Dividends are most often paid quarterly, i.e. four times a year. But many companies are moving to monthly payments, which can be even more attractive to many investors. This will give you a regular monthly passive income. What companies offer a decent dividend yield of over 5% in addition to the monthly payout?

1. EPR Properties $EPR

EPR Properties is a leading real estate investment trust (REIT) that specializes in select permanent experience properties in the real estate industry. It focuses on properties that create value by facilitating leisure and recreational experiences away from home where consumers choose to spend their time and money. They have investments totaling nearly $6.7 billion in 44 states. They adhere to strict underwriting and investment criteria that focus on key industry cash flow standards at the property and tenant level. They believe their focused approach provides a competitive advantage and the potential for stable and attractive returns.

EPR stock is currently trading at $41.52, giving the company a dividend yield of nearly 8%. Over the year, the price has declined 15.5%. The PE ratio remains below 23, which is quite high considering its business. This February, the company raised its dividend to 27.5 cents per share, which translates to an annual dividend of $3.3 per share. This was the first dividend increase since 2020.

Since these are REITs, which typically have relatively high debt, I also looked at this indicator. For last year, total debt was $3.023 billion. In the chart below, we can see that it has been growing since 2013. Digging even further into the past, I found that long-term debt has grown almost every year since 1998. This is certainly an important point to consider when analyzing this more closely. On the other hand, that's just the way the REITs business is built.

2. Prospect Capital Corporation $PSEC

Prospect Capital Corporation is a business development company. It specializes in middle market, mature companies, mezzanine financing, later stage, emerging growth, leveraged buyouts, refinancings, acquisitions, recapitalizations, turnarounds, growth capital, development, capital expenditures and subordinated debt tranches of secured credit obligations, cash flow term loans, marketplace lending and bridge transactions. It also makes investments in real estate, particularly in the multi-family residential asset class. The Fund executes secured debt, senior debt, senior and secured term loans, unitranche debt, first and second lien debt, private debt, private equity investments, mezzanine debt and equity investments in private and public microcap businesses.

As you can see, the scope of PSEC is really broad. It is certainly worth noting that this is a CEF-type company. What does this acronym stand for? A closed-end fund, or a closed-end type of mutual fund, issues a fixed number of shares through an IPO to raise capital for its initial investment. Its shares can, of course, be bought and sold on the stock exchange, but no new shares are created and no new money flows into the fund. I'd like to see CEFs get more exposure at some point, as they are characterised by paying high dividends and typically perform better on a price/performance basis than shares of conventional companies.

PSEC last traded at $7.35 per share, down more than 4.5% from the start of the year. The current share price gives the company a dividend yield of 9.8%, which is not unusual within CEF, as there are funds that quietly yield well over 20%. The PE ratio is 5.73.

3. Pembina Pipeline Corp. $PBA

Pembina Pipeline Corporation provides transportation and midstream services to the energy industry. It operates in three segments: pipelines, facilities, marketing, and new ventures. The Pipelines segment operates conventional crude oil, oil sands, and heavy crude oil pipelines and transportation assets with a transportation capacity of 3.1 million barrels of oil equivalent per day, an onshore storage capacity of 11 million barrels, and a rail terminalling capacity of approximately 105 thousand barrels of oil equivalent per day serving markets and basins in North America. The Facilities segment offers infrastructure that provides customers with natural gas, condensate and natural gas liquids (NGLs), including ethane, propane, butane and condensate, and includes 354 thousand barrels per day of NGL fractionation capacity, 21 million barrels of cavern storage capacity and related pipeline and rail terminalling facilities. The Marketing and New Ventures segment buys and sells natural gas liquids and natural gas sourced from the Western Canadian Sedimentary Basin and other basins.

PBA shares ended the last trading session at $34.87, up 13% from a year ago. This brings the dividend yield to 5.69%. The company has paid dividends this year ranging from $0.162 to $0.168 per share. That works out to an average of $1.98 per year. Since the company is based in Canada, it started paying dividends in Canadian dollars starting this month for certain reasons that I don't know. It's also worth mentioning that the monthly dividend is scheduled to increase to CAD 0.2715 this quarter. This will happen when the joint venture agreement with KRR is finalized.

Do you know or invest in any of these companies? 🤔