August 8, 2019

8 Monthly Dividend Stocks to Buy for Consistent Income


Our bills are monthly, most dividend payouts aren't



With so much uncertainty weighing on key economic metrics — most notably the U.S.-China trade war — the idea of buying dividend stocks is an attractive one. Primarily, as passive-income generating securities, dividend-bearers are likely to weather volatility better than stocks that don’t offer payouts. Plus, any capital returns are bonuses on top of the yield.

However, dividend stocks typically have one glaring weakness, especially for those who depend on stocks for income: their payouts occur on a quarterly basis. That’s not particularly helpful when our society revolves around monthly cost expenditures, such as mortgages, car payments, and utility bills. And that’s one of the reasons why monthly dividend stocks are so attractive.

Under this arrangement, you’re receiving income 12 times a year as opposed to the usual four times. Because money has a time component to it, monthly dividend stocks allow investors much more flexibility. Also, if you like to reinvest dividends into more shares of the target asset, a monthly schedule allows you to advantage technical dynamics, such as a pricing dip.

That said, conservative investors should adopt the same precautions toward monthly dividend stocks as you would any income-generating investment. For instance, you should never jump aboard a company or fund merely because they pay out monthly. The key here is healthy cash flows and robust, stable sectors.





At the same time, monthly dividend stocks offer speculators a reason to join in on the fun. With payouts every 30 days, sometimes risky, high-yielding names offer compelling opportunities. Of course, that depends on your personal tolerance to volatility.

And with these cautionary notes out of the way, here are the eight best monthly dividend stocks to consider in 2019:

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