QQQ   438.49 (+0.74%)
AAPL   180.22 (-0.66%)
MSFT   409.65 (+0.47%)
META   488.28 (+0.88%)
GOOGL   137.04 (+0.48%)
AMZN   175.13 (+1.14%)
TSLA   200.89 (-0.57%)
NVDA   792.16 (+2.00%)
NIO   5.68 (+4.60%)
AMD   189.98 (+7.61%)
BABA   74.19 (-0.54%)
T   17.01 (+0.29%)
F   12.43 (+1.06%)
MU   89.93 (+0.25%)
CGC   3.29 (-2.08%)
GE   156.07 (+0.30%)
DIS   111.25 (+0.41%)
AMC   4.29 (-14.03%)
PFE   26.76 (-1.04%)
PYPL   60.39 (+0.23%)
XOM   104.65 (+0.32%)
QQQ   438.49 (+0.74%)
AAPL   180.22 (-0.66%)
MSFT   409.65 (+0.47%)
META   488.28 (+0.88%)
GOOGL   137.04 (+0.48%)
AMZN   175.13 (+1.14%)
TSLA   200.89 (-0.57%)
NVDA   792.16 (+2.00%)
NIO   5.68 (+4.60%)
AMD   189.98 (+7.61%)
BABA   74.19 (-0.54%)
T   17.01 (+0.29%)
F   12.43 (+1.06%)
MU   89.93 (+0.25%)
CGC   3.29 (-2.08%)
GE   156.07 (+0.30%)
DIS   111.25 (+0.41%)
AMC   4.29 (-14.03%)
PFE   26.76 (-1.04%)
PYPL   60.39 (+0.23%)
XOM   104.65 (+0.32%)
QQQ   438.49 (+0.74%)
AAPL   180.22 (-0.66%)
MSFT   409.65 (+0.47%)
META   488.28 (+0.88%)
GOOGL   137.04 (+0.48%)
AMZN   175.13 (+1.14%)
TSLA   200.89 (-0.57%)
NVDA   792.16 (+2.00%)
NIO   5.68 (+4.60%)
AMD   189.98 (+7.61%)
BABA   74.19 (-0.54%)
T   17.01 (+0.29%)
F   12.43 (+1.06%)
MU   89.93 (+0.25%)
CGC   3.29 (-2.08%)
GE   156.07 (+0.30%)
DIS   111.25 (+0.41%)
AMC   4.29 (-14.03%)
PFE   26.76 (-1.04%)
PYPL   60.39 (+0.23%)
XOM   104.65 (+0.32%)
QQQ   438.49 (+0.74%)
AAPL   180.22 (-0.66%)
MSFT   409.65 (+0.47%)
META   488.28 (+0.88%)
GOOGL   137.04 (+0.48%)
AMZN   175.13 (+1.14%)
TSLA   200.89 (-0.57%)
NVDA   792.16 (+2.00%)
NIO   5.68 (+4.60%)
AMD   189.98 (+7.61%)
BABA   74.19 (-0.54%)
T   17.01 (+0.29%)
F   12.43 (+1.06%)
MU   89.93 (+0.25%)
CGC   3.29 (-2.08%)
GE   156.07 (+0.30%)
DIS   111.25 (+0.41%)
AMC   4.29 (-14.03%)
PFE   26.76 (-1.04%)
PYPL   60.39 (+0.23%)
XOM   104.65 (+0.32%)

Want Monthly Income? Here's 3 Dividend Stocks That Pay Monthly

Key Points

  • While most companies that pay a dividend usually do it quarterly, many pay out their monthly dividends.
  • Real estate investment trusts (REITs) must pay at least 90% of their income to shareholders through dividends.
  • O is a stable REIT that pays 4.66% annualized dividends.
  • AGNC is a REIT investing in Agency MBS, paying 12.8% annualized dividends.
  • HRZN is a business development company (BDC) paying 10.39% annualized dividends.
  • 5 stocks we like better than AGNC Investment

Dividend stocks come in all shapes and sizes. They all share the objective of providing income to their investors. Dividend stocks can provide a source of income in exchange for taking the risk of holding onto the underlying shares. They are suitable for retirees and investors looking for an extra source of income from their investment holdings.

While most dividend stocks pay quarterly, some pay monthly. These stocks tend to fall into either real estate investment trusts (REIT), financing, or business development companies (BDC). Publicly traded REITs must distribute 90% or more of their operating income to shareholders as dividends.

Capital appreciation is possible if entries are timed well, but depreciation is possible if you chase entries. Being patient when looking for entries is prudent since the annual dividend yield improves at lower prices. For those of you seeking a monthly income stream from dividend stocks, here are three monthly dividend stocks to watch for.

Want Monthly Income? Heres 3 Dividend Stocks That Pay Monthly

Realty Income, Inc.NYSE: O

This is a very stable commercial REIT that has been operating for over five decades and trading as a public company for over 25 years. It acquires, develops, operates, and leases sizeable retail shopping centers and commercial properties. Their portfolio consists of over 12,000 commercial properties spanning 84 industries. Some of their blue-chip clientele include Home Depot NYSE: HD, Chipotle Mexican Grill Inc. NYSE: CMG, Walmart Inc. NYSE: WMT, Starbucks Co. NASDAQ: SBUX, 7-Eleven, and Sainsbury.

The shares have generated a 14.6% compound annual return since its 1994 public listing. The company pays a 4.66% annual dividend yield. Pullback support levels are $62.52, $61.10, $58.91 weekly MSL trigger, and $57.61. It's a member of the S&P 500 Dividend Aristocrats, having paid over 600 consistent monthly dividends with 119 dividend hikes throughout its 54-year operating history since it went public in 1994.

Want Monthly Income? Heres 3 Dividend Stocks That Pay Monthly

AGNC Investment Corp. (NASDAQ AGNC)

This REIT invests in agency residential mortgage-backed securities (MBS). Government-sponsored agencies, including Fannie Mae and Freddie Mac, guarantee agency MBS. Its core business model is simple, borrow money paying short-term and medium-term three to five-year treasury rates to purchase Agency MBS and pocket the spread.

The company hedges during the monetary tightening as the U.S. Federal Reserve (Fed) aggressively pursues efforts to dampen inflation. As inflation returns towards the Fed's target rate, hedging costs should also dissipate, leading to more profits and potential dividend increases. The company actively manages a portfolio of Agency MBS and commercial MBS and collateralized mortgage obligations (CMO).

The company pays a 12.8% annualized forward dividend yield. Pullback support levels are at $10.86, $9.99, $9.66, and $8.30 weekly market structure low (MSL) buy trigger.

Want Monthly Income? Heres 3 Dividend Stocks That Pay Monthly

Horizon Technology Finance Co. NASDAQ: HRZN

This business development company (BDC) provides investment and specialty financing for development-stage companies. It provides secured loans to venture capital-backed technology, healthcare, sustainability, and life sciences companies. Its portfolio companies are in various stages of development, from start-ups to more established revenue-generating businesses.

Its lending platform funded 8.1% more loans on a quarter-over-quarter (QoQ) basis to $114 million. It has a $255 million debt investments backlog, including $220 million in HRZN commitments. Its loan portfolio grew by $262 million in 2022.

The company holds a warrant and equity portfolio in 99 companies, including 82 private companies, as of Dec. 31, 2022. The company pays 10.39% to annualize forward dividend yield.

Monthly DividendsShares have been in a downtrend since peaking at $19.08 in November 2021 at the height of the post-pandemic technology bull market. Shares have since fallen and bottomed out at $9.67 in October 2022. HRZN shares are correlated with the technology sector and can see capital appreciation when tech stocks rally, which means the shares may have more upside at current levels than REITs. The company pays a 10.39% annualized dividend. Pullback supports sit at $12.42, $11.61, $11.22, and $10.86 weekly market structure low (MSL) buy trigger.

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Should you invest $1,000 in AGNC Investment right now?

Before you consider AGNC Investment, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and AGNC Investment wasn't on the list.

While AGNC Investment currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
AGNC Investment (AGNC)
3.0403 of 5 stars
$9.58+2.0%15.03%958.96Moderate Buy$9.96
AGNC Investment (AGNCL)
0 of 5 stars
$23.23-0.1%8.35%N/AN/A
AGNC Investment (AGNCM)
0 of 5 stars
$24.77-0.1%6.94%N/AN/A
AGNC Investment (AGNCN)
0 of 5 stars
$25.74+0.2%6.80%N/AN/A
AGNC Investment (AGNCO)
0 of 5 stars
$24.43+0.1%6.67%N/AN/A
AGNC Investment (AGNCP)
0 of 5 stars
$23.62-0.2%6.48%N/AN/A
Chipotle Mexican Grill (CMG.B)
0 of 5 stars
$0.00flatN/AN/AN/A
Chipotle Mexican Grill (CMG)
4.4245 of 5 stars
$2,700.14+1.1%N/A60.88Moderate Buy$2,469.88
Horizon Technology Finance (HRZN)
0.3526 of 5 stars
$11.93-2.2%11.06%-24.35Reduce$11.38
Realty Income (O)
4.8766 of 5 stars
$52.10+0.7%5.91%41.35Hold$61.29
Starbucks (SBUX)
4.868 of 5 stars
$94.56+1.7%2.41%25.28Hold$111.43
Home Depot (HD)
4.5177 of 5 stars
$380.92+0.9%2.19%25.23Moderate Buy$363.71
Walmart (WMT)
4.2826 of 5 stars
$58.86-1.3%1.29%30.76Moderate Buy$61.03
Compare These Stocks  Add These Stocks to My Watchlist 

Jea Yu

About Jea Yu

  • JeaYu21@gmail.com

Contributing Author

Trading Strategies

Experience

Jea Yu has been a contributing writer for MarketBeat since 2018.

Areas of Expertise

Equities, options, ETFs and futures; fundamental, qualitative, quantitative and technical analysis and pattern identification; active and swing trading; trading systems and methodology development

Education

Bachelor of Arts, University of Maryland, College Park

Past Experience

U.S. equity markets trader, writer and analyst for over 25 years. Published four books by publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. Speaker at various expos and seminars and has been quoted and featured in USA Today, The Wall Street Journal, Traders Magazine, The Financial Times and various trade publications, including Stocks & Commodities, Active Trader and Online Investor.


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