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10 Cheap Monthly Dividend Stocks to Buy Now

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·10 min read
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  • ^GSPC
  • JNJ
  • MCD
  • AAPL
  • MO
  • PRT
  • JPM-PL
  • PBT
  • PSEC
  • CRT
  • GROW
  • MSFT

In this article, we will be looking at the 10 cheap monthly dividend stocks to buy now. To skip our detailed analysis of dividend investing and these companies, you can go directly to see the 5 Cheap Monthly Dividend Stocks to Buy Now.

Within the world of dividend investing, there is quite a bit of diversity among the stocks an income investor can choose to invest in. There are dividend kings, champions, and aristocrats that offer long-term stability and almost guaranteed incomes, high-yielding stocks, and monthly dividend stocks to name a few. However, it can often be hard to determine which stock would guarantee stable and secure income. A report by S&P Dow Jones Indices published in 2021 claims that dividend growth stocks may be of higher quality than others as they offer protection in bearish markets. For instance, between 1999 to 2021, the market represented by the S&P Composite 1500 was down but the S&P High Yield Dividend Aristocrats were able to outperform the S&P Composite 1500 and the S&P 500 High Dividend Index by 143 and 59 bps per month, respectively.

Additionally, cases like that of Asia this year can demonstrate how even high-yielding dividend stocks can be attractive investments. As of this May, high-yield stocks had returned over 9%, surpassing the larger regional mark by 5 points. Another factor that makes dividend stocks appealing is the fact that those companies that either initiated or grew their dividends were able to bring in higher returns as compared to the companies that either cut or eliminated their dividends since 1973, according to Hartford Funds. Between 1973 and 2020, for instance, dividend growers and initiators saw 13.2% in returns and dividend payers had 12.83% in returns. In contrast, the returns of companies that didn't change their dividend policies, never paid dividends, or cut or eliminated their dividends were 10.97%, 12.18%, and 10.20%, respectively.

In light of the above, investing in dividend stocks can be a crucial move for many investors, especially those looking to set up a stable passive income stream for themselves. This is particularly the case during times of job insecurity and financial volatility, as is the case today. Hence, dividend stocks like Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), JPMorgan Chase & Co. (NYSE: JPM), Altria, Inc. (NYSE: MO), Johnson & Johnson (NYSE: JNJ), and McDonald's Corporation (NYSE: MCD), alongside stable monthly dividend stocks, can be valuable players in an investor's portfolio.

Cheap Monthly Dividend Stocks to Buy Now
Cheap Monthly Dividend Stocks to Buy Now

Photo by Nathan Dumlao on Unsplash

Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Without further ado, let's look at the 10 cheap monthly dividend stocks to buy now. As of July 20, all the stocks mentioned on the list below are under $20.

Cheap Monthly Dividend Stocks to Buy Now

10. Cross Timbers Royalty Trust (NYSE: CRT)

Number of Hedge Fund Holders: N/A Dividend Yield: 7.5%

Cross Timbers Royalty Trust (NYSE: CRT) is an express trust operating in the oil and gas exploration and production industry in the US. The company holds net profits interests in producing and nonproducing royalty and overriding royalty interest properties and it ranks 1oth on our list of cheap monthly dividend stocks to buy now.

In the first quarter of 2021, Cross Timbers Royalty Trust (NYSE: CRT) had revenue of $1.36 million, surpassing the previous quarter's $1.20 million revenue. The stock has also gained 34.48% in the past 6 months and 39.11% year to date.

Like Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), JPMorgan Chase & Co. (NYSE: JPM), Altria, Inc. (NYSE: MO), Johnson & Johnson (NYSE: JNJ), and McDonald's Corporation (NYSE: MCD), Cross Timbers Royalty Trust (NYSE: CRT) is a good dividend stock to buy.

9. PermRock Royalty Trust (NYSE: PRT)

Number of Hedge Fund Holders: N/A Dividend Yield: 4.9%

PermRock Royalty Trust (NYSE: PRT) owns interests in oil and natural gas production properties. The company owns about 80% net profits interest in such properties acquired by Boaz Energy II, LLC in Permian Basin. It ranks 9th on our list of cheap monthly dividend stocks to buy now.

This March, PermRock Royalty Trust (NYSE: PRT) shares rose about 3.2% or $0.21 to $6.89, and Wells Fargo also holds an Equal Weight rating on the stock.

PermRock Royalty Trust (NYSE: PRT) has $84.55 million in assets under management. In the past year, its price returns have been up 174.7% as compared to the 34.57% increase of the S&P 500 while its total return was up 193.19% in the past year, compared to the S&P 500's 10.4% rise. PermRock Royalty Trust (NYSE: PRT) has also gained 125.65% in the past 6 months and 172.55% year to date.

Like Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), JPMorgan Chase & Co. (NYSE: JPM), Altria, Inc. (NYSE: MO), Johnson & Johnson (NYSE: JNJ), and McDonald's Corporation (NYSE: MCD), PermRock Royalty Trust (NYSE: PRT) is a good dividend stock to buy.

8. Permian Basin Royalty Trust (NYSE: PBT)

Number of Hedge Fund Holders: 3 Dividend Yield: 4.4%

Permian Basin Royalty Trust (NYSE: PBT) is an express trust that holds overriding royalty interests in a range of oil and gas properties in the US. It also owns a net overriding royalty interest in the Waddell Ranch properties of about 75% and ranks 8th on our list of cheap monthly dividend stocks to buy now.

In the first quarter of 2021, Permian Basin Royalty Trust (NYSE: PBT) had about $2.13 million in revenue, surpassing the previous quarter's revenue of $1.98 million. Permian Basin Royalty Trust (NYSE: PBT) has also gained about 38.71% in the past 6 months and 45.61% year to date.

By the end of the first quarter of 2021, 3 hedge funds out of the 866 tracked by Insider Monkey held stakes in Permian Basin Royalty Trust (NYSE: PBT) worth roughly $1.45 million. This is compared to 2 hedge funds in the previous quarter with a total stake value of about $1.33 million.

Like Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), JPMorgan Chase & Co. (NYSE: JPM), Altria, Inc. (NYSE: MO), Johnson & Johnson (NYSE: JNJ), and McDonald's Corporation (NYSE: MCD), Permian Basin Royalty Trust (NYSE: PBT) is a good dividend stock to buy.

7. Prospect Capital Corporation (NASDAQ: PSEC)

Number of Hedge Fund Holders: 7 Dividend Yield: 8.5%

Prospect Capital Corporation (NASDAQ: PSEC) is a business development company operating in the asset management and custody banks industry and specializing in acquisitions, recapitalization, growth capital, development, cash flow term loans, and bridge transactions among others. It ranks 7th on our list of cheap monthly dividend stocks to buy now.

This June, Prospect Capital Corporation (NASDAQ: PSEC) announced its funding of a loan worth about $55 million to support the acquisition of Enseo Holdings by an H.I.G Capital affiliate. The company also announced that its stock offering issuance exceeded $105 million in aggregate preference amount in the same month.

In the fiscal third quarter of 2021, Prospect Capital Corporation (NASDAQ: PSEC) had an NII of $0.19, beating estimates by $0.02. The company's TII was $159.46 million, up 3.21% year over year and beating estimates by $8.32 million. Prospect Capital Corporation (NASDAQ: PSEC) has also gained 33.44% in the past 6 months and 47.01% year to date.

By the end of the first quarter of 2021, 7 hedge funds out of the 866 tracked by Insider Monkey held stakes in Prospect Capital Corporation (NASDAQ: PSEC) worth roughly $11.6. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $18.3 million.

Like Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), JPMorgan Chase & Co. (NYSE: JPM), Altria, Inc. (NYSE: MO), Johnson & Johnson (NYSE: JNJ), and McDonald's Corporation (NYSE: MCD), Prospect Capital Corporation (NASDAQ: PSEC) is a good dividend stock to buy.

6. U.S. Global Investors, Inc. (NASDAQ: GROW)

Number of Hedge Fund Holders: 7 Dividend Yield: 1%

U.S. Global Investors, Inc. (NASDAQ: GROW) is an investment managing firm providing services to investment companies and pooled investment vehicles. It manages equity and fixed income mutual funds alongside hedge funds and exchange-traded funds. The company ranks 6th on our list of cheap monthly dividend stocks to buy now.

This June, U.S. Global Investors, Inc. (NASDAQ: GROW) announced that it would be collaborating with HANetd for the launch of the first global airlines industry ETF in Europe, which would also be the only one of its kind.

In the fiscal third quarter of 2021, U.S. Global Investors, Inc. (NASDAQ: GROW) had an EPS of $0.94. The company's revenue was $1.38 million, up 93.29% year over year. U.S. Global Investors, Inc. (NASDAQ: GROW) has also gained about 2.34% in the past 6 months and 113.53% in the past year.

By the end of the first quarter of 2021, 7 hedge funds out of the 866 tracked by Insider Monkey held stakes in U.S. Global Investors, Inc. (NASDAQ: GROW) worth roughly $12.5 million. This is compared to 5 hedge funds in the previous quarter with a total stake value of about $11.1 million.

Like Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), JPMorgan Chase & Co. (NYSE: JPM), Altria, Inc. (NYSE: MO), Johnson & Johnson (NYSE: JNJ), and McDonald's Corporation (NYSE: MCD), U.S. Global Investors, Inc. (NASDAQ: GROW) is a good dividend stock to buy.

Artko Capital mentioned U.S. Global Investors, Inc. (NASDAQ: GROW) in its fourth-quarter 2020 investor letter. Here's what they said:

“US Global Investors (GROW) – In 2Q 2020 we took a 4% position in a tiny asset manager with the expectation that with the eventual market recognition that its airline focused ETF, JETS, has grown from sub $100mm in assets to over $1.2b, would result in a substantial price adjustment. In short, rather than gamble in the wild casino of 2020 markets, we wanted to own the casino operator instead. This was a short term, earnings event driven investment and while we were hoping for a healthier pop, in the end we exited most of our position in low to mid $3s for a blended 30% return, the capital from which we committed to our purchase of ECOM, as our preference is usually to hold less risky, more longer-term oriented Core Portfolio positions.”

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Disclosure: None. 10 Cheap Monthly Dividend Stocks to Buy Now is originally published on Insider Monkey.