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10 Monthly Dividend Stocks You’ve Never Heard Of


Published on November 27th, 2024 by Bob Ciura
Spreadsheet data updated daily

Most companies distribute dividends on a quarterly or semi-annual payment schedule, but there are some that pay dividends monthly.

However, the number of companies that distribute monthly dividends is limited. You can see all monthly dividend stocks here.

You can also download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

 

Click here to instantly download your free spreadsheet of all ~80 monthly dividend stocks now, along with important investing metrics.

This article provides an overview of monthly dividend stocks, and includes a top 10 list of monthly dividend stocks that most income investors haven’t heard of.

Table of Contents

Monthly Dividend Stocks Overview

Monthly dividend payments are beneficial for one group of investors in particular; retirees who rely on dividend stocks for income.

With that said, monthly dividend stocks are better under all circumstances (everything else being equal), because they allow for returns to be compounded on a more frequent basis.

More frequent compounding results in better total returns, particularly over long periods of time.

Of course, there are also potential risk factors when investing in monthly dividend stocks.

Investors should note many monthly dividend stocks are highly speculative. On average, monthly dividend stocks tend to have elevated payout ratios.

An elevated payout ratio means there’s less margin for error to continue paying the dividend if business results suffer a temporary (or permanent) decline.

As a result, we have real concerns that many monthly dividend payers will not be able to continue paying rising dividends in the event of a recession.

The following 10 dividend stocks pay dividends each month, but have risk factors and unique business models that investors should carefully consider before buying.

The following list is comprised of 10 monthly dividend stocks with market caps below $3 billion, which means they are smaller companies than the more widely-followed monthly dividend stocks.

The list excludes extremely speculative monthly dividend stocks such as oil and gas royalty trusts. It also excludes mortgage REITs which are also high-risk securities.

The 10 monthly dividend stocks you’ve never heard of are sorted by dividend yield, from lowest to highest.

Monthly Dividend Stock You’ve Never Heard Of: Global Water Resources (GWRS)

Global Water Resources is a water resource management company. It owns, operates, and manages water, wastewater, and recycled water utilities in Phoenix, Arizona. The company’s strategy is called total water management, which means it wants to own the entire water cycle.

In essence, this is operating water, wastewater, and recycling facilities in the same geographic area to conserve water but also maximize the economic value of water by owning the entire life cycle. The company focuses on communities where it expects population growth but also where it expects water demand to exceed supply.

Global Water owns 25 water and wastewater utilities in Phoenix and serves more than 74,000 people. It also recycles more than 1 billion gallons of water every year. The company believes it has the capacity for hundreds of thousands of service connections, but its current scale is quite small.

Annual revenue is about $42 million, and the stock trades with a market capitalization of ~$300 million.


Source: Investor relations

On November 6th, 2024, Global Water reported its Q3 results for the period ending September 30th, 2024. Quarterly revenues fell by 1.5% year-over-year to $14.3 million.

The drop in revenue was mainly attributable to the recognition of $0.5 million in unregulated revenue related to infrastructure coordination and financing agreements (ICFAs) in the third quarter of 2023 that did not recur this time around.

Still, regulated revenue increased 2.2% to $14.3 million, primarily due to total active service connections rising 4.7% to 63,889.

Click here to download our most recent Sure Analysis report on GWRS (preview of page 1 of 3 shown below):

Monthly Dividend Stock You’ve Never Heard Of: Whitestone REIT (WSR)

Whitestone is a retail REIT that owns about 55 properties with about 5.0 million square feet of gross leasable area primarily in top U.S. markets such as Texas and Arizona.

Its tenant base is very diversified consisting of 1,453 tenants with no single tenant exceeding 2.1% of annualized base rental revenue.

Source: Investor Presentation

Whitestone reported its third quarter 2024 results on 10/30/24, during which it witnessed an occupancy rate of 94.1% versus 92.7% in Q3 2023. For the quarter, revenue growth was 4% to $37.1 million versus Q3 2023.

Funds from operations (“FFO”) rose 11% year over year to $13 million, while FFO per share rose 8.7% to $0.25. Same-store net operating income (“SSNOI”) rose 4.6% to $24.2 million.

Rental rate growth was 25.3%, down from 24.4% a year ago, supported by rental rate growth in renewal leases at 25.9% versus 24.6% a year ago and new leases at 22.7% versus 23.6% a year ago. There were 26 new leases and 46 renewal leases in the quarter.

Click here to download our most recent Sure Analysis report on WSR (preview of page 1 of 3 shown below):

Monthly Dividend Stock You’ve Never Heard Of: U.S. Global Investors (GROW)

U.S. Global Investors began more than 50 years ago as an investment club. Today, it is a publicly-traded registered investment advisor that looks to provide investing opportunities in niche markets around the world.

The company provides sector-specific exchange-traded funds and mutual funds, as well as an interest in the cryptocurrencies space. U.S. Global Investors produced $15 million in annual revenue in 2023 and has a market capitalization of just $35 million.

The company has a number of niche products in its portfolio of offerings, with the breakdown at roughly two-thirds in gold and natural resources, and the balance in emerging markets, US equity and fixed income products.

Source: Investor Presentation

The company reported operating revenues of $2.6 million for the quarter ending March 31, 2024, down from $3.6 million the previous year.

Net income remained nearly unchanged, primarily due to lower advisory fees, reduced investment income, and a decline in assets under management (AUM). The company’s average AUM was $1.8 billion, ending the quarter at $1.7 billion.

Click here to download our most recent Sure Analysis report on GROW (preview of page 1 of 3 shown below):


Monthly Dividend Stock You’ve Never Heard Of: Gladstone Land (LAND)

Gladstone Land Corporation is a real estate investment trust, or REIT, that specializes in the owning and operating of farmland in the U.S. The trust owns about 160 farms, comprising more than 110,000 acres of farmable land.

Gladstone’s business is made up of three different options available to farmers, all of which are done on a triple-net basis. The trust offers long-term sale leaseback transactions, traditional leases of farmland, and outright purchases of farm properties. Gladstone’s portfolio has an appraised value of over $1.5 billion.

Gladstone posted third quarter earnings on November 6th, 2024, and results were slightly better than expected.

Adjusted funds-from-operations, or FFO, was $4.5 million, or 13 cents per share. That was down from $5.4 million, or 15 cents per share, in the year-ago period.

Total cash lease revenues declined, driven by lower fixed base cash rents, partially offset by additional participation rents.

Fixed base cash rents were down primarily from the sale of a large farm in Florida in the first quarter of this year. In addition, Gladstone saw lower rent renewal rates on certain properties.

Cash flow from operations was $1.4 million lower year-over-year, largely due to payment of certain cash allowances for three specific leases.

Click here to download our most recent Sure Analysis report on LAND (preview of page 1 of 3 shown below):


Monthly Dividend Stock You’ve Never Heard Of: LTC Properties (LTC)

LTC Properties is a REIT that invests in senior housing and skilled nursing properties. Its portfolio consists of approximately 50% senior housing and 50% skilled nursing properties.

Just like other healthcare REITs, LTC benefits from a strong secular trend, namely the high growth of the population that is above 80 years old. This growth results from the aging of the baby boomers’ generation and the steady rise of life expectancy thanks to sustained progress in medical sciences.

The REIT owns 194 investments in 26 states, with 31 operating partners.

Source: Investor Presentation

In late October, LTC reported (10/29/24) financial results for the third quarter of fiscal 2024. Funds from operations (FFO) per share grew 5% over the prior year’s quarter, from $0.65 to $0.68, but missed the analysts’ consensus by $0.01.

The increase in FFO per share resulted primarily from higher income from previously transitioned properties and higher income from loan originations. LTC drastically improved its leverage ratio (Net Debt to EBITDA) from 5.3x to 4.2x thanks to various asset sales.

Click here to download our most recent Sure Analysis report on LTC (preview of page 1 of 3 shown below):

Monthly Dividend Stock You’ve Never Heard Of: Gladstone Commercial (GOOD)

Gladstone Commercial Corporation is a real estate investment trust, or REIT, that specializes in single-tenant and anchored multi-tenant net leased industrial and office properties across the U.S.

The trust targets primary and secondary markets that possess favorable economic growth trends, growing populations, strong employment, and robust growth trends.

Source: Investor Presentation

The trust’s stated goal is to pay shareholders monthly distributions, which it has done for more than 17 consecutive years. Gladstone owns over 100 properties in 24 states that are leased to about 100 unique tenants.

Gladstone posted second quarter earnings on August 6th, 2024, and results were better than expected on both the top and bottom lines. Funds-from-operations came to 36 cents, which was a penny ahead of estimates.

FFO was up from 34 cents in Q1, primarily due to accelerated rent related to a termination fee on a property sold during the quarter. Revenue was off 4% year-over-year, but still beat estimates by $1.1 million at $37.1 million.

Click here to download our most recent Sure Analysis report on GOOD (preview of page 1 of 3 shown below):

Monthly Dividend Stock You’ve Never Heard Of: Modiv Industrial REIT (MDV)

Modiv Industrial acquires, owns, and actively manages single-tenant net-lease industrial, retail, and office properties in the United States, focusing on strategically essential and mission-critical properties with predominantly investment-grade tenants.

As of its most recent filings, the company’s portfolio comprised 44 properties that occupied 4.6 million square feet of aggregate leasable area.

Modiv has nearly 43 properties in its portfolio that occupy 4.5 million square feet of aggregate leasable area.

Modiv reported its Q3 results for the period ending September 30th, 2024. For the quarter, rental income came in at $11.6 million, down 7.3% year-over-year.

This was mainly due to the elimination of some non-NNN tenant reimbursements related to the August 2023 portfolio disposition of 13 properties.

Management fee income was stable at nearly $66 million. Total income reached nearly $11.7 million, down 7.2% from $12.6 million last year.

AFFO was $3.7 million, or $0.34 per diluted share, in line with AFFO of $3.7 million, or $0.33 per diluted share, in the prior year period.

Click here to download our most recent Sure Analysis report on MDV (preview of page 1 of 3 shown below):

 

Monthly Dividend Stock You’ve Never Heard Of: Gladstone Investment Corp. (GAIN)

Gladstone Investment is a business development company (BDC) that focuses on US-based small- and medium-sized companies.

Industries which Gladstone Investment targets include aerospace & defense, oil & gas, machinery, electronics, and media & communications.

A rundown of GAIN’s investment process can be seen in the image below:

Source: Investor Presentation

Gladstone Investment reported its second quarter (Q2 2024 ended September 30) earnings results on November 7. The company generated total investment income of $22.6 million during the quarter, which represents an increase of 2% compared to the prior quarter.

This was a better performance compared to the previous quarter, when the growth rate was negative.

Gladstone Investment’s adjusted net investment income-per-share totaled $0.24 during the fiscal second quarter. That was unchanged from the previous quarter’s level.

Gladstone Investment‘s net asset value per share totaled $12.49 on a per-share basis at the end of the quarter.

Click here to download our most recent Sure Analysis report on GAIN (preview of page 1 of 3 shown below):

Monthly Dividend Stock You’ve Never Heard Of: Gladstone Capital Corp. (GLAD)

Gladstone Capital is a business development company, or BDC, that primarily invests in small and medium businesses. These investments are made via a variety of equity (10% of portfolio) and debt instruments (90% of portfolio), generally with very high yields.

Loan size is typically in the $7 million to $30 million range and has terms up to seven years.

Source: Investor Presentation

Gladstone posted fourth quarter and full-year earnings on November 13th, 2024, and results were short of analyst estimates. Net investment income, which is akin to earnings, came to 50 cents per share.

NII was expected to be 53 cents, and was down from 57 cents in the prior quarter. Total investment income, which is a revenue measure, came to $23.7 million, down from $25.7 million in the previous quarter.

Total repayments and net proceeds were $12.6 million, down from $86.4 million in the prior quarter. Total investments at fair value rose 5.1% quarter-over-quarter to $796 million. Net asset value per common share was $21.18 in September, up from $20.18 in June.

Click here to download our most recent Sure Analysis report on GLAD (preview of page 1 of 3 shown below):

Monthly Dividend Stock You’ve Never Heard Of: Horizon Technology Finance (HRZN)

Horizon Technology Finance Corp. is a BDC that provides venture capital to small and medium–sized companies in the technology, life sciences, and healthcare–IT sectors.

The company has generated attractive risk–adjusted returns through directly originated senior secured loans and additional capital appreciation through warrants.

Source: Investor Presentation

On October 29th, 2024, Horizon released its Q3 results for the period ending September 30th, 2024. For the quarter, total investment income fell 15.5% year-over-year to $24.6.7 million, primarily due to lower interest income on investments from the debt investment portfolio.

More specifically, the company’s dollar-weighted annualized yield on average debt investments in Q3 of 2024 and Q3 of 2023 was 15.9% and 17.1%, respectively.

Net investment income per share (IIS) fell to $0.32, down from $0.53 compared to Q3-2023. Net asset value (NAV) per share landed at $9.06, down from $9.12 sequentially.

After paying its monthly distributions, Horizon’s undistributed spillover income as of June 30th, 2024 was $1.27 per share, indicating a considerable cash cushion.

Click here to download our most recent Sure Analysis report on HRZN (preview of page 1 of 3 shown below):

Additional Reading

Monthly dividend stocks may be more attractive for income investors due to their frequent payouts.

Additionally, many monthly dividend payers offer investors high yields. The combination of a monthly dividend payment and a high yield could be especially appealing.

We have compiled a reading list for additional dividend growth stock investing ideas:

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.



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