Hi, I'm Jimmy in this video, I'm going to walk through my top five dividend stocks that
pay monthly dividends. Now there are not many companies or even industries for that matter,
that pay monthly dividends. Most companies pay them quarterly. So out of the list that
I could find, I'm going to try to somewhat diversify this top five dividend list that
way. These monthly dividend stocks can get us closer, hopefully to financial independence.
Now, I'm not going to dove too deep into any one of these companies. That way we can get
through all five companies fairly quickly. But if you think I should do a deeper dove
on any one of the companies in this video, please let me know in the comments below and
I'll try to put together that type of video. And one final thing is that there are a few
interesting exchange traded funds that pay monthly dividends as well. If you think I
should do a video on the top five monthly dividend ETF EPS, please let me know in the
comments below. Okay, let's kick it off. So our first company comes from the financial
sector. It's called Penny Park Floating Rate Capital Ticker Symbol P F LTE. Now what Pettit
does is there an investment company that provides loans and other financing types to middle
market companies, so medium sized companies. So in theory, these are riskier companies
that they're loaning money to. Therefore, they could charge a high interest rate. That's
how they offer a dividend yield of slightly more than 9 percent on an annual basis. So
they pay a monthly dividend of nine and a half cents per share every month. And right
now, CFL tree's trading, PFLAG is trading at slightly more than twelve dollars a share.
OK. So this is what their dividend history looks like going back the past few years.
And as we could see, their dividend climbed to the current level a couple of years ago
where and it's been there for a while. And it seems that analysts are expecting for this
dividend yield to be maintained over the next couple of years. Analysts expectations are
the ones in the green parts. Then when we add earnings per share, well, we can see that
broadly speaking, Pendant Park has paid practically all of their profits in the in the form of
dividends. That's a common theme among a lot of the companies that pay monthly dividends.
They get tax advantages, many of them, they get tax advantages if they pay out most of
their profits in the form of dividends. OK. So that could be a good thing for dividend
investors. Now, one negative thing to consider that I just want to bring out is that some
of these companies, Pennant Park, floating rate capital is a good example of this. Well,
these are smaller companies and these tend to trade much less than larger companies.
So if you're trying to take a big position, that could be an issue you might run into.
Just want to bring that out. I'm saving my favorite companies for the end. And those
companies are a little bit bigger. So just for now, just be aware of some of these companies
is smaller. Okay. Onto number two. Next up, we have another company. Our last company
from the financial sector. This is called Horizon Technology Finance Corporation, ticker
symbol H, R, Z. And as you probably guess, they invest a lot in technology companies.
That's a primary thing. And then they have some wise life science companies, some health
care, some clean tech companies along those lines. Right now, they have a dividend yield
of slightly more than 9 percent. Once again, this is one of the smaller companies on the
list with a market cap of about 190 million dollars. So they're quite small. But when
I do like about them is that they've paid 10 cents a month in dividends since the start
of 2017. And this is what their dividend history looks like. And although their dividend dropped
a few times, it seems that analysts are expecting for the current level to stick around for
at least the next couple of years. Then when we add earnings per share, well, once again,
Horizon technology tends to payout most of their profits in the form of dividends. OK.
Next up, we have another small company, our final small company. This one from the energy
sector. And this one's called the Permian Basin Royalty Trust ticker symbol PBT. Now,
right now, they have a dividend yield of a bit more than 12 percent. Now, a royalty trust,
if you haven't heard of them before, they're a lot like master limited partnerships. Are
they are. They're often called MLP Peace Royalty Trust Act, very similar that both companies
tend to both types of companies tend to offer very high dividend yields because once again,
they pay out most of their profits in dividends. And when we look at their dividend history,
well, we can see that their dividend history, this is a month to month that each line represents
a different month. And we could see that this varies unlike the first two companies of the
same every month. This one varies based on how their oil and gas properties perform.
And then when we add their annual dividend history, when we switched our annual dividend
history, or we can see that they pay out exactly what they earn each year. OK. Interesting.
This one could be worth a deeper dove, but it might be a bit small for some people. So
next up, we switch over to the real estate sector where we have a specialized real estate
investment trust called EPR Properties ticker symbol EPR. EPR has a dividend yield of a
bit more than 6 percent. And what they do is they focus on. Real estate in the entertainment
sector, they are a lot of movie theaters they own. I believe a ski resort, golf resort,
salt water parks. I think they are a lot of the properties that their golf resort. It's
like a golf barfing that's called top golf. There are a lot of those properties. So when
we look at our dividend history, well, we can see that they've been quite steady for
a few years. Then we add profits to this profits. In this case, we're using funds from operations
for real estate investment trusts. We generally want to use funds from operations or FFO for
short, not earnings per share. We can see that funds from operations has consistently
covered their dividends, which is exactly what we want to see. To me, this is one of
the more interesting companies on the list. So again, maybe a deeper dove. Let me know
what you think. Okay. Up next, we have a retail rate, same sector, different focus called
Realty Income Corp., ticker symbol. Oh, just. Okay. Now they have a dividend of about three
and a half percent. And what they do is they focus on acquiring single tenant retail locations,
ideally leased under long term agreements to national or regional chains. Think stores
like Walgreens or Dollar General or the gym called L.A. Fitness, places like that. And
this is their dividend history. And we could see it's been fairly stable. And then when
we add funds from operations. Well, once again, we can see that they've been consistently
covering their dividend, which is a good thing for us. Now, if many of the smaller companies
on this list, we may be concerned about their sustainability if we happen to have a correction
in the stock market and in theory, a correction in the economy, and that's understandable.
Oftentimes smaller companies are riskier. Now, I actually did a video on the top 10
dividend stocks that have a history of performing well in stock market crashes. If you're curious
about some of those names, well, this could be a good next video to watch. There's a link
right here and there's a link in the description below. And I really want to thank you for
stick with me all the way. End of the video. Really appreciate it. Thanks. And I'll see
in the next video.