Introduction
For those of us who actually live off of our investment income, monthly dividend paying ((mopay)) stocks and master limited partnerships provide a steady stream of income that makes paying those monthly bills a little bit easier. The other benefit of mopay stocks comes about if you are reinvesting the dividends in new shares. Compounding monthly versus quarterly grows your investment just a little bit faster.
Mopay stocks and MLPs are not all that common and are dominated by business development companies, real estate investment trusts, and a few MLPs. Between the U.S. and Canada, there are over 100 mopay common stocks and MLPs excluding preferred shares, royalty trusts, mutual funds, and ETFs. This article presents my five top choices for mopay stocks.
Quality Versus Quantity
When selecting a dividend paying stock for investment, it is important to look at the dividend yield through a qualitative (versus strictly quantitative) lens looking at the underlying risk adjusted performance to ensure the overall metrics such as the balance sheet, diversification, earnings growth, and payout ratios support continued growth of earnings and dividends.
The five stocks that are covered in this article all have solid balance sheets, are growing earnings, have a diversified client base, and reasonable payout ratios. Two of the five carry investment grade credit ratings and, while the other three are unrated, all three have conservative credit worthy balance sheets. It is always risky to over reach for yield, and it is particularly risky to do so today with yields and historic lows and valuations at historic highs.
Five Mopay Stocks For The Long Term
The five stocks listed here are all real estate investment trusts ((REITs)) and cover a wide, if not complete, spectrum of real estate including lodging, health care properties, general retail space, industrial warehouse/distribution properties, and specialty retail properties. The short summaries below are
