Get Into Monthly Dividend Stocks

by Matt

in Investing

Wouldn’t it be nice to get a monthly dividend check in your brokerage account?  Well, there are quite a few different ETFs and companies that pay out a monthly dividend to its shareholders.  The amount of the dividend of course depends on how much you invest.  Nonetheless, it is still nice to receive a monthly sum that compounds over time.

When looking for a monthly dividend paying stock you want to make sure the fundamentals are intact.  It is not recommended to buy a stock just because it pays out monthly.  That will most certainly lose you money over the long term.  So whether you are looking to boost your annual return or you just want another monthly income, turn no further than these stocks below.

Realty Income Corp (O): This is your fundamental monthly dividend company.  They actually advertise themselves as the “monthly dividend company”.  As of right now they pay $.15/share a month.  So say that you have 100 shares of Realty Income Corp, you are getting a $15 check every month.  That may not seem like a lot but that is an extra $180 a year.

Vanguard Intermediate-Term Bond ETF (BIV):  This is a bond ETF if you want a monthly paying ETF that also has the security of bonds.  BIV pays $.25/share a month.  Although BIV is an intermediate bond fund, there are also short term bond ETF (BSV) and a long term ETF (BLV).  They pay roughly the same amount as the intermediate ETF.

iShares Barclays 1-3 Year Credit Bond (CSJ):  This is another bond ETF that will pay you a monthly sum.  This ETF pays $.15/share month.  That is less than the Vanguard bond ETFs but it is just another option at your disposal for bond ETFs.  Bond ETFs are relatively safe investments, especially the longer they are strung out and the type of bonds.  Investment grade corporate bonds or US Treasury bonds provide the most safety.  Arguably they are the safest investment in the world.

Enerplus Resources Fund (ERF):  ERF is a more speculative play which may not be what you want if you are looking for security and safety.  ERF is if you want more capital gains on top of the monthly dividend paycheck.  This is an energy partnership that is required to payout a majority of its gains by law.

I have given you 6 different ETFs and stocks that payout a monthly dividend.  No matter what you want the money for, it is important to have a balanced portfolio and a safe, monthly payout stock/ETF is the way to go.  It will raise your annual return on the market and can protect you from losses on that stock or ETF or just other losses in general.

Dividends are an important part of a balanced portfolio.  I believe adding a bond ETF is one of the best ways you can get a monthly paycheck with the safety of bonds in your portfolio.  Get onboard with the new monthly dividend revolution. A little extra income never hurt anyone.

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