Earning a steady income from stock market investments is possible with listed stocks that pay monthly dividends. Here are 2 stocks listed on the NYSE with the highest yield.
Dividend stocks are a great option for investors looking to generate consistent income from their investments. However, most of these stocks pay dividends on a quarterly basis, which can make financial management more complex for those who depend on this income. Luckily, there are stocks that offer monthly dividends, ensuring a steady stream of income.
Here are 2 stocks listed on the stock exchange that offer monthly dividends and which could allow you to earn around $100 per month.
1) Realty Income
Realty Income is a real estate investment company (REIT) with a portfolio of over 13,000 properties. Realty Income is attractive to investors looking for monthly dividends thanks to its business model based on long-term commercial rentals. Its customers include companies like FedEx, belonging to industry sectors considered more stable, such as non-discretionary, low-cost, service-oriented, or non-retail.
Realty Income clients show remarkable stability even in difficult economic times, as demonstrated by a 99% occupancy rate and an average of 9.6 years of contracts remaining. Furthermore, the company regularly increases rents, with an annual increase ranging between 1% and 2%. This practice helps ensure a steady stream of income for investors, so much so that since its IPO in 1994, the company has increased its dividend by more than 100x, standing at 4.4% compounded annually.
Additionally, to support growth, Realty Income continues to acquire new properties. For example, the company recently announced the acquisition of Spirit Realty, a leasing of more than 2,000 new properties to customers similar to those of Realty Income. With a reasonable valuation and an attractive dividend yield, investing in Realty Income could allow you to earn around $50 per month for an initial investment currently priced at $9,750.
2) SL Green Realty
SL Green Realty is a real estate investment firm specializing in the management of commercial and office properties in Manhattan. In recent years, the office sector has faced many difficulties due to the pandemic and smart working, with declining occupancy and declining earnings per share.
However, there are signs that the sector may be on the rebound.
SL Green offers a monthly dividend of $0.2708 per share, ensuring a stable source of income. Even though the dividend was cut compared to the previous year, management is committed to maintaining the dividend for shareholders by reducing general and administrative expenses.
By purchasing 185 shares of SL Green, you could earn approximately $50 per month with an initial investment of $6.080. SL Green could therefore represent an interesting investment opportunity for those looking for a constant monthly return.
Advantages and Risks of Monthly Dividends
Investing in stocks that pay monthly versus quarterly dividends offers several significant benefits. First, it allows you to benefit from a regular income, which simplifies financial planning. Receiving monthly payments can cover regular expenses, boost savings, or be invested for the future, making it easier to manage your budget and reach your short- and long-term financial goals.
Additionally, consistently reinvesting monthly dividends can generate additional income. The principle of compound interest can lead to a significant increase in wealth in the long term. The more time you have available to reinvest dividends, the greater the benefits resulting from the compounding effect. Therefore, investing in stocks with monthly dividends may offer greater earning opportunities over time than those paid quarterly.
However, it’s crucial to carefully evaluate dividend-paying stocks to ensure they align with your personal investment goals. Choosing the right stocks can make a difference in maximizing the benefits of this investment strategy.
Monthly dividends are especially popular among real estate investment trusts (REITs) because these companies are required to pay dividends by law and have business models with recurring revenue (rents) that help support a flow of cash.
Is it worth investing in commercial real estate (REIT)?
We have seen how investing in commercial real estate through Real Estate Investment Trusts (REITs) can be a decision worth considering, despite the challenges the sector has faced in recent times. The period of restrictive monetary policy of the Federal Reserve negatively affected the performance of REITs, which recorded a decline of 25% between March 16, 2022, and October 31, 2023, according to the FTSE Nareit All Equity REITs Index. For comparison, the S&P 500 index fell just 2.6% over the same period.
However, this underperformance of REITs may be due largely to a market failure to understand the impact of rising debt financing costs on their earnings. Despite the challenges, REITs actually posted earnings increases in 2022 and the first six months of 2023. This combination of higher earnings growth and lower prices has led to a decline in REITs’ future earnings multiples, making the sector more attractive in terms of valuation. Therefore, for investors willing to carefully evaluate opportunities in the commercial real estate market, REITs may be an interesting option to consider.
|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader maintains full freedom in his own investment choices and full responsibility in making them since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|
Original article published on Money.it Italy 2023-11-09 16:01:00. Original title: 2 azioni con dividendi per guadagnare (quasi) 100 euro al mese
