While it’s obvious there are great reasons to buy and hold stocks, it’s also easy to overlook a regular income gained by owning monthly dividend-paying growth stocks.
Growth stocks are the best place for investors looking for oversized returns to find an ideal investing opportunity. But when you factor in a monthly dividend payout on top of those returns, it’s a hard combination to pass up.
Even with interest rates as high as they are today, I would much rather have my investments in monthly dividend-paying growth stocks.
Some of these names may be a little off your radar and not all of them show a gain in stock price in 2023. But if you want a regular payout to go along with a likely strong growth window, you should consider these dividend stocks.
EPR Properties (EPR)
EPR Properties (NYSE:EPR) is a real estate investment trust, but this is a REIT with a twist. EPR stands for Entertainment Properties Trust, and the company invests in amusement parks, movie theaters, ski resorts and other such places.
Overall, EPR has holdings in 44 states and in Canada, with 359 locations and more than 200 total tenants. In addition to its entertainment holdings, EPR has a small education portfolio including nine private schools and 62 early childhood education centers.
While EPR suffered badly during the Covid-19 pandemic, 2023 has been a better year by far. The third quarter saw $189.3 million in revenue, up from $161.4 million a year ago. For the first nine months of the year, EPR brought in $533.6 million versus $479.3 million in the first nine months of 2022.
It’s also been able to overcome some tenant problems. One of EPR’s major theater tenants was Regal, whose parent company Cineworld filed for bankruptcy early this year. EPR entered a new agreement with Regal that covered 41 of its 57 properties owned by EPR. Third parties took over five additional properties, leaving only 11 without tenants.
EPR also pays a dividend yield of 6.8%. The stock is up 28% this year and gets a “B” rating for growth and a “B” rating in the Dividend Grader, making it one of the monthly dividend-paying growth stocks to keep your eye on.
Ellington Financial (EFC)
Ellington Financial (NYSE:EFC) is one of the monthly dividend-paying growth stocks that can really shine in 2024. It’s a Connecticut registered investment adviser that buys and manages mortgage-related, consumer-related, corporate-related and other financial interests.
The company’s holdings include residential mortgages, commercial mortgages, collateralized loans, investments in loan origination companies and other investments.
And it’s growing. In December, Ellington completed its acquisition of Arlington Asset Investment Group, a Virginia-based company in the Washington, D.C. area.
“This acquisition should lead to greater operating efficiencies and a larger market capitalization for Ellington Financial, and we believe that it positions us well to drive earnings accretion moving forward,” Ellington CEO Laurence Penn said.
The earnings were already solid. The third quarter saw income of $6.6 million, or 10 cents per share, and adjusted earnings of 33 cents per share. But what’s really interesting for investors is that Ellington pays a monthly dividend yield of 8.4%, a solid return for a monthly dividend stock.
EFC stock is up 4.5% this year and gets an “A” rating for growth in the Portfolio Grader.
PennantPark Floating Rate Capital (PFLT)
PennantPark Floating Rate Capital (NYSE:PFLT) is a business development company that invests in middle-market companies through senior secured loans.
As a business development company, or BDC, PennantPark returns 90% of its taxable income back to shareholders, like a REIT. With that kind of structure, BDCs are often ideal holdings for income investors seeking a monthly payout.
PennantPark is currently invested in 19 companies, in fields as diverse as capital equipment, media, aerospace, healthcare and financial services.
The company posted results for the fiscal fourth quarter (ending Sept. 30), including $18.5 million in investment income, or 32 cents per share. That’s an increase from $12.7 million and 30 cents per share in the same quarter a year ago.
PennantPark also increased its monthly dividend payout from 9.5 cents per share last year to 10.25 cents this year.
The company’s stock is up 7% this year and provides a monthly dividend yield of 10.4%. That gives it a “B” rating for growth in the Portfolio Grader.
AGNC Investment Corp. (AGNC)
AGNC Investment Corp. (NASDAQ:AGNC) is a Maryland-based residential mortgage REIT. The company is well-positioned for risk-averse investors, with over 97% of its portfolio consisting of government-backed mortgage securities.
The company finances its portfolio through short-term repurchase agreements. It doesn’t manage or own properties, but because it trades mortgaged-backed securities, it can provide the tax-advantaged status of a REIT.
The stock had a challenging year in 2023 as interest rates rose, but now that we are seeing some relief from the Federal Reserve, AGNC is showing signs of life. The stock is up 13% over the last month and it should end 2023 at roughly even for the year.
AGNC pays a dividend yield of 14.6%, making it a profitable monthly dividend stock to hold. AGNC has an “A” rating for growth and an “A” rating in the Dividend Grader.
Agree Realty Corp. (ADC)
Agree Realty Corp. (NYSE:ADC) is another REIT. Based in Michigan, Agree works in the retail property market.
The company has more than 2,000 properties across 49 states, with tenants that include banks, automotive parts suppliers, restaurants, electronics stores, department stores and car lots. Its top tenants are Walmart (NYSE:WMT), Tractor Supply (NASDAQ:TSCO) and Dollar General (NYSE:DG), which collectively make up 15% of the company’s tenant base.
The company has developed over 40 community shopping centers in the Midwest and southeastern U.S. In all, it has 43 million square feet of leasable space.
While the stock price has decreased this year, Agree shows consistent growth. Revenue in the third quarter was $136.7 million, up from $110 million a year ago. Net income of $41.6 million was up from $39.5 million a year ago.
ADC stock is down 12% this year and pays a dividend yield of 4.8%. It gets a “B” rating for growth in the Portfolio Grader.
Main Street Capital (MAIN)
Main Street Capital (NYSE:MAIN) is a Houston-based equity firm that invests in lower and middle-market private companies. In its history, it’s invested in nearly 200 companies that are seeking to grow or escape financial problems.
Its most recent investment is in Compass Systems & Sales, an Ohio company that received $24.7 million from Main Street so it can recapitalize and grow its materials handling business.
Main Street is also an aggressive dividend stock. It frequently raises its monthly dividend and has already announced payouts through March 2024. Payouts in the first quarter of 2024 will be 2.1% greater than the fourth quarter of 2023 and 6.7% higher than the first quarter of 2023.
Net investment income for the third quarter was $82.1 million, up from $62.4 million a year ago. The stock is up 16% in 2023 and earns a “B” rating for growth, plus overall “B” ratings in the Dividend Grader and the Portfolio Grader.
LTC Properties (LTC)
LTC Properties (NYSE:LTC) is a California-based REIT focusing on the senior housing market. As the U.S. population ages, LTC Properties is counting on an increasing reliance on assisted living facilities, health care facilities and housing solutions that cater to senior citizens.
LTC’s portfolio is divided evenly between senior housing and skilled nursing facilities. It has 213 properties in 29 states, with 29 operating partners.
Revenue in the third quarter was $49.3 million, up from $43.5 million a year ago. Earnings of 54 cents per share were better than the 33 cents per share in earnings the company reported in the third quarter of 2022.
LTC is down 7.2% this year but pays a dividend yield of 6.8%. It gets a “B” rating for growth and a “B” overall rating in the Dividend Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
