Home > Stocks > Monthly Income – What Investments Pay Monthly Dividends? [VIDEO]

Monthly Income – What Investments Pay Monthly Dividends? [VIDEO]

By Kevin Ballard


Updated on

Video transcript

00:00 a lot of people are interested in
00:02 monthly dividends for the expressed
00:07 reason that they can earn monthly income
00:10 as opposed to quarterly income so let’s
00:13 take a look at what type of investments
00:15 a monthly dividends in essence there are
00:19 three main ones there ETFs
00:22 mutual funds and some stocks of course
00:25 ETFs and mutual funds have the most
00:27 options in terms of monthly dividend
00:30 payers but there are actually 40 stocks
00:35 that do pay monthly dividends so which
00:41 ETS pay monthly dividends and there’s
00:44 actually quite a few and by what I was
00:48 able to find 246 and I found that
00:52 information on ETF database website so I
00:59 didn’t list it on my post it was just
01:01 easier to link to it
01:03 we duplicated that information and
01:06 follow the link on the post there it
01:11 will take you here now keep in mind that
01:14 this is a little bit of an older post
01:17 you can see the date there it was
01:20 written in May 2014 updated in June 2014
01:24 but about five years old as of now
01:28 anyways now anyhow it’s a good starting
01:32 point like I said has a good selection
01:36 of ETFs and they’re grouped by asset
01:41 class so you know you got all your bonds
01:43 there which the bond ETFs make up if I
01:46 remember right 206 to 246 you’ve got a
01:50 fair share of equity ETFs actually a
01:53 couple come out of the ETFs which
01:55 surprised me and then everything else
01:57 was grouped under other which comprises
02:00 and real estate ETFs and preferred stock
02:08 so if you’re interested any of those you
02:12 can see that they have the link the name
02:16 and the ticker and you can do your
02:17 research a little bit there on ETF
02:20 database or any other site whatever your
02:25 preferred site is to do fun research at
02:28 and like I said just keep in mind at
02:32 that pages of a little bit older so it
02:36 might not be completely comprehensive
02:38 there could be some funds that have
02:43 started since then and aren’t included
02:45 but again it gives you a pretty good
02:48 selection so we’ll look next it stocks
02:53 that pay monthly dividends okay and
02:56 there are decent amount options
02:58 available and not nearly as many is with
03:01 ETFs and mutual funds like I said but I
03:05 also linked to another site here
03:09 deferred to a site that focuses more on
03:13 dividends and that link of course is in
03:17 the post also and this list is updated
03:22 for 2019 so like I said it’s a site
03:24 dedicated to dividends and from what I
03:31 saw when I looked at tens update this
03:34 list every year so a great reference and
03:38 it’s actually been updated since I wrote
03:40 the post because this used to say 41 and
03:44 I make the note at my post that it says
03:47 41 but I only counted 40 and apparently
03:50 that number has gone down one from even
03:55 when I counted so I’ll have to update my
03:58 post there anyhow
04:02 it’s the pump up here he puts this
04:08 information into a kind of spreadsheet
04:11 of sorts here for you with some basic
04:13 information terms of price dividend
04:16 yield that would should probably
04:18 definitely interested in market cap e
04:21 ratio and payout ratio
04:22 I’m guessing let me see if I’m right
04:26 here that I bet I know which stock they
04:31 dropped off the one thing that this side
04:34 didn’t do that I was curious about it so
04:36 I took it upon myself to look up was
04:38 which stocks are in what sector because
04:44 I wrote on a previous post about what
04:46 makes for a high-quality dividend stock
04:51 and or a quality high dividend stock I
04:54 guess there is a distinction there but
04:57 talked about how I feel it’s important
05:00 what type of industry or sector in this
05:04 case which is broader than in industry
05:06 but nevertheless that it’s a you know
05:11 the the business model that a company is
05:13 going to have in a particular sector is
05:18 going to make a difference on how
05:19 consistent consistently it’s going to be
05:21 able to pay a high dividend okay the
05:25 example being you know a business that’s
05:28 in a consumable or subscription-based
05:33 model business model you know is gonna
05:36 have people coming back and purchase it
05:38 from them again and again again
05:39 utilities a good one you know people we
05:43 don’t just sign up for utilities one
05:45 month cut them to next month typically
05:47 maybe in a case of cable but certainly
05:50 not in a case of like electricity or gas
05:53 anything so anyhow I grouped all of
05:57 these stocks the forty of them that were
06:00 on there when I looked last week and put
06:02 them into the individual sectors you can
06:04 see those sectors or communication
06:06 services consumer cyclical energy
06:08 financial services
06:10 industrials real-estate not surprisingly
06:13 and a couple of utilities with real
06:16 estate comprising the bulk of them and
06:18 financial services and energy with fair
06:20 share I think financial services and
06:23 forget there’s an acronym for the type
06:24 of company that’s in I that I think
06:28 would be appropriate for the companies
06:32 that are these monthly dividend players
06:34 in night they’re really investment
06:37 companies holding companies I guess you
06:40 might call them but their main business
06:42 is investing you know smaller typically
06:46 private companies I think and in a lend
06:49 them money and own equity and collect
06:52 dividends from there and and turn around
06:53 and pay to their investors that’s my
06:57 understanding but anyhow they had one on
07:00 there that I didn’t know where it
07:03 belonged it didn’t move that up it
07:06 couldn’t find a couldn’t find a sector
07:10 for it so it’s a it does say really but
07:14 real estate investment trusts so they’re
07:16 probably a pretty good clue to where it
07:18 belongs but according to Yahoo Finance
07:20 it didn’t technically have one you’ll
07:24 notice with these companies that a lot
07:26 of ammend have a dot t– o– suffix and
07:30 eight of them actually of the forty so
07:33 twenty percent of them and that means
07:36 that their trades on the Toronto Stock
07:37 Exchange okay one is actually traded on
07:41 the pink sheets so you know might be
07:44 some concerns in terms of the liquidity
07:46 there but that’s the HTT you get in
07:48 royalty trust and if you spend any time
07:53 looking at monthly dividends or payers
07:57 you know particular just dividend stocks
08:00 in general you’ll recognize a Realty
08:04 income corporation that’s kind of the
08:06 poster boy for monthly dividend paying
08:11 stocks so I also link to the post that I
08:18 previously put up regarding
08:20 characteristics of quality high
08:22 dividends
08:23 and touched on and that post how
08:27 consistent earnings the right business
08:28 model and solid financials are important
08:30 things to consider when investing for
08:33 dividends and since monthly dividend
08:36 paying stocks payout three times as much
08:39 as quarterly dividend paying stocks I
08:42 would say that consistency in earnings
08:45 good business model and solid financials
08:48 are three times as important more so
08:52 lastly we’ll look at mutual funds that
08:56 pay monthly dividends and I assumed that
09:00 I would be able to do like I did with
09:01 ETFs and stocks and go find a definitive
09:06 list somewhere but I could not find one
09:09 that existed so I thought that was an
09:12 opportunity to begin to put one together
09:15 there’s obviously I think I looked on
09:19 one screen here over 26,000 mutual funds
09:21 in existence so I came up with the first
09:26 50 I could find in terms of monthly
09:27 dividend payers you know and be mindful
09:32 of the amount of time I spent doing this
09:35 but you know it at least kicks the list
09:39 off and I will add to this as others
09:43 come to light particularly if you have
09:46 any ideas there of anything that’s
09:49 missing from this list go ahead and go
09:52 to the post which I’ll link to in the
09:53 description and leave it in the comments
09:55 please and I will review it and add it
09:59 so a lot of the mutual funds of course
10:02 just like the ETFs are invested in fixed
10:06 income securities like bonds but there
10:10 are also a decent amount that are equity
10:12 based too and you can research those I
10:16 don’t have links in there because I
10:19 didn’t want them to be too crowded
10:21 together but you know you can go to
10:24 Morningstar Yahoo Finance wherever it is
10:27 you like to do fund research and type in
10:29 them symbol of course and do your
10:34 research there
10:37 so you know I did not also didn’t want
10:41 to post any other information in terms
10:44 of NAV yield assets because it’s just
10:46 not it wouldn’t be titling I’m not set
10:50 up to have that sort of thing
10:51 automatically update so it’s just best
10:54 to uh you know start with the ideas here
10:57 and then take them and research them
10:59 somewhere else that’s not really what
11:01 kind of site invests the money is so
11:06 that covers the three main dividend
11:11 monthly dividend paying investment etf
11:14 stocks and mutual funds there were a
11:18 couple others that I thought of that
11:19 might kind of loosely fit that
11:21 description of one being pretty obvious
11:23 something that a lot of ETS and mutual
11:26 funds and stocks were invested in that’s
11:28 real estate but the site for the time
11:32 being anyways is more focused on you
11:39 know the contemporary type of
11:45 investments like you would buy through a
11:47 brokerage than investments in that sense
11:50 obviously the term investment can
11:52 transcend just what you could buy
11:53 through a brokerage and the real estate
11:56 is a completely viable investment pays a
11:58 monthly income and you know could be
12:02 very lucrative
12:03 so you know that I acknowledge that that
12:05 is a like I said a particularly a
12:10 potentially monthly dividend dividend I
12:14 use that term loosely a paying
12:15 investment they just wasn’t really
12:19 applicable for this post the other one
12:21 was selling covered calls which again I
12:24 would use dividends and quotes because
12:26 that’s not technically dividends in a
12:29 sense of money paid out from earnings
12:32 but that is a strategy and some people
12:34 use that are invested in equities I
12:37 guess you could do naked calls and sell
12:44 options but you know
12:47 right too too complicated with a lot of
12:50 times people buy stock and self-covered
12:52 calls and kind of consider that a
12:55 dividend so also but the viable strategy
12:58 just wasn’t appropriate for this post so
13:01 if think of anything that I left off
13:04 this list of monthly dividend paying
13:06 investments that belongs on there again
13:09 go to the post down in the description
13:10 leave me a comment let you know and
13:13 don’t forget that if you know of any
13:17 mutual funds to pay monthly dividends
13:18 that aren’t on the list please go to the
13:21 post and leave me a comment

About Kevin Ballard

I’ve worked in corporate finance for almost fifteen years. I have a bachelor’s in Finance and an MBA. I am also a Certified Management Accountant. At one time I had my securities license (Series 7) and Health and Life insurance licenses. What’s more important is that I like to learn and always seek to truly understand the subject I am studying. Learn more about Invest Some Money's Editorial Process.

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