While passive income represents a key component of investing, their quarterly payout schedule incentivizes a closer look at monthly dividend stocks. Primarily, the motivation is simple: it’s just better to get paid quickly and consistently to tackle various expenses that may come up.
Another important reason to target income generating stocks that pay out every 30 days is the cadence of life. Rarely, bills come due every three months. Instead, most everything from utilities to car payments to rent/mortgage payments are due every month. Therefore, dividends that pay on this schedule can be quite valuable.
To be fair, stocks for regular income on a monthly basis come with some downside. Mainly, most enterprises pay their dividends quarterly so business diversification represents an issue. Also, monthly passive income providers don’t always feature the stoutest of financials. That said, a diverse portfolio of monthly and quarterly dividend payers can be quite powerful. With that, here are the dividend stocks to pay bills.
EPR Properties (EPR)
Structed as a real estate investment trust, EPR Properties (NYSE:EPR) presents an enticing case for monthly dividend stocks to pay bills. Focusing on amusement parks, movie theaters, ski resorts and other entertainment properties, EPR may enjoy a double tailwind of fortuitous relevancies.
First, the Covid-19 crisis sparked pent-up demand for services catering to socialization. Obviously, with folks stuck at home for long periods of time, many went stir crazy. Second, while the concept of revenge travel dominated business headlines as global Covid restrictions faded, economic pressures are now forcing many consumers to consider cheaper forms of entertainment.
Fundamentally, the box office arguably delivers the most bang for the buck. In addition, with movie studios gaining momentum with highly anticipated films, EPR should rise. Therefore, it’s one of the top income generating stocks.
Presently, the REIT carries a forward yield of 7.39%, which is quite generous. Still, you’ll want to note that the payout ratio is sky high at 133.1%. Nevertheless, with EPR also enjoying a consensus moderate buy view, it’s one of the high monthly dividend stocks.
Stag Industrial (STAG)
A REIT focused on the acquisition of and operation of single-tenant industrial properties throughout the U.S., Stag Industrial (NYSE:STAG) deserves a closer look for those seeking monthly dividend stocks for regular income. Fundamentally, e-commerce as a percentage of total retail sales continues to rise since the second quarter of 2022. Given this powerful backdrop, you can reasonably expect Stag’s business to rise in relevance.
Further, while the company isn’t exactly lighting up the price charts, it’s doing decently well. Since the January opener, STAG gained over 8% of equity value. In the trailing year, shares moved up over 9%. On a financial note, Stag benefits from a solid operational base. Its three-year revenue growth rate pings at 4.4% (on a per-share basis), above 67.15% of its peers.
For passive income, Stag’s forward yield comes in at 4.2%. Still, the payout ratio is well on the high side at 202.6%. To be fair, STAG certainly carries risks. However, the underlying business focus is incredibly relevant. As well, analysts peg shares as a unanimous strong buy with a price target of $40 (implying over 14% upside).
Realty Income (O)
One of the most popular names among monthly dividend stocks to pay bills, Realty Income (NYSE:O) is a REIT that invests in free-standing, single-tenant commercial properties in the U.S., Spain and the U.K. Per its corporate profile, Realty Income generates cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.
Although Realty commands a massive footprint, it’s one of the higher-risk, higher-reward ideas among income generating stocks. Since the start of the year, O stock fell 6%. Over the past 365 days, it declined by nearly 14%. Admittedly, pressures in the consumer economy may negatively affect the REIT’s viability.
On the positive side of things, however, Realty features a consistently profitable business. In addition, the company’s three-year revenue growth rate pings at 5.1%, beating out 69.54% of its peers. Also, its EBITDA growth rate during the same period comes in at 6%, above 60.66% of the field.
On a final note, Realty features a forward yield of 5.11%. Also, analysts peg O as a consensus strong buy with a target of $70.45, implying almost 18% growth.
On the date of publication, Josh Enomoto 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.
