The 12.9% Monthly Dividend That Quietly Eats Your Portfolio

An audit of America's six largest monthly dividend payers over the last decade reveals mixed results, with half failing to maintain consistent payouts or deliver strong total returns.

EPR Properties and Apple Hospitality both suspended monthly dividends during the 2020 pandemic, with APLE resuming quarterly before returning to monthly.

Realty Income, despite its "Monthly Dividend Company" claim, showed a dismal 48% total return.

AGNC Investment Corp cut its dividend in 2020 and never restored it, yielding poor overall returns.

Agree Realty delivered a strong 135% total return but only recently adopted monthly payments.

Main Street Capital emerged as the "monthly champion," consistently paying dividends since its 2007 IPO without cuts, and achieving a 236% total return.

Its unique business model, bonus dividends, and high insider ownership contribute to its success.

In the working world, paychecks show up every two weeks. Or at least, every month. Which keeps up with the pace of monthly bills, charges, and expenses.

In the stock market world, payouts (dividends!) arrive every quarter. That’s 30 days in between bills, but a full 90 days spanning divvies. Hence the appeal of monthly dividends.

These management teams know that the investors who hold their stock are here for the payment. It’d better show up every 30 days, and it’d better be the same amount. No cuts allowed .

Problem is, some of these monthly payers are writing checks their business can’t cash. So let’s “audit” the last decade of receipts from the si...