Your bills generally come monthly. Your mortgage, your car
payment, your utility bills … even the gym membership and Netflix subscription
come due once per month.
Yet that’s not how most investments typically work. Bonds
tend to pay their coupon payments semiannually, and stocks tend to pay their
dividends quarterly. You can get paid much more frequently, however. A number
of monthly dividend stocks and funds can help you better align your investment
income with your living expenses.
Investors received a stark reminder of how important stable
income is during the market turmoil of February and March. Not only did the
stock market take a nosedive, but many seemingly reliable dividend payers were
forced to cut or suspend their payouts.
Furthermore, the coronavirus lockdowns have disrupted the
livelihoods of millions of Americans, leaving many to dip into already depleted
portfolios to pay their bills.
"Income security is the single biggest concern I'm
hearing from my clients," says Sonia Joao, a wealth manager based in
Houston, Texas. "Many of my clients are at that critical age when they
become targeted for early retirement, and that's now more likely than ever with
companies being forced to reduce headcount. Replacing that lost income is our
top priority."
Today, we're going to take a look at 11 of the best monthly
dividend stocks and funds that have so far managed the coronavirus with their
payouts intact. Not all of these will be exceptionally high yielders. In this
environment, it's better to take a lower but reliable yield than to reach for
an unrealistically high yield, only to watch it evaporate before the next
payment.
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