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Want to Get Paid Every Month? These Dividend Stocks Are for You

By Dan Caplinger - Oct 21, 2017 at 10:30AM

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You'll be surprised at how easy it is to get the income you need.

Your bills come every month, so it would be nice if your portfolio income did too. Unfortunately, most dividend stocks make payments only once a quarter, which doesn't line up with most people's cash flow needs. Some companies, however, have put dividend policies in place that allow for monthly payments to their shareholders. Realty Income (O -0.36%), Shaw Communications (SJR 0.00%), and STAG Industrial (STAG 0.51%) are some great examples of the many monthly dividend stocks you can find if you look long enough.

Realty Income

Perhaps the ultimate monthly dividend stock, Realty Income has embraced the idea of making payouts to its shareholders 12 times a year. The real estate investment trust (REIT) bills itself as the Monthly Dividend Company, and it has made monthly dividend payments for 566 consecutive months. Moreover, the REIT has boosted those payouts for 80 quarters in a row, giving its shareholders compounded dividend growth of nearly 5% per year since it first started trading on the New York Stock Exchange nearly a quarter century ago.

Realty Income has more than 5,000 properties under long-term leases, providing the monthly income that it then takes and turns around to give to its investors. Its 250 commercial tenants have a presence in almost 50 different industries, limiting exposure to any one sector. With a current yield of 4.4%, Realty Income isn't skimping on its payouts, and shareholders can feel confident in the REIT's prospects both in the immediate future and for years to come.

Word "Dividends" on a blue background with squares and sector symbols.

Image source: Getty Images.

Shaw Communications

The telecom industry has historically been a good one for dividend investors, and Shaw Communications has made a name for itself in the Canadian market. The company offers broadband, video, and phone services to 6.89 million consumer and business subscribers. In its most recent quarter, Shaw reported modest gains in subscriber counts, with rising demand for internet services outweighing declines in cable, satellite, and phone service.

Shaw has seen reasonably good performance over the past couple of years, with its stock rising 30% since the beginning of 2016. The stock currently yields 3.9%, and strategic moves like the acquisition of wireless assets and spectrum are putting Shaw in position to become a global technology leader with a world-class converged network. As the need for faster broadband service becomes greater, Shaw will be well-poised to deliver more services and boost its cash flow accordingly.

STAG Industrial

Like Realty Income, STAG Industrial is a real-estate investment trust specializing in leasing out property. However, STAG has a special strategy that has served it well. The company buys up industrial properties and then finds single tenants to lease entire buildings for the longest possible periods. The resulting stability gives STAG a competitive edge over rivals that turn over their rental portfolios more quickly, and it also allows the REIT to make ongoing moves to acquire new properties while putting its financing partners at ease.

STAG currently yields 5%, and the REIT is about to enter its fifth year of making monthly dividend payments after having previously followed a more conventional quarterly schedule. With the commercial real estate market still running strong, STAG's in good shape, and the value of providing consistent income will never go out of style for many investors.

Get the income you need -- when you need it

Dividend income is a great way to make your portfolio pay you, and monthly dividend stocks make it easy to time your income to match up with your expenses. Realty Income, Shaw Communications, and STAG Industrial could be the right answer to get you the dividends you need when you need them.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Stag Industrial. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Realty Income Corporation Stock Quote
Realty Income Corporation
O
$73.86 (-0.36%) $0.27
STAG Industrial, Inc. Stock Quote
STAG Industrial, Inc.
STAG
$33.75 (0.51%) $0.17
Shaw Communications Inc. Stock Quote
Shaw Communications Inc.
SJR
$27.05 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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