By Roberto Pedone
Posted on July 2, 2010

Many market-players seek shelter from volatility in dividend-paying stocks, which offer investors a stream of steady income that can ease the pain of wild gyrations in the markets. And stocks that pay monthly dividends provide regular, consistent income to investors with usually less volatility than quarterly-paying dividend stocks.

The key to owning stocks that pay monthly dividends over quarterly or annual dividend stocks is that your invested capital comes back to you much faster and your money compounds much quicker.

Lots of investors are looking for monthly dividend payments to supplement their income during retirement. Other preretirement investors love to buy stocks that pay them cash on a monthly basis to help offset their high-risk investments. No matter what type of investor you are, dividend-paying stocks can go a long way toward creating wealth.

Dividend-paying stocks can also help an investor sleep better at night, because they’re usually deemed to be safer investments than stocks that don’t pay dividends.

The number of stocks that now pay a monthly dividend tops over 250, including real estate investment trusts, oil income trusts, closed-end funds and other investment vehicles that own a portfolio of income-producing assets and distribute cash generated by these assets every month to investors.

Let’s take a look at four monthly dividend-paying securities that look promising.

If you’re bullish on the future for oil and natural gas, you might want to take a look at the Enerplus Resources Fund (ERF). This stock is an energy trust that controls operating subsidiaries to acquire, exploit and operate crude oil and natural gas assets. The company currently controls properties in red hot Marcellus Shale region in the northeastern U.S. Many industry insiders think the Marcellus Shale could be one of the most promising natural gas resources in the Appalachian Basin.

Enerplus Resources has the fifth-highest dividend yield of oil and gas production stocks, at 9.4%. The stock has near-term support around $20 a share and resistance at around $24.

If you think the real estate market is near a bottom, you should take a look at closed-end management investment company LMP Real Estate Income Fund (RIT), which invests in securities related to the real estate industry, tied to sectors such as office, health care, apartments, shopping centers and regional malls. Its current dividend yield is 8.7%.

This stock is trading near the 200-day moving average of $8.20 a share, which could offer a great entry point if you like the prospects of real estate here. If the 200-day doesn’t hold, look for the next area of support to come in at around $7.75. The stock also has some overhead resistance at around $9 to $9.50.

Another name investors should take a look at is the MFS Multimarket Income Trust (MMT), a closed-end fund that maintains a portfolio of investments in high-yield and investment-grade corporate bonds, emerging market debt securities, U.S. government securities and international investment-grade debt securities. Considering how foreign debt markets have been rattled of late, this trust could offer a great opportunity to get in at depressed prices. The MFS Multimarket Income Trust has direct exposure to some of the PIIG nations, such as Ireland, Italy and Spain.

The current dividend yield of the MFS Multimarket Income Trust is 8.2%. The stock is trading near the 50-day moving average of $6.46, and overhead resistance can be found at $6.60 to $6.70.

One last monthly-paying security to consider is the Calamos Convertible Opportunity & Income Fund (CHI), which is a diversified, closed-end management investment company. The fund seeks total returns through a combination of capital appreciation and current income by investing in a diversified portfolio of convertible securities and below-investment-grade high-yield fixed-income securities.

Calamos Convertible Opportunity & Income has offered a steady distribution since inception; it has a strong historical performance and is run by an experienced management team. Some of the securities it currently holds are common stock in Freeport McMoRan (FCX), corporate bonds in Vail Resorts (MTN) and convertible preferred stock in Bank of America (BAC). Corporate bonds make up 56% of the funds asset allocation, and energy is the heaviest-weighted sector. Its current dividend yield is 9.4%.

Check out the list below of more than 200stocks that pay dividends on a monthly basis, beginning with the highest-yielding. Keep in mind that dividends are subject to change, reduction or elimination at any time.

Stocks That Pay Dividends Monthly

American Strategic Income Portfolio III (CSP) 12.8%
Alpine Global Dynamic Dividend Fund (AGD) 12%
BlackRock Enhanced Dividend Achievers Trust (BDJ) 12%
Western Asset High Income Fund II Inc. (HIX) 11.5%
Pioneer High Income Trust (PHT) 10.7%
Pimco High Income Fund (PHK) 10.6%
Putnam Master Intermediate Income Trust (PIM) 10.4%
Van Kampen High Income Trust II (VLT) 10.4%
Western Asset Global Partners Income Fund (GDF) 9.9%
Putnam Premier Income Trust (PPT) 9.7%
Eaton Vance Tax Advantaged Global Dividend (ETG) 9.5%
Western Asset High Income Opportunity Fund (HIO) 9.5%
Calamos Convertible Income (CHI) 9.4%
Enerplus Resources Fund (ERF) 9.4%
Provident Energy Trust (PVX) 9.4%
Western Asset Global High Income Fund (EHI) 9.4%
American Income Fund Inc. (MRF) 9.2%
DWS High Income Trust (KHI) 9.2%
Eaton Vance Tax Advantaged Dividend Income (EVT) 9.2%
San Juan Basin Royalty Trust (SJT) 9.0%
Nuveen Quality Preferred Income Fund 2 (JPS) 8.8%
Penn West Energy Trust (PWE) 8.8%
MFS Intermediate Income Trust (MIN) 8.6%
Permian Basin Royalty Trust (PBT) 8.6%
Calamos Convertible & High Income (CHY) 8.5%
Nuveen Quality Preferred Income Fund 3 (JHP) 8.5%
Pimco Corporate Income Fund (PCN) 8.5%
MFS Multimarket Income Trust (MMT) 8.4%
New America High Income Fund (HYB) 8.3%
Nuveen Quality Preferred Income Fund (JTP) 8.3%
LMP Real Estate Income Fund Inc. (RIT) 8.2%
Hugoton Royalty Trust (HGT) 8.1%
Pimco California Municipal Income Fund II (PCK) 8.1%
BlackRock Senior High Income Fund (ARK) 8.0%
MFS Charter Income Trust MCR/">MCR) 7.9%
Nuveen Municipal High Income Opportunity (NMZ) 7.9%
Pengrowth Energy Trust (PGH) 7.9%
BlackRock Preferred Income Strategies (PSY) 7.8%
Pioneer Municipal High Income Advantage (MVA) 7.8%
Eaton Vance Municipal Income Trust (EVN) 7.7%
ING Clarion Global Real Estate Income Fund (IGR) 7.7%
BlackRock Preferred and Corporate Inc. (PSW) 7.6%
Pimco Municipal Income Fund III (PMX) 7.6%
BlackRock Diversified Income Strategies (DVF) 7.5%
Eaton Vance Tax Adv Glob Div Opportunities (ETO) 7.5%
Franklin Templeton Ltd. Duration Income Trust (FTF) 7.5%
Invesco Van Kampen Municipal Opportunity (VMO) 7.5%
Van Kampen Trust for Investment Grade Municipals (VGM) 7,5%
Cross Timbers Royalty Trust (CRT) 7.4%
Invesco Van Kampen Trust for Investment Grade Municipals (VGM) 7.4%
Van Kampen Advantage Municipal Income Trust II (VKI) 7.4%
Invesco Van Kampen Select Sector Municipal Trust (VKL) 7.3%
MFS Municipal Income Trust (MFM) 7.3%
Pimco California Municipal Income Fund III (PZC) 7.3%
Pioneer Muncipal High Income Trust (MHI) 7.3%
Flaherty & Crumrine Preferred Income Opp. (PFO) 7.2%
Invesco Van Kampen Advantage Municipal Income Trust II (VKI) 7.2%
Putnam Managed Municipal Income Trust (PMM) 7.2%
Reaves Utility Income Fund (UTG) 7.2%
Aberdeen Global Income Fund (FCO) 7.1%
American Municipal Income Portfolio Inc. (XAA) 7.1%
BlackRock Investment Quality Municipal Trust (BKN) 7.1%
DWS Strategic Municipal Income Trust (KSM) 7.1%
Federated Premier Municipal Income Fund (FMN) 7.1%
Van Kampen California Value Municipal Income (VCV) 7.1%
Nuveen Select Quality Municipal Fund Inc. (NQS) 7.1%
Nuveen Municipal Market Opportunity Fund Inc. (NMO) 7%
Pimco New York Municipal Income Fund II (PNI) 7%
BlackRock Municipal Income Trust (BKF) 7%
Eaton Vance Insured Municipal Bond Fund (EIM) 7%
Eaton Vance Insured Municipal Bond Fund II (EIV) 7%
Invesco Van Kampen Trust for Investment Grade New York Municipals (VTN) 7%
Managed Duration Investment Grade Municipal (MZF) 7%
Van Kampen Senior Income Trust (VVR) 7%
Van Kampen Trust for Investment Grade New York Municipals (VTN) 7%
Advent Claymore Convertible Secur. & Income (AVK) 6.9%
BlackRock Municipal Income Trust II (BLE) 6.9%
Dreyfus Strategic Municipals Inc. (LEO) 6.9%
DWS Municipal Income Trust (KFT) 6.9%
Eaton Vance California Municipal Income Trust (CEV) 6.9%
Inland Real Estate Corp. (IRC) 6.9%
MFS Government Markets Income Trust (MGF) 6.9%
Pimco California Municipal Income Fund (PCQ) 6.9%
Pimco Floating Rate Income Fund (PFL) 6.9%
Pimco Municipal Income Fund (PMF) 6.9%
Pimco Municipal Income Fund II (PML) 6.9%
BlackRock Municipal Bond Trust (BBK) 6.9%
Nuveen Dividend Advantage Municipal Fund 3 (NZF) 6.9%
Nuveen Municipal Advantage Fund Inc. (NMA) 6.9%
Nuveen California Dividend Advantage Municipal Fund 3 (NZH)
6.9%
Nuveen California Select Quality Municipal Fund (NVC) 6.9%
Nuveen California Municipal Market Opportunity Fund (NCO) 6.9%
Alliance Bernstein National Municipal Income (AFB) 6.8%
Eaton Vance Michigan Municipal Income Trust (EMI) 6.8%
Morgan Stanley Municipal Premium Income (PIA) 6.8%
Nuveen California Investment Quality Municipal Fund (NQC) 6.8%
Pimco New York Municipal Income Fund III (PYN) 6.8%
Nuveen California Dividend Advantage Municipal Fund 2 (NVX) 6.8%
Nuveen California Quality Income Municipal Fund (NUC) 6.8%
BlackRock New York Municipal Income Trust (BNY) 6.7%
BlackRock Strategic Municipal Trust (BSD) 6.7%
Alliance California Municipal Income (AKP) 6.7%
Eaton Vance Insured California Municipal Bond Fund II (EIA) 6.7%
Invesco Van Kampen Ohio Quality Municipal Trust (VOQ) 6.7%
Invesco Van Kampen Pennsylvania Value Municipal Income Trust (VPV) 6.7%
Morgan Stanley Municipal Inc. Opp. Trust III (OIC) 6.7%
Morgan Stanley Quality Municipal Income Trust (IQI) 6.7%
Nuveen California Performance Plus Municipal Fund (NCP) 6.7%
Nuveen Premium Income Municipal Fund 4 (NPT) 6.7%
Nuveen Premium Income Municipal Fund (NPI) 6.7%
Nuveen California Dividend Advantage Municipal Fund (NAC) 6.6%
BlackRock California Municipal Income Trust (BFZ) 6.6%
Nuveen California Premium Income Municipal Fund (NCU) 6.6%
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) 6.6%
Nuveen Investment Quality Municipal Fund (NQM) 6.6%
Dreyfus Strategic Municipal Bond Fund (DSM) 6.6%
Eaton Vance Floating-Rate Income (EFT) 6.6%
Eaton Vance Insured California Municipal Bond Fund (EVM) 6.6%
Eaton Vance Insured Michigan Municipal Bond Fund (MIW) 6.6%
Eaton Vance Senior Floating Rate Trust (EFR) 6.6%
Invesco Van Kampen Trust for Investment Grade New Jersey Munis (VTJ) 6.6%
Morgan Stanley Quality Municipal Investment Trust (IQT) 6.6%
BlackRock Long Term Municipal Adv (BTA) 6.6%
Nuveen Dividend Advantage Municipal Fund 2 (NXZ) 6.6%
Nuveen Georgia Dividend Advantage Municipal Fund (NZX) 6.6%
Nuveen Quality Income Municipal Fund (NQU) 6.6%
BlackRock New York Municipal Income Trust II (BFY) 6.6%
Nuveen Dividend Advantage Municipal Fund (NAD) 6.6%
BlackRock Pennsylvania Strategic Municipal Trust Fund (BPS) 6.5%
Eaton Vance Insured New York Municipal Bond Fund II (NYH) 6.5%
Eaton Vance New Jersey Municipal Income Trust (EVJ) 6.5%
Eaton Vance New York Municipal Income Trust (EVY) 6.5%
Eaton Vance Ohio Municipal Income Trust (EVO) 6.5%
Morgan Stanley Municipal Inc. Opp. Trust II (OIB) 6.5%
Morgan Stanley Municipal Income Opportunities (OIA) 6.5%
Nuveen Senior Income Fund (NSL) 6.5%
Van Kampen Trust for Investment Grade New Jersey Munis (VTJ) 6.5%
Nuveen Premium Income Municipal Fund 2 (NPM) 6.5%
Nuveen Insured Calif. Premium Income Muni Fund (NPC) 6.4%
BlackRock Limited Duration Income (BLW) 6.4%
Dreyfus Municipal Income( DMF) 6.4%
Morgan Stanley California Quality Municipal Securities (IQC) 6.4%
Nuveen Floating Rate Income Opportunity Fund (JRO) 6.4%
Putnam Municipal Opportunities Trust (PMO) 6.4%
Nuveen Premier Municipal Income Fund (NPF) 6.4%
BlackRock New York Municipal Bond Trust (BQH) 6.4%
Nuveen Michigan Premium Income Municipal Fund (NMP) 6.3%
Nuveen Pennsylvania Premium Income Muni Fund 2 (NPY) 6.3%
Baytex Energy (BTE) 6.3%
BlackRock Income Opportunity Trust (BNA) 6.3%
Eaton Vance Pennsylvania Municipal Income (EVP) 6.3%
Eaton Vance Senior Income Trust (EVF) 6.3%
Invesco Van Kampen Trust for Insured Municipals (VIM) 6.3%
Morgan Stanley Insured Municipal Trust (IMT) 6.3%
Nuveen Performance Plus Municipal Fund (NPP) 6.3%
Van Kampen Trust for Insured Municipals (VIM) 6.3%
BlackRock New Jersey Municipal Income Trust (BNJ) 6.3%
Nuveen Michigan Dividend Advantage Municipal Fund (NZW) 6.3%
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) 6.2%
BlackRock Floating Rate Inc. Strat. Fund (FRA) 6.2%
Eaton Vance Insured New Jersey Municipal Bond Fund (EMJ) 6.2%
Eaton Vance Massachusetts Municipal Income (MMV) 6.2%
Federated Premier Intermediate Municipal Income Fund (FPT) 6.2%
Invesco Van Kampen Massachusetts Value Muni (VMV) 6.2%
Nuveen Michigan Quality Income Municipal Fund (NUM) 6.2%
Western Asset Income Fund (PAI) 6.2%
BlackRock New Jersey Municipal Bond Trust (BLJ) 6.2%
BlackRock Insured Municipal Income Trust (BYM) 6.2%
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) 6.2%
BlackRock Maryland Municipal Bond Trust (BZM) 6.2%
Nuveen Insured Calif. Premium Income Muni Fund 2 (NCL) 6.2%
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) 6.1%
Alliance New York Municipal Income (AYN) 6.1%
MFS Intermarket Income Trust 1 (CMK) 6.1%
Nuveen Insured Municipal Opportunity Fund (NIO) 6.1%
Van Kampen Massachusetts Value Muni (VMV) 6.1%
Nuveen Insured California Tax Free Advantage Municipal Fund (NKX) 6.1%
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) 6.1%
Nuveen New York Performance Plus Municipal Fund (NNP) 6%
BlackRock New York Insured Municipal Income (BSE) 6%
Nuveen New Jersey Investment Quality Municipal Fund (NQJ) 6%
Nuveen Insured Quality Municipal Fund (NQI) 6%
Eaton Vance Insured New York Municipal Bond Fund (ENX) 6%
Evergreen International Balanced Income (EBI) 6%
Investment Grade Municipal Income Fund (PPM) 6%
Morgan Stanley Insured Municipal Income Trust (IIM) 6%
Nuveen Premier Insured Municipal Income Fund (NIF) 6%
Western Asset Municipal High Income Fund (MHF) 6%
Blackrock Apex Municipal Fund (APX) 6%
BlackRock New York Municipal 2018 Term Trust (BLH) 6%
Nuveen New York Select Quality Municipal Fund (NVN) 6%
Nuveen Arizona Dividend Advantage Municipal Fund 3 (NXE) 5.9%
Nuveen Arizona Dividend Advantage Municipal Fund 2 (NKR) 5.9%
Nuveen New York Quality Income Municipal Fund (NUN) 5.9%
Neuberger Berman Intermediate Municipal Fund (NBH) 5.9%
BlackRock Municipal 2018 Term Trust (BPK) 5.9%
BlackRock Global Floating Rate Income (BGT) 5.9%
Eaton Vance Insured Massachusetts Municipal Bond Fund (MAB) 5.9%
Eaton Vance Insured Pennsylvania Municipal Bond Fund (EIP) 5.9%
Minnesota Municipal Income Portfolio (MXA) 5.9%
Putnam High Income Securities Fund (PCF) 5.9%
Sabine Royalty Trust (SBR) 5.9%
Neuberger Berman California Intermediate Municipal Fund (NBW) 5.9%
Nuveen Ohio Dividend Advantage Municipal Fund 3 (NVJ) 5.9%
Nuveen New York Investment Quality Municipal Fund (NQN) 5.9%
Nuveen Arizona Dividend Advantage Municipal Fund (NFZ) 5.9%
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) 5.9%
Nuveen Insured Premium Income Municipal Fund 2 (NPX) 5.8%
Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) 5.8%
Nuveen Insured Dividend Advantage Municipal Fund (NVG) 5.8%
BlackRock Enhanced Government Fund (EGF) 5.8%
Nuveen New York Dividend Advantage Municipal Fund (NAN) 5.8%
Western Asset Municipal Partners Fund (MNP) 5.8%
Nuveen Ohio Dividend Advantage Municipal Fund 2 (NBJ) 5.8%
Blackrock Muni Intermediate Duration Fund (MUI) 5.7%
Eaton Vance Insured Ohio Municipal Bond Fund (EIO) 5.7%
First American Minnesota Municipal Income Fund II (MXN) 5.7%
Morgan Stanley California Insured Muni (IIC) 5.7%
Nuveen New Jersey Premium Income Muni Fund (NNJ) 5.7%
Nuveen Arizona Premium Income Municipal Fund (NAZ) 5.7%
Nuveen Massachusetts Dividend Advantage Municipal Fund (NMB) 5.7%
Nuveen Ohio Quality Income Municipal Fund (NUO) 5.7%
Nuveen Insured Tax Free Advantage Municipal Fund (NEA) 5.6%
BlackRock Floating Rate Inc. Strat. Fund II (FRB) 5.6%
Gabelli Dividend & Income Trust (GDV) 5.6%
Pimco New York Municipal Income Fund (PNF) 5.6%
Templeton Global Income Fund (GIM) 5.6%
BlackRock California Municipal 2018 Term Trust (BJZ) 5.6%
Nuveen Insured New York Dividend Advantage Municipal Fund (NKO) 5.5%
Nuveen Floating Rate Income Fund (JFR) 5.5%
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) 5.5%
BlackRock Muni New York Intermediate Duration Fund (MNE) 5.5%
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) 5.4%
Realty Income (O) 5.4%
Nuveen Insured New York Premium Income Municipal Fund (NNF) 5.4%
Neuberger Berman New York Intermediate Municipal Fund (NBO) 5.4%
Nuveen Texas Quality Income Municipal Fund (NTX) 5.3%
Nuveen Massachusetts Premium Income Municipal Fund (NMT) 5.3%
Nuveen Insured New York Tax Free Advantage Municipal Fund (NRK) 5.3%
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) 5.3%
Nuveen Connecticut Dividend Advantage Municipal Fund 3 (NGO) 5.2%
Nuveen Georgia Dividend Advantage Municipal Fund 2 (NKG) 5.2%
Nuveen Maryland Premium Income Municipal Fund (NMY) 5.1%
Morgan Stanley New York Quality Municipal Securities (IQN) 5.1%
Nuveen Connecticut Premium Income Municipal Fund (NTC) 5.1%
Nuveen Connecticut Dividend Advantage Municipal Fund (NFC) 5.1%
Nuveen North Carolina Dividend Advantage Municipal Fund 3 (NII) 5.1%
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) 5.1%
Nuveen Virginia Premium Income Municipal Fund (NPV) 5.1%
Nuveen California Select Tax Free Portfolio (NXC) 5.1%
Nuveen Connecticut Dividend Advantage Municipal Fund 2 (NGK) 5.1%
BlackRock Virginia Municipal Bond Trust (BHV) 5%
Nuveen Municipal Income Fund (NMI) 5%
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO) 5%
Western Asset Intermediate Muni Fund (SBI) 5%
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB) 5%
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) 5%
Nuveen California Municipal Value Fund (NCA) 5%
BlackRock Municipal 2020 Term Trust (BKK) 5%
Nuveen Insured Massachusetts Tax Free Advantage Muni Fund (NGX) 4.9%
DTF Tax-Free Income (DTF) 4.9%
Nuveen Georgia Premium Income Municipal Fund (NPG) 4.9%
Nuveen North Carolina Premium Income Muni Fund (NNC) 4.9%
Nuveen Select Tax Free Income Portfolio 2 (NXQ) 4.8%
BlackRock Florida Municipal 2020 Term Trust (BFO) 4.8%
Nuveen Select Tax-Free Income Portfolio (NXP) 4.8%
Nuveen Municipal Value Fund (NUV) 4.7%
Nuveen Missouri Premium Income Municipal Fund (NOM) 4.7%
Aberdeen Asia-Pacific Income Fund (FAX) 4.5%
Energy (EGAS) 4.5%
Nuveen New York Select Tax-Free Income Portfolio (NXN) 4.4%
Nuveen Select Tax-Free Income Portfolio 3 (NXR) 4.4%
Morgan Stanley Insured California Municipal Securities (ICS) 4.4%
Nuveen New York Municipal Value Fund (NNY) 4.3%
BlackRock Income Trust (BKT) 4.3%
Delaware Investments Arizona Municipal Income Fund (VAZ) 4.3%
Morgan Stanley Insured Municipal Securities (IMS) 4.2%
Delaware Investments Minnesota Municipal Income Fund II (VMM) 4.1%
ING GL Equity Dividend (IGD) 4.0%
Nuveen Select Maturities Municipal Fund (NIM) 3.9%
Delaware Investments Colorado Insured Muni Income Fund (VCF) 3.8%
First Trust/Four Corners Senior Fltg Rate (FCM) 3.2%
Neuberger Berman Real Estate Securities (NRO) 2.5%
Strategic Global Income Fund (SGL) 2.3%
BlackRock Insured Municipal Term Trust (BMT) 1.8%
Eaton Vance Enhanced Equity Income Fund (EOI) 0.6%
Eaton Vance Enhanced Equity Income Fund II (EOS) 0.5%