Dividend distributions – usually made in cash but occasionally paid out in shares – are payments made by public companies to stockholders. There are many good reasons savvy investors own dividend-paying stocks. Dividends are a direct and tangible way for investors to benefit from the earnings a company generates.
Not only do dividends provide current income but, as they rise over time, can also act as a hedge against inflation. Dividends are an important component of a stock’s total return, which is made up of both capital appreciation and income. Additionally, companies that can afford to pay dividends are seen as shareholder-friendly and financially sound.
Individual companies can choose their own dividend payout schedules. For normally structured C corporations, there’s no mandate decreeing when or if they must pay dividends. Most stocks that pay regular dividends do so on a quarterly schedule. A small number – roughly 80 – have opted to distribute their dividend income monthly.
Investors who have current income as a primary objective appreciate monthly dividend stocks, which arrive month-in and month-out on a schedule that works well with most people’s cash flow needs. Monthly dividend payers are especially important to retirees and others who are on a fixed budget or use their stock holdings as a source of income.
If you understand the value of dividends and the idea of receiving income monthly is intriguing to you, here are seven of the best monthly dividend…
