Category Monthly Dividend

Johnson & Johnson (JNJ) shares tumbled Tuesday after the health care giant failed to reach a settlement in liability cases related to its baby powder and other talc products.

The company said Tuesday that a judge denied its plan to settle thousands of legal claims alleging that its talc products cause ovarian cancer, adding that it will now return to the tort system to litigate and defeat the claims. The failed proposal involved using a “prepackaged bankruptcy plan” for a subsidiary, marking the third attempt the company has used the bankruptcy system in an effort to settle the claims.

Johnson & Johnson shares led S&P 500 decliners on Tuesday, falling 7.6% to close at $153.25. Despite today’s steep drop, Johnson & Johnson shares have gained 6% so far this year as of Tuesday’s close, handily outpacing the S&P 500’s 4% decline over the same period.

Below, we take a closer look at Johnson & Johnson’s weekly chart and use technical analysis to point out key price levels that investors may be watching.

Descending Channel in Focus

Since setting their record high in April 2022, Johnson & Johnson shares have traded lower within an orderly descending channel, tagging the pattern’s upper and lower trendlines on several occasions since that time.

More recently, the Dow component ran into selling pressure near the descending channel’s upper trendline, with the price falling below both the 50- and 200-week moving averages in Tuesday’s trading session.

Today’s drop also coincided with the relative strength index (RSI) plunging below the 50 threshold, signaling accelerating selling momentum.

Let’s identify key support and resistance levels on Johnson & Johnson’s chart worth watching.

Key Support Levels to Watch

Firstly, it’s worth keeping track of the $147 level. This area will likely provide support near a trendline that connects multiple peaks and troughs on the chart stretching between January 2018 and June last year.

Further selling could see a breakdown below the descending channel’s lower trendline and subsequent fall to around $137. Investors may be on the lookout for entry points in this region near a trendline that links the June 2017 peak with a range of comparable price action on the chart through to October 2020.

Major Resistance Levels to Monitor

Upswings in Johnson & Johnson shares could initially meet overhead resistance near the $167 level, currently just above the descending channel’s upper trendline. The stock may encounter selling pressure in this location near the March and September peaks, with the area also roughly aligning with trading activity extending back to February 2021.

Finally, a breakout above this level could see the shares climb to around $180. Investors may look for profit-taking opportunities here near the prominent August 2021 and December 2022 peaks, which both sit slightly below the stock’s record high.

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 1st, 2025 by Nathan Parsh

Many investors find high-yielding stocks appealing because of the income they produce. This is why Real Estate Investment Trusts, or REITs, are so popular among dividend growth investors. REITs are required to pass along the majority of their income in the form of dividends.

SL Green Realty Corp (SLG) is a good example of a high-yielding REIT. The stock currently pays a 5.3% yield and pays a monthly dividend. There are currently fewer than 80 monthly dividend stocks.

You can download our full list of monthly dividend stocks (along with price-to-earnings ratios, dividend yields, and payout ratios) by clicking the link below:

The currently high dividend yield offers a substantial boost to expected total returns, making SLG an appealing investment option for income investors.

This article will analyze the investment prospects of SL Green in further detail.

Business Overview

SL Green Realty is an integrated that is focused on acquiring, managing, and maximizing the value of Manhattan commercial properties. It is Manhattan’s largest office landlord, with a market capitalization of $4.2 billion, and currently owns 54 buildings totaling 31 million square feet.

On January 23rd, 2025, SLG reported financial results for the fourth quarter of fiscal year 2024.

Nevertheless, due to a large gain ($0.36 per share) from debt extinguishment, funds from operations (FFO) per share more than doubled over the prior year’s quarter, from a depressed level of $0.72 to $1.81. This beat analysts’ estimates by $0.34. That said, its same-store net operating income dropped 2.7% over the prior year’s quarter.

The pandemic severely hit SLG, which has led many tenants to adopt a work-from-home model.

Office space occupancy in New York remains near historic lows, creating an unprecedented tenant-friendly environment. The exceptionally high FFO per share of $8.11 in 2024 resulted from some non-recurring gains. We project that FFO will decline significantly to $5.40 in 2025.

The trust’s occupancy rate edged up sequentially from 90.1% to 92.5% in Q4. Overall, occupancy rates are well below their pre-pandemic high.

Source: Investor Presentation

Office REITs have been hit especially hard in this environment as employees are working more from home relative to pre-pandemic levels, which has hurt demand for office REITs. This will be something investors will want to monitor as higher occupancy rates generally lead to improved fundamentals.

Growth Prospects

SLG benefits from long-term rental rate growth in Manhattan, one of the most popular commercial areas in the world. The REIT pursues growth by acquiring attractive properties and raising rental rates in its existing properties.

It also signs multi-year contracts (7-15 years) with its tenants to secure reliable cash flows. However, due to the ongoing downturn in the office REIT industry, SLG has seen its funds from operations per share grow at just 2.7% over the last decade.

Due to the pandemic’s impact on its business, the REIT’s funds from operations decreased in the three years prior to 2024. The pandemic has subsided, but the REIT has not begun to recover from the work-from-home trend yet.

Due to a high comparison base formed by the non-recurring gain from debt extinguishment this year, we expect FFO per share to increase at an annual rate of just 1% over the next five years.

Dividend and Valuation Analysis

SLG pays dividends monthly. At a current monthly rate of $0.2575 per share, SL Green has an annualized dividend payout of $3.09 per share, representing a 5.3% current yield.

While the dividend has been reduced recently, it looks sustainable at the current level, even considering interest rate headwinds and the still ongoing headwinds from increased working from home for this office REIT.

We expect SL Green to produce $5.40 of funds from operations per share in 2025, giving the stock a projected dividend payout ratio of 57% for the year. This is a relatively low payout ratio for a REIT. The trust has seemed to manage its business well, and management is experienced.

SLG has a decent balance sheet and a healthy BBB credit rating. It can also maintain its 5%+ dividend, which is well covered by cash flows. Thus, SLG is suitable for income-oriented investors who can patiently wait for the REIT’s recovery from the pandemic.

On the other hand, we note that SLG issued a large amount of debt to buy new properties last year and carries $4.2 billion of long-term debt on its balance sheet, which is more than 100% of the stock’s current market capitalization. We will continue to monitor the debt situation closely.

Final Thoughts

SL Green is a high-yielding REIT that is facing headwinds to its business. The COVID-19 pandemic caused increased working from home, which remains a headwind for Manhattan office occupancy rates.

On the other hand, SL Green also has some long-term growth potential given that it is concentrated in a high-demand area of New York City and since it continues to upgrade its portfolio over time via regular transactions.

The high dividend yield could allow for highly compelling total returns going forward. However, SL Green can’t be described as an especially low-risk stock due to the aforementioned headwinds for its business.

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 1st, 2025 by Nathan Parsh

Business Development Companies – or BDCs, for short – can be a great source of current yield for income investors.

Main Street Capital Corporation (MAIN) is a great example of this. MAIN stock has a current dividend yield of 5.2%, but the yield grows to 7.3% when factoring in the company’s special dividends.

Better yet, Main Street Capital stock pays monthly dividends.

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:

The stock’s high dividend yield and monthly payments make it a solid choice for income investors.

Main Street Capital’s business appears to be on solid footing. This article will discuss the investment prospects of Main Street Capital Corporation in detail.

Business Overview

Main Street Capital Corporation is a Business Development Company (BDC). Our full list is here.

The company operates as a debt and equity investor for lower middle market companies (those with $10-$150 million of annual revenues) seeking to transform their capital structures.

BDCs can invest in both debt and equity, which gives them an advantage over companies that invest in private debt or private equity alone.

Main Street Capital Corporation also invests in the private debt of middle-market companies (not lower middle-market companies) and has a budding asset management advisory business.

Source: Investor Presentation

Both transaction type and geography highly diversify holdings. By transaction type, the BDC acquires most of its deals via recapitalization and leveraged buyouts.

Main Street Capital Corporation also has a very high degree of industry diversification.

At the end of Q4 2024, Main Street had interests in 84 lower-middle-market companies (valued at $2.5 billion), 15 middle-market companies ($155 million), and 91 private loan investments ($1.9 billion).

Growth Prospects

Main Street Capital Corporation’s growth prospects come from its unique strategy of driving investment returns. In turn, the BDC sustains its high monthly dividend payout, and grows it over time.

On November 4th, 2024, Main Street Capital announced a 2.0% dividend increase to $0.25 per share paid monthly. The current annualized dividend payout is $3.00 per share.

On February 27th, 2025, Main Street Capital reported fourth-quarter and full-year results. The quarter’s net investment income increased to 0.2% to $90.4 million, compared to $90.1 million in Q4 2023. Net investment income per share of $1.02 declined 5% year-over-year.

Distributable net investment income per share totaled $1.08, which was down 4% from $1.12 in Q4 2023. Main Street’s net asset value ended the quarter at $29.20, an 8.4% increase from the end of the previous year.

Main Street has established a solid record in the past decade, with a nine-year and five-year net investment income per share CAGR of 7.2% and 10.3%, respectively.

We expect MAIN to grow its net investment income per share by 1% per year over the next five years.

Dividend Analysis

MAIN pays a monthly dividend. The company has also paid substantial supplemental dividends on various occasions. The most recent example was a supplemental payout of $0.30 per share that was declared on February 25th, 2025.

These are one-time special dividends, but we expect the company to continue this tradition of special dividends when distributable NII per share significantly exceeds its monthly dividend payouts.

The supplemental dividends have been a result of generating realized gains from Main Street’s equity investments.

Source: Investor Presentation

The dividend appears secure. For example, based on NII-per-share the company easily covered its dividend every year since 2021.

We expect MAIN to generate NII per share of $4.00 in 2025. With a forward annualized dividend payout of $3.00 per share, MAIN has an expected dividend payout ratio of approximately 75% for this year.

Its regular dividend growth and occasional special dividends imply that its dividend is in good shape.

To avoid corporate income tax as a BDC, Main Street must distribute at least 90% of its taxable income, leaving little wiggle room to fund growth.

While this strategy has worked extremely well since the last recession, we do caution that this method of funding becomes substantially less attractive (and more expensive) in weaker economic periods.

The main threat to the dividend is a recession, which would force many borrowers to default and cause interest rates on floating-rate loans to plummet.

As a result, earnings per share would likely decline rapidly, forcing the company to right-size its dividend. For now, however, the dividend appears to be safe.

Final Thoughts

Although Main Street Capital Corporation is off the radar for most dividend growth investors, this BDC has a strong history of delivering substantial shareholder returns.

The firm’s strong track record of superior investment management and expertise in the lower middle market segment gives it a strong competitive advantage in the private equity and debt industry.

Further, Main Street Capital Corporation is a shareholder-friendly BDC with a high yield and monthly payouts.

Further Reading: 20 Highest-Yielding BDCs

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 1st, 2025 by Nathan Parsh

Investors are likely familiar with the standard real estate investment trusts, or REITs. Most REITs own physical real estate, lease the properties to tenants, and derive rental income, which is used to pay dividends.

However, investors may not be as familiar with a different set of REITs: mortgage REITs. These REITs do not own physical properties but rather buy mortgage securities.

Mortgage REITs typically have much higher dividend yields than standard REITs, but this does not necessarily make them better investments.

For example, Orchid Island Capital (ORC) is a mortgage REIT with an extremely high dividend yield of more than 19%. Orchid Island pays dividends each month, which makes it a compelling combination of a high yield and monthly dividend payments.

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:

Orchid Island has an exceptionally high dividend yield and is one of the highest-yielding stocks that we cover.

However, the outlook for mortgage REITs is challenged, and Orchid Island’s dividend yield may still not be sustainable even after multiple dividend cuts in the past several years.

This article will discuss why income investors should not be lured by Orchid Island’s extremely high dividend yield.

Business Overview

Whereas traditional REITs own a portfolio of properties, mortgage REITs are purely financial entities. Orchid Island is an externally managed specialty finance REIT That invests in residential mortgage-backed securities, either pass-through or structured agency RMBSs.

An RMBS is a debt instrument that collects cash flows, based on residential loans such as mortgages, home-equity loans, and subprime mortgages. Mortgage-backed securities are an investment product representing a basket of pooled loans.

As investors saw first-hand during the 2008 financial crisis, mortgage-backed securities can be highly volatile and risky. That said, mortgage REITs were among the biggest winners as interest rates fell during the Great Recession’s aftermath.

Growth Prospects

Mortgage REITs make money by borrowing at short-term rates, lending at long-term rates, and pocketing the difference, or the spread between the two.

When the spread between short-term rates and long-term rates compresses, profitability erodes. This is why mortgage REITs can be dangerous if short-term interest rates are about to increase.

Source: Investor Presentation

Orchid Island has not been able to produce meaningful growth in the past several years. The trust has experienced extreme earnings volatility over the past several years, with a net loss in several years in the past decade and multiple years in which the trust barely generated a profit.

Orchid Island’s inability to perform well with interest rates at zero makes it unlikely that the trust can regain its footing in the current higher interest rate environment.

Dividend Analysis

Orchid Island’s eroding fundamentals have caused a significant drop in its dividend payments to shareholders in the past several years.

Orchid Island currently pays a monthly dividend of $0.12 per share, but this is still below the split-adjusted monthly dividend it paid before 2021.

Source: Investor Presentation

Looking back further, Orchid Island’s monthly dividend payout has been reduced multiple times since then.

The trust’s current dividend payout is $1.44 per share on an annualized basis. Based on its recent closing price, the stock offers a 19.3% dividend yield. This is a huge dividend yield, considering the average dividend yield of the S&P 500 Index is currently 1.3%.

However, there are too many red flags for Orchid Island to be considered an attractive investment, including the trust’s multiple dividend cuts over the past few years and inconsistent profitability in that time. With an expected payout ratio of 178% for 2025, the risk for further dividend cuts is high.

In addition, Orchid Island has issued shares rapidly in recent years. Its share count has skyrocketed since 2013, but this comes at a steep cost to shareholders in the form of heavy dilution.

With a volatile dividend history, Orchid Island is not an appealing choice for investors looking for steady dividend payouts from year to year.

Orchid Island stock appears to be the definition of a yield trap. The stock has badly lagged behind the S&P 500 Index, and we believe this underperformance will continue.

Final Thoughts

Sky-high dividend yields can be deceiving. Orchid Island’s 19.3% dividend yield is enticing, but this stock has all the makings of a yield trap.

The trust has a sizable amount of debt on the balance sheet and is issuing shares at an alarming pace. The outlook for mortgage REITs has deteriorated as the Federal Reserve continues to hold interest rates high. The trust’s most recent Q4 results show a significant decline in net interest income and per-share book value.

Orchid Island cut its dividend several times in the past few years due to poor fundamental performance. Investors should tread very carefully with mortgage REITs like Orchid Island. As a result, income investors would be better served by buying higher-quality dividend stocks with more sustainable payouts.

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 1st, 2025 by Nathan Parsh

The real estate industry is a great place for investors seeking yield. Intuitively, this is not surprising. Real estate owners collect predictable income from their tenants. Thus, the real estate business is qualitatively geared toward owners wanting to collect periodic income.

One of the best ways for investors to gain exposure to the real estate industry is through Real estate Investment Trusts – or REITs.

STAG Industrial (STAG) is a commercial REIT that leases single-tenant industrial properties throughout the US. The stock’s current dividend yield of 4.1% is more than triple the 1.3% average yield in the S&P 500.

Moreover, STAG Industrial pays monthly dividends (rather than quarterly). This is highly beneficial for retirees and other investors who rely on their dividend income to cover life’s expenses. 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:

Thanks to its high yield and its monthly dividend payments, STAG Industrial has the potential to be a great investment for income investors, particularly since the trust has a long runway of growth ahead.

Business Overview

STAG Industrial is a Real Estate Investment Trust (REIT). It owns and operates industrial real estate. It is focused on single-tenant industrial properties and has nearly 600 buildings across 41 states in the United States. This REIT’s focus on single-tenant properties might create higher risk compared to multi-tenant properties, as the former are either fully occupied or completely vacant.

Source: Investor Presentation

STAG Industrial executes a deep quantitative and qualitative analysis of its tenants. As a result, it has incurred credit losses that have been less than 0.1% of its revenues since its IPO.

The trust typically does business with established tenants to reduce risk. Moreover, STAG Industrial has limited exposure to any specific tenant. STAG has an added advantage thanks to its exposure to e-commerce properties, which gives it access to a key growth segment in real estate.

The penetration rate of e-commerce is expected to grow from 14% in 2021 to 30% by 2030. This secular shift in consumer behavior will provide a strong tailwind to STAG’s business for the next several years.

STAG is currently facing a headwind due to the rise of interest rates. However, the effect of the higher interest rates on the REIT has been limited so far, thanks to the high credit profile of its tenants.

Some REITs view single-tenant properties as risky because they are binary propositions; they are either fully leased or empty. However, focusing on single-tenant properties creates mispriced assets, which STAG can add to its portfolio at attractive valuations. This is central to STAG’s strategy and is a key differentiator among competitors.

STAG’s addressable market is in excess of $1 trillion, a significant portion of which comprises single-tenant properties. The sector is highly fragmented, meaning that no particular entity would have a considerable scale advantage. This is why STAG believes it can purchase mispriced assets.

STAG finds this to be an attractive mix of assets. Combined with relatively low capex and high retention rates, it has created a strong portfolio of industrial real estate.

STAG’s tenant profile reflects the vast diversification it has built into its portfolio. This diversification greatly mitigates the risk of owning single-tenant properties. STAG has done a nice job of taking a relatively risky sector of real estate—single-tenant properties—and building a portfolio that greatly reduces that risk.

Growth Prospects

STAG Industrial’s growth since its IPO in 2011 has been impressive from both a fundamental and an investor return perspective. Fortunately, this real estate trust still has ample room for future growth.

The trust reported strong growth in its financial and operating results for Q4 2024 on February 12th, 2025.

The trust achieved net income of $0.28 per share, up from $0.23 in Q4 2023, with total net income rising to $50.9 million. Core FFO per share grew 5% to $0.58 for the quarter, while Cash NOI increased by 8.6% to $155.5 million. Same-store cash NOI improved 4.4% to $139.2 million. This growth was driven by the sustained strength of the REIT’s tenants and hikes in rent rates.

Source: Investor Presentation

The trust made significant moves during the quarter, acquiring 15 buildings totaling 2.4 million square feet for $293.7  million and selling two buildings for $29.4 million. STAG’s portfolio maintained a high occupancy rate of 96.5%, though this was a 60% basis point decline year-over-year. The operating portfolio occupancy rate was slightly higher at 97.5%. New leases covered 279K square feet with significant rent growth, and 76.9% of expiring leases were renewed.

New leases for the year covered 2.86 million square feet with cash rent growth of more than 28% for new and renewed leases, while 76.6 of expiring leases were renewed.

Moody’s reaffirmed STAG’s Baa3 rating and upgraded its outlook from Stable to Positive in June 2024, demonstrating the trust’s improving fundamentals.

Dividend Analysis

STAG is a high-dividend REIT. Its dividend is obviously very important, as investors generally own REITs for their payouts. STAG’s payout has grown yearly since its IPO and is currently $1.49 per share. However, dividend growth since 2015 has been minimal, averaging only 1.0% yearly.

We do not see material growth in the dividend moving forward. Still, STAG’s payout ratio, which currently stands at 60% of expected FFO-per-share for 2025, provides a meaningful margin of safety for the dividend. We expect STAG to continue raising its dividend very slowly for the foreseeable future to avoid ending up in a tight spot like it did in the earlier half of the trailing decade.

The payout ratio is down significantly from its 2016 level of near 100%, as STAG has made a concerted effort to reduce the vulnerability of its dividend. However, that effort is still underway, and hence, we see meaningful payout growth as unlikely in the near term.

The current payout ratio, combined with our expectations for mid-single-digit FFO-per-share growth in the coming years, should gradually improve the safety of STAG’s dividend. The trust has also made divestitures when pricing is favorable, an option it could use to temporarily cover dividend shortfalls. In short, we view the REIT’s 4.1% dividend yield as safe for the foreseeable future.

Final Thoughts

STAG Industrial has two characteristics that immediately appeal to income investors: a 4.1% dividend yield and regular monthly dividend payments. In addition, REIT has promising growth prospects and are reasonably valued. As a result, it can offer a total average annual return of about 10% over the next five years.

We like the trust’s strategy for long-term growth in a real estate sector that investors sometimes ignore due to its perceived riskiness. Thus, STAG Industrial is a good potential addition to a high-yield portfolio, thanks to its high dividend yield, monthly dividend payments, and leadership in the single-tenant industrial real estate market. Overall, STAG Industrial seems an attractive candidate for income-oriented investors, especially in the highly inflationary investing environment prevailing right now..

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 March 29th, 2025 by Nathan Parsh

Investors interested in owning stocks for income can easily be drawn to Real Estate Investment Trusts, or REITs.

These stocks offer investors the chance to own a piece of a trust that leases out properties and essentially passes all of its earnings back to shareholders as dividends.

Realty Income (O) has a 5.7% dividend yield and an extraordinary dividend history. It also pays its dividends monthly instead of quarterly.

There are ~75 companies that pay monthly dividends. 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:

This article will discuss Realty’s business model, its growth prospects, and its dividend analysis in detail.

Business Overview

Realty Income is a retail-focused Real Estate Investment Trust that has earned a sterling reputation for its dividend growth history.

Part of its appeal certainly is not only in its actual payout history, but the fact that these payouts are made monthly instead of quarterly.

Indeed, Realty Income has declared nearly 660 consecutive monthly dividends, an unprecedented track record among monthly dividend stocks.

Since its initial public offering in 1994, Realty Income has increased its dividend 130 times. It is a member of the Dividend Aristocrats.

The company’s long history of dividend payments and increases is due to its high-quality business model and diversified property portfolio.

The trust employs a highly scalable business model, enabling it to grow into a massive landlord of more than 15,600 properties.

Source: Investor Presentation

It owns retail properties that are not part of a wider retail development (such as a mall) but instead are standalone properties.

This means the properties are viable for many tenants, including government, healthcare, and entertainment services.

The results of this model speak for themselves: 13.4% compound average annual total return since the 1994 listing on the New York Stock Exchange, a lower beta value (a measure of stock volatility) than the S&P 500 in the same time period, and positive adjusted funds from operations growth in 28 out of the past 29 years.

On February 24th, 2025, Realty Income reported second-quarter results. For the quarter, net income available to common stockholders was $199.6 million, or $0.23 per share. Adjusted funds from operations (AFFO) per share increased by 4.0% to $1.05 compared to the same quarter in 2023.

For the year, net income available to common stockholders was $847.9 million, or $0.98 per share. Adjusted funds from operations (AFFO) per share increased by 4.8% to $4.19.

Growth Prospects

Realty Income’s growth has been quite consistent; the trust has a long history of growing its asset base and average rent, collectively driving its FFO-per-share growth.

We expect compound annual growth of FFO-per-share of approximately 2.7% over the next five years for Realty Income.

Source: Investor Presentation

This growth will be achieved through property acquisitions and rental increases on existing properties. The company invested $1.7 billion during the fourth quarter at an initial weighted average cash yield of 7.1% and achieved a rent recapture rate of 107.4% on re-leased properties.

In 2024, the company invested $3.9 billion at an initial weighted average cash yield of 7.4% and had a rent recapture rate of 105.6% on released properties.

Realty Income expects to increase its investments in international markets moving forward. It made its first deal in the UK in 2019 and plans to do more such deals when it finds attractive targets. Since its first deal in the UK, international markets have added almost 30% to the trust’s sourcing volume.

These acquisitions and expansion overseas will help drive profits in the long run. However, they may not pay off immediately, as the issuance of new shares dilutes shareholders in the near term.

Realty Income’s properties are relatively Amazon-proof, as the REIT owns standalone properties that can be used as cinemas, fitness centers, dollar stores, and more.

Realty Income’s properties are in demand and will likely remain so. At the end of last year, the occupancy rate across the portfolio was 98.7%, and tenants generally report high rent coverage ratios.

Dividend Analysis

Realty Income’s dividend history is second to none in the world of REITs. Since the company came public in 1994, its dividend has been increased over 110 times, and the payout has increased by roughly 4% per year on average.

The dividend is also safe, considering not only this extraordinary history of boosting the payout throughout all types of economic conditions but also because the trust pays out a very reasonable 75% of adjusted FFO.

REITs are required to pay out most of their income in the form of dividends, so Realty Income’s dividend payout ratio will never be low. We see ~80% of FFO as an acceptable payout ratio for a REIT, particularly for one that is growing FFO-per-share very consistently.

That means that even if FFO-per-share were to go flat for some period of time, the dividend would still be sustainable. We expect the payout to continue rising in the mid-single digits annually, as it has for many years.

Realty Income is able to maintain this record not only because its business is fundamentally superior but also because its capital structure is conservative.

Final Thoughts

REITs are favorites among dividend investors because they pay out the vast majority of their earnings to shareholders via dividends, which generally leads to high yields.

Realty Income’s 5.7% current yield is not the highest in the REIT universe, but it is still pretty attractive, especially considering the extremely consistent dividend growth.

For income investors looking for a yield more than twice as high as the yield of the broader market and dividend safety that is not a concern, Realty Income fits the bill. Realty Income is not growing fast, but growth has been consistent.

The combination of a solid dividend yield and expected future dividend increases is attractive.

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 March 31st, 2025 by Nathan Parsh

Horizon Technology Finance (HRZN) has a current dividend yield of more than 14%, which makes it extremely attractive at first glance. The S&P 500 Index, on average, offers just a 1.3% dividend yield.

Horizon has a very high dividend yield and makes its payments monthly. It is one of only 75 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:

Horizon’s yield is near the top of the list of monthly dividend stocks, a group that includes many other high-yield securities, such as REITs and other Business Development Companies.

This article will discuss Horizon’s business model and whether it is an appealing stock for income investors.

Business Overview

Horizon Technology Finance is a Business Development Company, or BDC. These are companies that make investments in privately held companies.

Horizon makes its returns via investments in companies through directly originated senior secured loans and, to a smaller extent, capital appreciation potential through warrants.

It provides debt financing to early-stage companies across three industry groups:

• Life Science (40% of portfolio)
• Technology (34% of portfolio)
• Healthcare Information & Services (16% of portfolio)
• Sustainability (10% of portfolio)

Life science companies primarily include biotechnology, medical devices, and specialty pharmaceuticals.

Technology investments are typically made in cloud computing, wireless communications, cyber security, data analytics and storage, internet, software, and more.

Healthcare information includes diagnostics, medical records, and patient management software providers.

A breakdown of Horizon’s portfolio is as follows:

Source: Investor Presentation

The portfolio is heavily weighted in the life science and technology groups, but even within those groups, industries are highly diversified.

In addition, the company’s portfolio includes a favorable mix of stable and growing companies, respectively, to provide a balance of growth and safety in its lending.

Horizon views prospective investments through a long-term lens. It invests in companies that have growth potential, strong management teams, superior technology, and/or valuable intellectual property.

Growth Prospects

Management reassured investors of dividend stability going forward by declaring its three forward monthly dividends at a rate of $0.11. Based on Horizon’s current portfolio composition, we forecast net investment income for 2025 at $1.32 per share.

Horizon also has a growing and enormous addressable market.

Source: Investor Presentation

Horizon sees a $31 billion addressable market against its current portfolio. This should provide a wealth of opportunities for Horizon, and it can select the best opportunities in the coming years.

Dividend Analysis

Horizon currently pays a monthly dividend of $0.11 per share. The annualized dividend payout of $1.32 represents a yield of 14%, based on Horizon’s current price. This doesn’t include special dividends, of which the company has distributed $0.05 per share in each of the last five years.

This demonstrates why BDCs are a popular investment for income investors, particularly one that has a yield as high as Horizon.

However, abnormally high dividend payouts can be reduced if the issuing company encounters financial difficulty. That said, Horizon still offers a high yield, which could be very appealing for income investors.

Net investment income for 2025 is expected to reach $1.32 per share, which equates to a payout ratio of 100%. The payout ratio has improved notably since 2020, when the payout ratio exceeded 100% of NII-per-share. This was due to the coronavirus pandemic causing a decline in the portfolio results.

If investment income declines in the future, the dividend would be in danger of a reduction. On the other hand, if the U.S. economy avoids a recession and Horizon continues to see satisfactory investment spreads, the dividend could be maintained and even grow. The last increase occurred for the first payment of 2023.

Related: 3 Reasons Why Companies Cut Their Dividends (With Examples)

The company’s competitive advantage lies in its expertise in identifying the most promising companies in risky sectors, which requires professional knowledge and experience beyond finance. So far, this perk has stood solid, as the company’s results have outperformed the rest of its peers, many of which were forced to cut their distribution due to increased market pressure.

In an optimal scenario, Horizon could continue to pay its distribution of $1.32 annually for the foreseeable future. However, any BDC has an increased risk of cutting its distribution, given that it is required to distribute essentially all of its income. Should Horizon’s financial results deteriorate, a dividend cut is possible, as in 2016.

Final Thoughts

High dividend yields are often a sign of elevated risk. In this case, there is a considerable risk that Horizon’s dividend could be reduced in the future if its investment income deteriorated, which would likely occur in a deep recession.

However, Horizon’s outlook is generally positive. It invests in technology and healthcare, two stable industries with growth potential. The company’s underwriting principles offer high yields and generally safe lending conditions, which support net investment income and, therefore, the dividend.

Horizon could be an attractive high-dividend stock for income investors thanks to its 14% dividend yield, with the acknowledgment that the dividend could be at risk in the event of a business downturn.

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 March 31st, 2025 by Nathan Parsh

Monthly dividend stocks are great candidates for income-oriented investors’ portfolios. They distribute their dividends monthly and offer a smoother income stream.

In addition, many of these stocks are laser-focused on maximizing their distributions to their shareholders.

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

In this article, we will analyze the prospects of Fortitude Gold Corporation (FTCO), a high-quality monthly dividend stock.

Business Overview

Fortitude Gold is a U.S.-based gold producer that generates ~95% of its revenue from gold and targets projects with low operating costs, high returns on capital, and wide margins.

The company targets high-grade gold open pit heap leach operations averaging one gram per tonne of gold or greater. Its property portfolio currently consists of 100% ownership in seven high-grade gold properties.

All seven properties are within an approximate 30-mile radius of one another within the prolific Walker Lane Mineral Belt. The company generated over $37 million in revenues last year, most of which were from gold.

Source: Investor Presentation

On February 25th, 2025, Fortitude Gold posted its Q4 results for the period ending December 31st, 2024. Revenue for the year was $37.3 million, 49% lower than last year.

The revenue decline was driven by a 58% drop in the number of ounces of gold sold. Silver sales volumes fell 22%, even as prices increased 18% to $27.56 per ounce.

As Fortitude Gold generates essentially all of its revenue from gold, it is obviously highly sensitive to the cycles of the price of gold. The average price of gold increased 22% year-over-year to $2,371 per ounce, down slightly from an all-time high of $2,500 per ounce.

Moving to the bottom line, the company recorded a mine gross profit of $18.3 million compared to $41.2 million in 2023 due to lower net sales.

Therefore, the company reported a net loss of $2 million versus a net income of $17 million in 2023. On a per-share basis, net loss was $0.08 compared to net income of $0.71 for the prior period.

We believe the company’s EPS power potential is about $0.60 for 2025. However, EPS in FY2024 could be lower at $0.48.

Growth Prospects

Fortitude Gold’s outlook has been clouded as it awaits regulatory agency permits to mine deeper in the Isabella Pearl deposit.

Additionally, the company is still awaiting permit approval to build its second mine, its County Line project.

Source: Investor Presentation

Therefore, FTCO stock is a high-risk, high-reward situation. On one hand, rising gold prices and improved operating processes can significantly enhance the company’s financial performance amid higher profit margins.

On the other hand, declining gold prices and rising expenses, could negatively affect profitability. Furthermore, high gold prices weren’t enough to help the company turn a profit in 2023.

On the bright side, inflation has persisted, and with the Federal Reserve unlikely to lower interest rates in the near-term, gold prices are likely to remain high.

This bodes well for the price of gold, and by extension FTCO, for the foreseeable future.

Competitive Advantages & Recession Performance

Gold producers are infamous for their cyclicality, which is caused by the wild swings in the price of gold. Fortitude Gold is inevitably vulnerable to these cycles,but it is an above-average gold producer thanks to some key characteristics.

Its properties also feature exceptionally high-ore grade and near-surface deposits, resulting in low-cost operations relative to its peers.

Additionally, the balance sheet is pristine, with $122.1 million in total assets against just $14 million in total liabilities, resulting in a strong equity value of $108.1 million.

Moreover, Fortitude Gold enjoys another key competitive advantage: namely, the exceptional grade of Isabella Pearl Mine.

As a result, Fortitude Gold is much more profitable than most of its peers at a given gold price and is one of the most resilient gold producers to price downturns.

It is also worth noting that the price of gold often rises during recessions, as the precious metal is considered a safe haven during selloffs of the stock market. This means that Fortitude Gold is likely to perform well during recessions.

Dividend Analysis

Income investors should avoid gold stocks in principle due to the high cyclicality that results from the swings of the price of gold. It is not accidental that there are no gold producers in the list of Dividend Aristocrats.

On the other hand, Fortitude Gold has some attractive features for dividend investors. It offers a monthly dividend of $0.04, corresponding to an annualized dividend yield of 9.8%. This is the highest dividend yield in the group of precious metals producers.

In addition, Fortitude Gold’s expected payout ratio for the year is 80%, which is not ideal but reasonable given the asset’s high quality.

Furthermore, the gold producer’s healthy balance sheet means that the dividend is likely to remain safe for the foreseeable future.

Conversely, investors should always be aware of commodity producers’ vulnerability to commodity cycles.

If the price of gold enters a prolonged downturn at some point in the future, Fortitude Gold’s dividend is likely to come under pressure. Gold producers need to spend significant amounts on capital expenses to replenish their reserves.

Final Thoughts

Gold producers are highly cyclical and should, therefore, be avoided by most income investors, who cannot stomach a volatile stock price and a potential dividend cut.

While Fortitude Gold is highly sensitive to the cycles of the gold price, it has some unique advantages. Its strong balance sheet makes it much easier to endure the downturns of this business.

The stock also offers the highest dividend yield in its peer group and pays its dividend monthly. Therefore, it is an appealing (albeit risky) stock for income investors who want to gain exposure to gold.

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 March 31st, 2025 by Nathan Parsh

The industrial aerospace industry is not well-known for high dividends or even dividend growth in the U.S. and Canada. Exchange Income Corporation (EIFZF) is a unique Canadian business that acquires companies in the Aerospace, Aviation, and Manufacturing sectors.

Exchange Income’s acquisition and growth strategy have allowed the company to reward shareholders with regular dividend increases since its IPO. Combined with the high dividend yield of more than 5%, this stock should pique the interest of any income investor.

Beyond its high dividend yield, the stock is also quite unique because it pays monthly dividends instead of the traditional quarterly distribution schedule. Monthly dividend payments are highly superior for investors that need to budget around their dividend payments (such as retirees).

There are currently only 76  monthly dividend stocks. You can see the full list of monthly dividend stocks (along with important financial metrics such as dividend yields and price-to-earnings ratios) by clicking on the link below:

Exchange Income Corporation’s high dividend yield and monthly dividend payments are two big reasons why this company stands out to prospective investors.

This is especially true considering the average S&P 500 Index yields just 1.3% right now. By comparison, Exchange Income yields more than four times the average dividend yield of the S&P 500.

That said, proper due diligence is still required for any high-yield stock to ensure its sustainable payout. Fortunately, the dividend payout appears sustainable, making the stock attractive to income investors.

Business Overview

Exchange Income Corporation provides aerospace and aviation services, including scheduled airline and charter services, emergency medical services, after-market aircraft and engines, and pilot flight training services.

Additionally, the company is invested in manufacturing window wall systems used in skyscrapers, vessels, and other industrial purposes.

Finally, Exchange Income also owns telecom towers, which it leases to America’s and Canada’s major telecom providers. The company, which is based in Winnipeg, Canada, generates just over $1 billion in annual revenue.

The corporation has two operating segments: Aerospace & Aviation and Manufacturing.

Source: Investor Relations

Aerospace and aviation make up the bulk of the company’s EBITDA. The company’s strategy is to grow its portfolio of diversified niche operations through acquisitions to provide shareholders with a reliable and growing dividend.

The companies acquired are in defensible niche markets, and EIC has made well over 30 acquisitions since its inception in 2004.

Acquisition candidates must have a track record of profits and strong, continued cash flow generation with committed management focused on building the business post-acquisition.

Growth Prospects

Exchange Income’s results lagged in 2020 due to the negative impacts of COVID-19 on the aviation industry. Since then, the company has not only recovered but has also achieved new top—and bottom-line records.

On February 26th, 2025, the company released its Q4 results for the period ending December 31st, 2024. Revenues for the quarter grew by 7% (in constant currency) to $481.4 million, driven by a 12% increase in Aerospace & Aviation, increased leasing activity in Aircraft Sales & Leasing, and contributions from recent acquisitions, including Duhamel and Spartan.

Adjusted earnings per share (EPS) for the quarter grew 6% to $0.59, mainly due to higher margins in leasing operations and increased profitability from ISR flying activities.

For fiscal 2025, management confirmed their guidance, expecting adjusted EBITDA between C$690 million and C$730 million. This would increase 10% to 16% from the prior year. Based on this outlook, adjusted EPS could reach $2.51, excluding one-time items.

The annual dividend rate of C$2.64 equals approximately $1.82 at the current CAD/USD exchange rate.

The payout ratio was 104% in FY2024 but is expected to drop to slightly more than 70% this year, implying that the dividend is covered by earnings.

We have set our estimated 5-year compound annual growth rate of adjusted EPS to 3%, as much of the company’s post-pandemic recovery has now occurred.

We retain our dividend-per-share growth projections at around 2% during that period, slightly lower than the company’s historical (Canadian) average. The lower dividend growth rate will improve the dividend’s safety over the long term, ensuring adequate dividend coverage.

Dividend Analysis

As with many high-yield stocks, the bulk of Exchange Income’s future expected returns will come from its dividend payments. Management has been committed to increasing the dividend and rewarding shareholders, and they have done so since inception.

The cash dividend payment has increased 16 times since 2004, and it is impressive that the company was able to maintain the dividend even during the pandemic.

Source: Investor Relations

Today, the annualized dividend payout stands at C$2.64 per share annually in Canadian dollars. Of course, U.S. investors need to translate the dividend payout into U.S. dollars to calculate the current yield.

Based on prevailing exchange rates, the dividend payout is approximately $1.82 per share in U.S. dollars, representing a high dividend yield of 5.3%. Exchange Income’s dividend growth has been stable and consistent over the long term.

Using projected 2025 earnings-per-share of $2.51, the stock has a dividend payout ratio of 73%. This means underlying earnings cover the current dividend payout with a decent cushion.

We view the stock as slightly undervalued today. From a total return perspective, we see potential for nearly 10% total returns on an annual basis moving forward. This will consist of the 5.3% dividend yield, 3% annual EPS growth, and a low single-digit contribution from multiple expansions.

Final Thoughts

Exchange Income Corp’s high dividend yield and monthly dividend payments immediately appeal to income investors such as retirees.

Related: 3 Canadian Monthly Dividend Stocks With Yields Up To 6%.

This analysis suggests that the company’s dividend is safe, as measured by the non-GAAP metric of Free Cash Flow minus Maintenance Capital Expenditures.

The company appears slightly undervalued on a price-to-earnings basis. At the same time, it has a solid total return projection. As a result, Exchange Income Corporation appears to be a good stock pick for income investors and offers the potential for double-digit total returns over the next five years.

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 March 31st, 2025 by Nathan Parsh

Investors are often attracted to dividend-paying stocks because of the income they produce. Dividend stocks provide income even while the price of the stock can fluctuate.

Some companies pay monthly dividends, which provide more consistent cash flow for investors. Nearly 80 stocks pay a monthly dividend.

You can download our full list of monthly dividend-paying stocks (along with price-to-earnings ratios, dividend yields, and payout ratios) by clicking on the link below:

Ellington Financial Inc (EFC) is a Real Estate Investment Trust (REIT) that pays a monthly dividend. The stock has a very high dividend yield of 11.8%.

However, such high-yielding stocks can be flashing a warning sign that the underlying business is facing challenges. Stocks with extremely high yields above 10% might disappoint investors with a dividend cut later on. Those “yield traps” should be avoided.

This article will examine Ellington Financial’s business model, growth prospects, and its dividend safety.

Business Overview

Ellington Financial only transitioned into a REIT at the beginning of 2019. Before this, the trust was taxed as a partnership. It is now classified as a mortgage REIT.

Ellington Financial is a hybrid REIT, meaning that the trust is a combination of an equity REIT, which owns properties, and mortgage REITs, which invest in mortgage loans and mortgage-backed securities.

The company manages mortgage-backed securities backed by prime jumbo loans, Alt-A loans, manufactured housing loans, and subprime residential mortgage loans.

Ellington Financial has a market capitalization of about $1.2 billion. You can see a snapshot of Ellington’s investment portfolio in the image below:

Source: Investor Presentation

On February 27th, 2025, Ellington Financial reported its Q4 results for the period ending December 31st, 2024. Due to the nature of the company’s business model, Ellington doesn’t report revenue. Instead, it records only income.

For the quarter, gross interest income was $108 million, up 9.4% year over year and 6.2% quarter over quarter. Adjusted (previously referred to as “core”) EPS was $0.45, $0.18 better than Q4 2023 and five cents higher than Q3 2024.

The rise was driven by strong originations and securitization-related gains in Longbridge Financial, which the company purchased in 2022. Ellington’s book value per share fell from $13.66 to $13.52 for the quarter.

Growth Prospects

Ellington’s EPS generation has been quite inconsistent over the past decade, as rates have mainly been decreasing over that time. As a result, its per-share dividend has also mostly been falling since 2015.

However, the company has done its best to diversify its portfolio and reduce its performance variance.

Additionally, its residential mortgage investments are diversified among many different security types (Non-QM, Reverse mortgages, REOs, etc.).

Ellington has taken steps not to concentrate its risk its portfolio, which improves economic return volatility.

Source: Investor Presentation

Ellington has designed its portfolio in such a way that movements in rates over time won’t have a major impact on its overall portfolio.

The Federal Reserve has stated it is likely to decrease interest rates in the future if inflation reaches its target, which would benefit the company.

At Ellington’s current portfolio construction, a 50 basis point decline in interest rates would result in $2.2 million in equity gains (i.e., 0.14% of equity), while a 50 basis point increase in rates would result in losses of $9.7 million (-0.61% of equity).

We expect 1% annual EPS growth over the next five years for EFC.

Competitive Advantage & Recession Performance

Ellington does not possess any significant competitive advantage, but one advantage is that the balance sheet remains of high quality.

For instance, EFC’s recourse debt to equity ratio was 1.8x in Q4, stable on a sequential basis but down from 2x at the end of 2023 due to a decline in borrowings on its smaller but more highly levered Agency RMBS portfolio and a drop in its recourse borrowings related to its securitization of proprietary reverse mortgage loans.

Regarding recession performance, Ellington Financial was not a public company during the Great Recession, but its share price was decimated at the onset of the COVID-19 pandemic.

EFC’s earnings and dividends have recovered since the pandemic ended, but both measures remain below their 2014 levels.

Dividend Analysis

Ellington Financial has a volatile dividend history with multiple reductions followed by increases. The company cut its monthly dividend from $0.15 to $0.08 in Q1 2020 due to the pandemic, but management has increased it several times since then.

In Q4 2023, EFC cut the monthly dividend from $0.15 to $0.13, which the board approved to build some equity value. The dividend has remained at the same rate since. Currently, EFC has an annual dividend payout of $1.56 per share.

This is a problematic sign for the dividend’s safety, and therefore, the company’s DPS should not be seen as safe for the time being.

With a yield approaching 12%, the stock is undoubtedly attractive for income investors, although a high level of volatility is to be expected.

Ellington’s payout ratio has averaged 85% over the last five years, though it has often been above 100% previously. Investors should be aware that the expected payout ratio for 2025 is 111%.

Since its IPO, the company has paid cumulative dividends in excess of $34/share, which is nearly three times its current share price. Therefore, it has delivered a solid income stream to its shareholders over the years.

Final Thoughts

High-yield dividend stocks must always be considered carefully, as their elevated yield is often a warning sign of fundamental deterioration.

This seems to be the case with Ellington Financial, as the company has exhibited great volatility in its dividend payments.

The trust has a diversified loan portfolio and has successfully increased its profitability over time. Ellington Financial’s dividend yield also looks safe for now, though another cut could be possible if the trust saw a slowdown in its business.

EFC has an attractive yield of 11.8%, but the stock carries an elevated level of risk.

Additional Reading

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.