Top 10 Dividend Stocks For 2020

dividend stocks

Today I want to share with you my best ten dividend stocks which also includes ETFs, and REITs. If you desire a dependable income, look no further than monthly dividend stocks. The fantastic thing about dividend stocks is that you get to relish the fruits of your investment without having to work or sell anything.

Whether you are a college student or retired, you investment in dividend stocks.  As with most investments, there are risks.  The risks associated with dividend stocks will vary greatly.  Some dividend stocks are relatively low risk blue chip stocks, while others may be high risk.  Always do your own research before investing in any investment.

In recent years there have been many non-traded real estate traded trusts (REIT) and business development companies (BDC) that have been promoted to investors.  We are NOT promoting or talking about those types of investments because they are very risky and not sold on the exchanges.  Investors should be extremely cautious about any investment that can not be bought or sold on the exchanges.

What is a dividend?

A dividend is a payment that is made to the stock owners of the company. Payments cycles vary by company and can be paid monthly, quarterly, semi-annually, but are typically paid quarterly. An example would be if you owned 100 stock shares of a company, and the company paid a quarterly dividend of $2 for each stock share. You would then be paid $200 (100 share X $2) every quarter and $800 annually.


10 Dividend Stocks for 2020

Realty Income Corp (NYSE:O)

Dividend Yield: 3.6%
Type: Commercial REIT

This Retail real estate investment trust (REIT) brands itself as the “Monthly Dividend Business,” as it has paid its investors for 50 years like clockwork, and even increased its dividend for more than 100 consecutive quarters. Realty Income is about as similar to a mortgage as you can possibly get in the equity market. Cash payments to high-quality consumers are protected by long-term contracts. In fact, the properties are high-traffic retail locations that are mostly resistant to recession.

Stag Industrial (STAG):

Dividend Yield: 4.45%
Type: Industrial REIT

STAG stands for “single-tenant acquisition group,” its business model is outlined in this term. This portfolio mostly acquires single-tenant properties in commercial and electrical construction areas. In 2011, the stock propagated again. This stock yields 4.45 percent.

LTC Properties (LTC)

Dividend Yield: 4.87%
Type: Healthcare REIT

LTC is short for “long-term care, and that is precisely what its tenants provide. The entire 200-plus-property portfolio is largely invested in adept nursing and assisted -living facilities covering 30 states. While health and senior living are not precisely the most exhilarating markets, because of the aging of the baby boomers they have stable and incrementing demand. More than 10,000 boomers daily turning 65 every single day, and this generation will need more and more health services with each passing day. So, demographic trends are definitely on LTC’s side. LTC boasts a dividend yield approaching 5%.

EPR Properties (EPR)

Dividend Yield: 6.17%
Type: Commercial REIT

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This word stands for the Entertainment properties. EPR is interested in eccentric, non-traditional properties, including golf driving ranges, cinemas, water parks, ski resorts, and private schools. But it is this peculiarity which makes EPR so appealing. To invest effectively in these kinds of assets, you have to have specialized knowledge, and very few managers have that. This gives EPR a competitive advantage and allows it to grab higher yields.

Vereit Series F Preferred Stock (VER-PF)

Dividend Yield: 6.6%
Type: REIT Preferred Stock

In addition to their conventional common stock, REITs often fund their expansion projects with debt and with preferred stock. preferred stock is something of a hybrid between common stock and a bond. Vereit (NYSE:VER) is a triple-net retail REIT that’s fairly homogeneous to Realty Income. VEREIT’s preferreds pay an alluring yield, paid monthly.

You are not liable to get much in the way of capital gains here, but you are definitely getting a consistent monthly income stream. And if you are in or near retirement, that is precisely what you require.

Main Street Capital (MAIN)

Dividend Yield: 5.5%
Type: Business Development Company

BDCs are much like REITs in that they both have particular tax benefits. With that in mind, let’s take a look at Main Street Capital Corporation (NYSE: MAIN), one of the best-run BDCs in this region. MAIN makes both equity and debt investments in its portfolio of businesses, and most of its assets are in the fast-growing Sunbelt region of the country.

Prospect Capital (PSEC)

Dividend Yield: 11.04%
Type: Business Development Company

Prospect Securities (NASDAQ: PSEC). Prospect spends nearly all of its profits in its regular monthly dividend instead of paying a lower annual dividend topped up by occasional special dividends. While the yield of Prospect is enticing at 11.04 percent, this is a slightly more risky BDC than Main Street.

Today, at today’s prices, PSEC is an attractive investment.

Eaton Vance Limited Duration Income Fund (EVV)

Dividend Yield: 9%
Type: Closed-End Fund

EVV is a closed-end fund with a large sales investment portfolio with only moderate interest rate risk. More than one-third of its assets is invested in bank loans, at variable rates typically. If you’re searching for a stable monthly dividend with the opportunity for moderate capital gains, then EVV is a solid choice.

Cohen & Steers REIT and Preferred Income Fund

Dividend Yield: 6.23%
Type: Closed-End Fund

Cohen & Steers REIT and Preferred Income Fund (NYSE: RNP) is a closed-end fund specializing in REITs and preferred stock. RNP’s portfolio is split between REITs and preference stock. The selected allocation of stocks gives it a little more interest rate risk than the other stocks in this article

UBS ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL)

Dividend Yield: 18.5%
Type: Mortgage REIT ETN

Most of the REIT mortgage sector has been trading at a discount to book value for the last several years. However, that’s unusual for this sector, as it tends to trade at a fairly substantial premium. Investors are usually prepared to pay for the high yields.

UBS ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (NYSEARCA: MORL), an exchange-traded leveraged note that doubles the price movement and doubles the mortgage REIT sector return. MORL pays its dividend monthly, yielding approximately 18.5%.

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