Your bills are paid every month. Why not use your dividend checks as an example? For simpler income planning in 2022, here are some of the top monthly dividend stocks and ETFs.
Despite all of the changes we've seen in recent years, certain things have sadly remained the same. We all have bills to pay, most of which are due monthly, and you're supposed to pay your monthly expenses, whether your mortgage, vehicle payment, or even your ordinary phone and utility payments.
That isn't necessarily an issue in our working years since paychecks are usually sent every two weeks. Even in retirement, Social Security and (if you're fortunate enough to have one) pension payments are paid every month. However, our investment portfolios it does not function that way.
Monthly dividend stocks are a good example of this.
Dividend-paying equities typically pay dividends quarterly, whereas most bonds pay twice a year. Because dividend and interest payments are generally sent in clusters, this tends to lump portfolio income.
On the other hand, monthly dividend stocks may help smooth out your income stream and better balance your inflows and outflows.
"We'd never recommend buying a stock solely for its monthly dividend," says Rachel Klinger, president of McCann Wealth Strategies, a State College, Pennsylvania-based investment adviser. "However, monthly dividend stocks can be a nice addition to a portfolio and add a little regularity to an investor's income stream."
We'll look at 7 of the top monthly dividend stocks and ETFs to purchase for the rest of 2022. There are several parallels between the picks. Monthly dividend stocks, such as real estate investment trusts (REITs), closed-end funds (CEFs), and business development organizations, are concentrated in a restricted number of industries (BDCs). These industries are more concerned with income than growth, and their yields are much greater than the market average.
But in a market where the S&P 500's yield is at 1.6 percent, that's a nice addition.
Because the list isn't very diverse, it doesn't constitute a full portfolio. Put another way, you don't want to get too reliant on monthly dividend stocks. However, they provide exposure to a few specialist areas that provide some income consistency, so take a look and see if any of these monthly payers are a good fit for your investing strategy.
B2Gold Corp. (NYSE: BTG)
B2Gold Corp. (NYSE: BTG) is a gold producer based in Vancouver, British Columbia, with three active mines: the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The dividend yield of B2Gold Corp. (NYSE: BTG) was 3.84 percent on May 9, compared to 2.82 percent for the materials industry as a whole.
B2Gold Corp. (NYSE: BTG) released profits for the first quarter of the fiscal year 2022 on May 3. The firm earned $0.06 per share, which was $0.01 higher than analysts' expectations. The revenue of $365.58 million exceeded market expectations by $3.58 million.
B2Gold Corp. (NYSE: BTG) issued a $0.04 per share quarterly dividend on February 23, in line with prior years. The dividend was paid on March 17 to stockholders on the register on March 9.
B2Gold Corp. (NYSE: BTG) analyst Don DeMarco maintained an Outperform rating on the stock on April 20 and boosted the firm's price objective to C$8.50 from C$7.75.
B2Gold Corp. (NYSE: BTG) was detected in the public investment portfolios of 20 hedge funds in the fourth quarter, compared to 16 funds in the previous quarter, according to Insider Monkey's database. In Q4 2021, the total stakes held were $243.4 million, up from $176.3 million in Q3. With more than 33 million shares worth $130.3 million, Jim Simons' Renaissance Technologies is the largest stakeholder in B2Gold Corp. (NYSE: BTG).
Institutional investors are watching B2Gold Corp. (NYSE: BTG) in addition to Johnson & Johnson (NYSE: JNJ), The Coca-Cola Company (NYSE: KO), and The Procter & Gamble Company (NYSE: PG).
Companhia Brasileira de Distribuição (NYSE:CBD)
The Companhia Brasileira de Distribuição (NYSE:CBD) was established in 1948 and is based in So Paulo, Brazil. Food, clothes, home appliances, electronics, and other household goods are sold via the company's network of department shops across Brazil. The revenue of Companhia Brasileira de Distribuição (NYSE:CBD) in Q1 2022 was $2.05 billion, which was $72 million more than Wall Street expectations.
On May 5, Companhia Brasileira de Distribuição (NYSE:CBD) announced a quarterly dividend of $0.061 per share. The dividend will be paid on June 22 to corporate shareholders as of May 9's close of business. The dividend yield of Companhia Brasileira de Distribuição (NYSE: CBD) was 1.81 percent on May 9, making it one of the finest dividend stocks under $10.
On May 4, BofA analyst Robert Ford Aguilar raised Companhia Brasileira de Distribuição (NYSE:CBD) from Underperform to Buy, with a R$28 price objective up from R$25. He expects the firm and its affiliates to profit from rising food prices and the recent reopening of tourism in Uruguay and exiting in Colombia, which he believes will help sustain stronger growth.
According to Insider Monkey's Q4 data, ten hedge funds placed long puts on Companhia Brasileira de Distribuição (NYSE: CBD) with a total position of $5.5 million, up from eight firms in the previous quarter with a total stake of $5.7 million. With 436,765 shares worth $1.74 million, Marshall Wace LLP, founded by Paul Marshall and Ian Wace, is the largest stakeholder in Companhia Brasileira de Distribuição (NYSE: CBD).
Equitrans Midstream Corporation (NYSE: ETRN)
Equitrans Midstream Corporation (NYSE: ETRN) is a Pennsylvania-based natural gas collection, transportation, and storage firm that provides water services in the Appalachian Basin. The dividend yield of Equitrans Midstream Corporation (NYSE: ETRN) was 8.20 percent on May 9. It is one of the highest yielding cheap dividend stocks, with a price of $7.44.
Equitrans Midstream Corporation (NYSE: ETRN) issued a quarterly dividend of $0.15 per share on April 26, the same as the previous quarter. The dividend will be paid on May 13 to registered stockholders by May 4.
Equitrans Midstream Corporation (NYSE: ETRN) estimates a net income of $250 million to $330 million in the fiscal year 2022, with $355 million in deferred revenue. The year's free cash flow is expected to range between $280 million and $360 million, with a free cash flow retention of $20 million to $100 million.
On March 3, Goldman Sachs analyst John Mackay raised Equitrans Midstream Corporation (NYSE: ETRN) from Neutral to Buy with a $9 price target. According to the expert, the Mountain Valley Pipeline risks are "basically fully-priced." The analyst warned investors that although the pipeline would likely continue to create mixed news for the firm until it is either completed or canceled, the risk-reward ratio strongly supports a positive approach.
At the end of December 2021, 17 hedge funds monitored by Insider Monkey were long Equitrans Midstream Corporation (NYSE: ETRN), with a total holding of about $117 million. Kensico Capital, led by Michael Lowenstein, is a significant stakeholder in the firm, owning 3.14 million shares worth $32.5 million.
In its Q3 2021 investor letter, Miller Howard Investments had the following to say about Equitrans Midstream Corporation (NYSE: ETRN):
"The firms primed to gain from the rebound were our strongest holdings for the quarter." Given the increase in natural gas prices, Equitrans Midstream (ETRN), our third biggest contributor, may see stronger traffic on its pipelines."
Empire State Realty Trust, Inc. (NYSE: ESRT)
Empire State Realty Trust, Inc. (NYSE: ESRT) is a New York-based real estate investment trust that owns and rents high-end office and retail assets, including the Empire State Building, in Manhattan and the New York metropolitan region. On May 9, the dividend yield of Empire State Realty Trust, Inc. (NYSE: ESRT) was 1.69 percent.
Empire State Realty Trust, Inc. (NYSE: ESRT) reported a $0.18 FFO for the first quarter, exceeding consensus projections by $0.03. The $164.03 million in sales increased 12.9 percent year over year, surpassing analysts expectations by $29.24 million. The business estimates core FFO to decline between $0.73 to $0.78 per fully diluted share in FY 2022, compared to $0.77 on Wall Street.
Empire State Realty Trust, Inc. (NYSE: ESRT) announced a $0.035 per share quarterly dividend on March 4, the same as in the previous quarter. The dividend was paid on March 31 to stockholders on the register on March 15.
Empire State Realty Trust, Inc. (NYSE: ESRT) was upgraded to Outperform from In-Line by Evercore ISI analyst Steve Sakwa on May 2 with an $11 price objective and a 29 percent total return potential. The analyst boosted expectations for 2022 and 2023 after reviewing the company's Q1 results and comments, citing "excellent" earnings growth, "inexpensive" valuation, and "strong balance sheet with sufficient liquidity" as reasons for the upgrade.
Fourteen hedge funds were long Empire State Realty Trust, Inc. (NYSE: ESRT) in the fourth quarter, up from 7 funds the previous quarter, according to Insider Monkey's database. In the fourth quarter, the total stake held was $153 million. With almost 15 million shares worth $135.2 million, Mason Hawkins' Southeastern Asset Management is the company's biggest stakeholder.
In its Q3 2021 investor letter, Longleaf Partners Small-Cap Fund has the following to say about Empire State Realty Trust, Inc. (NYSE: ESRT):
"Empire State Realty Trust (ESRT) detracted in the quarter for a variety of factors that are out of line with their good value development this year and expected future actions." The stock price of ESRT fluctuated during the quarter as the delta variant waxed and waned. We hadn't counted on a quick return to work or a resurgence of foreign visitors flocking to the Empire State Building Observatory, so our worth remained unaffected. We'd point out that the corporation has a track record of repurchasing shares at a discount to the net asset value.
The historic New York City commercial real estate and tourist corporation, Empire State Realty Trust (-16 percent, -1.01 percent), was the leading detractor, as previously said. A retail tenant's insolvency harmed the stock. Still, owing to Manhattan's post-COVID reopening and reviving office market, we believe its Empire State Building office space to be rapidly released at a higher rate. Tickets to the observatory are up to 30% cheaper than in 2019 and should continue to rise over the following year and a half. Regarding capital allocation, we feel the corporation is still on the offensive."
Falcon Minerals Corporation (NASDAQ: FLMN)
Falcon Minerals Corporation (NASDAQ: FLMN) is based in Houston, Texas, owning mineral and royalty interests in oil and natural gas properties in North America. Priced at $6.95 and offering a dividend yield of 10.36% as of May 9, Falcon Minerals Corporation (NASDAQ: FLMN) is one of the best dividend stocks under $10.
On May 4, Falcon Minerals Corporation (NASDAQ: FLMN) declared a $0.18 per share quarterly dividend, a 24.1% increase from its prior dividend of $0.145. The dividend is payable on May 31 to company shareholders as of May 18.
Piper Sandler analyst Mark Lear on April 7, reiterated an Overweight rating on Falcon Minerals Corporation (NASDAQ: FLMN) and raised the firm's price target on the shares to $8 from $5.40. With Russian oil and product exports off the market, the analyst told investors that Piper's Energy Macro team categorizes the United States as one of the only places to offer a long-term supply of energy sources. The analyst added that the supply tightness in the energy market ultimately results in material upside to crude prices, which has positive implications for the stocks despite the solid performance year-to-date.
According to the fourth quarter database, Falcon Minerals Corporation (NASDAQ: FLMN) was found in the public stock portfolios of 15 hedge funds, compared to 19 funds in the last quarter. Wilmot B. Harkey and Daniel Mack's Nantahala Capital Management is the company's biggest shareholder, with 2.3 million shares worth $11.5 million.
Like Johnson & Johnson (NYSE: JNJ), The Coca-Cola Company (NYSE: KO), and The Procter & Gamble Company (NYSE: PG), Falcon Minerals Corporation (NASDAQ: FLMN) is a notable dividend candidate for investors looking to explore the stock market.
Franklin Street Properties Corp. (NYSE: FSP)
Franklin Street Buildings Corp. (NYSE: FSP) is a real estate investment trust in Massachusetts that invests in office properties throughout the United States' Sunbelt and Mountain West. The dividend yield of Franklin Street Properties Corp. (NYSE: FSP) was 7.38 percent on May 9.
Franklin Street Properties Corp. (NYSE: FSP) declared a $0.09 per share quarterly dividend on April 1, consistent with prior years. The dividend was paid out on May 5 to stockholders registered by April 15.
After the company's first-quarter earnings were released on May 5, Riley analyst Craig Kucera reissued a Buy rating on Franklin Street Properties Corp. (NYSE: FSP) and cut the firm's price objective to $6 from $6.50. For the decreased objective, the analyst noted multiple compression in office real estate investment trusts and a fall in his net asset value estimate.
Ten hedge funds were long Franklin Street Properties Corp. (NYSE: FSP), according to Insider Monkey's Q4 statistics, with a total holding of $12.5 million. Renaissance Technologies, owned by Jim Simons, had the largest stake in the firm, with 1.3 million shares worth $8.2 million.
Kinross Gold Corporation is a Canadian gold mining company (NYSE: KGC)
Kinross Gold Corporation (NYSE: KGC) is based in Toronto, Canada, and was formed in 1993. The firm focuses on gold exploration and development in the United States, Russia, Brazil, Chile, Ghana, and Mauritania. On May 9, Kinross Gold Corporation (NYSE: KGC) paid a dividend yield of 2.51%.
Kinross Gold Corporation (NYSE: KGC) issued a quarterly dividend of $0.03 per share on February 16, the same as the previous quarter. The dividend was paid out on March 24 to corporate shareholders as of March 9.
On April 27, Stifel analyst Ingrid Rico maintained her Buy rating on Kinross Gold Corporation (NYSE: KGC) but reduced the firm's price objective to C$11.50 from C$14.
Kinross Gold Corporation (NYSE: KGC) was detected in the public stock portfolios of 31 hedge funds at the end of December 2021, up from 27 funds the previous quarter, according to Insider Monkey. In Q4 2021, the total stakes held were $365.6 million, up from $321 million in Q3 2021. Sprott Asset Management, led by Eric Sprott, is a significant stakeholder in the firm, owning 8.25 million shares worth around $48 million.
Dividend stocks are an excellent method to supplement your income. It's a simple way to get started using a passive approach, especially with these under-ten-dollar dividend stocks. Adding a continuous source of income to your portfolio is a great way to get started on the road to financial independence.
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