This choppy market is causing more investors to take a closer look at high dividend stocks, especially the ones that pay monthly, since monthly payments help reduce the volatility of the stock and accelerate the return of capital. Retirees are also looking for stocks that pay dividends monthly. The following are some of the top 49 monthly dividend payers, condensed from the list of over 350 monthly dividend stocks. For purposes of this article, closed end funds [CEF’s], REIT’s, and oil income trusts are considered stocks.
One of the highest yielding monthly dividend stocks is Pengrowth Energy Trust (PGH), which trades on the New York Stock Exchange and yields 13.6%. Pengrowth is a Canadian Oil Income Trust, which owns and manages interests in and royalties from petroleum and natural gas wells in Canada. Pengrowth has a a PE of 14 and has paid dividends since July 2004.
One of the highest yielding monthly dividend CEF is Cohen and Steers Global Income Builder (INB) , a closed end fund which invests in global large-cap dividend-paying stocks, global real estate securities, global utilities securities, global preferred securities and closed-end funds. It has a yield of 12.5%. They have a market cap of $381 million.
Provident Energy Trust (PVX) is another monthly dividend paying oil royalty income trust, which yields 12.7%. They acquire, develop, and produce crude oil and natural gas in both the United States and Canada. The stock has a PE of 132 and has been paying dividends since March of 2002.
One of the highest yielding private equity funds is Gladstone Investment Corporation (GAIN) which specializes in buyouts and recapitalizations through both equity investments and loans. They trade on NASDAQ and yield 12.4%. They have a forward P/E of 8 and a PEG of 1.59. They have been paying dividends since July 2005. The stock has a market cap of only $166 million and should therefore be considered speculative.
You can download an Excel list of the top 49 monthly dividend paying stocks which can be added to, sorted, and changed, go to WallStreetNewsNetwork.com. There are also plenty of monthly dividend stocks which pay a tax-free yield.
Author does not own any of the above.
By Fred Fuld at Stockerblog.com