Most income stocks distribute dividends on a quarterly basis, but a select group of stocks instead opted to distribute payouts on a monthly basis. When it comes to things like compounding interest and dividend reinvestment, this gives the recipients of monthly distributions an edge. It also can make budgeting easier for those that rely on the payouts as income.
Let's take a closer look at two excellent dividend stocks that cut you a check each month: Realty Income (NYSE: O) and Agree Realty (NYSE: ADC) . Both are real estate investment trusts (REITs), so they are required by federal statute to pay out 90% of their taxable income in dividends. Each is developing an excellent track record of rewarding shareholders.
Realty Income is a REIT that tells you in its tagline exactly what it is -- the "Monthly Dividend Company." Along with building a reputation for monthly payouts, its also building a reputation for regularly increasing its payout amount. With 28 straight years of annual dividend increases, it's earned the title of Dividend Aristocrat . Since it went public in 1994, Realty Income has increased its dividend 117 times (an average of four increases a year).
For further details see:
2 Stocks That Cut You a Check Each Month