Saturday, April 12, 2008

Top Condensed List of Monthly Dividend Stocks

With this market volatility, more and more investors are turning to high dividend payers, and preferably ones that pay monthly to help reduce the volatility and accelerate the return of capital. In addition, baby boomers who are looking to retire are also looking for stocks that pay dividends monthly. The following are a few of the top 49, culled down from the list of over 350 monthly dividend stocks.For purposes of this article, closed end funds and oil income trusts are considered stocks.

One of the highest yielding monthly dividend stocks is Harvest Energy Trust (HTE), which trades on the New York Stock Exchange and yields 15.3%. Harvest is a Canadian Oil Income Trust, which explores for and produces petroleum and natural gas in western Canada. They generated negative earnings of 18 cents per share for the latest quarter. Harvest has been paying dividends since July 2005.

Another monthly dividend payer is Lehman Brothers First Trust Income Opportunity Fund (LBC), a closed end fund which invests in high yield bonds and other debt securities. It has a yield of 11.4% and have been paying dividends since September of 2003. They generated negative earnings of 8 cents per share for the latest quarter.

The highest yielding convertible bond closed end fund that pays monthly is Calamos Convertible & High Income Fund (CHY), which yields 11.3%. The stock has a P/E of 8 and has paid dividends since August of 2003.

Gladstone Investment Corporation (GAIN) is a private equity fund which specializes in buyouts and recapitalizations. They trade on NASDAQ and yield 10.8%. They have a P/E of 15 and a PEG of 2.09. They have been paying dividends since July 2005.

If you want an Excel list of all the top 49 monthly dividend paying stocks which can be downloaded, sorted, and changed, go to 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

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