10 Monthly Dividend Stocks to Buy in May

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In this article, we discuss the 10 monthly dividend stocks to buy in May. In order to skip our detailed analysis of these stocks and the latest market situation, go directly to 5 Monthly Dividend Stocks to Buy in May.

Investors rely on dividend stocks to protect their portfolios from market volatility, and the regular income also provides a hedge against inflation. Companies that pay dividends have stable business models with high cash flow, and reward investors by sharing their profits. Most retirees seeking a stable income opt for a financial portfolio that consists of proven dividend-paying stocks. While most companies dole out their dividend payments every quarter, some pay investors every month, making them excellent monthly income stocks to hold.

Dividend payments can also be reinvested into buying more of the company stock, which means that the stock pays for itself on a long enough timeline. This Dividend Compounding effect is responsible for 84% of the total return posted by the S&P 500 Index from 1960 to 2021. From the time period between 1930 and 2021, dividend income contributed an average of 40% to the total returns posted by the S&P 500 Index. This goes to show that dividend stocks have played an important part in the growth of the economy, and will continue to do so.

According to Janus Henderson Global Dividend Index report, dividend payments around the globe soared after the pandemic disaster in 2020, and registered a 14.7% jump in underlying growth in 2021 to reach a record of $1.47 trillion. The report predicts that global dividend payments are expected to clock in at $1.52 trillion in 2022, signaling an underlying growth of 5.7%. Some of the best dividend stocks to hold include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Walmart Inc. (NYSE:WMT), but in this article we’ll be focusing on monthly dividend stocks to buy in May.

Photo by Dan Dennis on Unsplash

Let’s go ahead and take a look at our list.

Our Methodology

We picked monthly dividend stocks that look set to deliver shareholders stable returns for the month of May and beyond. We looked for stable business models, solid fundamentals, positive analyst ratings, market share and future growth potential. We also mentioned the hedge fund sentiment around each stock to give readers better context for their investment choices.

10 Monthly Dividend Stocks to Buy in May

10. Apple Hospitality REIT, Inc. (NYSE:APLE)

Number of Hedge Fund Holders: 22

Dividend Yield (as of April 29): 3.39%

Apple Hospitality REIT, Inc. (NYSE:APLE) features next on the list of monthly dividend stocks to buy in May. The real estate investment trust manages a portfolio of upscale hotel properties in the United States, with tenants including major brands such as Hyatt, Marriot, and Hilton, among others.

On April 21, Apple Hospitality REIT, Inc. (NYSE:APLE) was given an ‘Outperform’ rating and a $23 price target by Oppenheimer analyst Tyler Batory who initiated coverage of the firm. He sees the REIT becoming a net buyer of assets in 2022, and notes that it was the first lodging REIT to return to a meaningful dividend payment. The analyst sees Apple Hospitality REIT, Inc. (NYSE:APLE) as well-positioned in the market given its high-quality and geographically diverse portfolio of select-service hotels.

Apple Hospitality REIT, Inc. (NYSE:APLE) on April 21 declared $0.05 per share monthly dividend, which was in-line with previous. As of April 29, the firm has grown 11.54% in the last 12 months and 9.47% in the last 6 months, and currently offers a yield of 3.39% to shareholders.

Monarch Alternative Capital held 5.28 million shares of Apple Hospitality REIT, Inc. (NYSE:APLE) in the fourth quarter worth $85.4 million, making it the top shareholder of the REIT. In total, 22 hedge funds reported bullish bets on the company shares during the fourth quarter, as compared to 15 hedge funds a quarter ago.

Just like Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Walmart Inc. (NYSE:WMT), Apple Hospitality REIT, Inc. (NYSE:APLE) is a top dividend stock to buy.

9. Stag Industrial, Inc. (NYSE:STAG)

Number of Hedge Fund Holders: 22

Dividend Yield (as of April 29): 3.91%

Stag Industrial, Inc. (NYSE:STAG) is an industrial real estate investment trust (REIT) which deals in single-tenant, industrial properties throughout the United States. The firm boasts a strong portfolio of industrial properties and offers shareholders a stable yield of 3.91% as of April 29. On April 14, Stag Industrial, Inc. (NYSE:STAG) declared a $0.1217 per share monthly dividend, which was in-line with previous. It has raised its dividend yield for 7 years in a row, and is one of the top ranked monthly-paying dividend stocks to buy.

In January, Baird analyst David Rodgers upgraded Stag Industrial, Inc. (NYSE:STAG) to ‘Outperform’ from ‘Neutral’ with a revised price target of $48 from $49. The analyst sees industrial REITs as a long-term core holding, but sees some near-term challenges for the sector such as interest rate sentiment, consumer spending normalization and labor challenges. For the fourth quarter, Stag Industrial, Inc. (NYSE:STAG) posted $147.62 million in revenue, outperforming estimates by $288,000 and showing an increase of 13.6% year-on-year.

As of the fourth quarter, 22 hedge funds held stakes in Stag Industrial, Inc. (NYSE:STAG) with a combined value of $525.4 million. This shows that investors are increasingly valuing the company’s future prospects and stable monthly dividends, as 17 hedge funds were long on the company shares a quarter ago. Zimmer Partners held 2.85 million shares of Stag Industrial, Inc. (NYSE:STAG) in Q4 2021 with a total value of $136.7 million, making it the leading shareholder of the firm.

8. Whitestone REIT (NYSE:WSR)

Number of Hedge Fund Holders: 11

Dividend Yield (as of April 29): 3.95%

Whitestone REIT (NYSE:WSR) is a shopping center real estate investment trust which develops and operates community-oriented retail and mixed-use properties in the United States. On February 22, Whitestone REIT (NYSE:WSR) declared $0.04 per share monthly dividend, which shows an increase of 11.6% from its prior dividend of $0.0358. As of April 29, the firm offers a yield of 3.95%, and has seen its share price gain 24.36% in the last 12 months, and 19.70% in the year to date.

On April 6, Colliers analyst David Toti initiated coverage of Whitestone REIT (NYSE:WSR) with a ‘Buy’ rating and a $15 price target. In Q4 2021, the firm posted $33.26 million in revenue which beat consensus estimates by $591,000 and also signaled an increase of 11.48% year-on-year.

Texas-based Highland Capital Management was the largest shareholder of Whitestone REIT (NYSE:WSR) in the fourth quarter of 2021, with a position consisting of 2.27 million shares worth roughly $23 million. Out of all the hedge funds tracked by Insider Monkey, 11 held stakes in Whitestone REIT (NYSE:WSR) during the fourth quarter of 2021 with a combined value of $39.3 million. This is down from 13 hedge funds in the preceding quarter.

7. Agree Realty Corporation (NYSE:ADC)

Number of Hedge Fund Holders: 26

Dividend Yield (as of April 29): 4.13%

Agree Realty Corporation (NYSE:ADC) is another real estate investment trust that ranks on our list of 10 monthly dividend stocks to buy in May. The firm engages in the net lease of commercial properties in the form of community shopping centers to industry-leading retail tenants, and offers a yield of 4.13% as of April 29. Agree Realty Corporation (NYSE:ADC) on April 12 declared $0.234 per share monthly dividend, which was a 3.1% increase from its prior dividend of $0.227.

In the start of April, Morgan Stanley analyst Ronald Kamdem initiated coverage of Agree Realty Corporation (NYSE:ADC) with an ‘Overweight’ rating and a price target of $75. The analyst sees the firm’s tenant quality as the best among triple net real estate investment trusts, and notes that its focus on internet-resistant tenants with its vertically integrated platform is differentiated. Kamdem sees an attractive entry point for the company stock at current price levels.

Hedge fund sentiment was up on Agree Realty Corporation (NYSE:ADC) in the fourth quarter of 2021, where 26 hedge funds reported bullish bets on the company shares with combined holdings worth $200 million. In comparison, 20 hedge funds held $155 million worth of positions in the REIT a quarter ago. Israel Englander’s Millennium Management was the largest shareholder of Agree Realty Corporation (NYSE:ADC) in Q4 2021, with a stake comprising of 1.17 million shares valued at $83.5 million.

6. Realty Income Corporation (NYSE:O)

Number of Hedge Fund Holders: 30

Dividend Yield (as of April 29): 4.27%

Realty Income Corporation (NYSE:O) is one of the most prominent monthly dividend-paying stocks, and has grown its dividend payment to shareholders for 25 years in a row. The California-based real estate investment trust (REIT) manages more than 11,000 commercial real estate properties leased out to customers in the United States, United Kingdom and Spain.

Wolfe Research analyst Andrew Rosivach on March 15 upgraded Realty Income Corporation (NYSE:O) to ‘Outperform’ from ‘Peer Perform’. On April 13, Realty Income Corporation (NYSE:O) declared a $0.247 per share monthly dividend, which was in-line with previous, and the firm’s dividend yield stood at 4.27% as of April 29.

Out of all the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 30 were long Realty Income Corporation (NYSE:O) with combined stakes worth $398.9 million. This shows a positive trend from the preceding quarter where 22 hedge funds held $275 million worth of positions in the company. The largest Q4 shareholder of Realty Income Corporation (NYSE:O) was Glendon Capital Management, which held 1.85 million shares of the REIT worth $132.9 million.

Along with Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and Walmart Inc. (NYSE:WMT), Realty Income Corporation (NYSE:O) is an attractive option for income-oriented investors.

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