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Jim Trippon
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Jim Trippon is an Amazon.com bestselling business and finance author, a practicing CPA, and a fee based investment advisor. His portfolio of companies includes J.M. Trippon & Company CPA, Trippon Wealth Management & Trippon Financial Publishing. Jim has dedicated his business career to... More
My company:
Trippon Financial Research, Inc.
My blog:
Global Profit$ Alert
My book:
Stay Rich Forever: Retirement Planning Secrets of Millionaires and How They Can Work For You!
  • Want More Dividend Checks More Often? Take A Look At Monthly Dividend Payers 0 comments
    Mar 10, 2011 8:44 AM | about stocks: PWE, PGH
    There is simply no reason to not like dividends. Dividends are the only avenue that we know of that someone can collect money for literally doing nothing. At least the only legitimate avenue. Dividends make value investing worthwhile. If you ever wonder why a fellow investor is taking a pass on high-flying growth stocks in favor of stodgy blue chips, the answer is free money. Growth stocks rarely pay dividends, so investors must get capital appreciation to turn a profitable trade.

    On the other hand, you could buy 1,000 shares of ABC Corp. at $50 and collect a handsome payout even if the stock does not move much. Assume ABC pays out $1.50 per share per year. So if you own 1,000 shares, you're going to receive $1,500 in annual payouts. If you hold the stock for 10 years and it does not move at all, you will have made $15,000. That's nothing to sneeze at and obviously that total would be dramatically higher assuming dividends were reinvested.

    Obviously dividends are a powerful thing and that leaves investors wondering how they can get their hands on more dividend payments more often. Most U.S. companies pay their dividends on a quarterly basis, though there are a few that only pay once a year. Many foreign companies that are listed on U.S. exchanges only pay their dividends once or twice a year, leaving income-hungry investors crossing days off on their calendars in anticipation of the pay out date.

    But there are ways to collect dividends on a more regular basis and we'll show you how.

    Get Your Monthly Dividends Right Here

    Yes, it's possible to get a fresh dividend check in your mailbox once a month. You just need to know where to look. Fortunately, there is no shortage of options when it comes to monthly dividend payers. There are hundreds monthly dividend payers listed on the New York Stock Exchange. Few, if any, of these securities are basic common stocks. Most are closed-end funds, master limited partnerships, real estate investment trusts and royalty trusts. That's not surprising considering those asset classes are typically among the highest dividend payers.

    The advantages of monthly pay outs are clear. Obviously, you get paid faster. Then there's the power of compounding the payouts if the dividends are reinvested so you acquire more shares faster. Of course, you get a steadier income stream when your pay outs arrive once a month and if you're invested in a municipal bond fund that pays dividends once a month, some or all of your dividends may be tax exempt.

    A Few Names For You

    Let's have a look at a few monthly dividend payers that may belong in your portfolio. First, we have Penn West Energy Trust (NSYE: PWE), a Canadian trust involved in oil and natural gas exploration and is well-tracked by sell side analysts as far as energy trusts go with four analysts following the trust. Penn West's current yield of just under 4% is decent.

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    We'll keep things in Canada with yet another energy trust. Pengrowth Energy Trust (NYSE: PGH) engages in, you guessed it, oil and natural gas exploration. As we said, Canadian trusts are fertile ground for monthly dividend payers. Pengrowth's yield currently rests at 6.6%.

    Not Just Energy, Not Just Canada

    The names we mentioned are examples of the more liquid monthly divided payers investors can get their hands, but there are plenty of options for investors that don't need or want energy exposure. There are plenty of closed end funds managed by familiar names such as Blackrock, Nuveen and PIMCO that pay dividends monthly. Talk to your financial advisor about what strategy is right for you in terms of getting some monthly dividend checks.

    Click HERE to learn more about the Dividend Genius - Smart Research on High-Yield Stocks
    Your Bad Self

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    For more information and archived issues, visit http://www.globalprofitsalert.com

    Global Profits Alert (GPA) is published by Trippon Financial Research, Inc. a financial media organization with offices in the United States, Hong Kong and Mainland China. GPA is written by Jim Trippon in conjunction with George Wolff, Sunny Wang, Todd Shriber, Kelley Damiani and J. Daryl Thompson.

    Would you like to republish this article? Global Profits Alert issues can be republished, as long as the republished issues contain the name of the author(s) and the following short paragraph:

    This information was brought to you by GlobalProfitsAlert.com, a publication of Trippon Financial Research, Inc. GlobalProfitsAlert.com publishes information on Investing in the China stock market and emerging markets, dividend stock and income investing, exchange traded funds (ETFs), green energy stocks, technology stocks, global market trends and other investment information. To view archives or subscribe, visit http://www.globalprofitsalert.com.

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