Dividends are regular payments companies make to shareholders from their profits. Dividend stocks represent ownership in these companies that consistently distribute a portion of their earnings. Monthly dividend stocks are a subset that pays dividends every month instead of quarterly. These stocks are often favored by investors seeking regular income streams. Dividends can provide a steady cash flow and potentially offset market volatility.
Investing in monthly dividend stocks can offer several advantages. They provide more frequent income, which can be beneficial for budgeting and cash flow management. Monthly payouts allow for faster dividend reinvestment, potentially boosting long-term returns through compounding. These stocks often come from stable, mature companies with predictable cash flows. However, monthly dividend stocks also have potential drawbacks. The pool of companies offering monthly dividends is smaller than those paying quarterly. Some monthly payers may have lower dividend growth rates compared to quarterly dividend stocks.
When considering monthly dividend stocks, it’s important to look beyond just the frequency of payments. Evaluate the company’s financial health and ability to sustain regular dividends. Check the dividend payout ratio to ensure the company isn’t overstretching to maintain payments. Be aware that high yields can sometimes signal underlying problems with a company. Consider the potential for dividend growth over time, not just the current yield. Bearing this in mind, here are two monthly dividend stocks to keep an eye on in the stock market today.
Monthly Dividend Stocks To Buy [Or Avoid] Now
- Realty Income Corporation (NYSE: O)
- SL Green Realty Corporation (NYSE: SLG)
Realty Income Corp (O Stock)
Leading off, Realty Income Corporation (O) is a real estate investment trust (REIT) that focuses on acquiring and managing freestanding, single-tenant commercial properties. The company primarily leases properties to retail and industrial tenants under long-term net lease agreements.
Earlier this month, Realty Income Corp announced an increase in its monthly cash dividend for common stockholders. The company raised the dividend from $0.2630 to $0.2635 per share. This increase marks Realty Income’s 127th dividend hike since its NYSE listing in 1994. The new dividend will be paid on October 15, 2024, to stockholders of record as of October 1, 2024. This change brings the annualized dividend to $3.162 per share, up from $3.156.
So far this year, shares of Realty Income stock have increased by 7.47% YTD. Moreover, during Tuesday’s late morning trading session, O stock is trading green on the day by 0.45%, currently trading at $62.94 a share.
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SL Green Realty Corp. (SLG Stock)
Next, SL Green Realty Corporation (SLG) is also a REIT, but it specializes in acquiring, managing, and maximizing the value of Manhattan commercial properties. They are New York City’s largest office landlord, with a portfolio that includes office buildings, retail properties, and development projects. SL Green focuses on high-quality assets in prime locations and also provides property management services.
Earlier this month, SLG Green Realty announced the date for its third quarter 2024 financial results release. The company plans to disclose its earnings after market close on Wednesday, October 16, 2024. SL Green will follow this with a conference call and audio webcast the next day. The call is scheduled for Thursday, October 17, 2024, at 2:00 PM ET. Marc Holliday, the company’s Chairman and CEO, will lead the executive management team in discussing the financial results.
In 2024 YTD, shares of SL Green Realty Corp stock have moved higher by 53.70% thus far. Meanwhile, on Tuesday morning, SLG stock is trading slightly lower on the day by 0.32%, currently trading at $70.58 a share.
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