Monday, November 03, 2008

Monthly Dividend Stocks with Yields Over 10%

There are a huge number of stocks, including closed end funds, real estate trusts, master limited partnerships, and oil royalty trusts, which pay their dividends monthly. The advantages of receiving monthly dividends are several:
1. They accelerate the investors' return of capital.
2. They compound faster than quarterly dividend stocks when reinvested.
3. They provide a steadier cash flow for retirees on a fixed income who required a consistent monthly income.
4. The stream of income helps reduce volatility.
5. Some of these monthly dividend stocks have yields that are partially or wholly tax free.

According to, there are 323 different stocks which pay their dividends on a monthly basis, with yields from half a percent to almost 50%. Be careful, as many of these yields are extremely high and those dividends may not be sustainable.

The highest yielding growth and income fund is the Boulder Growth & Income Fund Inc. (BIF) with a yield of 25.9%. It is a closed end equity fund which invests in stocks in various sectors and real estate investment trusts. Their recent dividends have been considered almost all return of capital, in other wrds, non-taxable. Talk to your tax advisor regarding the taxation of dividends before investing. They have been paying dividends since 1988.

Harvest Energy Trust (HTE) is a Canadian oil income trust yielding 30.8%. This Calgary, Alberta based company operates petroleum and natural gas properties in western Canada. They have been paying monthly dividends since 2005.

The highest natural gas royalty trust is Hugoton Royalty Trust (HGT) which yields 13.2%. It has paid monthly dividends since 1999.

The highest yielding global real estate CEF is the ING Clarion Global Real Estate Income Fund (IGR), which invests in real estate stocks, and yields 22.9%. They have been paying monthly dividends since 2004.

Calamos Convertible Opportunities & Income Fund (CHI) is the highest yielding convertible bond fund, with a yield of 18.8%. It invests in high yield bonds and convertible bonds of all ratings. It has been paying monthly dividends since 2002.

One of the highest yielding dividend paying stock funds is the ING Global Equity Dividend & Premium Opportunity Fund (IGD) which yields 17.4%. They have been paying monthly dividends since 2005.

Flaherty & Crumrine Preferred Income Opportunity Fund Inc. (PFO) is one of the highest yielding preferred stock CEFs. It yields 13.7% and has paid monthly dividends since 1992.

The highest yielding floating rate bond fund is PIMCO Floating Rate Income Fund (PFL) yielding 14.6%. They have been paying monthly dividends since 2003.

Please note, many of the above are low cap stocks. A downloadable Excel spreadsheet database of over 300 monthly dividend stocks can be found at If you like high yield stocks, you should check out High Cash, No Debt, High Yield Stocks and Tax Free Income Stocks.

Author does not own any of the above.


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