If you use dividend income to pay living expenses, then you'd likely benefit from the small group of stocks that pay up every month, rather than each quarter or semi-annually. Here we'll show you three high yield monthly dividend stocks.
The 'Next' Generation Income
Generation Income Properties, Inc. (GIPR) 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 included 13 properties, comprising one industrial, seven retail (including one medical-retail), and five office properties, which are net leased to high-quality tenants in major markets throughout the United States. These properties, along with a 36.8% tenancy in common interest in a single tenant retail building of approximately 15,300 square feet leased to La-Z-Boy Company, feature 338,142 leasable square feet and an annualized base rent of $5.3 million. The trust generated $3.9 million in rental revenues last year and is based in Tampa, Florida.
Generation Income Properties on Aug. 12 reported its second-quarter results, showing revenues from operations came in at $1.4 million as compared to $988,000 in the prior-year period. This represents a year-over-year increase of 41.7%, which was driven primarily by the acquisition of properties the company executed over the past 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 were driven primarily by increases in G&A expenses, recoverable expenses and depreciation/amortization from recent acquisitions, and compensation costs.
Core adjusted funds from operations came in at $36,000, or $0.02 per share, lower from last year's $107,900, or $0.10, per share. At the end of the quarter, 100% of the company's portfolio was leased, with all rents due collected.
GIPR has a high dividend yield of 11%.
Go STAG Industrial
STAG Industrial (STAG) is an owner and operator of industrial real estate. It is focused on single-tenant industrial properties and has 544 buildings across 40 states in the United States. STAG Industrial went public in 2011 and has a market capitalization of $6.3 billion. The focus of this REIT on single-tenant properties might create higher risk compared to multi-tenant properties, as the former are either fully occupied or completely vacant. However, STAG Industrial executes a deep quantitative and qualitative analysis on its tenants.
As a result, it has incurred credit losses that have been less than 0.1% of its revenues since its initial public offering. As per the latest data, 53% of the tenants are publicly rated and 31% of the tenants are rated "investment grade." The company typically does business with established tenants to reduce risk.
In the 2022 second quarter, STAG Industrial reported revenue of $161.5 million, up 16.7% year-over-year. Cash net operating income of $129 million rose 18.6% year-over-year. FFO-per-share of $0.56 increased 7.7% from the same quarter last year. Occupancy for the total portfolio 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 should help boost future growth.
STAG Industrial has grown its FFO per share at a 5.7% average annual rate over the last decade and at a 7.6% average annual rate over the last five years. The U.S. industrial market is more than $1 trillion in size and STAG Industrial still has a market share that is less than 1% of its target market, which includes the top 60 markets of the country. Therefore, the REIT has ample room to continue to grow for years.
STAG Industrial stock currently yields 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 generally having annual revenues between $10 million and $150 million. The company's investments typically support management buyouts, recapitalizations, growth financings, refinancing and acquisitions.
At the end of Q2, Main Street had an interest in 75 lower-middle market companies (valued at $1.8 billion), 34 middle market companies ($364 million) and 82 private loan 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 Aug. 4 reported second quarter 2022 results, showing net investment income of $54.7 million, a 29% increase compared to $42.4 million in same time period the previous year. The corporation 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 totaled $0.80, up 21% from $0.66 in Q2 2021. Main Street's net asset value per share increased compared to the end of 2021, from $25.29 to $25.37, a 0.3% increase. The corporation declared monthly dividends of $0.22, a 4.8% sequential increase.
Main Street pays a monthly dividend, currently sitting at $0.22 or $2.64 on an annual basis, along with supplemental dividends twice a year (skipped in 2020 due to Covid-19). The upcoming supplemental dividend amounts to $0.10 per share to be paid in September, while the company keeps its trend of increasing the regular monthly dividend slightly every year. The supplemental dividends have been a result of generating realized gains from Main Street's equity investments. The regular annualized dividend has a currently yield of 6%.