If you’re using dividend income to pay for living expenses, then you’ll likely benefit from the small pool of stocks that pay monthly, rather than quarterly or semiannually. Here we will show you three high yielding monthly dividend stocks.
The income of the “next” generation
Generation Income Properties, Inc. (GIRP) is an internally managed real estate investment trust (REIT) focused on acquiring and managing income-producing retail, office and industrial properties. As of June 30, the company’s asset base portfolio comprised 13 properties, including one industrial, seven retail (including one medical retail) and five office properties, which are net leased to high-quality tenants in major markets across United States. These properties, together with a lease of a 36.8% common interest in an approximately 15,300 square foot single tenant retail building leased to La-Z-Boy Company, have 338,142 rentable square feet and an annual base rent of $5.3 million. The trust generated $3.9 million in rental income last year and is based in Tampa, Florida.
Generation Income Properties on Aug. 12 reported second-quarter results, showing operating income of $1.4 million compared with $988,000 in the prior period. This represents an increase of 41.7% year-on-year, which is mainly due to the acquisition of properties that the company has made in the last four quarters. Operating expenses, including G&A, for the same periods were $2.0 million and $1.3 million, respectively. These changes in operating expenses are primarily due to increases in G&A expenses, recoverable expenses and amortization from recent acquisitions and compensation costs.
Basic adjusted funds from operations were $36,000, or $0.02 per share, down from $107,900, or $0.10 per share, last year. At the end of the quarter, 100% of the company’s portfolio was leased, with all rent due collected.
GIPR has a high dividend yield of 11%.
Go STAG Industrial
STAG Industrial (STAG) owns and manages industrial properties. It focuses on single-tenant industrial properties and owns 544 buildings in 40 states in the United States. STAG Industrial went public in 2011 and has a market capitalization of $6.3 billion. This REIT’s focus on single-tenant properties may create higher risk compared to multi-tenant properties, as the former are either fully occupied or completely vacant. However, STAG Industrial performs a deep quantitative and qualitative analysis on its tenants.
As a result, it has suffered credit losses that were less than 0.1% of its IPO proceeds. According to the latest figures, 53% of tenants are publicly rated and 31% of tenants are rated ‘investment grade’. The company usually deals with established tenants to reduce risk.
In the second quarter of 2022, STAG Industrial reported revenue of $161.5 million, up 16.7% year over year. Net operating income of $129 million in cash was up 18.6% year over year. FFO per share of $0.56 was up 7.7% from the same quarter last year. Total portfolio occupancy was 98.1% during the quarter. The REIT acquired nine buildings in the second quarter of 2022, consisting of 1.5 million square feet, for $165.4 million, which are expected to help fuel future growth.
STAG Industrial has grown FFO per share at an average annual rate of 5.7% over the past decade and at an average annual rate of 7.6% over the past five years. The US industrial market is more than $1 trillion in size, and STAG Industrial still has a market share of less than 1% of its target market, which includes the top 60 markets in the country. As such, the REIT has plenty of room to continue growing for years.
STAG Industrial stock is currently yielding 4.5%.
A Ride Down Main Street Capital
Main Street Capital Corporation (MAIN) is a business development company (BDC) that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street defines lower middle market companies as having annual revenues of $10 million to $150 million. The company’s investments typically support management buyouts, recapitalizations, growth financing, refinancing and acquisitions.
At the end of the second quarter, Main Street had interests in 75 lower-middle market companies ($1.8 billion), 34 middle market companies ($364 million) and 82 private debt investments ($1.3 billion). The company has a market capitalization of $3 billion and generated $183 million in net investment income in 2021.
Main Street Capital on August 4 reported its second quarter 2022 results, showing net investment income of $54.7 million, a 29% increase compared to $42.4 million in the same period last year. The company generated net investment income per share of $0.75, up 21% year over year from $0.62 per share. Distributable net investment income per share was $0.80, up 21% from $0.66 in the second quarter of 2021. Main Street’s net asset value per share increased compared to the end of 2021, from 25 $.29 to $25.37, up 0.3%. The company announced a monthly dividend of $0.22, a sequential increase of 4.8%.
Main Street pays a monthly dividend, currently at $0.22 or $2.64 annually, along with supplemental dividends twice a year (skipped in 2020 due to Covid-19). The upcoming supplemental dividend is $0.10 per share to be paid in September, while the company maintains its tendency to increase the regular monthly dividend slightly each year. The supplemental dividends were a result of the generation of realized gains on investments in Main Street stocks. The regular annualized dividend currently yields 6%.
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