Stocks That Pay Monthly Dividends

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Dividend Stocks Research
Stocks That Pay Monthly Dividends
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• Hi, My name is Aaron and Im with Dividend Stocks
  Research, today were reviewing our recently
  published article

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• Stocks That Pay Monthly Dividends

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• Do you ever open up your electric bill and find
  yourself in a state of shock?
• Not me... its pretty much the same every month.
  The only real curve I was thrown came a few
  months ago.

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• Thats when a State of California windfall, the
  California Climate Credit drove my bill down to
  12.66.
• Not bad, huh?

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• (Not unless you do the math and rack up all the
  taxes you pay to pick up the tab for this
  handout.) In any event, theres no way Ill ever
  see a 12.66 bill from San Diego Gas and Electric
  every month.

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• Especially not with the shellacking the company
  will be hit with when it shuts down and cleans up
  the doomed San Onofre Nuclear plant. But if I
  want, heres something I can see every month. A
  dividend check coming in.

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• But if I want, heres something I can see every
  month. A dividend check coming in. Not all
  dividends are paid quarterly, even though thats
  the norm.

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• And not all investors are reinvesting
  dividends... I know a lot of you like the income.
  So heres the lowdown on stocks that pay monthly
  dividends.

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• The Beautiful Thing About Stocks That Pay Monthly
  Dividends

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• The big benefit is simple. Your investments set
  you up for dividend checks coming in that line up
  with your bills. (Keep in mind that most bond
  investors are usually paid just twice a year.)

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• So you get a leg up with monthly dividend stocks
  right off the bat. Your fixed expenses... the
  cable bill, the car insurance, even your
  mortgage.

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• Set up your portfolio so you have stocks paying
  dividends every month that cover these expenses.
• Dont get me wrong.

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• Theres nothing wrong with bonds and theres
  nothing wrong with quarterly dividends. You can
  do the same thing by planning to always have
  money in the bank for the next three months
  expenses.

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• But stocks that pay monthly dividends can give
  you a clean and precise way to do this. Its
  like locking in your own payday. The only thing
  you want to keep in mind...

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• dont buy a stock just because it pays a monthly
  dividend. You want to shake it down for safety.
  Look for a decent yield, dividend growth, and all
  the things you would do with any other dividend
  stock.

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• Where To Find Stocks That Pay Monthly Dividends

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• A good place to look is in the real estate world,
  the Real Estate Investment Trusts (REITs.) Youll
  find some good ones that pay monthly. And when
  you know how to find the best stock for dividend
  income, take these rules and apply them to REITs.

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• Theres a good reason why a REIT makes sense for
  monthly dividends. Its got rent coming in every
  month. All the real estate it owns, whether were
  talking office buildings or apartments, the REIT
  makes money with monthly rent.

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• Sure, youve got some exceptions... the REITs
  that specialize in a certain type of property
  like a hospital, a resort, or a hotel, but for
  the most part, because of leases, youre looking
  at monthly income coming in.

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• Other places to find monthly dividends...
  Companies that make loans, the so-called
  Business Development companies.

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• One of them is Prospect Capital PSEC and another
  is Main Street Capital MAIN. Another place to
  look is the world of preferred stocks.

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• Preferred Stocks That Pay Monthly Dividends

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• Most of these pay a dividend on either the 15th
  of the month or on the last day of the month. You
  can find a company like Evolution Petroleum
  Corporation EPM that pays a monthly dividend.

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• It slices off 1/12th of the 8.5 annual yield and
  cuts shareholders a check. (The stock isnt the
  regular Evolution Petroleum stock, but the
  perpetual non-convertible 8.5 Series A
  Cumulative Preferred Stock.)

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• Sounds pretty complicated. Whats all that? When
  a company issues both preferred stock and
  ordinary stock, it makes sure dividends are paid
  first on the preferred stock.

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• When a preferred stock is cumulative, this means
  if the company misses a dividend in one quarter,
  it needs to make up for the missed dividend down
  the road, in a future quarter.

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• A non-cumulative stock means once the dividend is
  missed, tough luck. It doesnt have to be made
  up later. A non-convertible stock is typically
  issued with common stock when a company raises
  money with a venture capital firm.

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• Kind of boring, but important. Thats because
  when you invest in a stock that pays monthly
  dividends, you want to know what kind of a stock
  it is.

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• Another Good Thing About Stocks That Pay Monthly
  Dividends

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• Theres usually less of a price swing around the
  ex-dividend date. You can see price swings
  fairly often when an ex-dividend date involves a
  stock that pays dividends quarterly.

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• You typically see the ex-dividend date fall two
  business days before the stocks recorddate. When
  you buy your dividend stock on or after the
  ex-dividend date, youre not paid the current
  dividend...

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• youll need to wait until next time. The person
  who sells the stock pockets the dividend.

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• The Problem With Monthly Dividends

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• Just because you invest in stocks that pay
  monthly dividends doesnt mean youre any safer
  because a check comes in more often.

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• Theres an office on Camelback Road in Phoenix
  that used to send out monthly dividend checks
  like clockwork.
• Shareholders were delighted.

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• Then, last fall, American Realty Capital
  Properties ARCP admitted to misstated financial
  results in the first two quarters of 2014. If
  you figure that sounds like cooking the books,
  Im with you.

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• Basically, the company tried to make it look like
  8.5 million it sunk into sprucing up the bosss
  mansion in Newport Rhode Island was actually a
  legitimate business expense. Whatever you call
  it, investors called foul and ran for the exits.

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• Then, American Realty Capital Properties stopped
  paying monthly dividends... actually it stopped
  paying dividends period... in December, 2014. But
  the storys far from over.

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• Six weeks ago, the REIT started calling itself
  Vereit, and adopted the ticker VER. New name,
  new opportunities to lure in dividend investors
  who dont do their due diligence, and know what
  happened. This chart tells you all you need to
  know...

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• You might want to steer clear of this train
  wreck. Vereit is a train thats hauling some
  questionable baggage. When youre thinking about
  dividend stocks, ask yourself if you really need
  monthly dividends.

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• If you get a check every 3 months instead of
  every month, is it really that big of a deal?
  Youre better off playing it safe, and putting a
  premium on how solid the company is instead of
  how often it pays a dividend.

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• I dont know about you, but Im not terribly
  interested in picking up the tab for some jokers
  mansion in Newport, Rhode Island.

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• Not unless hes going to make a special one time
  payment and let me use the place for free next
  summer.

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