Your bills come monthly. Why not your dividend checks? These are some of 2022's best monthly dividend stocks and funds for easier income planning.
For all the changes we've experienced in recent years, some
things remain regrettably the same. We all have bills to pay, and those bills
generally come monthly. Whether it's your mortgage, your car payment or even
your regular phone and utility bills, you're generally expected to pay every
month.
While we're in our working years, that's not necessarily a
problem, as paychecks generally come every two weeks. And even for those in
retirement, Social Security and (if you're lucky enough to have one) pension
payments also come on a regular monthly schedule. But unfortunately, it doesn't
work that way in our investment portfolios.
That's where monthly dividend stocks come into play.
Dividend-paying stocks generally pay quarterly, and most
bonds pay semiannually, or twice per year. This has a way of making portfolio
income lumpy, as dividend and interest payments often come in clusters.
Well, monthly dividend stocks can help smooth out that
income stream and better align your inflows with your outflows.
"We'd never recommend buying a stock purely because it
has a monthly dividend," says Rachel Klinger, president of McCann Wealth
Strategies, an investment adviser based in State College, Pennsylvania.
"But monthly dividend stocks can be a nice addition to a portfolio and can
add a little regularity to an investor's income stream."
Today, we're going to look at 12 of the best monthly
dividend stocks and funds to buy as we get ready to start 2022. You'll see some
similarities across the selections as monthly dividend stocks tend to be
concentrated in a small handful of sectors such as real estate investment
trusts (REITs), closed-end funds (CEFs) and business development companies
(BDCs). These sectors tend to be more income-focused than growth-focused and
sport yields that are vastly higher than the market average.
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