Dividend Stocks

7 Monthly Dividend Stocks to Buy for Reliable Income

While any company that provides passive income to stakeholders is positive – especially during this inflationary cycle – certain organizations stand out over others. In particular, investors should look into monthly dividend stocks to buy for reliable income. Why? The main reason is the cadence of life.

In most everyday cases, the bills for the various services that you use come in during 30-day intervals. Therefore, if you’re relying on passive income payouts to knock down some or even all of your obligations, you’re better off investing in monthly dividend stocks.

Another point is that the current inflationary storm offers a premium for receiving money now as opposed to later. For instance, the purchasing power of the dollar eroded 6% in 2021 but slipped 5.3% in just the first half of this year. Therefore, it’s better to get money in 30-day intervals as opposed to the traditional 90-day variant, thus bolstering the case for monthly dividend stocks to buy for reliable income.

O Realty Income $73.86
LTC LTC Properties $43.48
PBA Pembina Pipeline $37.59
SJR Shaw Communications $27.05
MAIN Main Street Capital $43.04
SLG SL Green Realty $51.02
STAG STAG Industrial $33.75

Realty Income (O)

realty income logo highlighted by a magnifying glass on a web browser

Source: Shutterstock

Dividend Yield: 4%

If you peruse the internet for monthly dividend stocks to buy for reliable income, Realty Income (NYSE:O) will likely appear at the top of your search results. Structured as a real estate investment trust (or REIT), Realty Income invests in free-standing, single-tenant commercial properties, primarily in the U.S.

According to its website, the company commands a footprint of over 11,400 commercial properties under long-term, net-lease agreements. Better yet, its occupancy rate is 98.9%, having weathered the Covid-19 storm relatively well. In addition, the company covers 72 industries and over 1,100 different clients.

On the reliability spectrum, Realty Income is both an S&P 500 company and a member of the S&P 500 Dividend Aristocrats index. The key requirement for inclusion is that companies must have increased dividends every year for the last 25 years or more.

Considering the hard work that it takes to become an aristocrat of payouts, Realty Income isn’t about to let this status go, making it one of the best monthly dividend stocks to buy for reliable income.

LTC Properties (LTC)

A group of senior people having lunch together in a retirement home, LTC Properties operates senior housing and living facilities

Source: Juice Flair / Shutterstock.com

Dividend Yield: 5.2%

Billed as a REIT investing in senior housing facilities and healthcare via sale-leasebacks, mortgage financing, joint-ventures, construction financing and structured finance solutions, LTC Properties (NYSE:LTC) represents an ideal name for those with an eye toward demographic realities.

Basically, it comes down to a simple mathematical equation. According to the Pew Research Center, baby boomers represented the nation’s second-largest living adult population.

Essentially, somebody – actually, many somebodies – will have to care for this age cohort. With most millennials having now settled into their careers and family planning modes, many folks may choose to retire in specialized housing facilities. This dynamic benefits LTC Properties, making it one of the monthly dividend stocks to buy for reliable income.

Pembina Pipeline (PBA)

Pipelines in the desert

Source: bht2000 / Shutterstock.com

Dividend Yield: 5.2%

Based in Canada, Pembina Pipeline (NYSE:PBA) operates transportation and storage infrastructure, representing a critical component of the nation’s broader security profile. Primarily a midstream player, Pembina is less impacted by the volatility of the upstream segment of the industry (though it does have upstream and downstream assets), which mainly deals with exploration and production concerns.

According to Pembina’s website, the company safely operates over 18,000 kilometers of conventional, transmission and oil sands and heavy oil pipelines across North America. Further, Pembina facilitates linkages between its upstream and downstream assets throughout Canada and parts of the U.S., making PBA an invaluable investment overall.

Better yet, PBA is also one of the top monthly dividend stocks to buy for reliable income, leveraging a forward yield of 5.2%. With the energy average yield being 4.24%, this favorable contrast provides another reason for investors to check out Pembina.

Shaw Communications (SJR)

Shaw logo on a corporate building

Source: JL IMAGES/Shutterstock.com

Dividend Yield: 3.4%

Staying in our northern neighbor’s land for just a bit longer, Shaw Communications (NYSE:SJR) is another Canadian firm ranking among monthly dividend stocks to buy for reliable income. Shaw provides a forward yield of 3.4%, noticeably higher than the communications industry’s average yield of 2.62%.

Fundamentally, Shaw presents an intriguing case because connectivity solutions are a vital lifeline in the modern economy. Providing telephone, internet, television and mobile services, the company is inherently relevant. With a market capitalization at the time of writing of $13.5 billion, however, the company is on the smaller and thus more focused side.

Mainly, Shaw serves home telecom customers located in Alberta and British Columbia. As well, the company provides satellite television throughout Canada.

While SJR isn’t the perfect name among monthly dividend stocks to buy, the underlying company features strong profitability metrics. For instance, its net margin of 15.5% is above the industry median of 5.8%.

Main Street Capital (MAIN)

A laptop, pencil, pair of eyeglasses, and many coins rest on a wooden table.

Source: Shutterstock

Dividend Yield: 6.1%

A private equity firm, Main Street Capital (NYSE:MAIN) specializes in providing long-term debt and private equity capital to lower middle-market companies. Based in Houston, Texas, the company prides itself in its brand, stating that it builds relationships and tailors transactions to meet the needs of its portfolio companies and their owners.

Given the rising rate of inflation, Main Street Capital will entice observers, not only because it’s one of the monthly dividend stocks to buy but also for its forward yield. At just over 6%, MAIN offers a payout that’s almost double the 3.18% average yield of the financials sector.

Of course, with greater rewards usually come greater risk. For Main Street Capital, the obvious concern is its focus on lower middle-market companies. With the vagaries of the economy, at least some of these portfolio firms might not make it to the other side.

However, if you’re bullish on the American recovery over the long run, MAIN could be an interesting idea.

SL Green Realty (SLG)

Source: Shutterstock

Dividend Yield: 7.3%

Diving further into the higher-risk but higher-reward component of monthly dividend stocks to buy, SL Green Realty (NYSE:SLG) is a fully integrated REIT. Its main purpose is to acquire, manage and maximize value of Manhattan-based commercial properties. Primarily, these units include office buildings and shopping centers.

At first glance, SL Green Realty might seem risky (because it is) for its narrow geographical focus. Obviously, sticking to one major metropolitan area prevents the company from benefitting from other regions. At the same time, the 2020 GDP of the New York metro area amounted to $1.5 trillion, according to data compiled by Statista.com.

If you had to pick only one place to do business, the Big Apple would seem a prudent choice.

Finally, SLG is almost certainly going to tempt onlookers with its massive forward yield of 7.3%. Considering that the real estate segment’s average yield is 4.46%, SLG positively stands out.

Stag Industrial (STAG)

Real estate investment trust REIT on an office desk.

Source: Vitalii Vodolazskyi / Shutterstock

Dividend Yield: 4.3%

A REIT focused on the acquisition and operation of industrial properties throughout the U.S., STAG Industrial (NYSE:STAG) presents an intriguing idea among monthly dividend stocks to buy for reliable income. Compared to just before the Covid-19 crisis, the most recent employment data for July 2022 saw the manufacturing sector tick up slightly, while transportation and warehousing grew nearly 13%.

Further, many financial experts peg STAG as one of the monthly dividend stocks to buy for reliable income on the anticipation that the broader e-commerce catalyst will incentivize further development and demand for warehousing facilities.

Naturally, the risk stems from economic viability. Should we enter a recession, consumer sentiment will likely plummet, which probably wouldn’t augur well for STAG.

Nevertheless, the July jobs report did show that employment overall came in much hotter than expected. Should you believe that this trend will continue, the underlying wage growth would benefit commerce. In turn, this may spell good times ahead for STAG Industrial.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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