Investing in monthly dividend stocks is a great way to earn consistent income to cover ongoing expenses. Or, you could be trying to invest for early retirement hoping to harness the compounding returns dividend stocks have to offer.
Whatever the case, you’ve come to the right place. We’re going to unveil the top 10 monthly dividend stocks to hold forever and watch your portfolio grow beyond what you ever thought possible:
- Realty Income Corporation (O)
- Agree Realty Corporation (ADC)
- STAG Industrial (STAG)
- EPR Properties (EPR)
- SL Green Realty Corp (SLG)
- AGNC Investment Corp (AGNC)
- LTC Properties (LTC)
- Ellington Financial (EFC)
- PennantPark Floating Rate Capital (PFLT)
- Main Street Capital Corporation (MAIN)
Now, we know what you’re thinking…are dividend stocks worth it? Should you really hold these stocks forever? There’s a bit more to this story than meets the eye, which is why you should continue reading below for the full scoop.
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Top 10 Monthly Dividend Stocks to Hold Forever
Let’s get right into the top 10 monthly dividend stocks to hold forever. These are mainly REITs and BDCs that manage impressive portfolios and share consistent profits with their shareholders on a monthly basis. We’ll explain why we selected each one below.
Realty Income Corporation (O)
Realty Income Corporation offers a monthly dividend of $0.256 per share with a yield of 5.73%. The company has a nearly impeccable track record of increasing its dividends throughout its history, with a 29-year streak earning it the highly coveted title of a dividend aristocrat.
Its reliable dividend payments are backed by a large portfolio of over 7,000 commercial properties under long-term net lease agreements.
As of Q3 2023, the total value of stakes held by hedge funds in Realty Income was approximately $150 million, reflecting strong institutional confidence in its stable rental income.
Agree Realty Corporation (ADC)
Agree Realty Corporation is another strong performer in the REIT sector with a monthly dividend of $0.247 per share with a yield of 5.02%.
The company’s narrow focus on retail properties leased to resilient national retailers provides a stable cash flow, which is part of what has allowed it to sustain a 13-year streak of dividend increases.
The collective value of stakes held by 28 hedge funds was over $223.4 million in Q3 2023, showing the big players are betting on its solid business model and consistent performance.
STAG Industrial (STAG)
STAG Industrial focuses on the acquisition and operation of single-tenant industrial properties, with a dividend of $0.1225 per share and a 4.10% yield.
The company’s industrial properties are a key component in the supply chain for e-commerce, making it a key player in a rapidly expanding sector.
At the end of Q3 2023, STAG was supported by 20 hedge fund portfolios with investments totaling over $168.7 million, showcasing its appeal as a stable investment amidst the growing demand for industrial real estate.
EPR Properties (EPR)
EPR Properties offers a unique portfolio within the experiential sector, paying a monthly dividend of $0.275 per share and providing a high yield of 7.40%.
This Missouri-based REIT is unique in comparison to the other three we’ve highlighted thus far in that it focuses on properties used for entertainment, recreation, and education, which are areas with high consumer engagement.
Its recent quarterly revenue of $189.3 million exceeded expectations by $25.7 million, illustrating its capacity to generate significant income and maintain financial health.
The fact that this company is growing and continuing to stand by its monthly dividend makes it a great monthly dividend stock to hold forever. The company has paid out dividends for nearly three decades in a row.
SL Green Realty Corp (SLG)
SL Green Realty specializes in urban office spaces and provides a monthly dividend of $0.2708 per share, with a very solid yield of 8.70%. Despite the recent challenges in the office space market, SL Green maintains a strong portfolio in high-demand areas of New York City.
22 hedge funds held stakes worth more than $177 million in total, showing strong investor confidence in its asset management and strategic positioning even amidst the commercial real estate turmoil we’ve seen through the past year or so. With a 25-year streak of dependable dividend payments, this is a fairly safe bet.
AGNC Investment Corp (AGNC)
AGNC Investment Corp is an American real estate investment trust company with a $0.12 dividend and a 16.17% dividend yield, supported by its specialized investment in agency mortgage-backed securities.
This narrow focus on assets allows the company to avoid the risks in what could otherwise be a volatile market. 18 hedge funds held this stock for a total valuation of more than $92.4 million as of the end of 2023.
LTC Properties (LTC)
Next up on our list of the top 10 monthly dividend stocks to hold forever we have LTC Properties, which focuses on senior housing and healthcare properties, sectors with increasing demand due to an aging population.
With a dividend yield of 7.03% and a 31-year history of dividend payments, LTC is exactly what you’d look for in a safe dividend stock.
The company’s revenue growth of 13.3% year-over-year and strategic asset management bolster its financial stability. Revenue climbed to $49.3 million just a few quarters back and doesn’t appear to be slowing down any time soon.
Hedge funds are bullish on this company, too – the number of holders jumped from 8 to 11 within a quarter.
PennantPark Floating Rate Capital (PFLT)
PennantPark Floating Rate Capital offers a compelling value proposition with its focus on middle-market financing solutions, which has led to an impressive dividend yield of 10.77%. This is coupled with a monthly dividend of $0.1025 per share.
A total investment income increase to $34.7 million in its fiscal Q4 demonstrates strong operational efficiency and market acumen. Stable interest from 9 hedge funds with stakes worth over $17.6 million suggests a solid financial foundation and potential for long-term growth.
Main Street Capital Corporation (MAIN)
Main Street Capital Corporation targets lower middle-market companies and recently showed remarkable growth with a total investment income of $123.2 million in Q3 2023, up 25.3% from the previous year.
Its monthly dividend of $0.24 per share was a 2.1% increase. This, with a dividend yield of 6.80%, is a testament to the company’s strategic investment prowess and commitment to shareholder value.
MAIN is held in 12 hedge fund portfolios with an aggregate stake value of over $58.3 million, reinforcing its market strength and the trust placed by sophisticated investors.
Ellington Financial (EFC)
Ellington Financial has an annual dividend yield of 13.79% backed by a unique approach to mortgage and financial asset management. The only reason this company slipped so low on our list is the dividend sits at only $0.06 per share.
The company’s proactive fiscal management helped grow revenue to $96.22 million last year, a 22.4% increase YoY, highlighting its effective investment strategies.
With increasing hedge fund interest from 6 to 9 funds and a total stake value of over $33.8 million, EFC is well-positioned for sustained growth and investor interest.
Should You Really Hold These Monthly Dividend Stocks Forever?
If we were going to recommend 10 monthly dividend stocks to hold forever, it would be these. But should you ever hold any single asset forever? There’s no way to forecast how these stocks will perform this time next year, 5 years from now, 10 years from now, etc.
As tempting as it sounds to hold a stock and forget about it forever, simply raking in the returns, you do need to be a bit more proactive in managing your portfolio. This is true whether you’re investing in growth vs dividend stocks. Here’s why:
- Financial Performance Monitoring: Even stable monthly dividend stocks must be monitored for financial health. Changes in a company’s fundamentals, such as a significant drop in earnings or rising debt levels, may mean it no longer has a place in your portfolio.
- Sector and Market Changes: Technological advancements, regulatory changes, and shifts in consumer behavior can all influence company performance, and thus, dividend payouts. What is profitable today might not be in the future. Keeping a pulse on these changes can prevent losses.
- Opportunity Cost: New opportunities present themselves all the time. Holding on to the same stocks forever might mean missing out on higher returns elsewhere.
There’s also the need for diversification. You’ll notice that most of these stocks above operate in very similar industries. You should round out your stock picking strategy with blue chip stocks with dividends, for example. Our blue chip investment plan can help you navigate this.
We also have other tips on how to build a stock portfolio from scratch and how to live off dividends. But the truth is, managing your portfolio can be a simple, stress-free endeavor with the best stock research app, VectorVest.
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Wrapping Up Our Guide on Monthly Dividend Stocks to Buy and Hold Forever
That does it for our list of the top 10 monthly dividend stocks to hold forever. These REITs and BDCs pay out a portion of profits on a monthly basis and have demonstrated reliability over the years, with some paying out dividends for 30 years in a row!
However, remember that the idea of “holding a stock forever” may not be realistic. Should anything change with these companies and the dividend get suspended or cut, don’t continue to hold the bag for no reason. Active portfolio management is essential.
You can learn more about dividend stocks for beginners or investments in general in our blog, including how often are dividends paid, best stocks to invest in for beginners, buying the dip, best stock market indicators, cut losses, investing after retirement, asset allocation in retirement, free stock research websites, and more.
But with the best stock apps for beginners just a few clicks away, why not enjoy a more streamlined investment journey today? VectorVest’s stock advisory helps you work smarter while earning better returns and shielding your portfolio from unnecessary losses.
Position yourself for success in the dynamic, convoluted world of dividend investing! It’s time to put the stress of investing in the past for good.
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