Top 5 Monthly Dividend Stocks for 2018

Most dividend-paying stocks do so on a quarterly basis, but you can find equities that will pay you each month. If you reinvest dividends, you can grow a position more quickly by buying shares each month. For those who invest in dividend stocks for income to live on, monthly dividends make it easier to keep up with monthly bills.
The following are our five top picks for reliable companies that pay monthly dividends. All figures given are current as of March 10, 2018.

Realty Income Corporation (O)
Realty Income Corporation has been paying monthly dividends regularly since 1995. This is a real estate investment trust (REIT) with some 2,600 rental properties, primarily in the retail space. Revenues have grown steadily for the past four years, and income has remained positive throughout the same period.

• Average Volume: 2,334,768
• Market Cap: $14.48 billion
• P/E Ratio (TTM): 46.25
• EPS (TTM): $1.10
• Dividend and Yield: $2.27 (4.29%)

Shaw Communications Inc. (SJR)
Shaw Communications has managed to grow its dividend for more than 10 years. This Canadian cable company currently pays a dividend of 4.81%. The shares rose sharply in June 2017 but gave back most of those gains the following month. After moving in an uptrend for most of the second half of the year, the stock witnessed a decline in early October and experienced significant volatility into year end. Shaw Communications shares have had a rough start to 2018, currently down approximately 15% year to date to levels just above $19.

• • Average Volume: 596,047
  • Market Cap: $9.927 billion
  • P/E Ratio (TTM): 14.07
  • EPS (TTM): $1.38
  • Dividend and Yield: $0.93 (4.81%)

Pembina Pipeline Corporation (PBA)
Pembina Pipeline has a reliable monthly dividend but does not have the long track record of growing its dividend that other stocks on this list have. This is because oil prices have been in a slump. However, the company has grown its dividend for the past five years. It currently pays 5.34%.

• Average Volume: 523,432
• Market Cap: $16.515 billion
• P/E Ratio (TTM): 22.28
• EPS (TTM): $1.45
• Dividend and Yield: $1.71 (5.34%)

Gladstone Commercial Corporation (GOODO)

The second REIT on our list is Gladstone Commercial, which has a history of regular monthly dividend payouts since 2005. The REIT invests in commercial real estate and focuses on renting space to small- and mid-sized companies. Gladstone Commercial has seen revenue growth for the past four years, and income has kept pace with revenues

• • Average Volume: 243,397
  • Market Cap: $338.27 million
  • P/E Ratio (TTM): 6.84
  • EPS (TTM): $1.52
  • Dividend and Yield: $0.78 (7.28%)

Gladstone Investment Corporation (GAIN)
Gladstone Investment has grown its dividend for over five years. It focuses on buyouts and recapitalizations of companies. The five-year growth rate of the dividend, plus the prospects for a robust buyout market going forward, make this a reliable monthly income stock. What appears to be volatility in Gladstone Investment's share price is actually dividend payout dates.

• Average Volume: 243,397
• Market Cap: $338.27 million
• P/E Ratio (TTM): 6.84
• EPS (TTM): $1.52
• Dividend and Yield: $0.78 (7.28%)

Source: Bloomberg Pro Terminal

Trader: Velizar Mitov

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