Ten (Out of 290) Stocks that Pay Monthly Dividends

Two years ago, when I first started tracking the monthly dividend stocks, there were over 350 different securities that paid monthly. Since that time, the number has dropped to 290 due to mergers and liquidations, but that is still plenty to choose from. Technically, these stocks are REITS, oil income trusts, and closed end funds, which pay dividends every month. The advantages to having monthly dividends versus quarterly or annual dividend stocks are:

1. Your invested capital is returned faster.
2. Compounding happens quicker.
3. There is generally less volatility.
4. Many of these pay tax free income.

Here are a few examples:

Calamos Convertible & High Income (CHY) 9.3%
Enerplus Resources Fund (ERF) 9.3%
BlackRock Senior High Income Fund (ARK) 9.1%
Nuveen Quality Preferred Income Fund (JTP) 9.1%
Reaves Utility Income Fund (UTG) 9.0%
DWS High Income Trust (KHI) 8.7%
MFS Intermediate Income Trust (MIN) 8.6%
Neuberger Berman Real Estate Securities Inc. (NRO) 8.6%
Cross Timbers Royalty Trust (CRT) 8.5%
Eaton Vance Tax Advantaged Dividend Income Fund (EVT) 8.5%

To see the entire list of 290 monthly dividend stocks, including 22 that have yields of 10% or more, go to WallStreetNewsNetwork.com.

Comments

[Manohar Menghani]

I own PEYUF.PK , & so is PVX both oil & gas companies in Toronto Canada & both pay better than 9.3%. I also own ERF.
All 3 pay monthly dividends. This is much more secure than quarterly dividends.
I am a HAPPY CAMPER.

2009 Nov 03 12:23 PM

[mbkelly75]

I LOVE monthly dividends, and you are exactly right about this. They compound MUCH faster. Re-Investing those monthly dividends in the security that paid them works VERY well.

2009 Nov 03 01:41 PM

[YoYoMama]

Yes, love those monthly dividend payers, especially tax-free payers, which are the ideal choice for a standard brokerage dividend portfolio.

I very much appreciate your list of 10, there are some choices I had not considered, and plan on looking into your list of 290.

Excellent post!

2009 Nov 04 09:26 AM

[Uncle Pie]

Most of the Canadian Income Trusts, and some of the income trusts that have recently converted to corporations, pay distributions monthly. Some, like ERF, are listed in New York as well as Toronto; the ones with the 5-letter trading symbols in the US trade only on the Toronto Exchange, where they have different symbols. Here are a few in which this writer owns some shares:
Riocan REIT, RIOCF
Baytex Energy Trust, BTE
Crescent Point Energy Corp., CSCTF
Vermilion Energy Trust, VETMF
Arc Energy Trust, AETUF
Pembina Pipeline, PMBIF
Penn West Energy, PWE
The Toronto Stock Exchange website is a good source of data on these companies. Also each company has one or more investor presentations on their website. Love that monthly income!

2009 Nov 04 10:35 AM

[HBOCKMON]

These appear to be a good way to go, but how safe are they. I bought ENT and PWE and they dropped fast before I could get out.

I enjoy your website.

2009 Nov 04 08:01 PM

[YoYoMama]

They are as safe as any other stock out there. In fact, PWE has a nice channel up formation, and ENT is also now on a nice upswing.

You must have taken your position on a resistance level, and sold on support.

Learning to read charts and understand how the moving average, volume, support/resistance levels and chart formation affects your position is critical to getting the entry point right.

It's also good to decide, what kind of investor do I want to be?

Some investors are strict dividend investors. They pick good companies, stick with them until given significant bad news, and simply reinvest the dividends, regardless of whether or not a stock tanks. They are not particularly concerned with chart movement of their holdings.

Others, like myself, combine technical trading with fundamentals. We invest in good stocks and companies, but pay close attention to the technicals. We attempt to make good entry points, and keep a close eye on the charts. As long as the technicals remain intact, we hold on, reap and re-invest the dividends. If there is bad news, dividend cuts, or simply an ugly chart forming, we take our profits or shed losses and move on.

Others are concerned only with capital appreciation, and they tend to either be like Warren Buffett, with extremely long time horizons, or technical traders, who buy/sell frequently and look at stocks more to make profit than to invest in.

Your brokerage account will have tools that will assist you in making good buy/sell decisions. Finviz.com is also a great website with simple, easy to read charts on all major stocks on the U.S. exchanges.


On Nov 04 08:01 PM HBOCKMON wrote:

> These appear to be a good way to go, but how safe are they. I bought
> ENT and PWE and they dropped fast before I could get out.
>
> I enjoy your website.

2009 Nov 05 11:12 AM

[Lightway]

Bill Gross recently recommended UTG

Feb 03 06:43 PM