The common practice for U.S. dividend paying companies is the quarterly dividend payment. A small portion of the total number of dividend paying companies make monthly dividend payments. Combine the steady returns of a quality real estate investment company (REIT) and monthly checks and you have an attractive addition to your stock portfolio.
Author: Tim Plaehn
The political crisis triggered by Russia’s takeover of Crimea and fears of greater expansion plans by Putin have finally forced the Obama administration to focus on energy policy and stop dragging its feet on approvals for new natural gas liquefaction and export facilities.
The first quarter of 2014 has been much better for mortgage REIT share prices. The price gains have been good news for suffering mREIT investors, but the question is whether the gains can continue or even have the share prices stabilize so investors can count on a double-digit yield going forward.
Picking income stocks that will grow the dividends provides two big benefits to your portfolio. One, a rising dividend will force the market to increase the share price at a comparable rate. Second, a company that has consistently increased dividends is not about to announce a dividend cuts.
Fear can cause an investor to sell shares at the wrong time, resulting in unnecessary losses and also missing out on the possibility of attractive future share price gains and dividend payments.
When you look at shipping stocks as dividend income investments, a good starting point includes a historical review. For about a 2 1/2 year period of time, from early 2006 until the fall of 2008, shipping stocks – especially the dry bulk shippers – were the darlings of Wall Street and investors were racking up both large dividends and rapid share price increases.