In this article, we discuss the 10 best monthly dividend stocks to buy in July. You can skip our detailed analysis of dividend stocks and their past performance and go directly to the 5 Best Monthly Dividend Stocks to Buy in July.
The emergence of dividend investing opened new avenues for income and corporate investors alike, guarding them against tense market conditions. Historically, dividend-paying stocks outperformed equity shares, especially during periods of high inflation. This was demonstrated between 1958 and 2018 when portfolios containing the top 20% of S&P 500 companies ranked by dividend yield topped the broader market by 2.13% annually.
With the financial markets taking a massive hit in 2022, dividend stocks are gaining more importance than ever. Investors are moving towards high-yielding stocks, as quarterly or monthly payments are helping them stay the course amid uncertain conditions. In this regard, high-dividend exchange-traded funds remain winners, as they are expected to sustain their payments. According to a recent report by Bloomberg, the assets held by ETFs with high-yielding stocks have reached a record high, gathering approximately $25 billion in 2022 so far. Additionally, the report mentions that the assets could reach $50 billion by the end of the year. Noticing investors’ inclination towards dividend stocks, companies are steadily raising their dividends in 2022 after recovering from the pandemic-induced market crash of 2020. This complies with the latest data that dividend payments in the U.S surged 10.4% in the first quarter of 2022, reaching $141.6 billion.
Analysts have also expressed a positive outlook for dividend investing in 2022. Earlier this year, Goldman Sachs raised its dividend growth forecasts to 10% from 8%, highlighting the attractive valuations of dividend stocks. Similarly, Janus Henderson Group PLC expects global dividends to amount to $1.54 trillion in 2022, a 4.6% increase from 2021. Some of the major dividend stocks that have been grabbing investors’ attention include Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and Altria Group, Inc. (NYSE:MO). However, in this article, we will shed light on dividend stocks with monthly payouts.
In this article, we will discuss 10 monthly dividend stocks to buy in July. We chose these stocks by considering the strong business fundamentals of the respective companies, along with analysts’ ratings and dividend yields. The stocks are ranked from the lowest yield to the highest.
10 Best Monthly Dividend Stocks to Buy in July
10. Global Water Resources, Inc. (NASDAQ:GWRS)
Dividend Yield as of July 4: 2.16%
Global Water Resources, Inc. (NASDAQ:GWRS) is an Arizona-based water supply and water management company that provides related services to consumers. The company had its IPO in 2016 and has gained 113.4% since then as of July 4.
Global Water Resources, Inc. (NASDAQ:GWRS) started paying monthly dividends as soon as it went public, however, it hasn't been able to raise its dividend by a significant percentage since then. Currently, it offers a monthly payout of $0.246 per share, with a yield of 2.16% recorded on July 4. According to analysts, the company is still figuring out its dividend strategy, as it had to pay 100% of its free cash flow in dividends in 2021. In Q1 2022, Global Water Resources, Inc. (NASDAQ:GWRS) paid over $1.67 million in dividends to shareholders, up from $1.65 million paid during the same period last year.
As per Insider Monkey's Q1 2022 database, 4 hedge funds owned stakes in Global Water Resources, Inc. (NASDAQ:GWRS), the same as in the previous quarter. The collective value of those stakes was over $7.4 million. Jim Simons' Renaissance Technologies was the company's leading shareholder in Q1.
Like Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and Altria Group, Inc. (NYSE:MO), Global Water Resources, Inc. (NASDAQ:GWRS) is also one of the notable dividend stocks to consider.
9. Agree Realty Corporation (NYSE:ADC)
Dividend Yield as of July 4: 3.82%
Agree Realty Corporation (NYSE:ADC) is an American real estate investment trust that deals in the acquisition of properties net leased to U.S retailers. Since the beginning of the year, the stock has gained 3.90%, while it delivered a 2.54% return to shareholders in the past year, as recorded on July 4.
In June, BofA upgraded Agree Realty Corporation (NYSE:ADC) to 'Buy', highlighting the company's price/earnings-to-growth ratio and its dividend yield. The firm also lifted its price target on the stock to $78.
Agree Realty Corporation (NYSE:ADC) is one of the best monthly dividend stocks as it has raised its dividends consecutively for the past 10 years, with its 5-year CAGR standing at 6.6%. The company currently pays a monthly dividend of $0.234 per share, offering a yield of 3.82%, as of the close of July 4. Moreover, its payout ratio sits at 70% of its core free cash flow, signaling its strength for future dividend growth.
At the end of March 2022, 21 hedge funds owned stakes in Agree Realty Corporation (NYSE:ADC), down from 26 a quarter earlier, according to Insider Monkey's data. The consolidated value of those stakes was over $141.5 million. Among those hedge funds, Millennium Management was the company’s largest shareholder in Q1 2022, with a holding worth over $50.5 million.
8. Apple Hospitality REIT, Inc. (NYSE:APLE)
Dividend Yield as of July 4: 4.06%
Apple Hospitality REIT, Inc. (NYSE:APLE) is a Virginia-based real estate investment trust company that invests in income-producing real estate. As of May, the company owns approximately 219 hotels across 36 states.
During the pandemic in 2020, Apple Hospitality REIT, Inc. (NYSE:APLE) froze its dividend payments in order to preserve cash to deal with the outbreak. In 2021, the company renewed its dividend payments with quarterly payouts, and in February of this year, it reinstated its monthly dividend policy. The company's current monthly payout stands at $0.05 per share, down 50% from its pre-Covid monthly dividend. However, its attractive yield of 4.06% has investors positive about its future growth.
In June, B. Riley upgraded Apple Hospitality REIT, Inc. (NYSE:APLE) to 'Buy' from 'Neutral', appreciating the company's strong balance sheet and increasing hotel occupancy rates after the pandemic. The firm kept a $19 price target on the stock.
According to Insider Monkey's database, 17 hedge funds held positions in Apple Hospitality REIT, Inc. (NYSE:APLE) in Q1, with stakes valued at $154.2 million. With nearly 3 million shares, PAR Capital Management held the largest position in the company in Q1.
7. Realty Income Corporation (NYSE:O)
Dividend Yield as of July 4: 4.23%
Realty Income Corporation (NYSE:O) is one of the oldest real estate investment trusts, with properties across all U.S states, the UK, Spain, and Puerto Rico. Over the years, the company has grown its real estate assets from $451 million to $36 billion.
On June 14, Realty Income Corporation (NYSE:O) announced a 0.2% growth in its monthly dividend payments, to $0.2475 per share. This marked the company's 116th dividend hike in the past 53 years, which makes it one of the best monthly dividend stocks. Moreover, since its IPO in 1994, it has raised its annual dividend from $0.90 per share to $2.958 per share in 2022. The stock's dividend yield was recorded at 4.23% on July 4.
In June, Credit Suisse initiated its coverage of Realty Income Corporation (NYSE:O) with an 'Outperform' rating and $75 price target. The firm also named the stock one of its top picks due to its value-enhancing reinvestments.
The number of hedge funds tracked by Insider Monkey owning stakes in Realty Income Corporation (NYSE:O) stood at 22 in Q1, falling from 30 in the previous quarter. The collective value of these stakes is over $284.8 million. Matthew Barrett and Ken Griffin were some of the company's prominent shareholders in Q1.
6. LTC Properties, Inc. (NYSE:LTC)
Dividend Yield as of July 4: 5.82%
LTC Properties, Inc. (NYSE:LTC) invests in senior housing and healthcare buildings through mortgage financing and joint ventures. On June 21, the stock gained nearly 4% as BMO Capital upgraded the REIT to 'Buy', forecasting its adjusted FFO to deliver 9.2% year-over-year growth in FY 2023. The firm also lifted its price target on the stock to $40 from $37.
On July 1, LTC Properties, Inc. (NYSE:LTC) announced a monthly dividend of $0.19 per share, in line with its previous dividend. The company last raised its dividend in 2016 but continued with its payouts during the pandemic. Moreover, it has a 17-year run of making monthly distributions to shareholders and before that, it paid quarterly dividends. The stock's dividend yield was recorded at 5.82%, as of July 4.
At the end of Q1 2022, 7 hedge funds in Insider Monkey's database owned stakes in LTC Properties, Inc. (NYSE:LTC), down from 8 in the previous quarter. These stakes hold a combined value of over $16 million, up from $7 million worth of stakes owned by hedge funds in Q4 2021.
In addition to famous dividend stocks such as Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and Altria Group, Inc. (NYSE:MO), analysts are also positive about the future growth of LTC Properties, Inc. (NYSE:LTC).
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Disclosure. None. 10 Best Monthly Dividend Stocks to Buy in July is originally published on Insider Monkey.