Published on 4 Aug 2022 on Insider Monkey via Yahoo Finance
10 Monthly Dividend Stocks to Buy in August
In this article, we discuss 10 best monthly dividend stocks to buy in August. You can skip our detailed analysis of dividend stocks and their importance, and go directly to read 5 Monthly Dividend Stocks to Buy in August.
With high inflation and an increase in interest rates, investors are selling off other asset classes in favor of dividend stocks. Dividend payments have grown over the years, exceeding the inflation rate. According to a report by S&P Dow Jones Indices, the dividend payments of the S&P 500 companies jumped to $511.5 billion in 2021, from $140.1 billion in 2000, which represents a CAGR of 6.4%.
According to analysts, the trend is likely to continue for the rest of the year, as many companies have raised their dividends after recovering from the pandemic of 2020. Global dividend payments are expected to grow by 6.5% in 2022, as reported by IHS Markit. The forecast shows a 10% growth in dividends for US companies. The report further mentioned that dividend stocks outperformed their non-dividend counterparts in the last year and are expected to perform the same in the upcoming years based on earnings estimates. This is also evident through the inflows experienced by SPDR S&P Global Dividend Aristocrats UCITS ETF, which measures the performance of high-yielding dividend companies in the index. The fund’s assets reached $580 million through July, up from $236 million at the end of December. Moreover, the fund is down 4.3% year-to-date, compared with a loss of 14.13% of the broader index during the same period.