Trying to build a sub-portfolio of monthly paying dividend stocks, see below the breakdown as per today. The idea is to have a growing monthly income to re-invest or cash (if I really need need to).
Are you on a similar journey?
Do you have a list of preferred monthly dividend stocks?
Any British stocks to recommend?
Any thoughts?
Here is my list of monthly dividend stocks:
O - Realty Income Corporation, Retail REIT, NYSE, 6.12% div yield (FWD), 18.7% allocation
I would have said ediston property (epic) but they are selling all the properties to Realty corp. Which is a shame thought i had found the uk version of “O” so no with holding tax.
My only monthly paying stock is the UK REIT Balanced Commercial Property Trust (BCPT) - I don’t hold any US stocks in my divi income portfolio because I don’t want to pay tax on my divis.
Share price has been decimated of late, so the stock is trading at a discount of -43%!
Current yield is 7.57%.
All my other dividend paying stocks pay quarterly but I have enough different stocks to cover every month of the year with income. Eg in September, 12 stocks paid a dividend, in October, another 14 stocks paid a dividend.
Epr properties, is my best paid stock monthly and I have O too which has dropped massively since my initial investment but still pays a massive div each month,
Adc but don’t have a lot in them ATM
I’m currently investing in bdc over reits
Several interesting points and ideas to work on, thanks!
I’ve been shopping for REIT recently because of the major discount, more on my shopping list for November . Even just to establish an initial small position with a low price base for the future. It helping diversification too, as I’m overexposed to US Retail REITs.
Re tax, I factor the extra 15% in my calculations, and tend to focus on stocks with a dividend yield of 7% or above, O/STAG/MAIN/ADC being the exceptions due to their solid balance sheets, dividend history, portfolios etc…All 4 are flagged as tier 1, i.e. LONG positions.
Gladstone have a few you might consider
$GOOD
$GLAD
$LAND
If you like funds (on other platforms) then your choice gets bigger. I have a uk monthly income fund - Man GLG Income Professional Inc D
RE tax on US divs this can be offset in a GIA when you do your tax return, or hold them in a sipp for 0% tax withheld (on other platforms as freetrade cant work out how to do this yet!). Arif gives more detail here Foreign Dividends – Avoid getting taxed twice!
I’m like a broken record on this topic but I would caution against investing in something because it pays a monthly dividend. There are many much more important factors to consider than frequency of income, such as dividend cover, debt, sector diversification and so on.
It is a very good point, and a reminder is always welcome. Personally, I do not fully master stock due diligence yet and I rely heavily on consensus of analysts publishing their articles on Seeking Alpha. This will change in 2024.
I tend not to see a lot of people mention glad when talking about monthly payers, SP has been a lot more steady than most other suggestions and the dividend is near 10 percent.
Here is an extract from my High Income stock wishlist for Nov 23, tier 1 being the ones I will most certainly buy this month, if I can spare enough cash that is.
Checks are ongoing and the wishlist might look very different by this end of the week. Just to clarify: I’m not rushing into anything that smells like emotional purchasing, I lost enough money because of that already. Lesson learned.
I came out of MAIN as there was talk about the div not being as strong? Sold and bough WPC, next day after I bought they
Released the bomb and cutting the div and spin off!
I bought them as has a solid 25+ years of rasing divs strong!
So can happen at anytime to any stock!
I’m waiting on O to really go against all I’ve believe in their stock
But surely if your looking for income growth
Rather than stock (SP) why wait for a 1/4 when you can have a monthly offset
My personal opinion, not disregarding your either
I had glad and wasn’t paying a lot tbh (monthly)
And it has dropped in price since I sold
But the GLAD stocks are good to look at,
Maybe a re buy in price if have dropped in future.
Haven’t seen or heard of FSK🤔
I do own ARCC tho it’s moved a bit up and down since had it not talking more than 3% either way currently green but divs are nice
Think my second div is due soon!
It’s a long hold for me the div payment will put me well into profit
I actually bought WPC after knowing that. I think despite dividend cut, it will be a good long-term hold, especially with the current lower share price. Nice little payment in lieu of the split too.
It’s still gonna be a good buy but I need to see what happens firstly esp on next div announcement!
It dropped $12 a share or more with that news not good when bought when thinking it was already cheap at $68 or $63,
Think there’s another hit coming when the div is reduced so then could be my top up
There aren’t that many decent stocks which pay monthly but lots which pay quarterly. Own enough of the latter and you will get a dividend every month, which is what I currently have.
To get a decent monthly income from monthly payers, I’d probably have to be fairly concentrated in them so personally, I’d be concerned about the lack of diversification, especially as they seem to be mostly REITs.
Not that I have anything against them as I own some REITs myself but not looking to add much more except when reinvesting dividends.
Because £100 is £100 whether it’s in two instalments, four or 12. Yes, you can reinvest a little earlier but the difference should be relatively negligible.
What will make far more of a difference is the quality of the company and its growth prospects. JGGI, as an example, which pays quarterly, has returned an average of roughly 10% a year for decades. Most, if not all, monthly payers have a far worse record.
. Even just to establish an initial small position with a low price base for the future. It helping diversification too, as I’m overexposed to US Retail REITs.
