3 Stocks That Pay You Each Month
Income investing is popular among retirees who are seeking cash flows that replace their earnings from work, and dividend stocks are an important piece of that strategy. Most stocks pay quarterly dividends that are declared after their financial results have been calculated and announced, but some pay a monthly dividend.
Monthly dividends are nearly identical to quarterly ones, but they provide some benefits that might suit investor needs better. First, compounding gains by reinvesting monthly dividends leads to slightly better net returns than quarterly distributions of the same amount. On top of this modest benefit, retirees often rely on income from their investment portfolio to provide the cash from which they pay monthly bills and living expenses. Monthly payments make cash flow management simpler than quarterly ones, especially when most household expenses are incurred on a monthly basis.
The following three stocks pay dividends each month rather than each quarter, and income investors should consider their potential in an investment portfolio.
Source Fool.com
