Monthly Dividend Stocks Series – Part 1
If you are investing for monthly income, owning stocks that pay monthly dividends should form part of your strategy. But which to choose? In this series of articles, I’ll take a look at the best monthly dividend stocks available right now.
Why Is Monthly Income So Important?
If you are not retired, you might ask why you should invest for income, and not growth. Well, the answer is that income IS growth.
To harness the power of compound interest (undoubtedly the most powerful growth tool available to you), you must own assets that generate regular income. When dividends and interest are consistently reinvested over the long-term, the growth curve is almost exponential. The more income your investments generate, and the more regularly you reinvest, the better your long-term growth prospects will be.
If you are not investing at least part of your portfolio for income, you are not maximizing the growth potential of your portfolio, period!
Let’s take a look at today’s monthly dividend stock…
Monthly Dividend Stock Number 1: Realty Income
The first stock on our monthly dividend list is a REIT stock; Realty Income. Part of the hallowed Dividend Aristocrat Index, the trust is listed on the New York Stock Exchange (NYSE: 0), and owns or controls more than 6,500 standalone, multi-purpose retail properties.
Realty Income has a fantastic history of paying out monthly dividends for 600 months in a row without fail. It has also increased its payout to shareholders 107 times since its launch on the stock market in 1994. This is great news for if you are seeking stable (and growing) monthly income from your investments.
A Safe Monthly Income Option With Strong Fundamentals
Realty Income’s dividends are seen as relatively safe, making the stock an attractive option during times of economic crisis when many companies are cutting or suspending dividend payments.
Currently, all the signs for this stock are pretty good. Year-on-year revenue is up significantly due to increased rents and new rents from recent real estate acquisitions. The company is also doing well at collecting rents during the current coronavirus crisis.
Overall, Realty Income makes for a great addition to a well-diversified portfolio of stocks, which in turn should form part of a diversified portfolio of investments.
You can check out the current price and recent performance of Realty Income’s stock on their page at Yahoo Finance
For more useful articles like this one, visit Garnaco’s blog.
You can read all of the articles in this series on stocks that pay monthly dividends here:
- Monthly Dividend Stock Series 1 : Realty Income
- Monthly Dividend Stock Series 2: STAG Industrial
- Monthly Dividend Stock Series 3: Main Street Capital
- Monthly Dividend Stock Series 5: Shaw Communications
- All 53 Stocks That Pay Monthly Dividends
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