There are some good reasons to consider adding stocks that pay monthly dividends to your portfolio. Some folks, like retirees and income-focused investors, or those with otherwise irregular income streams, might prefer monthly over quarterly payouts.

More frequent payouts also can enable more frequent reinvestments, which are especially convenient for those in dividend reinvestment plans (DRIPs) for that stock. The investment income, if you keep it, also can compound more quickly.

About 60 stocks pay monthly dividends right now, and while some offer eye-popping yields north of 15%, others pay a respectable rate and have a business model and track record that won't keep you up at night.

Continue reading

Source Fool.com