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The Top 350 Monthly Dividend Stocks

by: Stockerblog August 17, 2007 | about stocks: BFK / BIF / CHI / HYB / MTR / NRO / PGH / RSF    

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There are over 350 stocks which pay their dividends monthly. Conservative investors love these investments for several reasons: they get their return of capital back faster, they can compound faster, the income coincides with their monthly expenses, they are more liquid than individual corporate or municipal bonds, there is no minimum investment allowing them greater diversification, and there is the potential for capital appreciation for some of these stocks. To get a downloadable list of all the monthly dividend stocks that you can open in Excel which you can sort, add to, delete from, or change, go to WallStreetNewsNetwork.com.

There are some caveats you should be aware of. For purposes of this article, it is assumed that exchange traded funds [ETF’s], real estate investment trusts [REIT’s], and Canadian oil income royalty trusts are considered stocks. Dividends are always subject to change and reduction, including changes in payment schedules from monthly to quarterly. The principal can also drop, by even more than the amount of the income received. The information on these stocks was gathered over the past couple weeks, so obviously some yields have changed during that time frame.

Some of these stocks are extremely speculative, and high yield does not mean safe. The Canadian royalty trusts have special tax issues that you should be aware of, especially if you are planning on putting them in a retirement plan. A Canadian law which goes into effect in 2011 can affect the price and income of the Canadian stocks.

Remember, these are monthly dividend stocks, in case you are wondering why your quarterly dividend stock does not appear on the list. I’ve extracted the top eight from the list, including the highest yielding from various categories, such as tax-free, real estate oriented, and Canadian royalty trusts.

  • RMK Strategic Income Fund (RSF), is at the top of this list in terms of yield, and probably in terms of risk. It yields 24.9%. This is a closed-end fund which is extremely speculative due to its portfolio holdings which include home equity loans, commercial loans, franchise loans, equipment leases, manufactured housing, common stocks, collateralized debt obligations, certificate-backed obligations, and collateralized mortgage obligations. The company has been paying $0.14 per month for the last nine months, which is down from $0.15 per month last year. I personally don’t think the dividend is sustainable.
  • Pengrowth Energy Trust (PGH) is the highest yielding monthly Canadian oil royalty income trust, with a yield of 16.2%. It owns and operates interests in oil and natural gas properties in Canada. It has increased its monthly dividend for the last two months, and the dividend is the highest it has ever been in the last three years. The price earnings ratio, for what it is worth, is 13.6.
  • Boulder Growth & Income Fund Inc. (BIF), is the highest yielding monthly growth and income fund, and yields 14.1%. This CEF invests in common stocks in both the U.S. and outside the U.S., warrants, corporate bonds, treasury bills, and repurchase agreements. It was founded in 1972, and is co-managed by Boulder Investment Advisers, and Stewart Investment Advisers.
  • Neuberger Berman Real Estate Securities Income Fund Inc. (NRO), is the highest yielding monthly real estate CEF, as opposed to a REIT. The fund, with yields 13.6%, invests in real estate investment trusts, and other real estate stocks. It has paid its dividend monthly since their inception in 2003, and recently raised its dividend in May of this year.
  • Mesa Royalty Trust (MTR), is the highest yield American royalty trust, with a yield of 13.2%. Mesa, which is based in Austin, Texas, owns oil and gas royalty interests in Kansas, New Mexico, Colorado, and Wyoming. It has been paying monthly dividends since 1988.
  • The New America High Income Fund Inc. (HYB), is the top yielding monthly bond CEF, and yields 12.8%. Its portfolio holds below investment grade corporate bonds. It has paid monthly dividends since April 1988.
  • The Calamos Convertible Opportunities & Income Fund (CHI), is the highest yielding convertible fund, and generates a yield of 11.7%. It invests in convertible bonds, and regular bonds of all ratings. It has paid its monthly dividends since August 2002.
  • BlackRock Municipal Income Trust (BFK) is the highest yielding municipal bond CEF, with a 6.8% yield. It invests at least 80% of its portfolio in municipal bonds that are investment-grade quality, and up to 20% in lower grade munis. It has paid monthly dividends since September of 2001.

    • Disclosure: The author does not own any of the above.

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    This article has 7 comments:

    •  
      Aug 17 08:29 PM
      This analysis, and its hot-linked list of all 350 mo. div. paying stocks, is very useful, and very well done. As the author warns, several of these high yield issues are quite speculative. I owned several of these (RSF, RMA, RMH) and by luck sold them in late May of this year. Since that time they have had their share price cut approx. in half. With a long investment horizon, these may do well, and you can collect the dividends monthly in the meantime. These are not for short term investors, however, or those with a weak heart.
      Reply
    •  
      Aug 18 11:29 AM
      Thank you for the opportunity for information. I'm learning about these kinds of investments/informatio... - so I'm careful as to what I ask for, say and do - I'll remain as a reader for now, if you don't mind.
      Reply
    •  
      Aug 18 11:30 AM
      Thank you for the opportunity for information. I'm learning about these kinds of investments/informatio... - so I'm careful as to what I ask for, say and do - I'll remain as a reader for now, if you don't mind.
      Reply
    •  
      Aug 18 01:55 PM
      I have been investing for over 50 years and have been quite successful, primarily investing in value stocks. However, I am also open to suggestions which I always investigate thoroughly.
      Reply
    •  
      Aug 18 02:30 PM
      i agree with jga105.net. even though i haven't been investing for 50 years. value stocks are the basis for investment.
      Reply
    •  
      Mar 08 07:31 PM
      Monthly dividends are so very, very nice!
      Reply
    •  
      May 31 02:20 AM
      Dividend stocks are a beautiful thing. The information about them however is scattered across the web to where it is difficult to find them and chose the right ones for your portfolio.

      When you select them you want to diversify in different sectors. Also one has to look ahead and avoid costly mistakes – 2 examples are:


      A. Canadian energy royalty trusts – good monthly dividends right now, but 2 things turned me away from these stocks:


      1. You pay 15% foreign tax each month on the received dividend

      2. Tax laws in Canada are changing in 2011 to start taxing the trusts and to significantly increase the dividend tax the foreign investors will be paying


      B. US OIL royalty trusts – the problem here is that these stocks will exist only until the property they are linked to has oil to produce. Ones oil is gone trust disappears and so is your money. So you have to cash out before that happens. I am not good at timing these events so I decided to stay away.

      So after doing my research on dividend paying stocks I chose these 6 sectors to get in:


      Telecommunications, Energy, Financials, Tobacco, Oil/Drilling and Shipping

      I went with these stocks, that I believe will give me best long term dividend returns: CEL, CPL, PM, DPO, IID, RSF, GDOCF, ITKSF and SDRLF


      1. CEL - Cellcom Israel Ltd. (Cellcom) is a provider of cellular
      communications services in Israel


      2. CPL - CPFL Energia SA is a holding company engaged, through its subsidiaries, in the distribution, generation and commercialization of the electricity in Brazil


      3. DPO - Dow 30 Enhanced Premium & Income Fund Inc. is a diversified, closed-end management investment company. Monthly dividend payer


      4. IID - The ING International High Dividend Equity Income Fund is a non-diversified, closed-end management investment company. Pays good monthly dividend


      5. RSF - Strategic Income Fund, Inc. (the Fund) is a diversified, closed-end management investment company. Pays huge monthly dividend


      6. GDOCF – A Bulk shipper with a huge dividend - www.goldenocean.no/. Best thing – stock is still under $7. Frontline (FRO) spin-off child


      7. ITKSF – A petroleum tanker Company, no dividend yet but surely one is coming as it is a Frontline (FRO) child -
      www.frontline.bm/repor....

      Stock is under 2 bucks, and it started trading just recently after Frontline (FRO) spin off.


      8. SDRLF – Deep water oil drilling Company - www.seadrill.com/, good dividend projected to largely increase in 2009


      9. PM – Philip Morris international – no introduction needed here.


      One more thing to add – dividend stocks are great but any complete portfolio needs also a growth stock piece in it.

      Stocks such as V, RIO, PBR, UNP, etc. are a very nice addition.


      Well that is all and I hope it helps in your dividend hunting journey


      Good luck and best regards.

      Frank


      Reply
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