Most stocks pay dividends on a quarterly schedule. But some investors such as retirees might desire even more frequent dividend payments.

Fortunately, there are stocks that make monthly dividend payments, which can help smooth out cash flows for shareholders.

This article will discuss three monthly dividend stocks that have monthly distributions and yields above 3%.

Realty Income (O)

Realty Income is a retail real estate focused REIT that has become famous for its successful dividend growth history and monthly dividend payments. Realty Income has paid over 640 consecutive monthly dividends and has increased its dividend more than 120 times since its initial public listing on the NYSE in 1994.

Today, the trust owns thousands of retail properties. Realty Income owns properties that are not part of a wider retail development (such as a mall), but instead are standalone properties. This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment. Realty Income was founded in 1969 and is headquartered in San Diego.

Realty Income exceeded revenue expectations in the first quarter of 2023, reporting $1.26 billion in revenue following $598 million in investment volume. Its earnings slightly surpassed predictions, with normalized FFO per share reaching $1.05, a penny higher than the analyst estimate. This figure marked an increase from $1.00 in the previous quarter and $1.04 in the first quarter of 2023.

Realty Income reaffirmed its 2024 guidance for normalized FFO and same-store rent growth, with expectations of acquisition volume around $2.0 billion.

The REIT has been able to grow its AFFO per share and its dividend per share for many years and is today a Dividend Aristocrat. Realty Income generates its growth through growing rents at existing locations, via contracted rent increases or by leasing properties to new tenants at higher rates, but also by acquiring new properties. Realty Income expects to increase its investments in international markets moving forward.

Gladstone Investment Corp. (GAIN)

Gladstone Investment is a business development company (BDC) that focuses on US-based small- and medium-sized companies. Industries which Gladstone Investment targets include aerospace & defense, oil & gas, machinery, electronics, and media & communications.

Gladstone Investment reported its most recent quarterly earnings results on May 8. The company generated total investment income of $23.7 million during the quarter, which represents an increase of 19% compared to the prior quarter. This number beat the analyst consensus estimate by $0.5 million, as analysts expected a slightly weaker performance for the company’s top line.

Gladstone Investment’s adjusted net investment income-per-share totaled $0.24 during the fiscal fourth quarter. That was up from the previous quarter’s level. Gladstone Investment‘s net asset value per share totaled $13.43 on a per-share basis at the end of the quarter, which was up compared to the NAV-per-share that the company reported at the end of the previous quarter.

Gladstone Investment’s business model is relatively straightforward. The company lends money to small- and mid-sized companies. Position sizes for debt investments usually range from $5 million to $30 million. The company also takes equity stakes in such companies, with position sizes for equity investments typically ranging from $10 million to $40 million.

Gladstone Investment’s weighted average interest yield has been very strong in the past on average, with a weighted average interest rate of well above 10%.

GAIN is a monthly dividend stock with a current yield of 6.9%.

Phillips Edison & Company (PECO)

Phillips Edison & Company is a real estate investment trust that is one of the nation’s largest owners and operators of omni-channel grocery-anchored shopping centers. Additionally, the company runs a third-party investment management business providing property management and advisory services to unconsolidated joint ventures and one private fund.

On April 25th, 2024, Phillips Edison & Company released its Q1 results for the period ending March 31st, 2024. For the quarter, total revenues came in at $161.3 million, 6.8% higher year-over-year. Same-store NOI rose by 3.7% to $106.7 million, new and renewal leasing spreads landed at 29.1% and 16.9%, respectively, while occupancy was strong at 97.2% - all of which were encouraging.

Along with only marginally higher interest and operating expenses, Nareit FFO for the quarter advanced by 5% to $80.1 million. Nareit FFO per share was $0.59, up from $0.58 last year. During the quarter, the company acquired two shopping centers and one land parcel for a total of $55.9 million. For fiscal 2024, management still expects Nareit FFO per share to land between $2.34 and $2.41. This implies a year-over-year growth of 5.8% at the mid-point of guidance.

By creating omni-channel grocery-anchored shopping experiences, the company’s properties enjoy resilient traffic. Future growth is to be powered by accretive acquisitions, high retention rates, and a focus on increasing occupancy.

Driving leasing spreads higher, executing redevelopment projects, and implementing rent hikes in new leases should also lead to NOI growth, which should, in turn, lead to increased FFOs. PECO stock currently yields 3.6%.

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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul University, and an MBA with a concentration in Investments from the University of Notre Dame.