Dividends represent a share of a company’s profits that are distributed to its stockholders. These payouts can offer investors a predictable stream of income in addition to any profits that come from selling the stock at a higher price than the purchase price. Dividends are typically paid quarterly. But there are certain stocks that investors call “monthly dividend stocks” that distribute their dividends every month. This provides investors with a more frequent income stream.
Monthly dividend stocks are particularly attractive to retirees and other investors who rely on their investment income for monthly expenses. The consistent monthly payout can help in better budgeting and financial planning, mirroring the regularity of a paycheck. It’s worth noting, however, that the attractiveness of a dividend stock shouldn’t be based on payout frequency alone. But also on the sustainability of the dividend, the health of the company, and its potential for growth.
Investing in dividend stocks can be a strategic approach for those looking for both income and capital appreciation. While dividends provide immediate returns in the form of regular payouts. The underlying stock has the potential for price appreciation over time. However, like all investments, there are risks. Investors need to do their due diligence, considering factors like the company’s dividend history, payout ratio, and overall financial health before committing capital. Bearing this in mind, here are two monthly dividend stocks to watch in the stock market now.
Monthly Dividend Stocks To Watch Right Now
- Realty Income Corporation (NYSE: O)
- Main Street Capital (NYSE: MAIN)
Realty Income Corporation (O Stock)
Realty Income Corporation (O) is also known as the “The Monthly Dividend Company”. This real estate investment trust (REIT) focuses primarily on retail and commercial real estate. Additionally, the company has a long history of delivering consistent monthly dividends to its shareholders.
Just last week, Realty Income Corporation declared its 638th consecutive monthly dividend for its common stock. The company confirmed a dividend of $0.2555 per share, which annualizes to $3.066 per share. This dividend is set to be distributed to stockholders on record by September 1, 2023. With the payment date being September 15, 2023, and the ex-dividend date noted as August 31, 2023.
Year-to-date, shares of O stock have dropped by 10.82%. Meanwhile, as of this past Friday’s closing bell, Realty Income stock is trading at $56.90 a share.
[Read More] 3 REIT Stocks For Your August 2023 Watchlist
Main Street Capital (MAIN Stock)
Next, As a business development company, Main Street Capital (MAIN) provides debt and equity financing to lower middle-market companies and debt capital to middle-market companies. Their investments are typically secured by first or second-lien security interests in the portfolio companies’ assets.
Earlier this month, Main Street Capital Corporation announced that its Board of Directors has declared regular monthly cash dividends amounting to $0.235 per share for the months of October, November, and December 2023. This means shareholders will receive a total of $0.705 per share for the fourth quarter of 2023. Notably, this dividend marks a 2.2% rise from the third quarter of 2023 and a 6.8% increase compared to the dividends paid in the fourth quarter of the previous year, 2022.
In 2023 so far, shares of MAIN stock have increased by 9.73% year-to-date. Meanwhile, as of this past Friday’s closing bell, Main Street Capital stock closed the trading day at $40.50 a share.
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