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Make More Money With Monthly Dividends
Posted: Jul 01, 2020
The stock market offers a variety of stocks and investments to help meet the financial needs and goals of a multitude of investors. Stocks that pay out monthly dividends are particularly enticing for those investors looking for regular income and the flexibility to use that money how they wish.
How to Play the Stock Market
Image via Flickr by AndreasPoike
When investing in the stock market for long-term financial growth, it's best to consider several types of stocks and bonds, such as those that hold higher risk but have the chance for high reward in addition to lower-risk stocks, like those that payout monthly or quarterly dividends, which are not influenced as dramatically by overall stock trends or inflation. Diversify and protect your investments by putting some of your money into monthly dividend stocks.
Making Monthly Dividends
To make money off stocks that pay monthly dividends, you first need to identify stocks that provide stockholders with regular payouts. Once you've assembled a list, assess each stock for viability. Finally, determine how much money you want to put into the stock. Consider how much you hope to earn monthly in return to help you gauge the amount of your initial investment in the company's stock shares.
Monthly dividends offer a host of benefits, including:
- Flexibility: You can use your monthly dividend however you like. Many people choose to reinvest their money, diversify their investments through real estate or another physical commodity, or put the money in high-yield savings accounts.
- Low-risk: Since the monthly dividends are the result of income earned by the company rather than the health of the stock market, monthly dividend stocks are often much less risky than other types of stocks or bonds.
- Consistent: Many monthly dividend stocks provide a consistent monthly payout, which should increase over time.
Identifying Solid Investments
Before investing, it's vital you assess the health of companies by looking into their past payouts to see if they've been consistent for at least five years, have room for growth, and maintain a steady stream of income to pass on to their investors. Generally, you'll want to invest in the financial, real estate, energy, or utility industry. These fields tend to garner substantial and dependable income, making them some of the safest bets for consistent monthly dividends.
Many companies offer monthly dividend payments to their stockholders. Here are a few of the most popular stocks that pay monthly dividends to consider:
- Main Street Capital: Main Street Capital is a perennial favorite for monthly dividend payouts. It's a business development company that has a strong track record for payouts.
- Realty Income: This commercial real estate investment trust is a compelling choice for a monthly dividend payout from the real estate sector.
- Vermillion Energy: From the energy sector, a Canadian company Vermillion Energy holds a number of high-value properties and provides substantial payouts to its stockholders.
Monthly dividends can help you increase your wealth in a low-risk way. Use your payouts to help diversify your investments and prepare for the future.
Tahirnajmi is an evergreen investor that creates, grows, and funds innovative companies and talented entrepreneurs in the St. Louis region.