3 Monthly Dividend Stocks Yielding Over 5% Worth Owning Now
2026-10-11 22:18
•James Brumley •The Motley Fool
••••••• ••• Axe Cap view
High-Yield Monthly Dividends: Are They Worth a Look from South Africa?
Exploring three monthly dividend payers with yields above 5%, and their relevance to rand-based income seekers.
Monthly dividends are rare gems, especially when yielding north of 5%, but their appeal depends on how they fit an investor’s local reality. The US REIT Realty Income (ticker: O) stands out with over three decades of dividend raises and a yield around 6%. Its focus on retail and data centers offers stable cash flow, which South African investors might appreciate when hedging against rand inflation. UDR’s pivot to monthly payouts aligns well with its 5.2% yield and the resilient US rental market, though currency risk tempers enthusiasm. The iShares Preferred and Income Securities ETF (PFF) brings a diverse basket of preferred stocks yielding 5.4%, simulating income from fixed income with some equity flavor. But remember, rand volatility against the dollar can erode income gains; USD/ZAR shifts remain the wildcard. For South Africans chasing yield, these are worth watching but better as part of a broader basket including local income stocks like Sanlam or Standard Bank. this is just our opinion and not financial advice
For rand-based investors, consider a small rand-hedged exposure to Realty Income or PFF for yield and diversification, while relying primarily on strong JSE payers like Sanlam or Standard Bank for stable dividends. Keep position sizes moderate to manage currency risk.
- Realty Income (O)
- iShares Preferred and Income Securities ETF (PFF)
- USD/ZAR
- Rand weakness eroding foreign income returns
- US interest rate hikes impacting REIT valuations
6/10
The article highlights three monthly dividend-paying investments yielding over 5% for income-seeking investors: Realty Income (O), a retail REIT with 31 consecutive years of dividend increases; UDR, an apartment complex owner that recently switched to monthly payouts with a 5.2% yield; and the iShares Preferred and Income Securities ETF (PFF), offering diversified exposure to preferred stocks with a 5.4% yield.
Our take is based on reporting first published by The Motley Fool.