Title: Wall Street Misses Out on These Regular Dividend Payments
Discover the allure of quarterly dividends that boost your portfolio with impressive yields of up to 15.4% annually? Hold up! Let's get our hands on these investment gems while the herd is filled with fear towards ordinary shares.
We, the unconventional investors, seize the best opportunities when the masses are shivering in dread. Today, we've found lucrative dividend prospects in monthly payout stocks. But why settle for receiving largess every 90 days when we can reap rewards each and every month?
Monthly dividend stocks are like our utility bills – they arrive right on cue. Particularly appealing to us seniors and soon-to-be retirees, their predictable income distribution makes financial planning a breeze.
However, it's essential to remember that monthly dividend stocks aren't entitled to undeserved adoration just for their frequency. Like quarterly payers, they have their share of stinkers. So, steer clear of investments that might promise lofty yields burting at 3x, 4x, even 5x the indexes' payouts, yet are hiding shady business practices.
Let's dive into the juicy details about some of these high-paying monthly dividend stocks and funds:
EPR Properties (EPR) Monthly Dividend Yield 7.2%
Beginning our odyssey with two real estate investment trusts (REITs) that boast the juiciest yields in their sector, we find ourselves at the doorstep of EPR Properties. This conglomerate specializes in providing breathtaking experiences, from theaters and ski resorts to TopGolf driving ranges and even museums. It's safe to say that EPR's properties cater to people's passions.
COVID struck a devastating blow on EPR, forcing the REIT to suspend its payout. But fear not, for EPR has managed to recover most of its losses due to resuming its dividend at a reduced rate.
The dawn of a return to normalcy, coupled with a less tightened Fed, has magnified EPR's progress. The company's significant investment in theaters, which account for roughly 36% of its adjusted EBITDA, positions it well to recoup losses as Americans reembrace movie nights. Moreover, North America's box-office revenue growth predictions of a 10% improvement in 2025, combined with AMC's lease increase by 7.5%, bodes well for EPR.
Ellington Financial (EFC) Monthly Dividend Yield 12.4%
Finding the highest yields in the real estate sphere won't be found in equity REITs, but rather with mortgage REITs, such as Ellington Financial. This company will invest in just about anything that crosses its path, spreading its assets across an array of products, such as residential transition loans, commercial MBSs, CLOs, and more.
Ellington's changing strategy will prioritize home equity lines of credit and second-lien loans over agency debt, shifting 10% of its portfolio away from agency MBSs. This move partly reflects the market's modifications, focusing on less credit-risky alternatives.
Ellington's dividend boasts a substantial headline yield of 12.4%, although its history of rate reductions makes for an unstable scenario. This division might be even more tantalizing due to its affordability in a cut-price industry, trading at a mere 7.5 times 2025 earnings estimates.
PIMCO High Income Fund (PHK) Monthly Dividend Yield 11.8%
From mortgage REITs, we venture into closed-end funds (CEFs), which Unveil an impressive 11.8% monthly yield with PIMCO High Income Fund. This fund trusts a trio of analysts to manage a diversified portfolio without any guardrails – with the exception of the US dollar limits and emerging market restrictions.
Currently, PHK's allocation is predominantly concentrated on high-yield debt, US government bonds, emerging market bonds, non-agency mortgage loans, and other unspecified securities.
Though long-term performance has been positive for PIMCO, fluctuations in its success are often sharp. This fund demonstrates a significant discount of just 5% compared to its typical 7.5% average, which paints an overall undervalued picture.
Abrdn Income Credit Strategies Fund (ACP) Monthly Dividend Yield 15.4%
Our last pitstop on this monthly dividend journey takes us to the global corporate junk fund, Abrdn Income Credit Strategies Fund, which reigns supreme with a jaw-dropping 15.4% yield. This fund is mostly composed of USA high-yields, followed by a smattering of international assets.
ACP is highly positioned in 0-5-year maturities while embracing B-rated and CCC-rated bonds, with a 25% debt leverage. Though the fund has suffered from reduced distributions, its significant discount to NAV of around 6% showcases an intriguing opportunity.
In the quest for reliable retirement income sources, we should also consider alternative investments like muni bonds, high yield stocks, REITs, and closed-end funds. For instance, the PIMCO High Income Fund offers a monthly yield of 11.8%, while Abrdn Income Credit Strategies Fund boasts an impressive 15.4%. Remember, though, not all high-yield investments are equal – proper due diligence is crucial to avoid investments with shady business practices.
If you're looking for high dividend yields in the REIT sector, consider EPR Properties, with a monthly yield of 7.2%, or Ellington Financial, boasting a hefty 12.4% yield. Both REITs have their own strengths, with EPR Properties focusing on experiences like theaters and ski resorts, while Ellington Financial invests in various products, such as residential transition loans and CLOs.
Moreover, closed-end funds like Abrdn Income Credit Strategies Fund can be attractive for retired individuals seeking stable income streams with a lesser focus on the stock market's volatility. By diversifying your portfolio with such investment gems, you can potentially generate a steady stream of "mailbox money" for your retirement income needs.
