Stock Quotes in this Article: CHY, MMT

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SAN FRANCISCO (Stockerblog) -- What pays a yield of 6% or more, makes distributions monthly, is liquid and has no minimum investment? The answer is monthly dividend closed-end funds, also known as CEFs. Although technically not stocks, they are investment companies that hold high yield stocks and/or bonds and trade like stocks.


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    Some of the advantages to receiving monthly dividends as opposed to quarterly or annual dividend stocks include the fact that the invested capital is returned faster, compounding takes place more quickly, and there is generally less price volatility of the CEF. In addition, many of monthly dividend investments pay dividends that are tax free if they own municipal bonds in their portfolios.

    At, we've updated our list of over 200 different companies that pay dividends monthly, many of which have high yields, over 175 of which pay yields of 6% or more.

    An example is the Calamos Convertible & High Income Fund (CHY), which pays a fairly yield of 7.3%. The management fee is on the high side at 1.13%. This CEF, founded in 2003, invests in high yield fixed income securities and convertible securities.

    Another example is the MFS Multimarket Income Trust (MMT), which sports a yield of 7.8%. The stock trades at a slight discount to net asset value and has a management fee of 0.82%.

    When choosing these investments, avoid the ones with high management fees, and also avoid the ones with low liquidity. Talk to your CPA if you invest in municipal bond closed-end funds, in regards to the alternative minimum tax. Try to choose the ones that trade at a discount to net asset value and avoid the ones using excessive leverage.

    To see the latest updated list of over 200 monthly dividend stocks, including many that have yields of 8% or more, visit .

    At the time of writing, author had no positions in stocks mentioned.

    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books Investing in Brazil Stocks and The Green Light on Green Stocks.