If you’re looking for a steady stream of income, consider investing in a company that offers monthly dividend payments. Monthly dividends are profitable distributions by a corporation that are given to investors each month in the form of a company share. As opposed to other dividend payments, these dividends are paid out monthly rather than quarterly, semi-annually, or annually like other distributions.
When you look for stocks that pay monthly dividends, make sure to find ones that are low risk and low debt. You also need to find stocks that offer good reliability with payments you can depend on. Essentially, the company’s dividend payout needs to be sustainable in the event of a crisis. Read on to learn about companies with stocks that pay monthly dividend payments.
Shaw Communications, Inc. (SJR)
Founded in 1966, Shaw Communications is a Canadian telecommunication company that can add diversity to any dividend portfolio. Shaw Communications offers broadband internet, wireless cellphone, and landline services to Canadian businesses and consumers. Though they have a smaller customer base than other companies that offer monthly dividend payments, they offer reliability in their industry.
Vermilion Energy (VET)
Headquartered in Calgary, Alberta, this Canadian oil and gas company offers reliable, monthly dividend payments. Not only does it operate in Canada, but Vermilion Energy also has an American footprint with trades in New York. It’s featured an excellent growth rate since its inception in 1994. Vermilion Energy’s diversification makes it a great choice for investment opportunities.
Main Street Capital Corporation (MAIN)
This company offers both debt and equity capital to both lower-middle and middle-market companies. The lower-middle-market companies they work with often make $10 million to $150 million per year. Operating like an investment fund, Main Street Capital typically serves firms that can’t manage their own finances, go to a smaller bank, or access the stock market via an initial public offering. Companies that can’t ask a larger bank to pay a bond offering may also go through Main Street Capital. Overall, Main Street Capital offers consistently growing payouts with its diversified investment portfolio.
Stag Industrial (STAG)
Though Stag Industrial owns and operates real estate, it also works within the industrial sector. If you’re looking for a steady stream of income, STAG offers a great deal of reliability since it works with single-tenant properties as opposed to multi-tenant properties. Though this may mean higher risk, STAG often works with companies with established tenants to reduce the probability of risk.
Apple Hospitality REIT (APLE)
Because of regular revenue, this real estate investment trust offers consistent payouts each month. Apple Hospitality rents hotel rooms in a couple hundred properties rather than storefronts to larger consumers. It leases to upscale hotel brands such as Marriott and Hilton. It offers a high yield, a good monthly payout, and reliable income for investors overall.
Now that you know what monthly dividend payouts are, you’re better equipped to determine if this distribution frequency is optimal for you. Start by determining if the pros outweigh the cons. If they do, consider investing in a company that offers stocks with monthly dividend distributions.