Wednesday, February 24, 2010

Over 280 Stocks That Pay Dividends Monthly

It doesn't matter whether you are a retiree looking for income or an active investor looking for places to put excess cash, it is hard to ignore stocks that pay monthly dividends. The choices are numerous. There are over 280 different securities that pay monthly that are available for investors to choose from, most with very high yields. Technically, these stocks are real estate investment trusts, oil income trusts, closed end bond funds, and closed end income stock funds, which pay dividends every month. The advantages to having monthly dividends versus quarterly or annual dividend stocks are that your invested capital is returned faster, compounding happens quicker, there is usually less volatility, and many of these pay tax free income.

Here is a random selection of the hundreds to chose from:

Provident Energy Trust (PVX) 8.6%
MFS Multimarket Income Trust (MMT) 8.5%
San Juan Basin Royalty Trust (SJT) 8.2%
ING Clarion Global Real Estate Income Fund (IGR) 8.1%
Eaton Vance CRD Opportunities (EOE) 7.9%
Strategic Global Income Fund Inc. (SGL) 7.9%
BlackRock Strategic Municipal Trust (BSD) 7.0%
Nuveen Municipal Market Opportunity Fund Inc. (NMO) 7.0%
Dreyfus Municipal Income Inc. (DMF) 6.5%
Realty Income Corp. (O) 6.1%

A couple things to keep in mind when you are doing your due diligence and homework on these investments. Be careful of the ones with high management fees, be careful of the ones with limited liquidity and which trade very few shares on a daily basis, and if you invest in the municipal bond closed end funds, make sure you know the consequences of the Alternative Minimum Tax.

To see the latest updated list of over 280 monthly dividend stocks, including a dozen that have yields of 10% or more, go to

Author does not own any of the above.


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