There’s no denying the obvious. Right now, financial markets across the globe are unstable, with the U.S. stock market dropping 3% on back-to-back days in late February (the market has only done that 15 times in the past 80 years). Fortunately, when markets wobble, investors have a simple solution to steady their portfolios — by buying the best monthly dividend stocks. Few equities, if any, provide the rock-steady stability (while paying you on a month-to-month basis just to own them, no less) than the following companies.
Monthly dividend-payers dole out income in the form of dividends (or distributions) each month, as opposed to each quarter.
This group of stocks looks particularly attractive on the heels of rising coronavirus concerns and escalating market turmoil. Most of these monthly dividend stocks are based in North America, with limited international presence. So, unless coronavirus gets really bad in the U.S. or Canada, these stocks should be relatively isolated from coronavirus risks.
Because their financials must support a monthly dividend payment, the companies in this space are stable by nature — their operations are steady, their fundamentals are positioned for the long term, and their cash flows are consistent. Such stability should be highly attractive to investors amid recent market instability.
At the same time, these stocks pay investors big yields. That’s worth a lot today. Fixed income yields are plunging to record lows, to the point where buying a bond won’t give you much real return these days.
All in all, then, now looks like the best time in years to buy monthly dividend stocks. With that in mind, the best monthly dividend stocks to buy now include:
- Reality Income (NYSE:O)
- LTC Properties (NYSE:LTC)
- Global Water Resources (NASDAQ:GWRS)
- Shaw (NYSE:SJR)
- STAG Properties (NYSE:STAG)
Let’s take a deeper look at why those five names are particularly attractive safe stocks to buy now:
1.) Reality Income (O)
Monthly Dividend Yield: 3.5%
At the top of this list, we have the king of monthly dividend stocks, commercial real estate investment trust (REIT) Reality Income, who features an attractive 3.5% dividend yield. Reality Income owns various commercial real estate properties. All of them are largely stable, with its largest tenants being Walgreens (NASDAQ:WBA) and FedEx (NYSE:FDX). Because all of them are stable, this company has been able to pay a monthly dividend to investors for over 50 years. They’ve also been able to hike their dividend for over 100 consecutive quarters. None of this will change going forward. Reality Income is U.S.-centric. The U.S. economy is largely sheltered from the coronavirus outbreak and on solid footing. So, going forward, it will be business as usual for this clue chip monthly dividend payer, and that’s great news for investors seeking stability and income.
2.) LTC Properties (LTC)
Monthly Dividend Yield: 4.6%
Much like Reality Income, LTC Properties is a monthly dividend REIT with minimal coronavirus exposure and strong fundamentals. As the name would imply — LTC is short for Long Term Care — the company’s asset portfolio includes U.S. skilled nursing and assisted-living facilities. The minimal coronavirus exposure comes from the fact that all of the properties are in the U.S. Meanwhile, the strong fundamentals come from the fact that America is getting older, and that one of country’s largest and wealthiest demographics — the baby boomers — is increasingly moving into the sort of facilities which LTC owns. On top of all that, LTC offers a juicy 4.6% yield, which looks especially good against the backdrop of record low U.S. Treasury yields.
3.) Global Water Resources (GWRS)
Monthly Dividend Yield: 2.3%
Moving on from REITs, another monthly dividend stock which looks attractive for both stability and income in the current environment is Global Water Resources. Global Water Resources is a water resource management company which owns, operates and manages water, wastewater and reclaimed and recycled water utilities throughout the Phoenix metropolitan area. Inherently, this means that unless the coronavirus hits Phoenix hard, the company’s operations won’t be disrupted anytime soon. It also means that the company’s 2.3% dividend yield is here to stay for a lot longer, and that the stock price won’t go through much volatility in the coming months. A relatively stable stock plus a 2.3% yield is a good deal in today’s market. So, if you’re looking to shield yourself from the madness of the stock market but don’t think bonds are worth buying, consider GWRS.
4.) Shaw Communications (SJR)
Monthly Dividend Yield: 4.8%
When it comes to stability and consistent dividend payers, there are a few that are more surefire bets than telecommunications giants. With that in mind, meet Shaw Communications. Shaw Communications is a telecommunications company in Canada. The company is supported by strong wireless service demand, as well as building demand for 5G technology. Given these features, the company is unlikely to be impacted by the coronavirus anytime soon, and it’s 4.8% dividend and stock price will likely remain stable. Much like GWRS, then, SJR a stable monthly dividend paying stock that should provide investors a nice cushion during this market turmoil.
5.) STAG Properties (STAG)
Monthly Dividend Yield: 4.6%
Last, but not least, on this list of our best monthly dividend stocks is the industrial REIT STAG Properties. STAG Properties asset portfolio includes a ton of warehouses and small factories in the U.S. The rise of e-commerce will increase the pace at which new warehouses and factories are built, and this favorable trend will provide a boost to STAG’s going operations for the foreseeable future. Consequently, this is a coronavirus-isolated, stable, monthly dividend-paying stock with a growth twist. That’s a winning combination. Especially now.
Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been rated one of the world’s top stock pickers by TipRanks, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, Luke Lango did not hold a position in any of the aforementioned securities.
Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been rated one of the world’s top stock pickers by TipRanks, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, Luke Lango did not hold a position in any of the aforementioned securities.