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Monthly dividend stocks could be appealing for investors looking for recurring income. By purchasing dividend stocks that pay distributions to shareholders each month, investors can streamline their passive income cash flow to fit their monthly expenses.

As a result, the following 3 monthly dividend stocks provide income each month and have high dividend yields.
 

Realty Income (O)

Realty Income is a retail focused REIT that owns thousands of retail 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.

On February 20th, 2024, Realty Income Corp reported its financial results for the fourth quarter of 2023. In the fourth quarter, normalized FFO per share was $1.00, down from $1.04 in Q3 and $1.05 in Q4 2022. Revenue totaled $1.08 billion, surpassing the consensus of $983.7 million, and rose from $888.7 million a year earlier. Portfolio occupancy stood at 98.6% as of December 31, 2023,

For 2024, Realty Income projects a normalized FFO per share ranging from $4.17 to $4.29, with a midpoint of $4.23, compared to the consensus estimate of $4.25 and the $4.00 reported for 2023. Same-store rent growth guidance for the year is around 1.0% year-over-year, in contrast to the 1.9% growth seen in 2023, while acquisition volume guidance stands at approximately $2.0 billion.

Due to the steady growth of Realty Income’s profits, even during the last financial crisis, the dividend looks sustainable, despite the fact that Realty Income pays out around 74% of its funds-from-operations to its owners in the form of dividends.

The company has increased its dividend for 26 years. O stock currently yields 5.7%.
 

Global Water Resources (GWRS)

Global Water Resources is a water resource management company that owns, operates, and manages regulated water, wastewater, and recycled water utilities primarily in metropolitan Phoenix, Arizona. The company serves more than 82,000 people in 32,000 homes. Global Water generates around $53 million in annual revenues and pays its dividends on a monthly basis.

On March 6th, 2024, Global Water reported its Q4 and full-year results. For the quarter, revenues increased by 11.4% year-over-year to $12.4 million. Specifically, growth was driven by a 9.8% increase in active service connections to 61,791, higher rates, and higher consumption. The increase in active service connections was primarily due to new connections associated with the acquisition of Farmers Water in February and a 3.7% organic growth in connections. For the year, EPS came in at $0.30.

Global Water has many tailwinds including considerable growth in its recycled water deliveries (12.6% growth YoY in Q4), notable rate increases, and strong population growth in Phoenix. As such, we expect EPS to grow by a rate of 6% annually through 2029. Note that this is a 'potential' figure, rather than something that's likely to materialize this year. Wall Street consensus EPS estimate for the year is $0.30.

GWRS stock currently yields 2.3%.
 

Gladstone Land Corp. (LAND)

Gladstone Land Corporation is REIT that specializes in the owning and operating of farmland in the U.S. The trust owns about 160 farms, comprising more than 110,000 acres of farmable land. Gladstone’s business is made up of three different options available to farmers, all of which are done on a triple-net basis. The trust offers long-term sale leaseback transactions, traditional leases of farmland, and outright purchases of farm properties. Gladstone’s portfolio has an appraised value of over $1.5 billion.

Gladstone posted fourth quarter and full-year earnings on February 20th, 2024, and results were somewhat mixed. Funds-from-operations came to 18 cents per share, which missed estimates by a penny. FFO was 19 cents a year ago, and 16 cents in the third quarter. Revenue was $24.45 million, down 1.4% year-over-year, and $570k better than expected.

Gladstone offers farmers a diverse portfolio of high-quality properties, but it doesn’t necessarily have a competitive advantage. Recessions may hurt the trust’s earnings as farmers that operate on low margins may struggle if a downturn occurs. Weather is another risk factor for Gladstone and its farmers, as crop destruction can occur for a variety of reasons. The dividend should be sustainable at 82% of AFFO-per-share for this year.

LAND stock currently yields 4.3%.

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