12 Best Monthly Dividend Stocks and Funds to Buy for 2022
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.