The strangest year of our lives is going to end in a few days. But as many things have been changed in the year 2020, one particular thing is still the same, i.e., we need to pay bills and most of such bills come with monthly deadlines. This is the point where monthly dividend stocks play their role. The majority of dividend stocks are paying semiannually and quarterly. But the payment schedule of monthly dividend funds and stocks is in alignment with your utility bills, mortgage payment, and some other monthly expenses.
Many also tend to boast extremely high yields that are several times greater than the market average. The next year would be much different as compared to 2020. This is expected that the Coronavirus vaccine will be available in the next few months that will help the life returning to normal condition. Everything remaining the same, this will be helpful for the stocks value and dividend payers who have struggled hard this year. Today, in this article we will have a look at the dividend stocks that pay monthly as shared by Insider Monkey. Monthly payers are usually concentrated in CEFs (Closed-end funds), BDCs (business development companies), and REITs (real estate investment trusts. The list is topped by AGNC Investment Corp. which is owned by the 32 hedge funds. There has been observed a surge of 78% in the ownership of AGNC by hedge funds during the past year that might be because of the healthy and strong balance sheet of REIT and undervalued stocks. At present, the shares of AGNC are traded at the rate of $15.42 which is $1 less than the estimated value of the company.
Second on the list is the Realty Income Corporation. The ownership of Realty Income Corporation has increased steadily by Hedge fund from the start of 2019 and increased by 60% since then. 24 hedge funds have owned the shares of REIT in September and are becoming a monthly dividend payer as it is making payments to shareholders on a monthly basis for more than 600 months or 50 years. The next monthly payment of Realty Income will be done on January 15 and its amount will be equal to the annual yield of around 4.7%, i.e. $0.2345. From the last 4 years, its dividend payment has been increased by around 11.9%. If you want to read more then jump to Top 10 Dividend stocks that pay monthly.