Get Paid Every Month with these Stocks

One of the best ways to supplement and eventually replace your income is to invest in stocks that pay dividends. Dividends are a share of a company’s profits that are payed out to shareholders on a regular basis. The following stocks pay dividends on a monthly basis.

ADC (Agree Realty Corporation) is a publicly traded real estate investment trust involved in the acquisition and development of properties net leased to top retail tenants. The company owns and operates just over 1,000 properties which are located in 45 states and cover about 21 million square feet of gross leasable area. ADC stock shown great performance returning approximately 9% in the past year, 51% in the past 5 years, and 164% in the past 10 years. Revenues have also helped this strong performance as they have been increasing every year.

The company has also shown good dividend growth. This is important as well in order to be sure that the company can continue paying the dividend and ideally grow it as well. The dividend yield is 2.76%, so this means that for every $1,000 invested, you will receive $27.60 in dividends. The company pays on a monthly basis. In order to receive the dividend, you must own the stock before the ex-dividend date, the date in which the company needs to have you on record as a shareholder in order to receive payment on the next payment date.

Main Street Capital is a public sector, business development capital enterprise that focuses on small and mid-sized businesses. It was first established in 1988 and is listed on the New York Stock Exchange as MAIN.

Main Street Capital is widely considered one of the best private equity fund managers in the U.S. Main Street uses a growth capital strategy which enables them to invest in companies that have the potential to generate growth. Main Street invests in all stages of companies, including start-ups, growth businesses, and mature companies.

Main Street Capital pays dividends quarterly that are generally large and fairly consistent. In 2020, Main Street raised its dividend to a new high of 3.2 percent, which is one of the highest for equities. Main Street Capital has paid out dividends for the past ten years and has increased the yield from 1.5 percent in 2010 to 3.2 percent in 2020.

The stock price of Main Street Capital is influenced by the company’s performance, earnings and dividends. The share price of Main Street Capital has been rising steadily over the past five years, with a 27 percent rise during this period.

Main Street Capital has an impressive portfolio of companies with varied sectors such as healthcare, technology, consumer, finance and more. It has a portfolio of more than 160 private and public companies and has more than 4 billion in total assets. The company has experienced good returns over the past few years, with the return on invested capital reaching 33 percent.

Realty Income Corporation (NYSE: O) is a publicly traded Real Estate Investment Trust (REIT) that primarily invests in single-tenant, freestanding commercial properties. The company’s portfolio includes properties across 54 industries and all 50 states in the United States. Realty Income’s primary source of income is rental income from its tenants. Realty Income stock is classified as an REIT, and as such, it is required to pay out at least 90% of its taxable income in the form of dividends.

Realty Income has many strengths and weaknesses. Realty Income has a highly diversified portfolio of properties, spanning 54 industries and all 50 states. This helps to significantly reduce risk and reduces its exposure to the vagaries of a single industry or geographical area. Realty Income has structured many of its leases to offer long-term stability and provide minimum rental income. This helps to ensure a steady stream of revenue over the life of the lease, and it helps to minimize sudden changes in revenue. The company currently pays a dividend of 4.54%, which is one of the highest dividend yields in the REIT market. This makes it an attractive option for income investors.

Now for the cons, Realty Income has a limited ability to generate growth since it operates primarily in well-established markets. Growth opportunities are generally limited to acquiring new shopping centers or repositioning existing ones. Due to the predominance of its holdings in established shopping centers, Realty Income’s capital gains potential is generally lower than other real estate investments in growing markets. The company is also highly leveraged, as it has to finance its acquisitions with debt. As a result, a rise in interest rates can significantly erode its profits and share price. Realty Income’s portfolio of shopping malls are concentrated geographically and are exposed to the risk of natural disasters, such as hurricanes and earthquakes.

Investing in stocks that pay monthly dividends can be a great way to supplement your income. These stocks we have evaluated today have not only shown stable dividend payments but also stable growth. This is important because you should not invest in a stock only for the dividend. Many companies have paid dividends and then had to cut or reduce them during hard times. If you decide to invest in any stocks it is crucial that you continue checking up on the company from time to time. Choosing stocks with a healthy financial record will also reduce your risk ensuring that your income continues and grows.

Disclaimer: none of the stocks or funds mentioned are meant to serve as specific financial advice. I am simply showing what I invest in and sharing my opinions. I am also encouraging further research which can be done at SeekingAlpha.com. All investing involves risk but not investing involves even more risk.