Investment is as old as mankind, but technology has improved the practice. Today, we can monitor and invest in monthly dividend utility stocks without leaving our homes. Compare that to the days when we would buy print media to keep tabs on company stocks.
Utilities is one sector of the economy that delivers monthly yields to investors. However, there is an attraction they have that gives investors confidence. You will know why and much more.
Aside from getting total stocks, fractional shares can bring yields at a lower cost. While that is not our focus, it is worth mentioning since we deal with monthly stocks that pay dividends. In the meantime, let’s run through utility stocks and the ones you should consider adding to your portfolio.
Why Utility Dividend Stocks Make Attractive Investments?
Do utilities pay good dividends? This question can hold you back from boosting your portfolio with utilities. So let’s get it out of the way.
Utilities pay good dividends because of their ties to our home, personal, and commercial lives. You would agree that life would be difficult if we did not have gas, water, plumbing, and other essential utilities. Their importance in our lives enables these stocks to surmount any downward market trend.
Recessions rarely affect utilities. Imagine what would happen to electric utility companies if they were affected by a downturn. On that note, utility stocks are relatively stable and market-prove.
Such an investment is sure to be attractive. At the end of the day, we want stocks that will keep our investments from crashing down. Investing in utility stocks can protect your portfolio from a market collapse.
Utility stocks may not be among the best monthly dividend stocks. They will, however, provide you with stability. You can expect reasonable monthly yields from them.
Before we go further, you must have a good understanding of the reach of utility stocks. Utilities include companies that provide gas, electric power, water, and power distribution networks. With that in mind, let’s explore the best utility stocks that pay monthly dividends.
10 Best Utility Stocks for the Rest of 2022
Statistics reveal that even the S&P 500 has remained bearish for most of 2022. However, something other than that should be your yardstick for investing in utility stocks.
Before picking the 10 best monthly dividend utility stocks, you should note the following:
The best stocks should show steady growth over time
Avoid stocks with large price swings
Review the 5-year drawdown
With that in mind, here are the top 10 utility stocks for the rest of 2022:
- Via Renewables Inc. (VIA) – 13.69%
- Pinnacle West () – 5.15%
- Edison International (EIX) - 4.87%
- Dominion Energy (D) – 4.42%
- Fortis Inc. (FTS) – 4.27%
- Spire Inc. (SR) – 4.25%
- Duke Energy Corporation (DUK) – 4.21%
- Entergy (ETR) – 3.87%
- American Electric Power Company (AEP) – 3.47%
- National Grid Plc (NGG) – 3.35%
Via Renewables Inc. (VIA)
This independent retail energy company serves residential and commercial customers in the United States. It is quite an exciting company. Nevertheless, its stock performance is as follows:
Market cap – 84 million
Current yield – 13.6%
One Gas Inc. (OGS)
One Gas Inc. joins its three divisions to provide natural gas to three states in the U.S. Together, they serve over 2 million customers in these locations. While it has some impressive numbers, let’s review its stock performance.
Market Cap – 4.72B
Total customers – 2.2 million
5-year average dividend yield – 2.64%
The stock did suffer a fall on November 30, when it began its decline from 86.95. However, the utility has since gone bullish, pushing back at the market.
Top 20 Highest Yielding Monthly Dividend Stocks Now | Yields Up to 16.9%
So, what is the highest-paying dividend stock that pays monthly? As mentioned earlier, utility stocks may only sometimes be the best-performing ones. People pick them because of their market stability.
The highest-paying dividend stock has a “reasonably” low payout, good raises, steady revenue, and a high yield. These factors will help you pick out the best stocks that pay dividends monthly, among other things.
With that in mind, here are the top 20 highest-yielding monthly dividend stocks:
- Apollo Commercial Real Estate Finance, Inc. (ARI) – 16.75%
- B&G Foods, Inc. (BGS) – 15.06%
- Via Renewable Inc. (VIA) – 13.68%
- Lumen Technologies, Inc. (LUMN) – 9.72%
- B. Riley Financial, Inc. (RILY) – 9.62%
- Astria Group, Inc. (MO) – 9%
- Omega Healthcare Investors, Inc. (OHI) – 8.43%
- Western Union Company (WU) – 6.66%
- LyondellBasell Industries (LYB) – 5.48%
- Intel Corporation (INTC) – 5.38%
- Leggett and Platt Incorporated (LEG) – 5.31%
- Franklin Resources, Inc. (BEN) – 5.22%
- First Insterstate BancSystem, Inc. (FIBK) – 4.93%
- Walgreens Boot Alliance, Inc. (WBA) -4.86%
- Packaging Corporation of America (PKG) – 4.45%
- First American Corporation (FAF) – 4.02%
- The Kraft Heinz Company (KHC) – 4.02%
- Extra Space Inc. (EXR) – 3.81%
- JP Morgan Chase & Co. (JPM) – 3.62%
- Gilead Sciences (GILD) – 3.17%
A closer look will show that these stocks cut across different industries. You can have high-performing utility stocks, but they are generally meant for something other than that.