7 Monthly Dividend Stocks to Buy During Market Jitters
As banking sector fears once again dominate the headlines, investors should consider the potential for consistent passive income from monthly dividend stocks to buy. Typically, businesses that provide passive income do so on a quarterly basis. However, the life schedule (like rent and utility bills) happens monthly. Therefore, this distinct segment should be attractive.
Now with more convenience comes more risk. Generally, stocks with a monthly dividend to buy tend to be riskier than their counterparts with a quarterly payment. At this point, the vagaries of the economy make this category somewhat fuzzy due to less robust financial profiles. Still, if you can handle the heat, these monthly dividend stocks to buy are worth considering.
|O||Real estate income||$60.89|
|PBT||Permian Basin Royalty Trust||$23.97|
|SBR||Sabine Royalty Trust||$69.76|
|CRT||Cross Timbers Royalty Trust||$18.38|
|PRT||PermRock Royalty Trust||$6.70|
|TO GROW||US Global Investors||$2.59|
|BRMK||Broadmark real estate capital||$4.62|
Property income (O)
When it comes to monthly dividend stocks to buy, no discussion can be complete without mentioning Real estate income (NYSE:O). A common staple in this space, Realty represents a real estate investment trust (REITs) which targets independent single-tenant commercial properties in the United States, Spain and the United Kingdom.
Nevertheless, potential investors will align themselves with a fairly solid company. For example, Realty’s three-year revenue growth rate is 5.1%, higher than nearly 69% for the REIT industry. Moreover, its EBITDA growth rate over the same period is 6%, higher than 60% of its rivals.
For passive income, the company reports a forward yield of 5.01%. By way of comparison, the average return in the real estate sector is 4.46%. Additionally, the company boasts 30 consecutive years of dividend increases. Finally, Wall Street analysts rate O as a consensus Moderate Buy. Their average price target stands at $69.89, implying nearly 15% upside potential.
Permian Basin Royalty Trust (PBT)
Hydrocarbon specialist, Permian Basin Royalty Trust (NYSE:PBT) focuses on oil and natural gas. According to its public profile, Permain’s revenue comes from oil and gas pumped from the geological formation for which it is named (the Permian Basin in West Texas) as well as a few locations in other parts of the USA. State. Due to geopolitical relevance, PBT represents a successful player.
Since opening in January, PBT has gained nearly 5% of its net worth. In the past 365 days, the PBT has skyrocketed to the tune of 64%. Financially, the underlying business is perhaps even more attractive. Notably, Permian is debt-free, giving it incredible flexibility when navigating multiple economic variables.
Operationally, the hydrocarbons specialist has posted a growth rate in its turnover over three years of 38.5%. In addition, its EBITDA growth rate over the same period was 40.2%. For profitability, its net margin is 98.31%. Finally, the Permian forward yield stands at 1.2%, which is at the low end of the energy sector. Still, with its frequency and relevant activities, PBT can be one of the monthly dividend stocks to buy.
Sabine Royalty Trust (SBR)
Based in Dallas, TX, Sabine Royalty Trust (NYSE:SBR) is an express trust formed to receive Sabine Corporation’s royalties and mineral interests in certain undeveloped and proven oil and gas properties located in Florida, Louisiana, Mississippi, New Mexico, Oklahoma and Texas. However, unlike Permian Basin Royalty above, SBR has been volatile this year. Since opening in January, shares have fallen nearly 14% in net worth.
Still, for risk takers, Sabine at least justifies buying monthly dividend stocks. Perhaps more importantly, the company benefits from excellent strengths in the balance sheet. It’s not hard to tell because the trust has no debt. Moreover, Sabine is an operational monster. Its three-year revenue growth rate was 39.1%, beating the industry’s 90.42%. Moreover, its book growth rate over the same period stands at 26.5%, higher than nearly 91% of its rivals.
Finally, for passive income, Sabine carries a forward yield of 8.21%. This is well above the average return for the energy sector of 4.24%.
Cross Timbers Royalty Trust (CRT)
Also based in Dallas, Texas, Cross Timbers Royalty Trust (NYSE:CRT) features royalty activity associated with oil producing properties in Texas, Oklahoma and New Mexico. Theoretically, Cross Timbers should cynically take advantage of geopolitical hotspots stifling the hydrocarbon resources of Western countries. Unfortunately for stakeholders, CRT has fallen over 32% since opening in January.
Nevertheless, for risk-tolerant contrarians, Cross Timbers may represent one of the monthly dividend stocks to buy. Primarily, the company has no debt on its books. Again, without this clutter, the business enjoys incredible flexibility to weather various economic headwinds. Additionally, its Altman Z-Score hits 36.11, reflecting an extremely low risk of bankruptcy. Additionally, Cross Timbers enjoys a consistent balance sheet, posting 10 years of profitability over the past decade. Interestingly, CRT’s Shiller P/E ratio sits at 9.41x, below the industry median of 16.41x.
Finally, Cross Timbers has a forward yield of 12.99%. Again, this is significantly above the energy sector average return of 4.24%.
PermRock Royalty Trust (PRT)
Based in Fort Worth, Texas, PermRock Royalty Trust (NYSE:PRT) is a Delaware statutory trust formed to hold a perpetual interest in oil and natural gas producing properties, according to its website. Unfortunately, like some of the other monthly dividend stocks to buy, PermRock failed to capture the inherent upside in its underlying narrative. Since opening in January, PRT has lost 10% of its net worth.
For full disclosure, in the past 365 days, PRT has dropped over 34%. However, bold investors may want to consider the positives; that is, the company has no debt on its books. Additionally, its Altman Z-Score reaches 41.56, reflecting an extremely low risk of impending bankruptcy.
Nevertheless, it is one of the riskiest monthly dividend stocks to buy. For example, the company’s three-year revenue growth rate fell to 20.6% below break-even. It’s a similar situation for its EBITDA growth rate over the same period. Ultimately, however, investors may be drawn to PermRock’s 9.31% forward yield. Also, although the payout ratio is high at 86.14%, it’s not ridiculous.
US Global Investors (GROW)
For those who want to diversify outside of the energy sector, US Global Investors (NASDAQ:TO GROW) may appeal to adventurous market players. Touted as an innovative investment manager with extensive experience in global markets and specialist sectors, buying GROW stock in some ways lets you trade with the pros. Unfortunately, the pros have lost 11% in equity value since the January open.
That’s not all. Over the past 365 days, GROW has fallen over 48%. It goes without saying that these actions are not for the faint-hearted. Yet what might attract speculators is that US Global Investors has a strong balance sheet. Besides its rich cash position, it has an Altman Z-Score of 9.57, reflecting a very low risk of bankruptcy.
Operationally, the company’s three-year book growth rate reached 38.1%, beating nearly 95% of companies in the asset management industry. Moreover, its operating margin stands at 43.49%, surpassing 74.62% of the competition. For passive income, GROW has a forward yield of 3.47%. This is a little more than the average return of the financial sector of 3.18%.
Broadmark Real Estate Capital (BRMK)
Based in Seattle, Washington, Broadmark real estate capital (NYSE:BRMK) is a specialist real estate finance company that invests in opportunities in the small and medium-sized business market. On paper, Broadmark looks incredibly dangerous. With the banking sector in the red, growth-oriented initiatives do not look particularly attractive. However, BRMK has gained more than 22% of its net worth since the start of this year.
In fairness, Broadmark is in the middle of a recovery trek. Over the past 365 days, BRMK has bled more than 48%. Therefore, those worried about downside risk should not get involved. On the plus side, the company has a relatively decent track record. For example, its cash-to-debt ratio is 0.52x, which ranks it better than the REIT industry’s 86.55%.
For passive income, Broadmark has a forward yield of 9.4%. Additionally, his payout ratio is high but manageable at 65.63%. Interestingly, Broadmarket represents one of the few monthly dividend stocks to buy with analyst coverage. In this case, it is an expectation. However, the average price target is $6, implying more than 34% upside potential.
As of the date of publication, Josh Enomoto had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.