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Monthly Dividend Stocks With High Yields - 8235 views
The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.
SAN FRANCISCO (Stockerblog) -- Would you like your capital returned faster and your compounding to happen more quickly? How about less volatility? You can get all that from monthly dividend stocks.
Our list at WallStreetNewsNetwork.com includes almost 200 different companies that pay dividends monthly, many of which have fairly high yields. Although these investments are often referred to as "stocks," that term is used loosely. These investments include real estate investment trusts, oil income trusts, closed-end bond funds and closed-end income stock funds.
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The Advent Claymore Convertible Securities & Income Fund (AVK) sports a yield of 6.0%, sells at about a 3% discount to net asset value and carries a 0.92% management fee. This closed-end fund, founded in 2003, invests approximately 60% of its portfolio in convertible securities and 40% in lower-grade non-convertible income securities.
Another example is Gas Natural (EGAS), a distributor of natural gas in Montana, Wyoming, North Carolina and Maine. It was founded in 1909. The stock pays a yield of 5.0% and sports a forward price-to-earnings ratio of 13.
If you think that real estate is due for a refund, you might want to take a look at LMP Real Estate Income Fund (RIT), an exchange-traded fund that invests in real-estate-related companies, including real estate investment trusts. It sports a yield of 4.4% and has paid dividends since 2002. It is trading at a slight discount to net asset value. The management fee is 0.61%.
The MFS Multimarket Income Trust (MMT) pays a yield of 7.9%. The stock trades at a 6% discount to net asset value. The company, which has been around since 1987, has a management fee of 0.85%.
Pengrowth Energy Trust (PGH) is a Canadian oil royalty income trust that yields 8.3%. The company, founded in 1988, explores, develops and produces oil and natural gas reserves in western Canada.
Realty Income (O), one of the few stocks with a single-letter stock ticker symbol, yields 5%. This real estate investment trust, which specializes in commercial retail real estate, has been around since 1969. The stock trades at 16.3 times forward earnings.
The monthly dividend investments you should avoid are:
• those with high management fees
• those with limited liquidity that trade very few shares each day
• those that trade at a premium to net asset value
• those using excessive leverage
In addition, when considering municipal bond closed end funds, beware of the alternative minimum tax.
For more monthly dividend stocks, including many that have yields of 6% or more, visit WallStreetNewsNetwork.com.
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.