Stocks To Create A High Yield Monthly Dividend Income Stream
August 02, 2012
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RELATED TICKERS: MAIN
, MO
, GA
Dividend stocks are popular because they pay income to the investor. The majority of dividend stocks pay their dividends on a quarterly basis. This is good but investors only get 4 dividend checks per year. The investor must wait three months in between dividend checks. For example, Atria Group (MO) is a popular dividend stock that pays a high dividend yield of 4.6% per year. MO pays quarterly dividends of $0.41 and trades for $35.91. The investor in MO gets a quarterly dividend yield of 1.14% (0.41/35.91) or a monthly dividend yield of 0.38% (1.14/3). OK, who wants to get paid only 0.38% each month?
On the other end, an investor can invest in a stock paying monthly dividends. This is better as it pays the investor monthly. A good example of a monthly dividend stock is Main Street Capital (MAIN). This is a business development company that trades at $25.15. MAIN pays a monthly dividend of $0.145 for an annual dividend yield of 7.08%. This equates to the investor getting 0.58% dividend yield each month. This is good and deserves a place in most income portfolios.
However, there is a method to increase monthly dividend yields significantly higher. This method is a stock rotation model to capture higher dividends each month. Using this method, the investor has an opportunity to make from 3% to 12% in dividend yield each month.
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