Compared to this past year, 2024 is expected to be much better for the economy, and that means it will look even better for the stock market. As we approach the new year, it is time to take a good look at your portfolio and look for stocks that fit your goals. If you are someone who enjoys passive income like me, there are a few monthly dividend stocks to consider. They will ensure a steady flow of income throughout 2024 while you enjoy capital appreciation.
With that in mind, let’s take a look at the three monthly dividend stocks to buy for steady income in 2024.
Realty Income (O)
One of the best monthly dividend stocks for income is Realty Income (NYSE:O), which even calls itself “The Monthly Dividend Company.” It is a real estate investment trust (REIT) — and a leader in the sector having paid dividends for over 600 months in a row. The company manages to generate income through the portfolio of properties it owns across different states, and it has some of the most well-known companies on their list. With tenants like Walgreens (NASDAQ:WBA) and 7-Eleven (OTCMKTS:SVNDY), the company ensures a predictable and steady flow of income each year.
O stock is exchanging hands for $56.51, having dropped 11% year to date. It enjoys a dividend yield of 5.37% and is a Dividend Aristocrat. Since the company focuses on commercial properties that serve basic needs like convenience stores, it will not run out of business.
While the dividend yields may go up and down, the stock will continue to pay each month. To that end, you must remember that your dividend is safe. In the third quarter, the company saw a significant improvement in its International business and it made acquisitions worth $2 billion. This shows its potential to keep thriving even in an uncertain market.
O stock is an attractive choice for investors, and if the Federal Reserve decides to lower the rates, we could see the stock perform much better. Despite the recent drop in the stock, it remains one of the best dividend stocks to own.
AGNC Investment (AGNC)
Another REIT, AGNC Investment (NASDAQ:AGNC) buys and sells residential mortgage-backed securities. Additionally, it’s a highly stable REIT since it engages in securities that are guaranteed by organizations and agencies like Freddie Mac (OTCMKTS:FMCC) and Fannie Mae (OTCMKTS:FNMA). It invests in high-yield long-term assets and borrows at a low, short-term rate.
Since the majority of its investments are in mortgage-backed securities, they have the faith and credit of the government. Thus, it’s a low-risk investment and the company can continue expanding its portfolio to make higher profits without worrying about a default on these loans.
Trading at $9.73 today, this stock has a dividend yield of 14.80% — which is nothing but impressive. You earn about $0.12 per month per share, which totals $1.44 annually. Looking at the share price, this isn’t a bad deal at all.
In the third quarter results, the company reported a net loss of $0.68 and an investment portfolio of $59.3 billion. The current high-interest environment is a huge problem for the company. However, as the situation improves, AGNC Investment could see a strong improvement in its financials.
I believe the stock will hit $10 very soon and while you wait for it to move upwards, you can earn passive income each month. It was trading as high as $18 in 2021 but has dropped since then. Buy the stock for a steady income.
Main Street Capital (MAIN)
Rounding out this list, Main Street Capital (NYSE:MAIN), a private equity firm, has a dividend yield of 6.66%. The company offers financing to small and medium-sized companies which are unable to get funding from traditional lenders.
The company enjoys an impressive yield for the shareholders and it has increased the dividend for the past 12 years. Lately, shareholders have been paid a monthly dividend of $0.24 which is not bad considering MAIN stock is exchanging hands for $43. It is up 17% year to date. As the economy improves, we could see it move higher.
One big reason to invest in the stock is its diversified portfolio. It spans over 50 industries, 195 companies and has a wide range of private loans, middle market, and the lower middle market portfolios. With businesses growing across the country, the demand for funds will continue to grow, and Main Street Capital will play a significant role here. The company has enough earnings to cover the dividends which also proves that the payment is sustainable.
Besides enjoying a high yield, you will also enjoy capital appreciation since the stock has increased 20% in value in the year. This is one stock to buy and hold for the long term.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.