Marvelous Monthly Dividend Stocks to Own Now
May 02, 2018
Investors have been trained to be patient. We’re supposed to wait for our cut of the profits either quarterly or in some markets only once or twice a year. Meanwhile, the companies that we own earn their cash on a daily basis and management gets their cut throughout the year.
But there are some exceptions in the market. There are some companies that pay shareholders month after month throughout each and every year. And right now, I have three great companies that not only pay monthly, but also pay generously.
And even better, their stocks are currently trading at big discounts to their net asset or book value making them bargain buys for savvy income investors.
Start with one of the best of the bond management companies with AllianceBernstein and its Global High Income Fund Company (NYSE:AWF).
AllianceBernstein runs the closed end fund company that focuses on buying and owning some of the best yielding bonds predominantly in the U.S. bond market. Holdings are spread from government bonds from the U.S. and other governments as well as corporate bonds and mortgage securities.
Returns for its portfolio have been good for the past three years with an average annual total return running at 5.97%. And for proof of better management and the opportunities in the U.S. bond market, the fund company has out-performed the sagging 10-year U.S. Treasury prices by some 2.59%.
And there is even better news. The fund company currently pays out its monthly dividend amounting to 99 cents per share providing a yield of 7.08%. And to clinch the deal, the shares are currently trading at a discount of 12.09% to the value of the net assets of the fund.
Then, for the next great monthly dividend payer look beyond the US to the globe’s best of the bond markets with the Western Asset Emerging Markets Debt Fund company (NYSE:EMD). Western Asset Management is part of Legg Mason and manages over $400 billion worldwide. Its Emerging Markets Debt Fund company came about after the company consolidated some of its similar investment funds.
Emerging markets bonds are like the growth stocks of the bond market. Buy investing in nations’ government bonds you will get higher yields now and appreciation as these nations improve their economic conditions and resulting credit ratings.
Western Asset’s portfolio is down a bit so far this year but it has generated positive returns over the past three years with an average annual total return of 7.24%.
And like AllianceBernstein, Western Asset pays a nice monthly dividend of 10 cents which provides a current yield of 7.35%. And it is a great buy as the shares are trading at a big discount of 13.78% to the underlying net asset value of its portfolio of global bonds.
And the third monthly dividend payer opportunity is primarily back in the U.S. market with the Flaherty & Crumrine Preferred Income Fund company (NYSE:PFD). This fund company invests in preferred shares which provide higher dividend income than common shares while also providing additional credit protection as they rank just below the bonds of companies in any workout.
The portfolio focuses primarily on U.S. companies’ preferred shares with some small holdings from British, Australian and French companies. The majority of shares are from U.S. banks, which are gaining profitability from U.S. tax reform as well as regulatory reforms. This should not only ensure dividend income, but also some gains in the underlying portfolio over the coming year.
Returns for the portfolio have been impressed with the past three years generating an average annual total return of 7.34%.
The fund company pays its monthly dividend of 7.8 cents per share which represents a yield of 6.91%. And like the other two investment fund companies, the shares are currently trading at a discount of 1.24% to the value of the underlying portfolio of preferred stocks.
Neil George is the editor for Profitable Investing and does not have any current holdings in the securities mentioned above.