Monthly dividend

Screening Filters

1. Market cap ≥ $500M

   • Purpose: Focus on larger, more established companies.
   • Rationale: Reliable monthly dividends usually come from businesses with stable cash flows and access to capital. Very small-cap names can have erratic or unsustainable payouts, so a size floor helps tilt toward more dependable income payers.

2. Sectors: Real Estate, Utilities, Financials

   • Purpose: Target sectors that historically house many income-oriented and some monthly-paying stocks.
   • Rationale:
     • Real Estate (especially REITs) is the primary home of monthly dividend stocks in the U.S. and Canada.
     • Utilities are classic defensive, high-dividend payers with predictable cash flows.
     • Financials (especially certain banks and specialty finance) often offer higher-than-market yields; some niche financials pay monthly.

3. Themes: REITs, Electric Utility, Water Supply, Banks, Financial

   • Purpose: Narrow within those sectors to business models that commonly support regular cash distributions.
   • Rationale:
     • REITs: The core group where monthly payers cluster. Their structure requires paying out a large share of income.
     • Electric Utility / Water Supply: Regulated, steady cash-flow businesses that often support consistent and relatively high dividends.
     • Banks / Financial: Focuses on traditional and income-oriented financial institutions versus, say, high-growth fintech with low or no dividends.

4. Dividend 5‑year CAGR ≥ 0%

   • Purpose: Exclude companies with shrinking dividends over the last 5 years.
   • Rationale: For an income-focused (especially monthly) investor, stability or growth in the dividend is crucial. A non‑negative 5‑year CAGR means the dividend hasn’t been cut on average over the period, improving the chance that the income stream is at least stable.

5. Dividend yield (TTM) between 4% and 12%

   • Purpose: Ensure a meaningfully high yield while filtering out most “too good to be true” extreme yields.
   • Rationale:
     • ≥ 4%: Targets stocks that are clearly above the broad market yield and relevant for an income-focused strategy like monthly dividends.
     • ≤ 12%: Extremely high yields are frequently signals of distress or imminent cuts. Capping yield helps avoid the most dangerous outliers while still including robust payers (especially REITs and utilities).

6. Analyst consensus: Strong Buy, Moderate Buy, or Hold

   • Purpose: Screen out names with a broadly negative analyst view.
   • Rationale: While not a guarantee, avoiding “Sell”-rated stocks reduces the chance of picking companies with significant, widely-flagged problems (which often precede dividend cuts), making them less suitable for a dependable monthly income strategy.

Why Results Match “Monthly Dividend”

• Monthly dividend payers are disproportionately found among REITs and income-focused utilities/financials, which these sector and theme filters specifically target.
• The yield range and non‑negative 5‑year dividend growth filters bias the list toward stocks that not only pay meaningful income but have at least maintained (if not grown) their dividends — a key concern for investors seeking steady monthly cash flow.
• The analyst consensus filter attempts to avoid fundamentally weak names where a high yield might be a red flag, improving the odds that any identified monthly payers are more sustainable.

One important nuance: the screener doesn’t directly filter on payment frequency (monthly vs. quarterly). Instead, it finds high-quality, high-yield, income-oriented stocks in the sectors where monthly payers are most common. From that list, you’d then manually verify which ones actually pay monthly dividends.