What are Dividends?
The thought of living and thriving through passive income in terms of dividend checks may seem like a dream to many people. However, it can become true, particularly when you comprehend what a dividend is before you engage in this trade. Here are a few insights to help you grasp a sound understanding of dividends:
- A dividend is a regular payment made to an investor who owns stock in a company.
- It is crucial to note that not every stock pays dividends.
- Dividends must be declared or authorized by a firm’s board of directors every time they are issued.
- When companies generate profits and accrue retained earnings, that income can be reinvested in the enterprise or disbursed to investors as dividends.
- Dividend yield is calculated by dividing the dividend for each share by the price of the share.
For more of dividends, read this post.
Gladstone Commercial Corporation ($GOOD)
The company is a real estate investment trust (REIT) that invests in homes, offices, and properties globally. David Gladstone and the senior managers have more than 200 years of experience when combined in middle-market trade and real estate investments. This cooperation has led to the creation of a portfolio that produces predictable and lasting cash rents to finance distributions to their investors.
Since 2003, when the firm presented an IPO, there has been significant progress such as:
- Steady portfolio growth at 18% yearly rate.
- Stable stream of cash flow to finance monthly distributions to investors.
- Occupancy has never plunged below 96.0%; the current occupancy is at 98.8%.
The firm is among the Gladstone Companies; it has three affiliated investment corporations that are publicly traded.
The previous year’s value of payment exhibits that Gladstone Commercial has a “trailing yield of 6.5%” as compared to last month’s stock price of $23.175. In addition, the company disseminated an untenably high 120% related to its profits as shareholders’ dividends in 2018.
As of November 21, 2019, the following are crucial data about Gladstone Commercial Corporation’s stock:
- Average Volume: 120,973
- Market Cap: $716.304 million
- Price-to-Earnings Ratio (TTM): 22,330
- Earnings Per Share (TTM): $0.00
- Forward Dividend and Yield: $1.50 (6.64%)
Gladstone Investment Corporation ($GAIN)
Gladstone Investment Corporation is a private equity fund that focuses on acquiring mature and lower middle market companies with revenue not exceeding $100 million in revenue, strong management teams, and attractive fundamentals.
Investing alongside both independent sponsors and management teams, this business development company typically offers most of the debt and equity capital to close a transaction. This greatly increases the speed and certainty of closing.
Having grown its dividends for over five years, this buyouts and recapitalizations based company experiences rosy prospects for a robust buyout moving forward. This makes the monthly income stock an attractive prospect for income-seeking investors.
As a publicly-traded fund, Gladstone Investment Corporation differs from other private equity funds in that it has no partnership end-of-life deadlines and offers patient and long-term capital. Besides, it operates as a non-diversified, closed-end management investment firm and invests in:
- Preferred stock
- Mezzanine debt
- Subordinated loans
Additionally, it warrants purchasing common stock of small and mid-sized companies associated with:
- Changes in control
As of November 21, 2019, the following are key insights about Gladstone Investment Corporation’s stock:
- Average volume: 124,072
- Market cap: $455.248 million
- Price-to-Earnings Ratio (TTM): 12.67
- Earnings Per Share (TTM): $1.10
- Forward Dividend and Yield: $0.82 (5.82%)
Shaw Communications ($SJR)
With headquarters in Calgary, Alberta, Shaw Communications is a telecommunications company that offers mobile, television, and telephone services all backed by a fiber-optic network. This Canadian telecommunications company offers services mostly in Alberta and British Columbia with smaller systems in Northern Ontario, Manitoba, and Saskatchewan.
This company offers its services to both institutional and retail consumers through the following business segments;
- WIND- provides wireless services
- ViaWest– offers colocation, public and private clouds, and managed services
- Shaw tracking- provides wireless data solutions and integrated onboard computing technology for the Canadian transportation, logistic industries and mobile workforce
- Shaw Direct– offers digital direct-to-home satellite TV
- Shaw Business- provides services to corporates
- Shaw Broadcast Services- offers satellite-based services
- Shaw Communications- provides home phone and internet services
Although the company faced cash-flow troubles from 2013 through 2015, things got better in 2016. The net income has risen over a span of four years. However, although the highest stock price in the past ten years was above $27, in November 2014, it hit a low of $16.37 in February of 2016. Since then, its share price has leveled off to a respectable $19.08, and the company has continued to offer attractive monthly payouts.
For the purposes of operations, Shaw Communications is split into four business segments as follows:
- Consumer- Offers telecommunication services for retail consumers over the phone, video, public Wi-Fi, and broadband internet. This segment takes up approximately 67% of the total revenue and 71% of operating income.
- Media- Delivers both specialty and conventional video content to retail consumers via television on online media channels.
- Business Network Services- Offers telecommunication services for businesses.
- Business Infrastructure Services- Provides IT solutions such as managed services, colocation, cloud computing, and security.
As of November 21, 2019, the following are fundamental details about Shaw Communications Inc’s stock:
- Average volume: 407,180
- Market cap: $10.565 billion
- Price-to-Earnings Ratio (TTM): 257.81
- Earnings Per Share (TTM): $0.07
- Forward Dividend and Yield: $0.91 (4.37%)
The value of dividends is established on the basis of per share. It is to be issued equally to every shareholder of the same class. The payment should be endorsed by the board of directors.
The three renowned monthly dividend stocks featured are:
- Gladstone Commercial Corp
- Gladstone Investment Corp
- Shaw Communications
Dividend stocks that are paid monthly have various benefits. These include:
- Speedy capital return
- Quick compounding
- Less volatility