Three Stocks That Pay Monthly Dividends

Yes, there are plenty of stocks, including REITS, oil income trusts, and closed end funds, which pay dividends every month. As a matter of fact, WallStreetNewsNetwork.com found over three hundred monthly dividend payers. There are plenty of advantages to having monthly dividends versus quarterly or annual dividend stocks, everything else being equal. Your invested capital is returned faster, compounding happens quicker, and there is generally less stability. Here are a few examples.

Enerplus Resources Fund (ERF) is a Canadian oil income trust which has a P/E of 4 and pays a yield of 9.1%.

American Income Fund Inc. (MRF) is a closed-ended fixed-income mutual fund which yields 10.4%.

DWS Municipal Income Trust (KTF) is a tax free income closed end fund which pays a tax exempt yield of 7.8%.

Remember, the yields are subject to fluctuation and elimination, and the monthly payout schedule is also subject to change. In addition, the principal fluctuates. To see the list of the monthly yielders, go here.

Disclosure: Author does not own any of the above.

Comments

[YoYoMama:]

A more complete list of stocks (mainly closed-end funds) that pay monthly dividends can be found here: stockpickr.com/problog/95/.

Apr 18 09:00 AM

[macsmart:]

Not all monthly dividends paid out by Closed End Funds fluctuate. If the CEF has a managed distribution policy, the dividend is the same every month. There are dozens of CEF's that have monthly distribution policies. This article names only three of them, when there are many many many more. Check out etfconnect.com or the Closed End Fund Association website: cefa.com

Apr 18 11:44 AM

[auto44:]

The article gives you a place to click on in order tosee the complete list.

Apr 18 11:47 AM

[Hooty Dooty:]

Good article.......thanks

Apr 18 12:45 PM

[Old Trader:]

One thing to be on the look out for with managed dividends is that achieve a stable dividend, there might be a "return of capital" component at times.


On Apr 18 11:44 AM macsmart wrote:

> Not all monthly dividends paid out by Closed End Funds fluctuate.
> If the CEF has a managed distribution policy, the dividend is the
> same every month. There are dozens of CEF's that have monthly distribution
> policies. This article names only three of them, when there are many
> many many more. Check out etfconnect.com or the Closed End Fund Association
> website: cefa.com

Apr 18 06:10 PM

[Malkiel:]

Corporate management has been steering the building of American capitalism for so long that it's hard to even imagine what corporate governance and stock investment would look like if the shareholders were really treated as the owners of the enterprise, the Board members did their jobs in overseeing management, and managers were hired hands, not carpetbaggers elevated to the status of "super-shareholders" through sweet stock and option payouts. Can you imagine how much enthusiasm there would be for stock investing if most American corporations paid out quarterly or monthly dividends? Then the private 401k system of retirement envisioned by the movement conservatives could actually work. The go-go investing crowd which has been in control since Gordon Gekko's time posit the theory that dividends waste capital a company should be using to build the enterprise, but their idea of building the enterprise seems to always consist of hired ceo's telling tethered Board members that they really need to overcompensate new hires with massive blocks of stock and options, which can be cashed in at the expense of the shareholders in the marketplace. The system is designed to allow savvy insiders to take advantage of retail buy-and-hold investors. Shareholders need to insist that they receive their share of the wealth up front in the here and now from dividends and bonds, and institutional shareholders need to separate the interests of their customers from the social class interests of their ceo golf buddies...

Apr 28 11:46 AM

[sf123:]

The author should talk about various investment risks relating to the recommendations. For an investor seeking montly income, I am sure he/she would like to know about the risks.

Jul 26 10:31 PM