Dividend Stocks

There are a lot of factors to consider when choosing the best high-yield monthly dividend stocks. However, there are three key considerations: the company’s history of paying dividends, the size of the dividend, and the current yield.

Before purchasing any shares, it’s important to consider a company’s history of dividends-paying. This is important because it shows that the company is committed to paying shareholders and is likely to continue doing so in the future. Second, you want to check the dividend’s size.

A large dividend is great, but it may not be as attractive if the stock price is also high. Another smart thing to do when looking at dividend stocks is to check the current yield. A higher yield will often mean more cash for you to use in other ways.

With these considerations in mind, here are three of the best high-yield monthly dividend stocks:

EPR EPR Properties $42.50
PSEC Prospect Capital $7.44
PBA Pembina Pipeline Corp. $34.62

EPR Properties (EPR)

Source: Iuliia Pilipeichenko / Shutterstock

Annual dividend yield: 7.84%

EPR Properties (NYSE:EPR) is a specialty triple-net REIT that owns and operates entertainment and recreation venues across the United States.

Total assets are more than $6.4 billion and are spread liberally across 44 states in the U.S., including movie theaters, golf courses, family entertainment centers, and water parks. EPR’s properties are leased to a diversified group of tenants, including major national and regional operators.

EPR’s experience in the entertainment and recreation industry and its strong relationships with tenants and operators provide EPR with a unique competitive advantage in the marketplace.

The company’s revenue is largely dependent on movie theatre operations. Last year, the pandemic caused a severe decline in EPR’s income. However, as vaccination rates increase and restrictions lift, movie theatre attendance is getting healthier.

EPR’s stock price has already started to recover. As the company’s business returns to normal, investors can expect continued growth. EPR is a well-positioned company for the post-pandemic era, and its stock is an attractive investment for those looking to benefit from the recovery of the entertainment industry.

In addition, EPR owns and operates ski resorts, restaurants, and other attractions. So, its portfolio comes with properties from several industries. Although holdings are skewed in favor of movie theatres, the company is far from a one-trick pony.

EPR will continue opportunistically deploying capital to strategically grow its portfolio through development projects and acquisitions while returning excess cash flow to shareholders through dividends and share repurchases. It had to halt dividend payouts in May of 2020.

However, in July 2021, the company resumed payments. In February, EPR hiked its monthly dividend to 27.5 cents per share, which translates to an annualized dividend of $3.30 per share, a hike of 10% over the previous yearly distribution.

Prospect Capital Corp. (PSEC)

Source: iQoncept/shutterstock.com

Annual dividend yield: 9.78%

Prospect Capital (NASDAQ:PSEC) is a leading capital provider to middle market companies and has a track record of delivering strong returns to investors.

The company’s portfolio includes companies in various industries, such as healthcare, energy and software. These investments play a pivotal role in PSEC’s history. The total direct capital it has invested in these companies is $18.7 billion spread across different industries, with an impressive portfolio of 127 currently active companies.

This company is all about dividends. It pays out some of its earnings in the form of money but mostly tries to invest back into more companies and generate even better returns for investors.

Prospect Capital earns money in interest income, dividends and capital gains or losses. In announcing its results for its fiscal quarter and year ended June 30, the company reported a net investment income of $0.21 per share, surpassing the $0.18 per share dividend distribution.

BDCs have similar features to that of REITs or real estate investment trusts. Both, for example, distribute at least 90% of their taxable profits back to their investors as payouts. In return, these companies aren’t taxed at the corporate level.

Both of these investment vehicles are ideal for income investors. This list is about the best high-yield monthly dividend stocks, so ultimately, the payout is what matters.

Prospect’s focus on special situation investing has been particularly beneficial during market turmoil. The company’s solid performance during the Covid-19 pandemic has reaffirmed its status as a leading alternative asset manager. Overall, the company is in a great position to continue delivering strong results for investors.

Pembina Pipeline Corp. (PBA)

Source: Shutterstock

Annual dividend yield: 5.54%

Pembina Pipeline Corp. (NYSE:PBA) is one of North America’s leading energy service providers. Not only does it offer tailored transportation and midstream services, but Pembina Pipeline also offers a wide range of other equipment and support services to this industry. It can do so because of its widespread distribution capacities and strong financial position.

The company’s operations focus on developing and operating strategic energy infrastructure, including pipelines, gas processing plants and oil sands facilities.

Pembina Pipeline is doing well this year. The stock price continues to rise exponentially as the world struggles with high oil prices due to the Russia-Ukraine war.

Under these circumstances, the company will continue to do well in the foreseeable future. If you factor in a monthly dividend of 21 Canadian cents, you’ll see why this stock is on the list of best high-yield monthly dividend stocks.

Keep in mind that in this financial quarter, Pembina Pipeline Corp. plans to increase its monthly dividend by 0.75 Canadian cents to 21.75 Canadian cents per share once a joint venture deal with KKR (NYSE:KKR) is finalized.

Under the terms of the agreement, KKR and Pembina Pipeline are combining with Western Canadian natural gas processing assets to form a new joint venture company. The new company will be 60% owned by Pembina and 40% by KKR’s global infrastructure fund. It is a key development you must keep an eye on this quarter.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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