Category Monthly Dividend

Real estate investment trusts (REITs) have outperformed the broader market and could maintain their edge in an uncertain economic environment, UBS analysts said Wednesday.

REITs—companies that own, operate, or finance income-generating real estate—generated returns about 4 percentage points greater than the S&P 500 index in 2025 through Monday’s close, according to a UBS analysis.

REITs began pulling ahead of the benchmark stock index around March 4, when the Trump administration imposed tariffs on goods from Canada and Mexico and raised import taxes on products from China, UBS said in a research note. REITs could also continue performing better than the broader market because real estate may be better-insulated from tariffs than other sectors represented in the S&P 500, the analysts said.

“This is due in part to the defensive nature of the group; they are backed by real assets, limited international exposure, and should see a delayed impact from tenants,” the note said.

It’s unclear how President Donald Trump’s trade policies will evolve. He announced on Wednesday a 90-day pause on at least some tariffs.

Some REIT Assets Seen as Safer Choices

In such a volatile environment, REITs with self-storage facilities and triple net leases—where commercial tenants are responsible for property tax, insurance, and maintenance expenses—could be more stable choices than others, UBS said. Single-family rental homes, apartments on the coasts, and manufactured homes are also likely to be stable, the analysts said.

The prospect of tariffs and a consumer slowdown may hurt industrial tenants and sap demand for warehouse and cold storage space, UBS said. Shopping centers and other retail properties may also face headwinds, the analysts said.

REITs surged Wednesday, amid broader market gains after Trump announced a pause on some tariffs. Shares of UDR (UDR), which owns apartments, jumped about 8%, while shares of Extra Space Storage (EXR), which rents storage units, added over 7%. Shares of Equity LifeStyle Properties (ELS), which owns manufactured home communities and resorts, rose close to 4%. (Read Investopedia’s live coverage of Wednesday’s market action here.)

Just days after suffering their worst stretch in years, stocks rebounded on Wednesday to notch one of their best days of the 21st century after President Trump announced a 90-day pause on the tariffs that sent stocks across the globe spiraling last week.

The S&P 500 soared 9.5% on Wednesday, its biggest one-day gain since October 2008. The tech-heavy Nasdaq Composite skyrocketed 12.2%—its second-largest daily gain since the turn of the century and its best day since January 2001. The Dow Jones Industrial Average rose 7.8%, its best day since March 2020 and fifth-best since 2000.

Investors breathed a sigh of relief on Wednesday when President Trump implemented a 90-day pause on most of the tariffs that went into effect overnight. Trump shocked Wall Street last Wednesday when he unveiled tariffs that were broader and steeper than investors had expected. Stocks tumbled in the following days as economists warned the tariffs would likely weigh on global growth and stoke inflation. 

Wednesday’s rally recouped much of the losses the major indexes have suffered in the last week. The Nasdaq, which finished yesterday’s session more than 13% off its pre-“Liberation Day” close, is now down just 2.7%. The S&P 500 has pared its losses from 12.1% to 3.8%, and the Dow closed Wednesday 3.8% off its level before the tariffs were announced. 

“The stock market rebound is a combination of speculative investors needing to cover short positions; less fear of recession and stagflation; and optimism that tariff rates will ultimately end up lower than they are threatened today,” Comerica Bank Chief Economist Bill Adams said.  

The tariff pause comes just days before big banks are slated to kick off first-quarter earnings season, with JPMorgan Chase (JPM) scheduled to report on Friday. Its CEO Jamie Dimon warned in his annual letter to shareholders on Monday that the tariffs would slow down growth, and early Wednesday Dimon called a recession “a likely outcome” of the tariffs. Bank stocks surged in response to the tariff pause Wednesday.

Wednesday’s pause and rally could change the tone of earnings calls in the coming weeks. “This pause may provide companies with a clearer backdrop for their guidance, offering some relief to a market hungry for direction,” wrote Gina Bolvin, President of Bolvin Wealth Management Group, on Wednesday. (Analysts have been expecting tariff uncertainty to cause the number of companies offering sales and earnings guidance to drop sharply this quarter.) 

“However, uncertainty looms over what happens after the 90-day period, leaving investors to grapple with potential volatility ahead,” Bolvin added. 

The Trump administration has paused plans to tighten restrictions on sales of Nvidia’s (NVDA) H20 chip to companies in China, NPR reported Wednesday.

The H20 is less powerful than Nvidia’s latest chips and is tailored to meet existing U.S. export restrictions. The White House had been considering curbing Nvidia’s ability to sell the chip in China, but those plans were put on hold after CEO Jensen Huang attended a dinner at Mar-a-Lago last week, where President Trump made an appearance, according to the report.

Nvidia declined to remark on the report, while the Commerce Department did not immediately respond to a request for comment.

Nvidia shares soared over 18% Wednesday amid a broader market rally after Trump announced a 90-day pause on most of the tariffs his administration announced last week. In a Truth Social post, Trump said he felt the pause was needed because “more than 75 countries” had contacted his administration to make trade deals. The pause excluded China, which is instead facing a higher rate as tariffs on goods from the country increase to 125%. (Read Investopedia’s live coverage of today’s market action here.)

Intel (INTC) shares soared Wednesday amid a huge rally for chip stocks after President Trump announced a 90-day pause on “reciprocal” tariffs.

The stock may also be attracting interest following reports the chipmaker tentatively agreed to form a joint venture with Taiwan Semiconductor Manufacturing Company (TSM) that would run the U.S. company’s foundry business.

While tariff developments will likely continue to drive near-term sentiment in the stock, confirmation of a potential deal with TSMC that ramps up domestic contract chip manufacturing could act as a catalyst for further upside.

Intel shares have outperformed the S&P 500 since the start of the year as of Wednesday’s close, though the stock has lost 44% over the past 12 months amid uncertainty surrounding the chipmaker’s restructuring plans and constant deal speculation. The stock gained 19% on Wednesday to close at $21.53.

Below, we analyze Intel’s monthly chart and apply technical analysis to identify crucial levels that investors may be watching.

Bullish Reversal

After forming a double top between January 2020 and April 2021, Intel shares have trended sharply lower, with a countertrend rally to the 50-month moving average (MA) in December 2023 running into immediate selling pressure.

More recently, bears drove a brief sell-off below last year’s September low before bulls reclaimed this key level during Wednesday’s bullish reversal, potentially setting the stage for follow-though buying. However, investors should brace for further volatility ahead, with trading volume picking up in the stock since August last year.

Let’s identify key overhead areas to monitor and also point out a crucial zone of support worth watching amid the potential for further tariff-driven volatility.

Key Overhead Areas to Monitor

Follow-through buying from current levels could initially see the shares climb to around $25. This area on the chart may provide selling pressure near a trendline that links multiple peaks and troughs on the chart extending back to mid 1997.

Buying above this level could form part of a longer-term bullish reversal to $35. Investors who have bought the stock’s recent lows may look to offload shares in this region near the 200-month MA and a multi-year horizontal line the links a range of comparable trading activity on the chart between January 1999 and September 2023.

Crucial Zone of Support Worth Watching

During future moves lower in the stock, investors should keep track of a crucial zone of support on Intel’s chart between $18.50 and $17. This region will likely continue to attract significant attention from investors, given it’s the location that marked the stock’s recent low and sits near a range if similar price points stretching back to the late 90s.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

Updated on April 9th, 2025 by Nathan Parsh

At first glance, PennantPark Floating Rate Capital (PFLT) is very appealing to income investors. That’s because PennantPark has a staggering 13.4% dividend yield. In addition, unlike many of its competitors, the company has managed to raise its dividend per share for two consecutive years, following a stagnant dividend for the previous seven years.

PennantPark is one of approximately 140 stocks in our coverage universe with a 5%+ dividend yield. Click here to see the entire list of 5%+ yielding stocks.

Not only that, but PennantPark also pays its dividends each month. This allows investors to compound their wealth even more quickly than a stock that pays a quarterly or semi-annual dividend.

There are currently 76 monthly dividend stocks. You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:

But, as is so often the case with sky-high dividend yields, PennantPark’s attractive dividend yield may be too good to be true.

This article will discuss the company’s business model and whether the payout is sustainable over the long term.

Business Overview

PennantPark is a Business Development Company, or BDC. It provides mostly debt financing, typically first-lien secured debt, senior notes, second-lien debt, mezzanine loans, or private high-yield debt. It specializes in making debt investments in middle-market companies. To a lesser extent, it also makes preferred and common equity investments. The most recent balance sheet showed that 90% of the company’s total investments were in first-lien senior secured debt.

Source: Investor Presentation

The company’s portfolio is highly diversified, with no particular industry making up more than 8% of the total mix, and the majority comprising less than 3% of the total.

In addition, the company’s portfolio has a floating rate, which opens up its yields to interest rate volatility. This can be good in times of rising rates but is unfavorable should rates decline.

An overview of the company’s investment philosophy reveals PennantPark prefers middle-market companies with $15 million to $50 million in annual EBITDA and has a high rate of underwriting success.

Only two of the company’s ~160 investments reached the non-accrual stage in the most recent quarter, compared to less than 20 of its investments since inception. PennantPark’s track record of outstanding underwriting is a key advantage, and this outstanding credit quality has helped the company maintain its dividend at the same rate for several years.

Source: Investor Presentation

Above is a sampling of the types of investments the company makes in target companies. Not only are the targets themselves from diverse industries and geographies, but PennantPark has a variety of instruments with which to make its investments.

First-lien secured debt is the preferred instrument given its favorable repayment position, but the company will do revolvers and equity injections as well. This is primarily a floating debt investment firm, however.

Growth Prospects

PennantPark has a track record of successful investments. However, its exposure to floating-rate instruments has caused its average portfolio yield to fall over the past several years. The yield on PennantPark’s portfolio peaked at just over 9% at the end of 2018, but the company faced declines in the subsequent years.

As PennantPark’s portfolio is comprised of floating rate instruments – mostly tied to LIBOR – it benefits when interest rates are increasing. Low rates over the past decade suppressed the company’s investment income, but the potential for higher rates is a future catalyst. To an extent, that has come true in 2022-2023 with rising rates.

The company reported its financial results for the first quarter of the fiscal year 2025 on February 11th, 2025. The company’s investment portfolio reached $2.2 billion, with net assets at $962.7 million and a GAAP net asset value per share of $11.34, reflecting a slight improvement of $0.03 per share from Q4 2024. The company’s regulatory debt-to-equity ratio stood at 1.4x, and its debt investments had a weighted average yield of 10.3%. PFLT achieved a net investment income of $30 million during this period, translating to $0.37 per share. Core net investment income was $0.33 per share.

Dividend Analysis

PennantPark pays a monthly distribution of $0.1025 per share. The stock has a very attractive annualized dividend yield of 13.4%. Even better, it makes monthly dividend payments, so investors receive their dividends more frequently than they would on a quarterly schedule.

Related: The 10 Highest Yielding Monthly Dividend Payers

However, it is also important to assess whether the dividend is sustainable. Abnormally high dividend yields could indicate that the dividend is in danger. We would expect a BDC to have a high yield, but the more than 13% yield is high even by BDC standards.

PennantPark Floating Rate also has a highly leveraged balance sheet and a payout ratio that often nears or exceeds 100% of earnings. While the company can probably sustain this model while the economy is running smoothly—as the stable dividend over the past decade has shown—it may collapse if the economy experiences a significant and prolonged downturn that causes its loans to underperform.

Despite an increase in 2023, shareholders should certainly not expect a distribution increase in the near term given how close the payout is to earnings today. PennantPark’s ability to grow its portfolio and average yields while controlling expenses will determine if the distribution is sustainable.

The company’s NII is expected to cover distributions this year, but just barely given that the projected payout ratio is 93%. Thus, we aren’t expecting a dividend cut, but add that if credit quality deteriorates, or if rates move down, PennantPark’s earnings will suffer and a dividend cut may become a reality. We note this hasn’t happened yet, but risks have risen for PennantPark given the way its portfolio is constructed with floating-rate instruments. Rates remain stable at the moment, but could be cut if growth slows. However, we don’t see the dividend as being at risk of being cut today. That said, it’s something investors should monitor continuously.

Final Thoughts

The old saying “high-risk, high-reward” seems to apply to PennantPark. It certainly has an attractive dividend yield on paper, but if interest rates move lower, there could be dividend concerns down the road.

If everything goes according to plan, the stock’s yield alone could generate nearly double-digit total returns on an annual basis.

The company faces an elevated level of risk. If PennantPark does not grow investment income, it could be forced to reduce the dividend at some point in the future, but we do not currently forecast that.

Still, investors should tread carefully, and only those with a higher risk tolerance should consider buying PennantPark despite the very high yield.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

Published on April 9th, 2025 by Nathan Parsh

Real estate investment trusts, or REITs, can offer highly attractive income yields. They are required to pay the majority of their profits as dividends to their shareholders.

This is why many retirees and other income investors like to invest in REITs, although not all REITs are equally well-liked. It can make sense to look for REITs outside of the US, as there are attractive and reliable dividend payers in other countries as well. This includes RioCan Real Estate Investment Trust (RIOCF), for example, which is a Canadian REIT.

RioCan REIT is a somewhat special REIT because it pays monthly dividends. While some other REITs also pay monthly dividends, most offer quarterly dividend payments to their owners.

There are currently just 76 monthly dividend stocks. You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

RioCan REIT offers a dividend yield of 7.5% at current prices, five times the S&P 500’s yield of 1.5%.

The above-average dividend yield and RioCan’s monthly dividend payments make the REIT worthy of research for income investors. This article will discuss the investment prospects of RioCan REIT in detail.

Business Overview

RioCan is a real estate investment trust that was founded in 1993 by Ed Sonshine, making it one of the first REITs in Canada overall. RioCan is headquartered in Toronto, Canada, and is one of the largest REITs in the country. The company currently has a market capitalization of $3.5 billion.

The REIT invests in commercial properties with a retail real estate focus. Still, the company has been diversifying its asset base in recent years, which is why RioCan describes its portfolio as retail-focused and increasingly mixed-use.

Some of the REIT’s headline numbers can be seen here:

Source: Investor Relations

RioCan focuses on large urban markets, where demand for properties is generally higher, and average rents are higher as well. Thanks to urbanization, people are moving into these markets, which is why the longer-term outlook for these properties is positive. More than half of its properties (by square footage) are located in the Greater Toronto Area.

RioCan owns nearly 180 properties, with about 32 million square feet of net leasable area. On top of that, there’s a huge pipeline of high-quality assets that RioCan plans to develop over time, although this will take years.

While retail REITs can be vulnerable to recessions and other macro shocks when they have a focus on (lower-quality) malls where tenants aren’t resilient, RioCan’s focus is different. Many of its tenants are necessity-based, i.e. drug stores, grocers, and so on. These tend to remain resilient during recessions, which is why there is little risk that RioCan’s tenants will default or run into trouble in a big way.

Under its RioCan Living brand, RioCan also offers residential real estate. Like in the commercial portfolio, the focus here is on high-class assets in the largest and fastest-growing markets. While average lease yields in the residential space are lower relative to commercial assets, residential real estate is very resilient; thus, the buildout of this business lessens some of the risk with RioCan.

In addition, rent growth in the residential space is higher than in many other real estate markets; thus, the residential business could allow for an improved organic growth rate in the future.

On February 18th, 2025, RioCan reported fourth-quarter results.

The company reported new leasing spread of 36.7%, boosting the blended leasing spread to 18.7%. Approximately 4.8 million square feet of leases were completed in 2024, with 1.5 million square feet dedicated to new leases. Committed occupancy was a record high 98.0%, while retail in-place occupancy was also a record at 98.7%. Strategic leasing, particularly in grocery and essential uses, resulted in new grocery store leases, further enhancing RioCan’s portfolio.

Growth Prospects

RioCan has grown its funds from operations-per-share at a solid pace in the past and targets 5% to 7% annual FFO-per-share growth in the coming years.

This funds from operations growth was made possible by several contributing factors. First, the company can increase its same-property rents over time:

Source: Investor Presentation

We see that leasing spreads have been in the 5% to 10% range per year in the recent past before surging last year. While leasing spreads will likely not be as high as the level seen over the past few years going forward, it can be expected that RioCan’s high-quality assets and underlying market growth will allow for ongoing solid lease rate growth at existing properties. Growing rents at existing properties allow for positive same-property net operating income growth, an essential driver for the company’s FFO.

Second, RioCan’s development pipeline and asset purchases should increase the company’s cash flows going forward. RioCan targets a payout ratio of 55% to 65% of its funds from operations via dividends, which means that considerable additional cash is retained. That cash can be used to finance the development of new projects, while using it for acquisitions is another possibility. It should be noted that this is a much lower payout ratio than many of the monthly dividend-paying stocks in our coverage universe.

RioCan’s healthy balance sheet also allows the REIT to finance some of its future investments via debt. The company’s capital recycling activity of selling non-core assets also generates cash that can be used to pay for the development of new and attractive properties in RioCan’s pipeline.

Dividend Analysis

RioCan REIT is seen primarily as an income investment like many other REITs. And rightfully so, as the company offers an attractive dividend yield of 7.5%, based on a monthly dividend payout of CAD$0.0965. At the current exchange rate to USD, shares of RioCan REIT are trading at USD$10.95.

With FFO of USD$1.13 for 2025 and projected dividends of USD$0.81, the payout ratio is projected to be 72%. This indicates that the dividend is relatively safe, as that is not a high payout ratio for a REIT, as many peers operate with much higher payout ratios.

When FFO keeps growing per share, even in a tough economic environment, there is little reason to worry about the dividend as coverage improves over time, all else equal.

The strong balance sheet further indicates that there is little reason to worry about a dividend cut. RioCan’s debt to assets stand at only 48%, which is relatively conservative for a REIT.

Final Thoughts

RioCan REIT is one of Canada’s largest and oldest REITs that operates with a retail-focused portfolio but that has been expanding in the mixed-use and residential space in recent years. The REIT offers an attractive dividend yield approaching 8%.

The focus on high-quality assets in large and growing markets means that RioCan’s portfolio is likely positioned well for the long run, as rents should continue to climb over time, as they have done in the past.

With its strong high-quality asset base and a well-covered dividend, monthly-paying RioCan REIT has merit as an income investment at current prices.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

Updated on April 7th, 2025 by Nathan Parsh

Gladstone Land Corporation (LAND) is a Real Estate Investment Trust (REIT). REITs are popular investments because they typically pay high dividend yields. Gladstone Land is one of 218 publicly traded REITs in the Sure Dividend database. You can see all 218 REITs here.

Gladstone Land’s dividend yield is 5.6%, which is generous for a REIT. The trust pays its dividends each month rather than each quarter, but the yield is still meaningfully higher than that of the S&P 500.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:

Gladstone Land is a unique REIT. While many REITs own physical buildings in various industries, such as retail or healthcare, Gladstone Land also owns farmland and vineyards.

This article will discuss the trust’s prospects and why it could be a valuable stock for diversification.

Business Overview

Gladstone Land Corporation is a real estate investment trust, or REIT, that specializes in owning and operating farmland in the U.S. The trust owns roughly 160 farms, comprising over 110,000 acres of farmable land. Gladstone’s business involves three different options available to farmers, all of which are done on a triple–net basis.

Related: Agriculture stocks list and analysis

The trust offers long–term sale-leaseback transactions, traditional leases of farmland, and outright purchases of farm properties.

Triple-net leases are appealing because the trust receives a steady stream of rental income while the tenants are responsible for real estate taxes, insurance, and maintenance expenses. Some of the trust’s leases also include a revenue-sharing component based on the crops harvested on the farms.

The REIT has enjoyed strong portfolio metrics such as occupancy and rental income growth.

Source: Investor Presentation

Gladstone Land’s investment focus is primarily on fresh produce, which it believes has superior long-term fundamentals.

Commodities tend to yield less for farmers, so lessors of farmland also tend to earn less. Gladstone Land has an advantage by focusing on the best plots of land for the most profitable crops.

U.S. farmland has proven to be a very strong investment over many years, characterized by stronger returns and lower volatility than other real estate investments and the S&P 500 Index.

Gladstone reported its fourth-quarter earnings on February 19th, 2025, with somewhat weak results. Funds from operations (FFO) were $0.09 per share, which missed estimates by $0.14 and were lower by $0.06, or 40%, from the prior year. Revenue fell 14% to $21.1 million, though this was $650K more than expected.

Operating expenses decreased 11.6% to $13.8 million. Net asset value per share declined to $4.15, down from $14.91 in the prior year. This decline was mainly due to lower valuations of certain farms.

Following fourth-quarter results, the FFO-per-share estimate is $0.54 for 2025.

Growth Prospects

Gladstone Land has positive long-term growth prospects because it stands to capitalize on two major long-term trends. The first catalyst is the growth of the global population, which is around 8.0 billion, and strong growth rates are expected to continue.

This is a long-term tailwind for those who own farmland, as a constantly increasing population will need ever-increasing amounts of food.

At the same time, there is only so much land for farming. In fact, the supply of available farmland is actually decreasing in the U.S., as large amounts of farmland are converted to suburban use each year, for things like housing, schools, and offices.

The combination of falling supply and increasing demand has caused farmland prices to rise steadily for many years. As the supply and demand trends are not expected to reverse any time soon, Gladstone Land continues to have a strong future growth outlook.

Source: Investor Presentation

Future growth will be achieved through growth at existing properties and by investing in new properties as there is plenty of room for future M&A activities.

The U.S. farmland industry is highly fragmented, with significant family ownership. This means the environment for continued acquisitions remains fertile for Gladstone Land. Gladstone Land continues to make meaningful acquisitions, as seen above, and we believe this is a steady source of growth for the trust moving forward.

This strategy has led to a higher share count over time. Acquisitions are key to the trust’s growth. Gladstone Land continues to pursue attractive acquisition opportunities, and there is little reason to think its growth will cease.

These fundamentals have led to long-term growth as measured by adjusted FFO, although growth has recently declined.

We expect an adjusted FFO/share growth of 2.0% per year over the next five years.

Dividend Analysis

Gladstone Land currently pays a monthly dividend of $0.0467 per share. The annualized payout of $0.56 per share represents a current dividend yield of 5.6%.

Gladstone Land has a good dividend track record. The company has paid consecutive monthly dividends since its initial public offering in January 2013 and has increased its dividend yearly.

Most importantly, the company’s adjusted funds from operations have typically covered dividend payouts quite easily. That said, this year’s expected payout ratio is above 100%, something investors will want to monitor.

Final Thoughts

The rising global population and falling supply of available farmland in the U.S. set up a very favorable future for Gladstone Land. Supply and demand factors support continued farmland investment. This means Gladstone Land should be able to continue growing its FFO and dividends over the long term.

The trust pays an attractive dividend yield that is approaching 6.0%, with the potential for dividend increases at a rate above inflation over time. Overall, Gladstone Land is an attractive monthly dividend stock for investors prioritizing income.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

Published on April 8th, 2025 by Nathan Parsh

Real estate investment trusts, or REITs, are often popular for those looking for generous dividend yields. REITs are required by law to pay out the vast majority of income in the form of dividends.

As a result, many REITs pay very high dividend yields. One example is Modiv Inc. (MDV), which currently offers a yield of 8.0%.

Some REITs, such as Modiv, even pay dividends monthly rather than quarterly or annually, which can appeal to investors looking for more consistent cash flows.

You can download our full Excel spreadsheet of all 76 monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

But investors shouldn’t focus solely on yield when assessing an investment opportunity. This article will analyze Modiv’s investment prospects in detail to determine whether investors should consider adding the name to their portfolio.

Business Overview

Modiv is a real estate investment trust that acquires, owns, and actively manages single-tenant net-lease industrial, retail, and office properties in the U.S.

Source: Investor Relations

Modiv has 43 properties in its portfolio that occupy 4.5 million square feet of aggregate leasable area.

Source: Investor Relations

The trust had its public listing in 2022. Prior to this, Modiv was one of the largest non-listed REITs to raise funds entirely via crowdfunding. The trust was the first real estate crowdfunding platform to be entirely investor-owned.

Growth Prospects

Modiv has only been a publicly traded entity for a short time, but management has aimed to acquire high-quality properties that can be added to the portfolio. This has led to a focus primarily on adding industrial properties. For example, Modiv added four industrial and one retail properties to the portfolio last year.

Despite a heavy acquisition spree, Modiv is still a rather small REIT as evident by its market capitalization of just $144 million. Even after a number of acquisitions, the total portfolio is slightly more than 40 properties.

It will take time and capital for the trust to become one of the larger names in its real estate area. REITs often use share issuances to gain the capital needed for acquisitions, but this comes at a cost for Modiv due to the stock’s high single-digit yield. Due to this hefty yield, the share count has remained relatively stable, though we do anticipate that the trust will use this avenue to help acquire attractive properties in the future.

Financing debt to fund transactions might also be difficult due to Modiv’s being one of the smaller players in its industry. Creditors may require a higher interest rate, which will likely act as a headwind.

The good news is that Modiv’s portfolio does offer some advantages. For example, the weighted average lease term is 113.8 years, which should provide the trust with predictable cash flows. Some of the trust’s tenant base can be considered high-quality as Modiv counts 3M Company (MMM), Costco Wholesale Corp. (COST), and Northrop Grumman Corp. (NOC) as three of its tenants.

Finally, the properties leased to tenants can be considered mission-critical for their business, meaning that they are needed for these companies to perform their basic functions. However, this doesn’t necessarily make Modiv recession-proof, as an economic downturn could impact the need for these facilities. We note that the trust has also not operated under adverse economic conditions as of yet.

Given the trust’s relative youth and the likelihood of share issuance to fund acquisitions, we believe that AFFO will remain stable through 2030.

Dividend & Valuation Analysis

The dividend is the most attractive part of Modiv from an investment angle in our view.

Modiv’s dividend currently yields 8.0%, more than five times the average yield of 1.5% for the S&P 500 Index. This is one of the higher yields the stock has traded with since Modiv went public.

Modiv’s projected payout ratio is 85% for 2025. This is a decent payout ratio, considering REITs typically have loftier payout ratios. While we believe that the dividend yield is safe for now, we would prefer a lengthier track record of payments before fully trusting the security of the trust’s dividend.

Given the payout ratio, we forecast that dividends will remain flat through 2030 unless AFFO grows faster than anticipated.

Shares of Modiv trade at $14.50 per share, giving the stock a price-to-AFFO ratio of just under 10.5. This is slightly above our five-year target valuation of 10.0 times AFFO. Reverting to our target valuation would subtract slightly from total annual returns moving forward. Overall, we project total annual returns in the mid-to-high single-digit range over the next five years, powered almost entirely by the stock’s dividend yield.

Final Thoughts

Modiv is a new name in real estate and has some interesting characteristics. The trust is motivated to grow, with acquisitions expanding its portfolio since becoming a publicly traded. The stock also offers one of the more generous dividend yields in our coverage universe. The dividend does look safe, but short-term headwinds, such as debt financing or a possible recession, could call that safety into question.

Considering that the dividend accounts for nearly all of our total return projection, we believe investors would be better off looking for more secure yields. For this reason, Modiv earns a hold recommendation at the current price.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

Updated on April 7th, 2025 by Nathan Parsh

The demographics of the United States are undergoing a seismic shift as Baby Boomers age. The Baby Boomers are a very large generational group, meaning the aging U.S. population is expected to result in higher demand for healthcare.

Many investors have expressed concern about how this will affect the economy. While some areas of the economy may feel pressure from this trend, one sector is almost certain to grow as a result: healthcare spending and healthcare Real Estate Investment Trusts (REITs for short).

LTC Properties (LTC) is poised to take advantage of this trend. As a premier owner-operator of healthcare properties, LTC is seeing the demand for its properties increase.

We believe LTC is an attractive investment for income investors. The stock has a high dividend yield of 6.8% and pays these dividends monthly. There are currently 76 monthly dividend stocks.

You can download our full list of all monthly dividend stocks (plus important financial metrics such as price-to-earnings ratios and dividend yields) by clicking on the link below:

While LTC Properties is poised to benefit from the aging population, that does not guarantee that the stock will be a strong performer moving forward; fundamental analysis is still required.

This article will analyze the investment prospects of LTC Properties in detail.

Business Overview

LTC Properties is a healthcare Real Estate Investment Trust that owns and operates skilled nursing facilities, assisted living facilities, and other healthcare properties. Its portfolio consists of approximately 50% assisted living and 50% skilled nursing properties. The REIT owns 190 investments in 25 states with 30 operating partners.

Source: Investor Presentation

Like other healthcare REITs, LTC benefits from a strong secular trend, namely the high growth of the population over 80. This growth results from the aging of the baby boomer’ generation and the steady rise of life expectancy thanks to sustained progress in medical sciences.

On February 24th, 2025,, LTC reported its financial results for the fourth quarter of fiscal 2024. Funds from operations (FFO) per share fell 8% compared to last year’s quarter, dropping from $0.72 to $0.66, and missed analysts’ expectations by $0.01. The decline in FFO per share was mainly due to impairment losses. Thanks to various asset sales, LTC improved its leverage ratio (Net Debt to EBITDA) from 4.7x to 4.3x.

The company is also facing challenges with deferred payments from some tenants. The bankruptcy of Senior Care Centers, which was the largest skilled nursing operator in Texas, in 2018 greatly reduced the REIT’s financials. Senior Care Centers was nearly 10% of annual revenue for LTC and was its fifth largest customer. 

Despite the pandemic easing, LTC’s business momentum remains weak, leading to management’s statement that it cannot issue guidance for 2025. Instead, full-year guidance will be distributed at a later date.

Growth Prospects

As mentioned, LTC Properties will benefit from the secular tailwind of the aging population in the United States. As the Baby Boomers age, the demand for skilled nursing and assisted living properties will increase materially. This benefits LTC Properties in two main ways.

First, more demand for its properties means that LTC can purchase more properties and expand its asset base. If this can be done conservatively – without diluting the REIT’s unitholders – this will boost the trust’s per-share funds from operations.

Second, LTC Properties will have a tangential benefit since its tenants (healthcare operators) will experience a higher demand for their services. Since their services are in high demand, this reduces the probability of default on their leases and also reduces LTC Properties’ tenant vacancy.

This REIT has been investing heavily to take advantage of this trend. Since 2010, LTC has put more than $1.5 billion to work in new real estate investments.

Thanks to the favorable underlying fundamentals of the healthcare sector, LTC has grown its funds from operations at a mid-single-digit CAGR in the last decade. Moreover, the REIT has most of its assets in the states with the highest projected increases in the 80+ population cohort over the next decade. On the other hand, growth has stalled in the last four years, partly due to Senior Care’s bankruptcy.

In addition, the REIT had been affected by the pandemic. We continue to expect a 2.0% growth in funds from operations over the next five years.

Source: Investor Presentation

One positive working in the REIT’s favor is that its properties are spread out across the U.S., which provides some measure of geographic diversity.

Dividend Analysis

The company pays a very attractive dividend yield of 6.8%. The dividend is paid monthly at a rate of $0.19 per share. This dividend rate has not been changed since October 2016.

We expect the company to earn an FFO of $2.70 per share for 2025. This will represent an FFO dividend payout ratio of ~85%. This would be high if the company was a normal corporation. However, since the company is a REIT, it is required by law to pay out a large percentage of its earnings. It’s, therefore, not unusual for REITs to have elevated FFO payout ratios.

Since the company is expected to increase FFO by about 2% annually for the next five years, we think a dividend raise can come if this FFO growth plays out. Before 2017, the company had increased its dividends at an annual compound rate of 15.8% over 14 years. Since 2017, however, FFO has been flat and decreasing, but we expect that to change somewhat.

However, given its past growth track record, we do not see the company increasing its dividend in the near future. This stock is for investors who are looking for income right now.

Final Thoughts

LTC has many of the characteristics of a solid dividend investment. The company has a strong 6.8% dividend yield (more than four times the average dividend yield of the S&P 500) and is very shareholder-friendly, paying these dividends monthly.

The trust will also benefit immensely from the secular trend of aging domestic populations. While FFO growth has been hard to come by in recent years, the stock appears undervalued, and its high dividend yield will further boost shareholder returns.

With all this in mind, LTC Properties seems attractive to income investors looking for exposure to the healthcare REIT space.

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Updated on April 7th, 2025 by Nathan Parsh

It is not hard to see why Business Development Companies—or BDCs—are popular investments among income investors. Considering that the S&P 500 Index currently has an average dividend yield of just 1.5%, these high-yield stocks are very appealing by comparison.

BDCs typically offer very high dividend yields. Gladstone Investment Corporation (GAIN) is a BDC with a current dividend yield of 7.8%, with occasional supplemental dividend payouts pushing the yield even higher.

GAIN is one of 76 monthly dividend stocks and one of a select few that pays its dividend each month rather than each quarter.

We have compiled a full list of all monthly dividend stocks. You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:

GAIN stock combines a high yield with monthly payouts, which on the surface is very attractive for income investors. But of course, investors should assess the quality of GAIN’s business, its future growth potential, and the sustainability of the dividend before buying shares.

This article will discuss GAIN’s business model and whether the high dividend yield is too good to be true.

Business Overview

GAIN is a Business Development Company that invests in small and medium privately held companies at an early stage of development. These companies usually have annual EBITDA in the range of $4 million to $15 million.

A rundown of GAIN’s investment process can be seen in the image below:

Source: Investor Presentation

The trust’s debt investments primarily consist of senior term loans, senior subordinated loans, and junior subordinated loans.

On the equity side, investments primarily consist of preferred or common stock or options to acquire stock. Equity investments are usually made in anticipation of a buyout or some form of recapitalization. They are made in the lower-middle market segment, meaning medium-sized companies. GAIN intends to split its portfolio between debt and equity investments by 75%- 25%.

GAIN makes money in two ways. First, when its investments are successful, it will realize capital gains. In addition, it receives interest and dividend income from securities held.

The company aims to invest in businesses that provide stable earnings and cash flow, which GAIN can use to pay operating expenses, meet its debt obligations, and distribute to shareholders with residual cash flow. Gladstone Investment released its Q3 2024 earnings on February 13th, 2025, reporting a total investment income of $21.4 million, a 7.4% drop from the previous year and 5.3% less than Q3 2024.

The company’s adjusted net investment income per share of $0.23 fell from $0.26 year over year and was down slightly from $0.24 on a sequential basis. However, its net asset value per share of $13.30 was up from $13.01 in the prior year and up $12.49 quarter over quarter. Gladstone’s net investment income per share is expected to see a modest decline this year compared to 2023.

Growth Prospects

GAIN’s investment strategy has been successful over the past several years. Over the last five years, its profits have grown at a mid-single-digit CAGR, which is not bad at all for such a high-yielding investment.

Gladstone Investment makes its money via spreads between the interest rates the company pays on cash that it borrows, and the interest rates the company receives on cash that it lends – the same principle as with banks. Despite declining interest rates in the last couple years, Gladstone Investment’s weighted average investment interest yield has held up very well; the company generated a yield of around 14% in the most recent quarter.

Higher loan losses caused by worsening economic conditions will cause a short-term headwind, but we do not see this impacting profitability in the long run.

In addition, the bulk of GAIN’s debt portfolio is variable rate, with a floor or minimum. This will help protect interest income in a high-rate environment. Given the company’s history of proven results, continued growth going forward will rely on the successful implementation of the investment strategy, which appears likely.

We expect 3% annual NII-per-share growth over the next five years, which we believe is a reasonable estimate of future growth given all of the above factors. GAIN shareholders benefit from the company’s strong investment performance, although whether this performance would hold up in a severe recession is a different question.

Competitive Advantages & Recession Performance

GAIN also has a durable competitive advantage due to its unique expertise in the lower middle market private debt and equity segment. Lower middle market companies are broadly defined as those with annual revenue between $5 million and $50 million.

This segment is generally too small for commercial banks to lend to, but too large for the small business representatives of retail banks to lend to. GAIN fills this gap. By putting money to work in this unloved group of private companies, GAIN can realize outsized returns compared to its larger commercial bank counterparts.

Listed below is GAIN’s net-investment-income-per-share and distribution per share both before, during and after the last recession:

• Net-investment-income-per-share 2007 – $0.67
• Net-investment-income-per-share 2008 – $0.79 (18% increase)
• Net-investment-income-per-share 2009 – $0.62 (22% decrease)
• Net-investment-income-per-share 2010 – $0.48 (23% decrease)

The company’s historical distributable net income during the Great Recession is shown below:

• Distributable-net-investment-income 2007 – $0.85
• Distributable-net-investment-income 2008 – $0.93 (9% increase)
• Distributable-net-investment-income 2009 – $0.96 (3% increase)
• Distributable-net-investment-income 2010 – $0.48 (50% decrease)

GAIN saw severe net investment income per share declines during the last recession, though the company returned to growth by 2011. Since then, results for this metric have varied from year to year.

In 2020, as the coronavirus pandemic sent the U.S. economy into recession, GAIN’s NII-per-share declined 23%, but the company could maintain its monthly dividend payments. The company then increased its dividend by 6.7% in October 2022.

Dividend Analysis

BDCs like GAIN can pay high dividends because of their favorable tax structure. GAIN qualifies as a regulated investment company. As such, it is generally not subject to income taxes, so long as it distributes taxable income to shareholders.

GAIN is an attractive stock for dividend investors. It currently pays a monthly dividend of $0.08 per share. On an annualized basis, the $0.96 per-share dividend represents a 7.8% current dividend yield.

The company has a long history of generating consistent dividend payments to shareholders.

Source: Investor Presentation

Not only that, but GAIN also provides supplemental dividends from undistributed capital gains and investment income. For example, on September 17th, 2024, the company declared a supplemental dividend payout of $0.70 per share. This is, of course, in addition to the regular monthly dividends paid.

GAIN has a pretty conservative capital structure, which helps secure the dividend. Gladstone Investment’s dividend payout ratio, relative to its net investment income, has been close to or above 100% for several years over the last decade.

The company is usually more profitable than the net investment income metric suggests. Gladstone Investment can also generate gains from its equity investments, which are not reflected in the net investment income metric.

Final Thoughts

GAIN’s strongest competitive advantage is its investment strategy, which is to make long-term investments in high-quality businesses, with strong management teams. This has produced strong results for GAIN since inception.

Plus, shareholders can expect GAIN to make supplemental dividend payments when its investment strategy performs well. Therefore, GAIN is a high dividend stock that has appeal for investors primarily concerned with income.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.