Irrespective of whether you are a dividend investor, a growth investor or a value investor, you may be curious as to what the best monthly dividend stocks are for 2024. Given the current macro backdrop, there are many opportunities among stocks that pay monthly rather than quarterly dividends.
Why? For one, many of these monthly dividend stocks are real estate investment trusts (REITs). REITs were hammered when interest rates soared, but are bouncing back as the expectation of a 2024 pivot on interest rates by the Federal Reserve keeps climbing.
Other types of monthly dividend stocks, like business development companies (or BDCs) could also experience a renaissance, if economic/macro conditions improve during the year. Beyond buying these types of stocks merely as a wager on interest rates moving lower, there is also an under-the-radar monthly dividend stock, that’s appealing both for its high, steady yield, as well as its merits as a growth and value play.
With all this mind, let’s dive in, and take a look at what are the seven best monthly dividend stocks for 2024.
EPR Properties (EPR)
EPR Properties (NYSE:EPR) is a name that I have discussed in prior coverage of monthly dividend stocks. This net lease REIT focuses on owning/leasing out specialty real estate properties. Primarily movie theaters, but also other specialty properties like mini-golf courses, private schools, ski resorts and theme parks.
EPR stock currently has a monthly dividend of 27.5 cents per share. On an annualized basis, this gives shares a forward yield of 6.96%. Although this REIT suspended its dividend at the onset of the pandemic, and only partially reinstated it in 2021, the payout was increased in 2022.
Even if there is not a dividend increase on the horizon, “Fed pivot” optimism is a potential catalyst that may result in higher prices for EPR this year. Shares have rallied since November on this optimism, and could keep climbing as further indication of lower interest rates emerges.
Fortitude Gold (FTCO)
Fortitude Gold (OTCMKTS:FTCO) is the under-the-radar stock I hinted about above as being one of the best monthly dividend stocks for 2024. U.S.-based Fortitude’s main asset is the Isabella Pearl mine, located in Nevada.
FTCO stock may sound like a junior miner at first, but this company has long since passed the exploration stage, and generates consistent cash flow from its mine. Fortitude in turn returns as much of this cash to investors (“as soon as possible,” as management puts it), in the form of monthly dividends.
Currently, FTCO’s dividend gives shares a forward yield of 7.97%. Besides its appeal as a high-yield play, Fortitude could be a way to play changing monetary policy, as a more dovish Federal Reserve may lead to higher gold prices. Higher gold prices would likely in turn result in higher earnings, higher dividends and a higher stock price for FTCO.
Gladstone Land (LAND)
The Gladstone Companies manages several publicly-traded entities that pay out monthly dividends, but a top choice for long-term investors may be Gladstone Land (NASDAQ:LAND). This monthly dividend REIT focuses on the ownership of farmland property.
LAND stock doesn’t have a particularly high forward dividend yield (3.99%), but it does have a history of dividend growth. Payouts have increased nine years in a row. More importantly, as a Seeking Alpha commentator pointed out in November, Gladstone trades a discount to its underlying land assets.
While there isn’t an immediate catalyst to unlock this value, over time, as interest rates come down, and this REIT finds new tenants for its vacant properties, the stock (at around $14 per share today) could climb back towards prior price levels (shares in 20222 traded for prices north of $40 per share). Global food demand trends may also bode well for future growth/appreciation.
LTC Properties (LTC)
LTC Properties (NYSE:LTC) is one of the better known monthly dividend stocks, but what makes it one of the best monthly dividend stocks for 2024? As I argued back in November, this healthcare REIT has big exposure to the “graying of America,” or the rising percentage of Americans aged 65 or over.
This points to continued demand growth for elder care services. This in turn is a positive for REITs specializing in the ownership of elder care facilities, like LTC stock. After finally experiencing a post-Covid recovery to its operating performance, the aforementioned trend could provide additional growth runway.
While this trend is playing out gradually, in the meantime you can collect LTC’s monthly payouts. On an annual basis, these give the stock a forward yield of 7.1%. Like with REITs in general, shares could rally if interest rates move lower this year.
Modiv Industrial (MDV)
Based in Reno, NV, Modiv Industrial (NYSE:MDV) is a REIT specializing in single-tenant net-lease industrial properties. With the rental income generated from its 44 properties scattered across the U.S., Modiv returns much of this cash back to investors, through its 9.58 cent per share monthly dividend.
This payout gives MDV stock an annual yield of 7.68%. Although the REIT has not raised its dividend since going public in 2022, with its funds from operations (the REIT equivalent to earnings) expected to rise considerably this year (from $1.08 to $1.73 per share), while not for certain, a big payout increase may be just around the corner.
Add in the potential for MDV to surge on the heels of lower interest rates, and there’s much that may make Modiv Industrial appealing to REIT investors seeking both high yield and high growth potential.
Realty Income (O)
Realty Income (NYSE:O) is undoubtedly the blue-chip monthly dividend stock, but even this large, diversified REIT was hammered hard by soaring interest rates in 2022 and 2023. However, with the rising “Fed pivot” optimism, shares in the “Monthly Dividend Company” have bounced back strongly since late October.
Bottoming out at $45.04 per share, O stock has since climbed back to around $57.50 per share. Yet even after this rebound, don’t assume you’ve missed the boat, both in terms of further price appreciation, as well as in terms of collecting O’s steady, ever-growing monthly payouts.
At current prices, Realty Income sports a forward yield of 5.34%. Besides further positive news regarding interest rates keeping O on an upward trajectory, don’t forget about this dividend aristocrat’s growth catalyst. As I pointed out back in December, Realty Income has a pending merger expected to be accretive to earnings.
PennantPark Floating Rate Capital (PFLT)
PennantPark Floating Rate Capital (NYSE:PFLT) is a BDC. Like other entities in this space, PennantPark’s focus is on providing debt financing to middle-market companies. The floating rate nature of its loan portfolio kept it prosperous during last year’s rising rate environment.
This also explains why Louis Navellier and the InvestorPlace Research Staff named PFLT stock as one of the growth names among monthly dividend stocks. Portfolio earnings growth has in turn resulted in dividend growth for this BDC. During 2023, PennantPark’s payout increased twice, first from 9.5 cents to 10 cents per share, then to 10.25 cents per share.
At current prices, PFLT has a forward dividend yield of 9.92%. Although the specter of lower interest rates suggests less stellar levels of growth going forward, this could be more than made up for with a re-rating to the upside, in response to lower rates.
On the date of publication, Thomas Niel did not hold (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.
