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Safe Monthly Dividend Stocks

Your bills come every month, so why don’t your dividends?

If you want reliable, passive income hitting your bank account each month then you need to invest in stocks that will work for you. These select stocks produce dividends on a monthly basis, some of which have been doing it for years. Besides being a great value, many of these holdings have survived and thrived even during the recession. Here are a few safe monthly dividend stocks to consider.

Realty Income Corporation Logo
Realty Income Corporation Logo

1. Realty Income Corporation ($O)

Dividend Yield: 4.36%

Years of Dividend Growth: 25

The leader in safe monthly dividend stocks, Realty Income corporation is a REIT that specializes in single-tenant commercial properties. Their largest clients consist of Walgreens, 7-Eleven, and Dollar General. While real estate overall has struggled these past few months, this REIT can weather the worst of Covid-19 with their strong commercial clientele and healthy balance sheet (2:1 Asset to Liability Ratio). Branded as the “Monthly Dividend Company” Realty Income is proud of their monthly dividend distribution and has made it a selling point of their company.

Stag Industrial Logo
Stag Industrial Logo

2. Stag Industrial ($STAG)

Dividend Yield: 4.96%

Years of Dividend Growth: 6

An industrial REIT that works in second-tier markets (Chicago, Philly, South Carolina) Stag Industrial focuses on business clients with medium to long term leases. Before covid-19 Stag also conducted a well-timed raising of capital and refinanced their debt shortly the Fed lowered rates. Stag Industrial also boasts a debt to equity ratio of 0.7. The main concern with Stag is future growth potential. Growing their dividend distribution and increasing their industrial clientele during a weak market will prove challenging, but their healthy levels of debt should allow them to make consistent dividend payments for years to come.

Shaw Communications Logo
Shaw Communications Logo

3. Shaw Communications ($SJR)

Dividend Yield: 5.81%

Years of Dividend Growth: 1

Shaw Communications is a telecommunications company based in Calgary, Canada. Owner of Freedom Mobile, Shaw Communications has been able to keep a steady pace despite the impact of Covid. They have maintained a roughly 3% growth in their earnings and kept a roughly 5% dividend yield for the past few years. They recently launched a Fibre+ Gig plan for nearly all of their customers and have managed to keep a payout ratio of 84% despite their billions in capital infrastructure. For a slow growth, consistent dividend producing stock, Shaw Communications is not a bad bet.

Takeaway

These few holdings have weathered the worst of Covid and have demonstrated they have viable paths forward. If you want consistent, monthly dividend income then be sure to review these few stocks and add them to your portfolio. Always be sure to conduct your own research before making investment decisions.

Disclaimer: Author owns shares of $O and $SJR

Cover Photo by Tierra Mallorca on Unsplash

Written by: Ricardo Pierre-Louis
Published on: Wednesday, June 17, 2020 12:00 AM

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