Latest news with #monthly dividends
Forbes
6 days ago
- Automotive
- Forbes
The Secret To 10.7% Annual Returns With Monthly Dividends
Monthly bills are no problem for careful contrarian readers banking 8.8% yields in monthly dividends. Let's discuss this rare but excellent dividend breed, the company or fund that pays monthly instead of quarterly. Only 6% of dividend payers dish monthly. The rest are quarterly or annually, which will likely not be in time to cover your upcoming cell phone bill. My monthly email from carrier Verizon arrives in a day or two. Another $267.26 will be debited from my account automatically on the 20th of August. Fortunately, Verizon notes that there is 'nothing I need to do' thanks to AutoPay. As if the automatic payment implies it costs any less money! On the bright side of the phone ledger, we have no landline. The cell bill is it. But don't fall asleep, bank account. All the other cord cutting exacts its pound of flesh! For example, we 'cut the cable cord' years ago. And replaced it with an equally pricey version, albeit a wireless one! YouTube TV has a base plan of $82.99. However, my August 29 tab will be $131.95 plus tax. How'd I manage a 50%+ premium? By demanding sports in 4K (+$9.99/month). And refusing to live a Sunday in the fall without NFL RedZone and its 6+ hours of live look ins across football games (+$10.99/month). Oh, and the WNBA season ticket that I watch with my daughters during the summer. Speaking of which, A/C is a must-have here in Sacramento! I paid the power company $187.76 two days ago and that's a light month for our summers. But the big one, the mortgage payment, dwarfs all. And oh yes, automatically deducted from our account on the first of August. 'Just' eleven years to go on the mortgage! We shortened to 15-years when we refi'd in 2021. My 'basketball dad' car is paid off (2019 Acura MDX) and, while motivated to drive it 'into the ground,' the odds are this car won't be my last. So the big monthly payment wheel keeps on spinning. I am sure you can relate to a few of these regular drains in your own life. For which we have a solution: plug these monthly drains with monthly dividends. How To Find The Best Monthly Dividends But you observe, 'Brett! You said only 6% pay monthly. How can I find them?' Glad you asked! Our Contrarian Income Report has a 'virtual monopoly' on the sector. We have 18 monthly payers yielding an average 8.8%. Think about that. A million bucks in the CIR monthly payer lineup generates $7,333.33 per month in passive income. Plus, the original million invested in these 'elite 18' stays intact. Or better yet, grinds higher! Since inception 10 years ago, our entire CIR portfolio has generated 10.7% in annual returns. And that's mostly paid in cash dividends, with the majority dishing monthly. Our CIR monthly dividend GOAT (greatest of all time) is DoubleLine Income Solutions Fund (DSL). In April 2016, we added DSL to the CIR portfolio at a price of $16.99 per share. Since then we have collected 111 monthly dividends that have totaled $15.27. That's 90% of our initial buy price in payouts. It's almost house money now! Imagine investing in a simple fund that trades just like any blue-chip stock—and earning your entire investment back within 10 years via monthly dividends. With the regular payout stream still rolling strong! And DSL is not a mere annuity. It's way better. DSL is a bond fund run by the 'bond god' himself Jeffrey Gundlach. The modern-day deity of fixed-income investing scours the globe to collect deals that power DSL's monthly 11-cent divvie. DSL yields 10.9% today. Investors with $100,000 invested in DSL shares enjoy $10,900 per year in passive dividend income. That's $908.33 in monthly deposits and—oh!—that's right: it's autopay, but to you! Enough to pay Verizon, YouTube TV and internet while air conditioning the house—with extra cash left over for a nice dinner! And a $50,000 stake in DSL delivers $454.17 in monthly payouts. That's still meaningful income to cover those every-30-day expenses. Now, I wouldn't pile everything into DSL today, when savvy investors can spread risk among 17 more solid monthly payers that deliver a green cash river too. This is diversification without di-worseification (thank you, Peter Lynch!). We want to retire on dividends, and the best way is to bulletproof our payout streams across asset classes, sectors and national borders. And that's our elite 18! We are not hanging on the Federal Reserve's next word. Nor are we glued to policymaker decisions. We are insulated from this noise by assembling an elite 8.8% paying portfolio of monthly dividend payers. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
Forbes
20-07-2025
- Business
- Forbes
5 Monthly Dividend Stocks Yielding Up To 16.3% Today
12 month calendar sign set vector illustration, color signs for all months of the year Quarterly payers are the norm. But monthly dividends…. Yeah, that's that stuff. Today we'll chat about five monthly divvies that yield between 5.8% and 16.3% per year. That's right, these stocks pay early, often and heavy. What's wrong with a plain 'ol quarterly dividend? Let's consider using my Income Calendar dividend projection tool. If we put $100K into each of the top five stocks in the Dow Jones Industrial Average, here is the lumpy, inconsistent and sad income picture we are looking at: DJIA Dividends Lumpy and, let's be honest—lame. Instead let's consider our five monthly payers. Drop $100K into each and now we are talkin': Monthly Dividends Note the 10.5% yield, too! Yee haw. It's powered by five payers dishing between 5.8% and 16.3% yields. Buy, hold or sell these generous monthly payers? Let's explore each one. Monthly Dividend #1: Healthpeak Properties (DOC) Healthpeak Properties (DOC) is new to the monthly divvie game. Welcome, DOC! DOC is a healthcare REIT that also dabbles in retirement facilities. It boasts roughly 700 properties, including outpatient medical facilities (50% of portfolio income), laboratories (35%), and senior housing (15%). Its tenants include biopharma firms, health systems, physician groups, medical device manufacturers, and retirement housing companies, among others. In February 2025, Healthpeak announced it would switch to monthly dividends starting in April. It also bumped up its dividend—from 30 cents per share to 30.5 cents for the February quarterly, which translated to 10.17 cents once the monthly payments got going a couple months later. That comes out to a meager sub-2% hike, but it's an important step in the right direction considering its prior two dividend changes were cuts (36% in 2016, then 19% in 2021). DOC Dividend Better still, the distribution represents less than 75% of projected adjusted funds from operations (AFFO) for 2025, which is a healthy REIT payout ratio that leaves room for modest dividend growth going forward. Growth isn't as clean-cut. Healthpeak's heavy life sciences exposure could be problematic given poor current fundamentals in that industry, but tailwinds in senior housing could bode well for its continuing care retirement communities (CCRCs). At 11 times 2025 estimates for AFFO, we're not paying much—at least compared to the healthcare REIT industry—to find out. Monthly Dividend #2: EPR Properties (EPR) EPR Properties (EPR) is an 'experiential' REIT. As in, it deals in experiences—a segment of spending that, were it not for a pandemic-sparked interruption, would have been a virtually straight line up and to the right for the past quarter-century. Want to see a movie? We may visit an AMC Entertainment (AMC) theater. Hit a bucket of balls? Then we'll head to TopGolf. Get a pump in? Let's hit the gym. These types of properties comprise EPR's 331-property portfolio. A few months ago, we discussed a business segment (theaters) that was once a liability for EPR was becoming an asset once more: While North America's Q1 box office gross was actually down year-over-year, Q2 has outperformed, and Q3 is off to a great start with the hit release of Superman. Also, on July 1, a 7.5% rent increase on AMC kicked in. All of this has conspired to drive EPR to a REIT-beating first half of 2025. EPR Total Returns Longer-term, EPR is seeing improving costs of capital, which means management can start making acquisitions again. Shorter-term, EPR might have a harder time replicating its first-half pace, if only because its P/AFFO has thickened up from just 9 in January to around 12 today. Monthly Dividend #3: Gladstone Commercial (GOOD) Gladstone Commercial (GOOD) is part of the Gladstone family of REITs and BDCs, which also includes Gladstone Land (LAND), Gladstone Investment (GAIN) and Gladstone Capital (GLAD). GOOD is a straight-up equity REIT—one that owns 141 single-tenant and anchored multi-tenant net-leased properties. Those properties are leased out to 107 unique tenants, typically in long-term leases of seven years or longer. Overall occupancy is 98.4%, though that's carried by industrial tenants (99.4%), which are making up for the office tenants (91.7%). Speaking of office tenants, Gladstone Commercial has been deliberately moving away from that particular business. Seven years ago, office properties accounted for 65% of annualized straight-line rent. Today? That number is 35%. On the one hand, Gladstone's move away from office buildings makes sense given the lousy environment of the past half-decade. However, it also means GOOD is less exposed to the return-to-office rebound. For now, we want to see Gladstone reverse its multiyear trend of declining FFO. It's not quite in dividend trouble yet—its monthly dividend comes out to $1.20 annually vs. $1.43 in FFO over the trailing 12 months; 85% is high but not alarming—but we need some reason to believe shares can escape nearly six years of rangebound trading. Monthly Dividend #4: Prospect Capital (PSEC) Prospect Capital (PSEC) is a business development company that provides private debt and private equity to middle-market companies. It currently boasts 114 portfolio investments in 33 industries, most notably real estate, consumer finance, and health care. Roughly three-quarters of its portfolio is first lien and other secured debt, though it will also make equity investments. I frequently keep my eye on PSEC both because it's one of the largest BDCs, at well more than $1 billion in market capitalization, and because it frequently sports a double-digit yield. But I also frequently warn about Prospect Capital because it's a serial dividend cutter. For instance, I called it out in October 2024, and just a few weeks later, it hacked its payout down by 25%. Then in February, I highlighted PSEC among several Wall Street consensus Sell calls, and I couldn't help but agree with the pros. Prospect Capital is now the cheapest BDC on the market, trading at just 46% of NAV. That means we're paying just 46 cents for every dollar in PSEC's assets—while collecting a wild yield above 16%. That's cheap, but is it a deal? It's more like a falling knife with its net investment income (NII) in a doom loop. Monthly Dividend #5: AGNC Investment Corp. (AGNC) AGNC Investment Corp. (AGNC) deals in 'paper' real estate (i.e., mortgages). It's one of the largest mortgage real estate investment trusts (mREITs), at more than $9 billion in market cap. For those unfamiliar with mREITs: These companies make money by borrowing at short-term rates to purchase mortgages, which deliver income at long-term rates. Their profit is the difference, so the hope, of course, is that short-term rates are lower than long-term rates (which they typically are). AGNC is an 'agency' mREIT that deals in residential mortgage-backed securities (MBSs) from government agencies such as the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Agency MBSes tend to be much safer than their private counterparts because the federal government backs agency mortgages (or in the case of Ginnie Mae, mortgage securities). As a result, agency mREITs tend to use a lot of debt leverage to make the most out of their investments—a welcome accelerant when rates head lower, but problematic when rates are high and headed north. As the chart here shows, the rate environment (and the rate-expectation environment) has been volatile over the past year or so. But spreads are tightening again, and importantly, AGNC is doing more with that than the mREIT industry as a whole. AGNC Outperforms Despite its performance, AGNC is among the cheaper mREITs right now, at just less than 6 times earnings estimates for this year. Dividend coverage is on the tight side (~90%), though. That's manageable—as long as hedging-related expenses don't get out of hand. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
