Top Monthly Dividend Stocks UK to Watch in 2023
The most common type of dividend payment from a publicly traded company is paid quarterly. However, there are some companies that will pay monthly dividends.
In this article, we will share some of the top monthly dividend stocks to watch this year and how to invest in them.
Table of Contents
What are Dividends?
What is a dividend? A dividend is a share of company earnings that is paid to the company’s stockholders. Not all companies will pay dividends and the ones that do will pay biannually, quarterly or monthly.
Dividends are approved by the company’s board of directors who also announce when the dividend will be paid and the amount. Income investors may choose to receive the dividend as a form of income, whereas capital growth investors may choose to reinvest the dividend to buy more shares.
Some companies have a long track record of paying dividends. Alcoholic drinks giant Diageo has a track record of paying dividends every year for the past 20 years at an annual compounded rate of 7%.
In times of economic uncertainty companies may decide to remove the dividend. Instead, they may choose to reinvest the company’s earnings into the business to facilitate more growth. However, investors would not just look at dividends to aid in their decision-making.
Analysing company fundamental analysis such as upcoming product launches, changes in management, sector strength and earnings data is also important in analysing a stock. Some traders would also use technical analysis which is the study of chart patterns and price behaviour.
List of Monthly Dividend Stocks and ETFs
Below is a list of monthly dividend stocks and ETFs (exchange traded funds) available to invest via the Admirals Invest.MT5 account.
|ARMOUR Residential REIT||ARR||Mortgage REITs||US||19.77%|
|Prospect Capital Corp||PSEC||Asset Management and Custody Banks||US||9.81%|
|LTC Properties Inc||LTCNY||Healthcare REITs||US||6.03%|
|Apple Hospitality REIT||APLE||Hotel and Resorts REITs||US||5.81%|
|iShares J.P. Morgan USD EM Bond ETF||IEMB||Emerging Market Bonds||UK||5.58%|
|Realty Income||O||Retail REITs||US||4.57%|
|Stag Industrial||STAG||Industrial REITs||US||4.27%|
|Agree Realty Corp||ADC||Retail REITs||US||3.89%|
|Shaw Communications Inc||SJR||Cable and Satellite||CA||3.07%|
|Gladstone Land Corp||LAND.US||Specialized REITs||US||2.81%|
The Invest.MT5 account allows you to:
- Invest in UK stocks and ETFs with a commission of 0.1% of the trade value and a low minimum transaction fee of just 1 GBP.
- Invest in US stocks and ETFs with a commission of $0.02 per share and a minimum transaction fee of just 1 USD.
ARMOUR Residential REIT
Industry: Mortgage REITs
Dividend Yield: 19.77%
ARMOUR Residential REIT is a real estate investment trust. The trust invests in fixed-rate and adjustable-rate residential mortgage-backed securities. The securities are issued by US government-sponsored entities which include the Federal Home Long Mortgage Corporation, Federal National Mortgage Association and by the Government National Mortgage Administration.
Prospect Capital Corp
Industry: Asset Management and Custody Banks
Dividend Yield: 9.81%
Prospect Capital Corp is a Business Development Company (BDC) engaged in making debt and equity investments in middle-market businesses operating in the US. It currently has $7.7 billion in assets under management with investments in over 400 projects and more than $3.8 billion in declared dividends.
LTC Properties Inc
Industry: Healthcare REITs
Dividend Yield: 6.03%
LTC Properties is a healthcare real estate trust that invests in housing for seniors. The company primarily focuses on structured finance solutions, joint ventures, mortgage financing and sale-leasebacks. 50% of the portfolio houses seniors and 50% houses skilled nurses, totalling more than 204 investments across 29 states.
Apple Hospitality REIT
Industry: Hotel and Resort REITs
Dividend Yield: 5.81%
Apple Hospitality REIT is a real estate investment trust that owns one of the largest portfolios of upscale hotels in the United States. Its portfolio consists of 96 Marriott-branded hotels, 199 Hilton-branded hotels and 4 Hyatt-branded hotels.
iShares J.P. Morgan USD EM Bond ETF
Industry: Emerging Market Bonds
Dividend Yield: 5.58%
The iShares J.P. Morgan USD Emerging Market Bond fund aims to provide diversified exposure to emerging market bonds issued in US dollars. Currently, the fund has 91.55% invested in government bonds and 8.03% invested in corporate bonds.
The biggest holding in the fund is a 0.82% portfolio weight to a Republic of Ecuador 2.5% government bond, followed by a 0.78% portfolio weighting in a State of Kuwait 3.5% government bond. There are 588 bond holdings in the fund from a range of different countries including Qatar, Kazakhstan, Argentina, Brazil, Uruguay and many others.
Industry: Retail REITs
Dividend Yield: 4.57%
Realty Income is a real estate investment trust that primarily invests in commercial properties in the United Kingdom, United States and Spain. The company is headquartered in San Diego, California and currently owns 11,288 properties. Its largest tenants include Walgreens, 7-Eleven, Dollar General, Sainsbury’s, LA Fitness and many others.
Industry: Industrial REITs
Dividend Yield: 4.27%
Stag Industrial is a real estate investment trust that focuses on the acquisition and operation of industrial properties in the United States. It currently operates 563 buildings totalling 111.6 million square feet across 41 states. Stag’s enterprise value stands at $7.7 billion.
Agree Realty Corp
Industry: Retail REITs
Dividend Yield: 3.89%
Agree Realty Corp is a real estate investment trust that focuses on the development and acquisition of net lease retail properties throughout the United States. It currently operates 1,707 properties totalling 36 million square feet and includes tenants such as Best Buy, Autozone, Dollar General, Home Depot and many others.
Shaw Communications Inc
Industry: Cable and Satellite
Dividend Yield: 3.07%
Shaw Communications is a Canadian telecommunications company headquartered in Calgary, Alberta. The company provides cable television, internet, telephone and mobile services primarily in Alberta and British Columbia. Founded in 1966, the company has revenues topping CAD $5 billion annually.
Gladstone Land Corp
Industry: Specialized REITs
Dividend Yield: 2.81%
Gladstone Land Corp is an agriculture real estate investment trust. The company is externally managed and engages in the owning and leasing of farmland. Currently, it owns around 164 farms across 15 states in the United States primarily focusing on fruit and vegetable croplands.
How to Invest in Monthly Dividend Stocks & ETFs
With the Admirals Invest.MT5 account you can invest in stocks and ETFs from 15 of the largest stock exchanges around the world, including the ones listed above.
- Open or a demo or live Invest.MT5 account.
- Deposit real funds in your account unless you are using virtual funds from a demo account.
- Open the stock trading software provided by Admirals which is a web version or desktop version of MetaTrader 5.
- Choose your instruments. Select from thousands of dividend stocks and ETFs from all over the world.
- Invest and start collecting dividend payments.
FAQs on Monthly Dividend Stocks
What stock dividends pay monthly?
Some companies that pay monthly dividends include Agree Realty, Apple Hospitality REIT, Realty Income, Shaw Communications and many others.
Which stock has the highest monthly dividend?
Currently, ARMOUR Residential REIT pays a 19.77% dividend. However, this can change over time and the company can choose to stop paying a dividend altogether.
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