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In this article, we will discuss 12 best monthly dividend stocks under $10. You can skip our detailed analysis of dividend stocks and their performance, and go directly to read 5 Monthly Dividend Stocks Under $10.
Income-generating stocks are in high demand this year as investors fight continuous interest rate hikes. Earlier in November, the Feds raised interest rates by another 0.75 percentage points in an effort to fight inflation. With this increase, rates are expected to peak at 4.5% to 4.75% by 2023, according to the US central bank’s projections. This slow economic recovery and a possible recession have investors exploring different investment avenues to generate stable income.
Dividend stocks have picked up steam in this regard as these equities offer steady cash payouts to investors. Many reports have shown that dividend stocks have performed well during periods of market decline. According to a report published by BMO Capital, dividend payers delivered an annual average return of 7.8% from January 1998 to January 2013, compared with a 2.4% return from non-dividend companies. During this period, the S&P/TSX returned 4.3%, significantly underperforming the dividend stocks. The report also mentioned that portfolios with dividend stocks have a higher Sharpe ratio which results in higher risk-adjusted rewards.
Economists also recommend loading up on dividend stocks in the current economic landscape. Jeffrey Kleintop, the chief global investment strategist at Charles Schwab, spoke about dividend stocks in his interview with Ameritrade Network in September. He said that dividend stocks have outperformed the broader market in every recessionary period market in the past 50 years. He further mentioned that dividend stocks have potentially less downside, which can be seen from this year’s returns. The S&P 500 Dividend Aristocrats index, which tracks the performance of some of the best dividend stocks like Walgreens Boots Alliance, Inc. (NASDAQ:WBA), Caterpillar Inc. (NYSE:CAT), and Atmos Energy Corporation (NYSE:ATO), is down by just 3.73% this year so far, versus a 15.11% decline in the S&P 500, as of December 5.
Photo by Austin Distel on Unsplash
Our Methodology:
For this list, we selected stocks that pay monthly dividends to shareholders and have share prices under $10. We examined these companies through their overall financial health. The stocks are ranked according to their share prices as of December 5.
Monthly Dividend Stocks Under $10
12. U.S. Global Investors, Inc. (NASDAQ:GROW)
Share Price as of December 5: $2.91
U.S. Global Investors, Inc. (NASDAQ:GROW) is a Texas-based investment management company that sells mutual funds. In Q3 2022, the company reported revenue of $4.4 million and had net working capital of approximately $34.6 million. It ended the quarter with $23.3 million available in cash and cash equivalents. The company expects to pay $336,000 to shareholders in dividends during the quarter, which makes it one of the best dividend stocks on our list.
U.S. Global Investors, Inc. (NASDAQ:GROW) currently pays a monthly dividend of $0.0075 per share and has a dividend yield of 3.05%, as of December 5. The company has raised its dividends at a CAGR of 24.57% in the past five years. It can be a good option for diversified dividend portfolios alongside Walgreens Boots Alliance, Inc. (NASDAQ:WBA), Caterpillar Inc. (NYSE:CAT), and Atmos Energy Corporation (NYSE:ATO).
At the end of Q3 2022, 5 hedge funds in Insider Monkey's database owned stakes in U.S. Global Investors, Inc. (NASDAQ:GROW), up from 4 in the previous quarter. The collective value of these stakes is nearly $2 million. Royce & Associates was the company's leading stakeholder in Q3.
11. Banco Bradesco S.A. (NYSE:BBD)
Share Price as of December 5: $2.95
Banco Bradesco S.A. (NYSE:BBD) is a Brazilian financial services company that mainly provides financial and insurance services to its consumers. In November, JPMorgan upgraded the stock to Overweight with a R$21 price target. The firm sees strong sales momentum and improving labor conditions in the company's operations.
Banco Bradesco S.A. (NYSE:BBD) currently pays a monthly dividend of $0.0032 per share and has a dividend yield of 4.14%, as of December 5.
In the third quarter of 2022, Banco Bradesco S.A. (NYSE:BBD) reported an operating income of R$7.05 billion. The company's net interest income came in at R$16.2 billion, which showed a 3.7% growth from the same period last year. During the first nine months of the year, it paid R$7.4 billion in dividends to shareholders, which places it as one of the best dividend stocks on our list.
As of the close of Q3 2022, 15 hedge funds tracked by Insider Monkey reported owning stakes in Banco Bradesco S.A. (NYSE:BBD), up from 14 in the previous quarter. The collective value of these stakes is over $176 million.
10. Oxford Square Capital Corp. (NASDAQ:OXSQ)
Share Price as of December 5: $3.22
Oxford Square Capital Corp. (NASDAQ:OXSQ) is an American investment management company that also operates as a business development organization. The company offers a monthly dividend of $0.035 per share for a dividend yield of 13.04%, as recorded on December 5.
Oxford Square Capital Corp. (NASDAQ:OXSQ) showed strong results in Q3 2022. The company's total investment income came in at $11.4 million, up 16.3% from the same period last year. At the end of September, it had over $14.3 million available in cash and cash equivalents, compared with $9 million nine months ago. The company's strong cash position is sufficient for its shareholder returns.
At the end of Q3 2022, 4 hedge funds tracked by Insider Monkey owned stakes in Oxford Square Capital Corp. (NASDAQ:OXSQ), growing from 2 in the previous quarter. The collective value of these stakes is over $1.6 million.
9. Broadmark Realty Capital Inc. (NYSE:BRMK)
Share Price as of December 5: $3.97
Broadmark Realty Capital Inc. (NYSE:BRMK) is a Washington-based real estate investment trust company that provides financing solutions to its consumers. In November, B. Riley maintained a Neutral rating on the stock with a $5 price target, highlighting the company's financial performance in the current market.
Broadmark Realty Capital Inc. (NYSE:BRMK) remained committed to its shareholder return in Q3 2022, as the company paid $9.3 million in dividends to shareholders. It currently pays a monthly dividend of $0.035 per share and has a dividend yield of 10.58%, as of December 5. The company's continuous dividends and shareholder return make it one of the best dividend stocks on our list.
In the third quarter of 2022, Broadmark Realty Capital Inc. (NYSE:BRMK) reported revenue of $27.1 million and it had $61.1 million available in cash and cash equivalents. Its revolving credit facility for the quarter came in at $135 million.
At the end of Q3 2022, 9 hedge funds owned stakes in Broadmark Realty Capital Inc. (NYSE:BRMK), up from 8 a quarter earlier, as per Insider Monkey’s data. The collective worth of these stakes is nearly $33 million. Farallon Capital owned the largest stake in the company in Q3.
8. Generation Income Properties, Inc. (NASDAQ:GIPR)
Share Price as of December 5: $5.15
Generation Income Properties, Inc. (NASDAQ:GIPR) is a Florida-based real estate investment trust company that acquires and manages income-producing retail, office, and industrial properties. Over the years, the company has developed a strong portfolio with viable tenants and shorter lease terms.
In the third quarter of 2022, Generation Income Properties, Inc. (NASDAQ:GIPR) reported a core FFO of $326,000 or $0.14 per basic and diluted share. The company ended the quarter with $2.6 million available in cash and cash equivalents with total mortgage loans of $35.4 million.
Generation Income Properties, Inc. (NASDAQ:GIPR), one of the best dividend stocks, started paying dividends in January this year. It currently pays a monthly dividend of $0.039 per share with a dividend yield of 9.09%, as of December 5.
7. Fortitude Gold Corporation (OTC:FTCO)
Share Price as of December 5: $5.73
Fortitude Gold Corporation (OTC:FTCO) is an American gold producer which targets projects with low operating costs and strong returns. The company is one of the best dividend stocks on our list as it has reported nine consecutive years of profitability and strong shareholder returns. Its dividend policy involves returning cash back to shareholders while balancing the capital needs of operations.
In Q3 2022, Fortitude Gold Corporation (OTC:FTCO) reported a GAAP EPS of $0.07 and its revenue came in at $16.1 million. The company had $42.2 million available in cash and cash equivalents at the end of September. Moreover, it paid nearly $3 million in dividends to shareholders during the quarter.
On November 7, Fortitude Gold Corporation (OTC:FTCO) declared a monthly dividend of $0.07 per share for a dividend yield of 8.38%, as of December 5.
6. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Share Price as of December 5: $5.92
ARMOUR Residential REIT, Inc. (NYSE:ARR) is an American real estate investment trust company that specializes in residential mortgage-backed securities. In Q3 2022, the company posted an EPS of $0.32, which surpassed Street estimates by $0.03. The company's book value per common share came in at $5.83. It paid $40.2 million in dividends to shareholders, which makes it one of the best dividend stocks on our list.
ARMOUR Residential REIT, Inc. (NYSE:ARR) currently pays a monthly dividend of $0.10 per share and has a dividend yield of 20.27%, as of December 5. In addition to some of the best dividend stocks like Walgreens Boots Alliance, Inc. (NASDAQ:WBA), Caterpillar Inc. (NYSE:CAT), and Atmos Energy Corporation (NYSE:ATO), ARMOUR Residential REIT, Inc. (NYSE:ARR) can be added to dividend portfolios because of its monthly payouts.
B. Riley gave a positive stance on the mortgage real estate sector in the current market and maintained a Neutral rating on ARMOUR Residential REIT, Inc. (NYSE:ARR) in October with a $6 price target.
As of the close of Q3 2022, 8 hedge funds tracked by Insider Monkey owned stakes in ARMOUR Residential REIT, Inc. (NASDAQ:ARR), up from 5 in the previous quarter. The collective value of these stakes is over $23.8 million. With 2.4 million shares, Millennium Management was the company's leading stakeholder in Q3.
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Disclosure. None. 12 Monthly Dividend Stocks Under $10 is originally published on Insider Monkey.
