Stocks That Pay Monthly Dividends

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While you have probably heard about stocks that pay dividends every quarter, did you know that there are many stocks that pay monthly dividends? When most earnings investors think about investing for dividends, they simply look at safe, carport associates like McDonald's(Mcd), Proctor & Gamble(Pg), and Ibm (Ibm), which have a long history of paying regular dividends. These types of dividend stocks are normally financially stable, have a lot of liquidity so they are easy to buy and sell, and have enough earnings and cash reserves to cover their cash dividend payouts to investors every three months.

There are a couple of issues that investors in these type of regular dividend stocks should consider. First, the investors' earnings stream is exposed to a single enterprise for each stock that they own, and second, depending on the mix of stocks in the investors portfolio, the dividend earnings can be very lumpy (i.e. Most of the dividend money arrives in one month of the quarter, leaving the remaining two months with very small cash arrival in.

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Stocks that pay monthly dividends are an alternative that can supply regular, consistent, earnings to investors, and overcome the two main issues highlighted above.

Stocks That Pay Monthly Dividends

First, stocks with monthly cash dividends are typically traded on regular stock exchanges, and have enough liquidity for investors to easily buy and sell them. Stocks that pay monthly dividends are normally trusts, finished end mutual funds, and other speculation vehicles that easily own a briefcase of earnings producing assets, and distribute cash generated by these assets every month to their investors. This benefits investors because they get the diversification of the fundamental briefcase owned by these companies, so investors are not as exposed to single enterprise risk as they would be if they owned a single enterprise that paid a regular dividend.

Second, since the earnings stream from monthly dividend stocks comes three times as often as the cash flow from their regular brethren, the earnings is not going to be as lumpy. This is a valuable advantage for investors that need regular income, like retirees that need a passive source of retirement earnings to meet their monthly needs.

One of the inescapable items that investors inspecting purchasing a stock that pays monthly cash dividends over a enterprise that pays a regular dividend is insight the assets that are held by the monthly dividend company. While this adds an extra investigate item, it is very easy to find this data in the thorough government filings that publicly traded associates have to file with the Sec.

Stocks That Pay Monthly Dividends