If you invest for income then you likely know that most of the thousands of dividend-paying stocks listed on the U.S. exchanges pay quarterly dividends or once every three months. Quarterly dividends are nice, but most of us pay our bills monthly, so it would be convenient to have investments that pay attractive yields and pay the income out on a monthly schedule.
If you like the idea of a monthly paycheck from your stock portfolio, you have some options. There are roughly three dozen individual company stocks that pay monthly dividends instead of the quarterly standard.
The rules of dividend payouts are unique to the stock market. Each dividend payment comes with a set of dates. Each corporate dividend payment must be declared by the company’s board of directors. Once announced, the dividend will come with a record date and a payment date.
To earn the next dividend, you must be an owner by the record date. The stock market settlement rules take a day from when you buy the shares until you become the official owner. As a result, stocks go ex-dividend the day before the record date. Ex-dividend means that if you buy shares on that date, you will not receive the upcoming dividend payment.
To earn the dividend you must purchase the stock at least one day before the ex-dividend date.
The third week of the month is a popular time for business development companies (BDCs) to go ex-dividend.
Here are five stocks (BDCs and others) that pay monthly dividends going ex-dividend this week. Do your own research on these (or any) stocks to make sure they fit your investment goals.
Gladstone Investment (GAIN) is a BDC that provides debt funding for buyout and merger transactions. GAIN works with companies with revenues of $20 to $100 million.
The company provides both debt financing and equity investments in the deals where it participates. The investment portfolio is split 75%/25% debt and equity. Gladstone Investment is managed externally by Gladstone Management.
GAIN shares go ex-dividend on Friday, July 19 for the 6.8 cents per share monthly dividend. This means you must own shares by market close on Thursday.
The shares yield 7.25%.
Gladstone Commercial Corporation (GOOD) is an equity real estate investment trust (REIT) that invests in single-tenant and anchored multi-tenant net leased office, industrial and medical properties nationwide.
On a selective basis, GOOD will also make long-term industrial and commercial mortgage loans. This REIT is also externally managed by Gladstone Management.
GOOD is paying a 12.5 cents per share monthly dividend, also going ex-dividend on Friday, July 19.
The shares of GOOD currently yield 6.9%.
LTC Properties Inc. (LTC) is a REIT focused on the ownership of senior housing facilities and healthcare properties. As of the latest investor presentation, the company owns 199 properties, closely split between Skilled Nursing type and Assisted living. The properties are leased to 29 independent operators.
LTC pays a 19 cent per share monthly dividend. This stock goes ex-dividend on Monday, July 22, so you can buy shares through Friday to earn the next dividend payment.
The stock yields 5.0%.
Solar Senior Capital Ltd. (SUNS) is a small-cap BDC with the goal to provide maximum current income to investors while preserving capital. The company focuses on generating long-term client relationships by providing comprehensive financial solutions.
SUNS is externally managed by Solar Capital Partners.
The current dividend from Solar Senior Capital is 11.75 cents per share. Next ex-dividend is on Wednesday, July 24.
Current yield is 8.7%.
Pembina Pipeline Corp (PBA) is a Canadian energy midstream services company with shares that trade on the NYSE.
The company’s pipelines transport crude oil, natural gas, and natural gas liquids (NGLs) out of the western Canada productions areas.
Pembina is the largest independent midstream services provider in its operating region. The current monthly dividend rate is 20 cents Canadian per share. That works out to about 15 cents in U.S. currency.
The next ex-dividend date for PBA is on Wednesday, July 24.
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