When most financial traders think of passive income stocks, they immediately turn their attention to companies that distribute quarterly dividends. However, there are publicly traded businesses that offer the flexibility of monthly payouts -- no need to stay in the trade too long just to capture some yield.
It's nice to get a check (or, more likely, a cash credit to one's account) every month, but don't go chasing dividend payments without considering the businesses you're betting on. After all, 2022's shaky economic conditions could persist into the new year, so it's important to prioritize recession resistance along with regular dividend distributions. With that in mind, here are two handpicked monthly payers for sensible passive income aficionados.
Be a passive income landlord with Realty Income
Based in San Diego, Realty Income (O 0.14%) has a name that sums up its purpose: Invest in real estate and provide income to investors. By working with investment-grade tenants, Realty Income controls a high-quality and diversified portfolio of mostly single-tenant properties spanning the U.S., Puerto Rico, the U.K., and Spain.
Many of Realty Income's more than 1,000 tenants have investment-grade credit ratings, and this could help cushion the blow of a possible imminent economic downturn in 2023. Besides, Realty Income has survived decades of economic ups and downs, and has paid out over 600 consecutive monthly dividends.
Furthermore, the company has increased its dividend more than 100 times since its IPO,, including a recent monthly dividend-yield hike from $0.248 to $0.2485. Realty Income's 4.65% annual dividend yield doesn't appear to be in imminent danger. The company's third-quarter 2022 financial results demonstrate robust year-over-year growth in revenue and adjusted funds from operations (AFFO), both of which increased roughly 70%.
Cash in with revenue grower Global Water Resources
Global Water Resources (GWRS 1.11%) is ironically named, since it's not really a global company. Rather, it's a water-utilities provider that's focused on Arizona, and specifically metropolitan Phoenix and the surrounding areas.
Global Water Resources pays a respectable 2.24% annual dividend yield, and the company's board just declared a monthly cash dividend of $0.02483 per share. These payments might seem paltry at first glance if you're accustomed to quarterly payments, but remember to think in terms of 12 yearly distributions, not four.
There's a fair measure of recession resistance built into Global Water Resources, since it's a utility company. Moreover, Global Water Resources stock's low five-year monthly beta of 0.72 signifies low volatility, a useful feature if one anticipates economic turbulence in the coming year.
Don't look for jaw-dropping growth here. Global Water Resources, like many other utility companies, is steady if not spectacular. During 2022's third quarter, Global Water Resources demonstrated moderate year-over-year revenue growth ($11.89 million versus $11.4 million) and unchanged EPS ($0.07 then and now).
That's not a terrible performance, considering the inflationary headwinds that all businesses, water-focused or otherwise, encountered in 2022 as opposed to 2021. Thus, even if the Global Water Resources share price treads water, investors can still enjoy reliable dividend payouts every month.
