Robinhood Stocks That Pay Monthly Dividends

Robinhood rose to fame in the 2010s because it lowered the bar to Wall Street investments so even the average person could invest.

Of course, stock market newbies don’t always know how to find the right investments, especially younger people. While a stock gaining in value is great, it doesn’t equate to cash in your pocket unless you sell the stock, cutting off any further gains.

This is why dividends are important – dividends are payments made directly to shareholders as part of a distribution of company profits.

Not every stock pays dividends, and even those that do pay out may do so on an irregular basis. Dependable stocks pay dividends at least quarterly, but these are four Robinhood stocks that pay monthly dividends.

These payouts can be used to help maintain liquidity and pay bills during tough economic conditions, buy presents for the holiday season, and maintain your lifestyle while still participating in the stock market.

Realty Income Has Paid Monthly Dividends For 10 Yrs

Realty Income Corp (NYSE:O) heads this list for registering the trademark for the phrase “The Monthly Dividend Company” as its tagline.

This tagline has held true enough over the past 10 years, with the company not only paying a monthly dividend, but steadily increasing it at least once a year, often more.

As of September 2020, the company’s monthly dividend payment is set at $0.234 per share, which places the annual dividend at just under $3.00 per share.

It’s a real estate investment trust (REIT) based in San Diego, California, with tenants including companies like Walgreens, 7-Eleven, Dollar General, and FedEx.

It issues triple net leases, which mean tenants are responsible for maintenance, taxes, and other expenses with typically multi-year leases.

These combined revenues helped the company go public in 1994 and enter the S&P 500 index in 2015. Although rent has been hard to collect in 2020 due to widespread eviction moratoriums, Realty Income collected 91.5% of contractual rent in July 2020, according to its earnings call.

The REIT issues both common shares and cumulative preferred shares. While the common shares dividend has increased, the preferred shares have a fixed dividend. With that said, preferred shares will pay any missed dividends so that you are guaranteed a monthly payout before common shares.

However, common shares haven’t missed many payments over the past decade. If you’re investing in order to earn monthly income, be sure to take these issues into account.

Main Street Capital Commits To Continuing Dividends

Main Street Capital (NYSE:MAIN) is an investment firm that services lower-middle to middle market companies, and it pays both regular and special dividends. However, analysts have been monitoring its financial health closely to determine if it can continue with these payments with the economy struggling so much post-coronavirus.

The company provided some ease in May 2020 when it announced it would continue paying monthly dividends through September 2020, for a total dividend of $0.615 for the third quarter. Regular dividends should continue through the year.

The company provides both debt and private equity funding to help business development. Its target companies are privately owned businesses with annual revenues between $10 million and $150 million, and it has nearly 200 portfolio companies across over 50 industries.

Most of its portfolio is loans, although it did earn $33 million in dividends from its equity stakes, which average 41% ownership. It also earns money when a portfolio company sells.  

Business lending isn’t going anywhere in the post-coronavirus society. In fact, the lack of a second stimulus loan for businesses means Main Street Capital is more necessary than ever moving into 2021.

Main Street Capital does support a dividend reinvestment plan (DRIP). This means in lieu of a cash dividend, you can opt to have your distribution reinvested automatically in more MAIN stock. 

EPR Properties Dividend Is A Bit More Risky

EPR Properties (NYSE:EPR) is a Kansas City, Missouri-based REIT that typically pays quarterly dividends, along with special monthly dividend payments.

It’s rather high too, paying out $0.382 for its most recent dividend payments, although it hasn’t paid out since May 2020.

The problem is that EPR’s portfolio of properties is heavily focused on experiential properties, which have been the hardest hit from the COVID-19 pandemic.

This includes movie theaters (which represent about 46% of its revenue), eat & play properties, casinos, ski resorts, and more. Notable properties include a variety of Six Flags Hurricane Harbors, Hawaiian Falls, and Jack Frost Ski Resort.

However, it’s not all gloom and doom, as cities around the country are slowly allowing these businesses to reopen.

This gives them an opportunity to generate revenue and pay rent, but that all depends on how successful its tenants are in drawing people out and operating within social distancing guidelines.

While EPR isn’t currently paying dividends, its stock price is also heavily discounted, providing an opportunity to get in cheap for potential payouts in 2021 and beyond.

LTC Properties Focuses On Senior Housing

LTC Properties Inc (NYSE:LTC) has an approximately 6% annual dividend payout that’s received by shareholders monthly.

This REIT owns about 200 properties that mostly includes seniors housing and health care facilities at an approximately 50/50 split.

Not only has it paid mostly regular dividends since the 1990s, but the stock’s value more than tripled since then. This is because senior care and other assisted living facilities are more necessary than ever in a post-coronavirus world.

The REIT continued regular cash dividend payments of $0.19 every month throughout 2020, providing a $2.28 annual payout per share.

Be aware of how complicated its profits actually are when performing your due diligence though. Its revenue depends entirely on the ability of the patients living in these facilities being able to pay the tenants so they can pay their bills.

This puts it in a precarious position, although it has the cash to buy its way out of any issues in the foreseeable future.

Robinhood Stocks That Pay Monthly: The Final Word

Dividend stocks are a great way to create recurring monthly revenue for investors. If you’re having trouble keeping a steady workflow, dividends may be a solution to gaining more liquidity. They’re more accessible than ever using Robinhood.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.