Many dividend investors typically don't think about monthly dividend stocks when building their portfolio. However, there are some quality companies that pay a nice monthly dividend compared to the normal quarterly dividend paid by most companies. While the majority of companies pay the quarterly dividend, a smart investor should also consider adding monthly dividend stocks to their portfolio. Here are a few steps to begin investing in monthly dividend stocks.
Instructions
1. Look for companies that are setup as trusts in the United States or Canada. Several natural gas and oil companies are setup as trust entity's which decide to pay the majority of their profits back to their investors. Purchasing company's setup as trusts is a great opportunity to invest in monthly dividend stocks.
2. Search for real estate trusts in addition to natural gas and oil companies to find monthly dividend stocks. Like their counterparts, many real estate trusts are setup to payout most of their profits through dividends. Finding the best of these companies will most surely provide steady monthly income for years to come.
3. Use websites and blogs that specialize in publishing content regarding dividend stocks. The "Wall Street News Network" (www.wallstreetnewsnetwork.com) for example publishes a list of monthly dividend stocks that gives you a great start. Using this information is a perfect place to start your research by taking the list and completing your due diligence on stocks you may be interested in.
4. Use free online stock screening tools that included dividend information. Sites like Yahoo! Finance have query tools that can show the historical data for stock dividends paid to shareholders. Using these types of tools can identify monthly dividend stocks available.
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