Not all publicly listed companies pay a dividend. Some choose not to, for various reasons, such as investing the money to expand the business faster, thus rewarding shareholders differently.
Those that do pay a dividend are attractive to investors looking to reinvest their dividends and take advantage of the power of compounding.
Most European companies pay an annual dividend. In the US, most of them pay a quarterly one.
But some companies in the US pay a monthly dividend. For compounding, the frequency of a cash flow does matter, which is why monthly dividend stocks have their place in a long-term portfolio.
STAG Industrial (NYSE:STAG) is a REIT (Real Estate Investment Trust) headquartered in Boston. It focuses on industrial properties in the United States, and the stock price has almost doubled since the company listed its shares.
Besides the capital gain, shareholders received a monthly dividend. While the 5-year growth rate is only 0.8%, STAG did increase its dividend for the last ten consecutive years.
Agree Realty Corporation
Agree Realty Corporation (NYSE:ADC) is another REIT from the United States. Unlike STAG Industrial, it focuses on acquiring and developing properties leased to retail tenants.
It pays a monthly dividend, and the forward dividend yield is 4.10%. Also, the five-year growth rate is 6.8%, and the company has raised its dividend for the past nine consecutive years.
EPR Properties (NYSE:EPR) is another American REIT with activities across 44 states. Its stock price doubled since the company decided to list its shares, and it also pays a monthly dividend.
The forward dividend yield is 7.88%.
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