Most of the thousands of dividend paying stocks listed on the U.S. exchanges pay quarterly dividends, or once every three months. Quarterly dividends are nice, but most of us pay our bills monthly, so it would be convenient to have investments that pay attractive yields and pay the income out on a monthly schedule.
If you like the idea of a monthly paycheck from your stock portfolio and If that is your goal, you are in luck. There are roughly three dozen individual company stocks that pay monthly dividends instead of the quarterly standard.
The rules of earning dividends are unique to the stock market. Each dividend payment comes with a set of dates. Every corporate dividend payment must be declared by the company’s board of directors. Once announced, the dividend will come with a record date and a payment date.
To earn the next dividend, you must be an owner by the record date. The stock market settlement rules take a day from when you buy the shares until you become the official owner.
As a result, stocks go ex-dividend the day before the record date. Ex-dividend means that if you buy shares on that date, you will not receive the upcoming dividend payment. To earn the dividend, you must purchase the stock at least one day before the ex-dividend date.
Here are several stocks that pay monthly dividends going ex-dividend this week.
Do your own research on these (or any) stocks to make sure they fit your investment goals.
ARMOUR Residential REIT, Inc. (ARR) is a finance real estate investment trust that invests in agency mortgage backed securities (MBS). These are bonds backed by pools of home mortgages guaranteed by one of the government agencies, Fannie Mae, Freddie Mac or Ginnie Mae. With the government guarantee, MBS are very safe investments.
The risk of this REIT business model is that companies like ARMOUR use a lot of leverage to boost the return on equity from their bond portfolios. The steepness or flatness of the yield curve can affect the ability to sustain dividend payments.
ARR goes ex-dividend on June 14 with payment on June 27.
The shares yield 12.5%.
Sabine Royalty Trust (SBR) is as the name states, a trust that receives royalty payments from oil and gas producing properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas.
This type of trust is not an operating business. It just receives royalty payments and then pays the received cash out to investors as monthly dividends. Sabine Royalty Trust was formed in 1982.
Dividends are variable based on the level of production in the royalty properties and the earned prices for the crude oil and natural gas produced; much like another similar stock that my Dividend Hunter readers are familiar with and paying 12.3%.
Over the last year, the SBR dividend has ranged from $0.1465 per share up to $0.4039 per share. SBR goes ex-dividend on June 14 for a $0.3591 dividend to be paid on June 28.
Current yield is 9.6%.
Shaw Communications Inc. (SJR) is a Canadian telecom services provider. The company is Canada’s largest provider of satellite TV services.
Shaw also offers landline Internet and telephone services to its customers. Commercial phone, Internet and video services are provided to businesses. The company has a total of 3.2 million customers. Shares of Shaw Communications trade on the Toronto and New York Stock exchanges.
SJR is the stock symbol for U.S. based investors. The stock goes ex-dividend on a CAD $0.0985 monthly dividend on June 14, with payment on June 27. That works out to about $0.073 in USD.
Current yield for SJR is 4.3%.
PennantPark Floating Rate Capital (PFLT) is a business development company (BDC) that provides first lien loans to middle market companies located primarily in the U.S., with proven management teams, competitive market positions, strong cash flow, growth potential, and viable exit strategies.
BDC is a special type of pass through business structure that are required to pay out at least 90% of net income as dividends. The BDC business model was created to provide debt and equity capital to small corporations.
PFLT currently has a $980 million portfolio invested in 85 different companies. The company is paying a steady $0.095 per share monthly dividend. The next ex-dividend is on June 14 with payment on July 1.
The stock yields 9.7%.Buy the #1 stock to turn $25k into tens of thousands of dollars for life
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