3 Stocks That Cut You a Check Each Month

Dividend-paying stocks can be a good way to help you generate income, providing the companies are reliable payers. While most of them make quarterly distributions, you actually don’t have to wait three months for your money. That’s because there are stocks that pay their dividends every month.

If that appeals to you, here are three good options to consider.

1. Realty Income

Realty Income (NYSE:O), which calls itself “The Monthly Dividend Company,” has been in business for more than half a century. The company is a real estate investment trust (REIT), which makes it a great choice for income-seeking investors since government rules require that REITs pay out 90% of their taxable income as dividends.

Realty Income rents the majority of its approximately 6,600 properties to single commercial tenants. Management seeks to diversify its risk by leasing to about 300 different companies spanning 50 industries, and it looks to sign long-term leases with tenants that have multiple sources of revenue and strong cash flow. Its major occupants includes large, successful companies like Walgreens Boots Alliance and Dollar General. Is it working? Despite the pandemic, Realty Income’s occupancy rate was 98.6% at the end of the third quarter.

Realty Income is a Dividend Aristocrat. Besides paying out monthly dividends, it frequently raises the payment multiple times per year. Most recently, the company announced it was increasing January’s dividend from $0.234 to $0.235. At Thursday’s closing price, this works out to a 4.6% yield.

The company may have only slightly boosted the payout, but that makes 109 raises since it went public in 1994. You should also remember that this latest move comes during difficult times, and other REITs are not doing nearly as well, with some forced to cut their dividends.

2. Stag Industrial

Stag Industrial (NYSE:STAG) is a REIT that owns single-tenant industrial properties. While this would seem like a troubled space given the pandemic and economic fallout, Stag is actually in pretty good shape. There are a few good reasons.

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