2 Stocks That Cut You a Check Each Month
There's a big switch in retirement from building a nest egg to living off of it, which often leads investors toward dividend-paying stocks. Most dividends, however, are paid quarterly, which is a bit of a quagmire for investors that need that cash at shorter intervals. But some companies, like Realty Income (NYSE: O) and EPR Properties (NYSE: EPR), pay monthly, making it much easier to create a family budget.
Here's how these two companies are similar and how they are very different, too. If you are looking for a monthly-pay dividend stock, at least one will likely tickle your fancy.
Realty Income and EPR are both real estate investment trusts (REITs). This is a business structure specifically designed to pass income on to shareholders, as it allows a company to avoid corporate-level taxes. This increases the cash that investors collect, but with the side effect that the dividend is treated as regular income by the shareholder. You can avoid that taxation issue by owning these securities in a Roth account, so there's a workaround for savvy investors here.
Source Fool.com
