tenant commercial and industrial real property. The company also owns multi-tenant commercial and industrial properties, as well as retail and medical properties. Its portfolio of real estate is leased to a wide cross section of tenants ranging from small businesses to large public companies, many of which are corporations that do not have publicly rated debt. Gladstone Commercial was founded by David John Gladstone on February 14, 2003 and is headquartered in McLean, VA.

Gladstone Commercial Corporation (NASDAQ:GOOD) is a small cap triple net lease REIT that also makes some commercial loans. As I noted above, P/E is not a meaningful metric for REIT evaluation. GOOD is not currently covering their dividend payout with the dividend/FFO (funds from operations) ratio at 103%. In addition, the REIT is externally managed which often results in management not being fully aligned with share holders. I would not consider GOOD for my own portfolio for these reasons.

Stag Industrial Inc (NYSE:STAG)

Stag Industrial Inc (NYSE:STAG) is a real estate investment trust, which focuses on the acquisition and operation of single-tenant, industrial properties throughout the United States. It endeavors to identify relative value investments across all locations, industries and tenants among these properties through the application of a company proprietary risk assessment model, operate those properties in a profitable manner, and capitalize business appropriately given the characteristics of assets. The company was founded on July 21, 2010 and is headquartered in Boston, MA.

Stag Industrial Inc (NYSE:STAG) is one of my larger holdings, pays a healthy dividend of 6.5% with a FFO payout ratio of 89%. STAG is covered by 15 analysts with generally favorable ratings on the stock. Significantly, STAG maintains a BBB investment grade credit rating which provides them access to capital markets at favorable rates. I initiated my investment in STAG almost 2 years ago after fairly extensive due diligence on the company and its operations. STAG 1Q16 financials came in strong and the market has begun to take notice of STAGs performance and potential.