SL Green Realty Corp. (SLG): A Top Monthly Dividend Stock in 2024

As the markets continue to rebound from the lows experienced in March 2024, investors are seeking stable and reliable income sources. One company that stands out among the best stocks that pay monthly dividends in 2024 is SL Green Realty Corp. (NYSE: SLG). With a strong focus on New York City real estate and a history of consistent dividend payouts, SLG is an attractive option for income-oriented investors.

SL Green Realty Corp. was founded in 1997 and is a self-managed real estate investment trust (REIT) with a primary focus on acquiring, managing, and maximizing the value of Manhattan commercial properties. The company's expertise in the New York City real estate market has enabled it to invest in a collection of premier office and retail properties, selected multifamily residential assets, and high-quality debt and preferred equity investments.

One of the key reasons SLG is among the best monthly dividend stocks in 2024 is its diversified portfolio of high-quality commercial properties. As of December 31, 2016, the company owned or held interests in 24 consolidated commercial office buildings encompassing approximately 16.1 million rentable square feet and seven unconsolidated commercial office buildings encompassing approximately 6.6 million rentable square feet located primarily in midtown Manhattan. This diversification helps to mitigate risk and ensures a steady stream of income, even during economic downturns.

Another factor contributing to SLG's status as a top monthly dividend stock is its focus on prime locations. The company's properties are located in prime areas of New York City, such as midtown Manhattan, Brooklyn, Long Island, Westchester County, Connecticut, and New Jersey. These prime locations attract high-quality tenants, ensuring consistent occupancy rates and rental income. As of December 31, 2016, the company's Manhattan and Suburban office properties were leased to 1,317 tenants engaged in various businesses, including professional services, financial services, media, apparel, business services, and government/non-profit.

SLG's consistent dividend payouts are another reason why it is among the best monthly dividend stocks in 2024. The company has paid dividends for the last 27 years, with a current annualized dividend payment of $3.00 per share, resulting in a dividend yield of 4.53%. This consistency is a testament to the company's ability to generate stable cash flows from its New York City real estate portfolio.

The company's debt and preferred equity investments also play a crucial role in supporting its monthly dividend payments. SLG's DPE segment focuses on the origination of financings, typically in the form of mezzanine debt, for owners, acquirers, or developers of New York City properties. These investments are well-collateralized and generate interest income for SLG, contributing to its overall cash flow and dividend payouts.

SLG's strategy of acquiring, redeveloping, and repositioning office properties has also contributed to its dividend growth. The company's expertise in the Manhattan commercial real estate market has enabled it to invest in a collection of premier office and retail properties, selected multifamily residential assets, and high-quality debt and preferred equity investments. This strategy has allowed SLG to generate substantial cash flow, which has been used to fund its dividend payments.

In conclusion, SL Green Realty Corp. (SLG) is among the best stocks that pay monthly dividends in 2024 due to its diversified portfolio of high-quality commercial properties, focus on prime locations, consistent dividend payouts, debt and preferred equity investments, and strategic approach to acquiring, redeveloping, and repositioning office properties. With a strong commitment to returning capital to shareholders, SLG is an attractive option for income-oriented investors seeking stable and reliable income sources in 2024.