Shares that pay dividends monthly: guide & examples

We all know that the stock market can be a rollercoaster ride at times, with its exhilarating highs and stomach-churning lows. Investors often find themselves walking a tightrope between the pursuit of capital appreciation and the desire for a reliable income stream. But what if I told you there's a way to enjoy the best of both worlds? Want to learn more about shares that pay dividends monthly? Keep reading to find out.

List of shares that pay dividends monthly

Realty Income (O): Realty Income is a REIT (Real Estate Investment Trust) known as "The Monthly Dividend Company." It owns single-unit commercial properties leased to high-quality tenants for long terms. With a market cap of $36.53 billion as of November 7 2023, Realty Income offers a yield of 6.1 percent.

1. SL Green (SLG): SL Green is New York City's largest owner of office real estate. Despite concerns about remote work, the demand for office spaces in NYC remains strong. With a market cap of $2.2 billion as of November 7 2023, SL Green offers a yield of 9.9 percent.
2. STAG Industrial (STAG): Specialising in industrial properties and warehouses, STAG Industrial has benefited from the growth of e-commerce, especially during the COVID-19 pandemic. Expecting significant growth in the future, STAG has a market cap of $6.25 billion as of November 7 2023 and offers a yield of 4.2 percent.
3. AGNC Investment (AGNC): AGNC Investment is a mortgage REIT that invests in agency-backed residential mortgages. Although the dividend fluctuates based on the economic climate, AGNC Investment has a track record of sizable dividends in its over 15 years of operation. With a market cap of $5.05 billion as of November 7 2023, AGNC Investment currently offers a yield of 17.7 percent.

Why is it important to traders?

Shares that pay dividends monthly are important to traders for several reasons:

• Regular income: Monthly dividend payments provide a consistent and reliable source of income for traders. This income can be used to cover expenses, reinvest in other investments, or simply provide financial stability.
• Cash flow management: Monthly dividends allow traders to better manage their cash flow. Instead of waiting for quarterly or annual payouts, they receive a steady stream of income every month, which can help with budgeting and financial planning.
• Compounded returns: By reinvesting monthly dividends back into the same shares or other investments, traders can take advantage of compounding returns. Over time, these compounded returns could significantly enhance the overall investment performance.
• Risk mitigation: Dividend-paying shares tend to be more stable and less volatile than non-dividend-paying shares. The regular income from dividends could provide a cushion during market downturns and help offset potential losses.
• Long-term growth potential: Companies that consistently pay monthly dividends often have solid financial health and a track record of generating consistent gains. Investing in such companies could provide traders with the opportunity for long-term capital appreciation in addition to regular income.
• Attractive investment option: Monthly dividend-paying shares are particularly attractive to traders who rely on investment income as a primary source of livelihood, such as retirees or those seeking passive income. These shares offer a predictable and recurring income stream.

Summary

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FAQs

What are shares that pay dividends monthly?

These are stocks of companies that distribute a portion of their profits to shareholders on a monthly basis, typically in the form of cash payments.

How do shares that pay dividends monthly benefit investors?

They provide investors with a regular and predictable income stream. They can be particularly attractive for those seeking steady income from their investments or looking to supplement their monthly cash flow.

Are shares that pay dividends monthly considered low-risk investments?

While dividend-paying stocks are generally considered less risky than non-dividend-paying stocks, it's important to remember that all investments carry some level of risk. The risk associated with these shares depends on various factors, including the financial health of the company, market conditions, and other external factors.

Are the yields from shares that pay dividends monthly fixed?

No, the yield can fluctuate based on various factors such as changes in the company's profitability, market conditions, and dividend policies.

What should I consider before investing in shares that pay dividends monthly?

Before investing, consider factors such as the company's financial health, dividend history, industry trends, and overall market conditions. It's important to conduct thorough research and consider your investment goals, risk tolerance, and time horizon.

Do all companies offer shares that pay dividends monthly?

No, not all companies offer monthly dividends. Dividend payment frequencies can vary, with some companies paying dividends quarterly, semi-annually, or annually. Monthly dividend-paying stocks are relatively less common, but they do exist.