Superb website you have here but I was curious if you knew of any message boards that cover the same topics talked about here? I’d really like to be a part of group where I can get feed-back from other knowledgeable people that share the same interest. If you have any recommendations, please let me know. Cheers!
You can follow and participate in discussions about shares on platforms like London South East and ADVFN, where investors share news, opinions, and trading insights.
Ian Cowie: the investment trusts battling for supremacy
Our columnist asks which names could benefit from another defence boost.
23rd July 2026
by Ian Cowie from interactive investor
Shares in arms manufacturers advanced strongly on Tuesday after the appointment of John Healey as chancellor.
He resigned as defence secretary last month after calling for more spending on the Armed Forces and is now in a position to do something about it.
Nick Britton, research director of the Association of Investment Companies (AIC), assessed the winners among shares listed on the London Stock Exchange and said: “Babcock International Group BAB
and QinetiQ Group QQ. shares all rose sharply on the news of Healey’s appointment.
“The assumption is that the new chancellor’s vocal stance on defence spending points to higher budgets for the military now that he’s moved to Number 11 Downing Street.”
Lizzy Galbraith, senior political economist at Aberdeen Investments, agreed: “New UK Prime Minister Andy Burnham undertook an extensive cabinet reshuffle, with former defence secretary Healey the surprise chancellor.
“His appointment raises expectations of further defence spending commitments. He resigned in June after failing to secure a commitment from the government to raise defence spending to 3% of gross domestic product (GDP) – a measure of economic output - by 2030.”
But picking individual defence shares is risky, as demonstrated by Babcock’s decline earlier this year after it announced a £140 million exceptional charge on its Type 31 Frigate ship-building programme, which is expected to cut operating profits by 19% to £293.3 million.
By contrast, several investment trusts offer access to this theme with less stock-specific risk.
Britton explained: “For investors who don’t have time to analyse the merits of individual defence stocks, investment trusts offer exposure to this sector within diversified portfolios.”
Britain’s biggest aerospace engines manufacturer, which is entirely separate from the luxury motorcar manufacturer of similar name, ranks among the top 10 assets of both funds.
But an urgent need to improve national security is felt most keenly on the Continent, especially among countries bordering Russia after its full-scale invasion of Ukraine.
fund with £265 million in assets, has 5.8% of NAV in armaments manufacturers. Its holdings include the defence technology company Qinetiq, mentioned earlier, and the explosives-maker Chemring Group CHG
But the latter demonstrates the difficulty of investing in single trading companies, despite the favourable backdrop of rising expenditure. Chemring shares suffered a setback last month after it announced weak sales would trim its operating profits by 8%.
Similarly, the recent performance of the above investment trusts varies widely.
JPMorgan Claverhouse is easily the most successful over the last year with a total return of 24%, following 64% over five years and 160% over the last decade.
This fund also yields 3.8% dividend income, which has increased by an annual average of nearly 4.2% over the last five years, but it continues to be priced at a modest discount of 2.2% below its NAV.
CT UK High Income is next best among the above five funds for defence exposure, having gained 17% over the last year, following 58% over five years and 115% over the decade.
Better still, it yields just over 5.1% dividend income, albeit rising modestly by 2.4% per annum, with its ordinary shares priced at par to NAV.
By contrast, despite having the highest allocation of assets to defence among these five, BlackRock Greater Europe is the laggard in this group, having shrunk shareholders’ assets by 0.4% over the last year and minus 2.4% over five years, following a more satisfactory gain of 158% over the decade.
Its modest yield of 1.8% rising by just over 3% per annum with shares priced 7.6% below NAV might tempt bargain-hunters hoping for recovery.
which is my third-most valuable holding, is excluded from the above analysis, despite having three-quarters of its NAV allocated to defence technology, because the underlying assets are not listed on any stock market.
Even after recent setbacks, Seraphim shares are up 80% over the last year and 42% over five years, having been launched in July 2021.
Looking forward, America’s unpredictable foreign policy in Europe and the Middle East is prompting increased expenditure on defence.
However much investors might wish for peace, it looks as if violent conflict will continue to produce winners and losers on the stock market as well as the battlefield.
Ian Cowie is a freelance contributor and not a direct employee of interactive investor.
5 Monthly Payers (up to 18.2%) Make “High-Yield Stocks” Look Broke
Brett Owens, Chief Investment Strategist Updated: July 24, 2026
Why sit around and wait all quarter long for a dividend payment?
Monthly divvies are where the retirement party is at! These income “cheat codes” arrive alongside our bills and recurring expenses. What a concept!
But be careful because some monthly payers don’t pay enough to matter. Take Permian Basin Royalty Trust (PBT), which pays monthly but these divvies add up to just 1.2% annually. Gee, thanks.
$1M Invested in Either Would Pay Under the US Poverty Line
We need monthly payers that are committed to maximizing not just the frequency of shareholder rewards, but the size of the payout. And we need to shoot high—we shouldn’t settle for anything less than what it would take to retire on dividends alone.
Fortunately for us, many monthly dividend stocks fall within the high-yield acronyms: real estate investment trusts (REITs), business development companies (BDCs) and the like.
Today, for instance, I’ve put together a five-pack of monthly dividends that shell out an average of 10.6% annually. That means even half a million bucks evenly invested across them would generate a hefty “salary” of $53,000.
Let’s take a look.
Healthpeak Properties (DOC) Dividend Yield: 5.4%
I’ll start with Healthpeak Properties (DOC), a healthcare REIT whose roughly 690 properties include outpatient medical facilities and laboratories, which are leased out to biopharma firms, health systems, physician groups, medical device manufacturers and more.
Healthpeak also deals in senior housing, albeit not as directly as it did just a few months ago. In March, DOC spun off that part of the business with an initial public offering of Janus Living (JAN). It wasn’t a full exit, however. Healthpeak not only retained more than 80% of the newly formed REIT, but it also is Janus’s external manager.
A couple months later, DOC received a much-needed jolt after reporting better-than-expected earnings and upgrading its funds from operations (FFO) outlook. Among the reasons for management’s optimism: The senior housing environment is improving, Janus appears primed to aggressively invest, and a weak laboratories market showed small signs that it’s starting to inflect.
And just this week, Healthpeak announced a $2.1 billion joint venture with Brookfield Asset Management (BAM) that will help DOC to pay down nearer-term debt (though it could be a short-term weight on earnings, too).
Healthpeak’s stock has delivered a year-to-date total return of almost 45% thanks to its summer ramp-up. It’s a welcome development for shareholders that have suffered through a decade-plus downtrend. However, new money is now buying a yield that’s well below historical highs and closer to a longer-term middle ground, while the P/FFO has wafted to just above 13—not wildly overpriced, but not discount territory either.
DOC’s Yield Has Dropped to Three-Year Lows
Itau Unibanco Holding (ITUB) Dividend Yield: 6.2%
Most international companies pay dividends just once or twice a year, and some will even do a lopsided interim-and-final system. That’s practically useless for income planning.
Itaú Unibanco Holding (ITUB) isn’t exactly a conventional payer itself, but it at least doles out something each and every month.
Itaú Unibanco is the largest bank by assets in both Brazil and all of Latin America. It offers consumer banking products like credit cards and loans, but also commercial banking, advisory, real estate lending, life insurance and more. And while it’s headquartered in Brazil, it has operations across the Americas and Europe.
The company has printed bigger top and bottom lines every year since 2020, and it’s coming off a record-breaking first quarter in which it posted a $2.5 billion profit and a return on equity of around 25%. The company is also one of the region’s leaders in digital assets, giving it another potential growth avenue.
ITUB’s distributions are tied to performance, so Itaú Unibanco has increasingly been sharing the wealth with its stockholders. But while it pays much more frequently than most, it still has an odd system.
Itaú Unibanco: Generous but Complex
I’ve written several times about companies with regular-and-supplemental dividend programs. Itaú goes a step farther. The company distributes small monthly payments of “interest on capital” (IOC), but it will also make larger additional IOC payments throughout the year as able, then an actual dividend—usually its biggest payment—once a year.
The monthly payment only comes out to less than half a percent’s worth of yield; the real money is in those larger IOC distributions and the dividend. So while the dividends are a nice sweetener for investors who like ITUB for its growth potential, it’s not an ideal situation for retirement planners reliant on regular income.
Gladstone Investment (GAIN) Dividend Yield: 9.1%
Let’s shift to business development companies, starting with one that has a regular-and-supplemental system like ITUB (but with a much more substantial baseline of income).
For the unfamiliar: BDCs were created by Congress in 1980 to spur investment in small businesses. Traditional banks often shunned smaller companies, either charging extremely high rates to compensate for the risk or outright refusing to lend to them. Enter BDCs, which provide equity, debt and other financing to small businesses that otherwise might not be able to raise capital.
Gladstone Investment (GAIN), for instance, provides financing to lower-middle-market companies that generate EBITDA (earnings before interest, taxes, depreciation and amortization) of between $4 million and $15 million annually, have attractive fundamentals and are run by strong management teams.
GAIN runs a small portfolio of just 29 investment companies right now, largely clustered in the business/consumer services, consumer products and manufacturing industries. Its investments include Phoenix Door Systems (industrial doors), ImageWorks Display (retail display shelving) and Old World Christmas (holiday-geared retail).
Gladstone Investment also stands out for its deal mix. Like with most BDCs, the majority of Gladstone’s financing is debt-based, and currently, all of that debt is floating-rate in nature. But GAIN is happier than most to deal in equity. Gladstone says the average BDC’s equity exposure is between 5% and 10%; its target is closer to 25%. This shields GAIN from interest-rate declines but puts it behind the 8-ball when rates climb.
There’s plenty to like from an operational standpoint. Net asset value has grown by nearly 30% between its fiscal Q1 and its recently reported fiscal Q4. Return on equity is consistently in the double digits and above peers.
The dividend is best described as “good with the potential for greatness.” GAIN’s monthly dividend comes out to a little less than 6%, which is high compared to the average stock and far better than what ITUB offers, but low relative to the BDC space. However, Gladstone Investment also pays supplemental distributions when it locks in gains from its equity investments.
If Only GAIN’s Gains Were a Bit More Predictable
Right now, for instance, Gladstone Investment has gone roughly a year since its last supplemental. It might pay one later this year. It might do so in early 2027. It might be even longer; it’s hard to tell.
Still, it’s a decent income baseline with the potential for more, and it’s paid out by one of the industry’s better names. Pricing could be better, though, with GAIN shares currently trading right around the BDC’s net asset value.
PennantPark Floating Rate Capital (PFLT) Dividend Yield: 14.0%
PennantPark Floating Rate Capital (PFLT) is another BDC that provides financing primarily via floating-rate senior secured loans—mostly first lien—but also through some equity and joint venture investments. Its target companies generate $10 million to $50 million in annual EBITDA.
This “value-added” BDC lends its expertise in specific industries, hence its portfolio focus on five categories: healthcare, consumer, business services, government services and software/technology.
Earlier this year, I wrote that PennantPark Floating Rate’s dividend has routinely outstripped its net investment income (NII), and did so again to close out 2025. The company insisted then that it could keep covering the payout.
But PFLT’s Actions Spoke Louder Than Words
PFLT adjusted its monthly dividend program from 10.25 cents per share to an 8-cent regular, as well as supplemental dividends (50% of excess earnings). The first two supplemental dividends since the reduction were 0.33 cents apiece.
But not all dividend cuts are created equally. In the case of PFLT, its dividend cut is more a reflection of lower base rates than any underlying portfolio issues. In fact, the company’s credit quality is high relative to the sector, and sponsor investment activity is improving. Moreover, PFLT continues to trade for a song, priced at a 32% discount to NAV.
Invesco Mortgage Capital (IVR) Dividend Yield: 18.2%
It’s hard to find better yields than in the mortgage REIT (mREIT) space, where double-digit payouts are the norm.
Mortgage REITs borrow at short-term rates, purchase mortgages paying long-term rates, then pocket the spread. Short-term rates are usually lower than long-term rates. But the ideal scenario is that short-term rates are also declining while long-term rates hold steady or also decline. In that scenario, mREITs’ existing mortgages, which were issued when rates were higher, will yield more than newly issued ones (and thus be worth more). On the flip side, rising rates weigh on the value of existing mortgages.
Invesco Mortgage Capital (IVR), for instance, owns “agency” mortgage-backed securities (MBS) from entities like Fannie Mae and Freddie Mac. These securities feel interest-rate pressure too, but it’s not as great because their MBSs are backed by the agencies, and thus they have virtually no default risk. I’ll also note that rising interest rates reduce the risk of prepayment, mostly because mortgage holders are less likely to refinance.
While Invesco Mortgage Capital yields a mouth-watering 18%, mortgage REITs historically have been prone to unstable dividends, and IVR is no different.
But Its Most Recent “Cut” Is Good News for Investors
Near the end of 2025, IVR announced a modest 6% dividend hike to 36 cents per share to be paid in January. But in January, the company announced it would start to issue monthly dividends of 12 cents per share (so, the same amount each quarter).
Invesco Mortgage Capital has mostly underperformed its peers since COVID, but it has behaved much better over the past year or so. Dividend coverage, per its “earnings available per distribution” (EAD), is fine for now, too. But despite an effectively flat year-to-date performance (even accounting for its massive payout), shares trade at a thin discount to its shrinking book value.
Whilst you may never be a millionaire, if you concentrate on the tail not the dog, you should have plenty of repeatable income when you retire. The more years you have to retirement the more repeatable income you should have in your Snowball.
REITs are staging a comeback in 2026, with the real estate sector (XLRE) outperforming broad equities, potentially signaling stronger full‑year returns.
Given recent market volatility, REITs can be a smart addition to portfolios, offering steady income today alongside meaningful long‑term capital appreciation potential.
SA Quant’s proprietary REIT factor model has identified three REIT Strong Buys delivering an average forward yield of nearly 9.8%, pairing high income potential with solid dividend safety grades.
I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Quant Growth and Income, which is a model portfolio for dividend investors interested in capital appreciation and income.
8vFanI/iStock via Getty Images
Why 2026 Could Be the Year REITs Rebound
2026 is shaping up to be a brighter year for REITs than 2025. The real estate sector (XLRE) has outperformed broad equities so far this year, and that early strength has historically been a good indicator for full-year performance.
State Street Real Estate Select Sector SPDR ETF (XLRE) vs. The S&P 500 YTD
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Last year, REITs lagged as higher-for-longer rates and valuation pressure weighed on returns, even though fundamentals remained solid. In 2025, the broad equity market outperformed REITs, but by mid 2026, REITs had reversed that gap and were ahead of the Russell 1000, with gains broadening across most property sectors. That strength reflects both supportive operating trends and the shifting landscape of the REIT sector tied to long-term shifts in the economy.
Macro tailwinds could also portend continued strength for the sector. Recent inflation data has cooled, which could lower expectations for additional Fed tightening and help stabilize rate expectations that are paramount for real estate valuations. June CPI declined 0.4% month over month, core CPI was flat and running at 2.6% year over year, and June PPI also came in softer than expected, reinforcing the idea that inflation pressures may be easing rather than reaccelerating.
With that macro pressure easing, the sector is getting more support from fundamentals too. Industrial REITs continue to benefit from reshoring-related demand, while retail, senior housing, hotels, and data centers have been cited as areas where demand is outpacing new supply, giving landlords more pricing power.
Outside of appreciation potential, REITs can be a useful portfolio tool in the current volatile market because their income stream can help steady overall cash flows. Their dividends may offer a more reliable return profile than many equities, especially as investors rotate between inflation concerns, rate-cut expectations, and growth-stock swings. In that role, REITs can provide both income and a measure of stability while markets digest a still-uncertain macro backdrop
How I Chose My Top 3 REITs Averaging 9.8% FWD Yield
When I write dividend-focused articles, I tend to focus on companies with excellent dividend safety and growth grades. However, for this exercise, I targeted REITs using Seeking Alpha’s Top Real Estate Stock Screener, filtering for Strong Buys with yields above 5% and dividend safety that’s better or broadly in line with the sector. I placed less emphasis on dividend growth because the goal here was to identify names that could offer a sizable income stream today, even if near-term payout growth is not especially compelling. Let’s take a closer look at the names below.
Quant Sector Ranking (as of 7/23/2026): 15 out of 168
Quant Industry Ranking (as of 7/23/2026): 3 out of 13
Quant Rating: Strong Buy
FWD Yield: 12.20%
Innovative Industrial Properties (IIPR) is the No. 3 Quant-ranked Industrial REIT that owns and leases specialized facilities to state‑licensed cannabis operators, with a growing foothold in life‑science real estate. Its recent earnings call showed revenue and cash flow holding steady while growth is driven by signing new tenants on formerly defaulted properties, progressing dozens of lease agreements, and investing in the IQHQ life‑science project, all supported by solid liquidity and modest debt.
IIPR AFFO growth 5Y CAGR is 77% above the sector median, accompanied by stellar profitability. The company offers an AFFO margin that’s 94% above the REIT sector median, alongside a net income margin of nearly 46%. The company especially stands out in terms of its valuation where it offers both trailing and forward price/AFFO ratios that are 46% and 49% below the sector median, respectively.
IIPR Valuation Grade
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The company is particularly attractive for its dividend profile. Currently yielding 12.20%, well above the sector average, IIPR also has solid dividend safety, supported by an FFO interest coverage ratio of 9x compared to the sector’s 3x. IIPR’s offers a potent combination of excellent fundamentals alongside stable income, making it hard to overlook for REIT investors.
Quant Sector Ranking (as of 7/23/2026): 17 out of 167
Quant Industry Ranking (as of 7/23/2026): 1 out of 11
Quant Rating: Strong Buy
FWD Yield: 6.00%
EPR Properties is a specialty REIT that owns experiential real estate, including movie theaters, education assets, and recreation venues such as ski resorts and water parks, largely under long-term net leases. The company was one of the inaugural holdings in the Quant Growth & Income portfolio and has stood out in this volatile market, returning about 10.3% since the portfolio’s launch on June 3. The company has invested $7.1 billion across 335 properties and maintains a 99% leased or operated rate.
EPR’s growth profile has rapidly improved to an ‘B+’ after sitting at a ‘C’ just six months ago. Highlights include Its forward AFFO growth of 5.40% that exceeds the sector median by nearly 85%. The company also showcases a TTM dividend growth rate of 4% vs. just 2% for the broader REIT sector. ERP’s triple‑net lease structure has helped fortify its profitability by shifting property‑level costs (taxes, insurance, and utilities) to tenants. This protects margins even in a higher‑rate, higher‑inflation environment.
EPR Profitability Grade
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EPR offers a forward dividend yield in the 6% range, which is comfortably above the broader REIT sector. This sizable dividend is supported by its forward AFFO yield is close to 9%, creating a cushion that supports the current payout while still leaving room for the company to reinvest in future growth.
Quant Sector Ranking (as of 7/23/2026): 6 out of 167
Quant Industry Ranking (as of 7/23/2026): 1 out of 13
Quant Rating: Strong Buy
FWD Yield: 11.10%
NewLake Capital Partners is another cannabis-adjacent REIT provides real estate capital to state‑licensed cannabis operators. The company operates a triple-net lease model that involves sale‑leaseback deals on cultivation facilities and dispensaries. The REIT buys properties and leases them back to operators, giving tenants growth capital while retaining long‑term ownership of the underlying real estate. NLCP is benefiting from a rapidly expanding U.S. cannabis footprint. Rising rising state adoption and a projected mid single‑digit industry CAGR create a long runway for NewLake.
NLCP’s forward dividend yield sits around 11% and exceeds the sector median by more than 150%. Its dividend profile is further supported by strong coverage metrics, including an interest coverage ratio of roughly 30x, which underscores both payout safety and balance‑sheet strength.
NLCP Dividend Safety Grade
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NewLake’s growth story is increasingly tied to a more accommodative regulatory environment, dovetailed by its conservative balance sheet. A potential federal rescheduling of medical cannabis, potential 280E tax relief, and a coming ban on intoxicating hemp products could strengthen tenant finances, creating more opportunities for NewLake to deploy capital into cultivation and dispensary properties. The stock trades at a hefty discount across key REIT valuation metrics like its FWD Price/AFFO, which sits 51% below the sector median. With the cannabis industry on the cusp of multiple growth catalysts, now could be an opportune time to consider adding this high‑yielding value name to a diversified income portfolio.
Concluding Summary
REITs are finally getting some tailwind in 2026, with the sector outperforming broad equities as inflation has been leveling and interest‑rate expectations stabilize. In this environment, income seekers can find attractive opportunities in select high‑yield names that combine strong payouts with solid fundamentals and balance‑sheet strength. SA Quant has identified Innovative Industrial Properties (IIPR), EPR Properties (EPR), and NewLake Capital Partners (NLCP) as three REITs offering a near average 9.8% forward yield alongside strong factor grades and robust dividend safety.
Split $14,000 between Sienna Senior Living and Diversified Royalty to target about $721 yearly income, paid monthly.
Sienna’s dividend looks better covered, with improving occupancy and an AFFO payout ratio around 68.5%.
Diversified Royalty pays a higher yield but had a payout ratio above 100% last quarter, so monitor coverage and diversify.
One $14,000 Tax-Free Savings Account (TFSA) balance could trigger more than 120 tax-free deposits over the next decade, without selling a single share. How? At current prices, two monthly dividend stocks could produce about $60 every month, creating a small retirement paycheque that keeps showing up while the portfolio remains invested.
That income won’t replace a salary, but it can buy new shares, cover a bill, or grow into something far more useful over time. The key is building the payments around businesses supported by different sources of cash flow rather than chasing one enormous yield.
Once invested inside a TFSA, dividends and capital gains can grow without Canadian tax. That gives monthly payments more money to compound, which leads me to Sienna Senior Living (TSX:SIA) and Diversified Royalty (TSX:DIV).Z
SIA
SIA stock owns and operates retirement residences and long-term-care homes across Canada. Demand should continue growing as the population ages, while government funding and resident fees create recurring revenue from services people can’t simply postpone.
* Returns as of July 6th, 2026
The company’s retirement same-property occupancy reached 94.7% during the first quarter, while its adjusted funds-from-operations (AFFO) payout ratio improved to 68.5%. That coverage supports SIA stock’s monthly dividend of $0.078 per share, equal to $0.936 annually.
SIA stock therefore provides a relatively defensive starting point, but healthcare exposure alone won’t create a balanced income plan. The second holding adds royalties collected from a much broader group of consumer businesses.
DIV
Diversified Royalty earns cash by owning trademarks and other rights used by brands including Mr. Lube, BarBurrito, and AIR MILES. Those partners pay royalties based on sales or fixed agreements, allowing Diversified Royalty to collect cash without operating every restaurant, tutoring centre, or automotive shop itself.
First-quarter revenue rose 11.8% to $17.5 million, while distributable cash increased to $12 million. The first-quarter payout ratio reached 101.1%, partly due to seasonal weakness among certain partners. Investors should watch that figure closely, although management aims to pay a stable monthly dividend and grow it as cash flow allows.
The $14,000 income plan
With that $14,000, I’d divide the money equally, giving SIA stock’s healthcare operations and Diversified Royalty’s consumer brands the same starting weight. Using recent prices, the portfolio could generate approximately $720.96 annually, or $60.08 per month.
Of course, SIA stock faces staffing expenses, government regulation, development costs, and substantial debt. Diversified Royalty depends on its partners remaining healthy enough to make their payments, while its first-quarter payout exceeded distributable cash.
Those risks make both holdings better suited to one portion of a broader collection of monthly dividend stocks. Reinvesting the income can also reduce the temptation to treat each deposit as guaranteed spending money.
Bottom line
SIA stock brings senior-housing demand and strong distribution coverage, while Diversified Royalty supplies a higher yield backed by several consumer brands. Holding both could keep monthly cash moving into a TFSA today, then let reinvestment turn that modest paycheque into a much larger source of retirement income.
