Stockerblog

Stocks That Pay Monthly Dividends

Thanks for your suggestion on ZTR. I will add it on the next update. In regards to the others, ZF pays quarterly, AOD hasn't paid any dividends in the last three months that I could find, and AGD is already on my list, about a third of the way down.
It's not the Canadian Oil Income Trusts that will be phased out, it's their tax-free pass-through of income that is supposed to be phased out. The companies will most likely still be around but will be making lower dividend payments. I covered the Canadian trusts in a previous article:
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Want Monthly Dividends? 150 Stocks that Pay

In a previous article, I wrote up the Rules for Investing in Very High Yield Stocks. However, I've enhanced those rules below to better answer your question.

1. Check the consistency in the number of payments per year.
2. Check the consistency in the amount of the dividend from quarter to quarter.
3. Check to make sure the dividend payment doesn't include capital gains when looking at the yield itself.
4. If you are looking at the yield, check to make sure the yield isn't generated by a special high year-end distribution.
5. Check to make sure that the dividends don't exceed the stock's earnings per share.
6. See if the stock is selling below net asset value [NAV]. Try to buy below net asset value.
7. Look at the quality and ratings of the securities in the portfolio.
8. Look at the price performance of the stock over the last few years.
9. Look at the portfolio managers: track record, any change or turnover recently?

Want Monthly Dividends? 150 Stocks that Pay

The Tax Withholding Issues are that the Canadian companies withhold a portion of the divideneds for tax purposes. You can generally "recoup" these withholdings when you file your tax return. However, if the Canadian stocks are held in a retirement plan such as an IRA, there is no way to recover the withholdings. [No tax advice is expressed or implied. Confirm this info with your CPA or tax preparer.]

Want Monthly Dividends? 150 Stocks that Pay

ERH and ZTR are good ones. I will add them in with the next update. ZF is a high yielder, but pays quarterly not monthly. Thanks for your suggestions.