Income on Autopilot: 7 Monthly Dividend Stocks to Buy for Stability

In the realm of smart investing, safeguarding your portfolio while ensuring a steady flow of income is paramount. This is where monthly dividend stocks shine, especially in the dynamic fiscal landscape of 2024.

Stocks that disburse dividends monthly offer unique opportunities. Real Estate Investment Trusts (REITs), a key category among these, are rebounding after suffering from rising interest rates. The anticipated shift in the Federal Reserve’s interest rate policy in 2024 enhances their attractiveness.

However, the appeal of monthly dividend stocks goes beyond mere speculation on falling interest rates. These selections of stocks aren’t just about playing the interest rate game; they’re about making wise, calculated decisions for a robust portfolio. So, let’s embark on this exploration, uncovering the top monthly dividend stocks set to bring security and growth to your investments.

EPR Properties (EPR)

EPR Properties (NYSE:EPR) isn’t your typical real estate investment trust (REIT). As the Entertainment Properties Trust, EPR specializes in investing in leisure-centric properties. This unique focus sets it apart in the REIT landscape, diversifying its portfolio with assets that cater to entertainment and recreation.

Moreover, 2023 marked a significant turnaround for EPR, especially after a challenging phase during the Covid-19 pandemic. The stock surged 32% over the past year, bolstered by impressive financial performance. In the third quarter alone, EPR reported $189.3 million in revenue, a notable 17.3% increase year-over-year, showcasing EPR’s resilience and growth potential.

Furthermore, EPR skillfully managed tenant challenges, particularly when its major tenant, Regal, faced bankruptcy via its parent company, Cineworld. EPR quickly renegotiated leases for 41 of the 57 properties it owned, significantly reducing risk. They also transferred five properties to third parties, leaving just a few unoccupied. This demonstrates EPR’s strong adaptability and ability to maintain occupancy and revenue streams.

Ellington Financial (EFC)

Ellington Financial (NYSE:EFC), a monthly dividend-paying growth stock, has become a notable player in 2024. As a Connecticut-based registered investment adviser, Ellington specializes in managing diverse financial interests, ranging from mortgage-related to consumer and corporate sectors. This dynamic approach positions the company favorably in a fluctuating market.

Recently, Ellington Financial announced its merger with Arlington Asset Investment Corp, a significant strategic move. This merger promises to enhance the company’s scale, bolster its access to capital markets, and potentially increase earnings. Such developments underline Ellington’s commitment to growth and operational efficiency.

Financially, the company declared a stable monthly dividend of 6 cents per share in November, reflecting confidence in its financial standing. The recent quarterly report further cements this, showcasing a 22% year-over-year revenue growth at $96.22 million and net income of $6.6 million. With TipRanks analysts endorsing a strong buy and predicting a 19.12% upside potential, Ellington Financial stands out as a promising investment in the current market.

Realty Income (O)

Realty Income (NYSE:O), known as “The Monthly Dividend Company,” excels as a prime pick for investors desiring steady monthly dividends. With over 600 consecutive months of dividend payouts, the company thrives on a varied property portfolio across several states. Its notable tenants, including Walgreens (NASDAQ:WBA) and 7-Eleven (OTCMKTS:SVNDY), guarantee a consistent and robust annual income, reinforcing its status as a reliable income stock.

Moreover, O’s recent $9.3 billion merger with Spirit Realty signifies a major strategic advance. Expected to boost AFFO per share without external capital immediately, the merger underscores its synergistic advantages. This move demonstrates the company’s proactive stance in the evolving REIT market.

Furthermore, the company reported noteworthy achievements with its $2.0 billion investment in high-quality real estate at a cash cap rate of 6.9% and a remarkable 22.15% year-over-year increase in overall revenue. TipRanks analysts also assign a moderate buy rating to Realty Income, with 4.59% upside potential.

Gladstone Land (LAND)

Gladstone Land (NASDAQ:LAND), a key player in The Gladstone Companies’ array, stands out in the market, trading below its land assets’ value, a noteworthy point raised by a Seeking Alpha commentator. This gap in valuation offers an attractive investment opportunity. In line with this, Gladstone Land actively pursues expanding its farmland property portfolio across the U.S., aiming to be a leading farmland real estate company.

This monthly dividend REIT, focusing on farmland, has reported a robust 74.11% increase in net income year-over-year, reaching $3.1 million. Additionally, its revenue reached a staggering $23.53 million. This strong financial showing is part of a nine-year streak of consistent payout increases, underscoring LAND’s stability and growth.

Furthermore, LAND’s strong position aligns with its practice of leasing to local, often family-owned farms cultivating stable crops, which has led to higher funds from operations. TipRanks analysts assigned LAND a moderate buy rating with 27.95% upside potential, indicating a bright future.

LTC Properties (LTC)

LTC Properties (NYSE:LTC) stands out in the 2024 monthly dividend stock market, primarily due to its significant exposure to the aging American population. Capitalizing on the “graying of America” trend, LTC strengthens its market position with effective re-leasing strategies and solid fundamental performance, essential for a REIT with monthly dividends.

Financially, LTC’s recent quarter results have been impressive. The company achieved a 12.5% rise in revenue, reaching $49 million. Coupled with a 2.6% decrease in operating expenses, this reflects highly efficient management. More notably, a 22.13% increase in EBITDA year-over-year underscores LTC’s strong profitability before interest, taxes, depreciation, and amortization.

Looking ahead, LTC is well-aligned for growth. The company’s forward-thinking strategy includes developing new investment pipelines for 2024 and beyond. Moreover, this proactive approach, coupled with a moderate buy rating and a 7.02% upside potential from TipRanks analysts, paints a bright future for LTC in the evolving real estate market.

Modiv Industrial (MDV)

Modiv Industrial (NYSE:MDV), a Nevada-based real estate investment trust, has been on a notable upward trajectory, with its stock price climbing 28% over the past year. Additionally, the company’s portfolio includes 45 properties spanning the breadth of the U.S. These properties cumulatively represent a substantial 4.7 million square feet of space.

Moreover, the company reported a 21% year-over-year increase in revenue and a 19% year-over-year rise in Adjusted Funds From Operations (AFFO). Demonstrating aggressive expansion, Modiv acquired over $214 million in industrial manufacturing assets, marking it as one of the most active buyers in this sector.

Furthermore, MDV boasts a robust dividend yield with an annual cash dividend of $1.15 per share, yielding 7.77%. The company has consistently distributed over $60 million, with a strong performance against the FTSE Nareit All Equities Index. This impressive track record has led TipRanks analysts to rate MDV stock as a strong buy, projecting an 11.43% upside potential.

PennantPark Floating Rate Capital (PFLT)

PennantPark Floating Rate Capital (NYSE:PFLT), known for its strategic investments in U.S. middle-market private companies through floating rate senior secured loans, has shown promising growth. Specializing in first-lien secured, second-lien secured, and subordinated debt, this business development company (BDC) has witnessed a stock rise of 3% year-to-date and 16% over the past six months. Notably, PennantPark stands out for returning 90% of its taxable income to shareholders, much like a REIT, making it an attractive option for income investors seeking monthly payouts.

In its latest financial quarter, PennantPark demonstrated robust growth, with a 24.14% year-over-year increase in revenue, reaching $35.73 million. Furthermore, the company’s earnings per share (EPS) outperformed expectations, coming in at 32 cents and surpassing the consensus by 1 cent. This performance reflects the company’s strong market position and a positive trajectory for future growth and stability.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines