Monthly Paid Dividend Qualities

Quarterly, Semi-Annual and Annual dividend investors anxiously await announcements from a firm, fund, or brokerage to learn if their next dividend will be higher, lower, or paid at all. Monthly pay stocks, funds, trusts, and partnerships inform the holder every four and one third weeks by check and/or statement. If the entity reduces or suspends a payment, the holder can sell out of the investment immediately to cut future losses.

This advantage has been curtailed when companies suddenly cut monthly dividends to save cash. Some 2016 examples were: GORO cut dividends 80% from $.01 to $.002 per month January 6 then to $.0016 February 6; also HGT declared no cash dividends January 19 and February 19; NASDAQ suspended trading of UDF February 18 (after an FBI raid of UDF offices). In April, Vanguard Resources and Full Circle Capital Corporation suspended their monthly payouts, while,newcomer to this list, Black Diamond Group cut its payout in half. July 27 venerable American Capital Agency announced a reduction to its MoPay dividend from $.20 to $.18. Top yield dog for September, Orchid Island Capital (ORC) released this cautionary note with its most recent August monthly dividend announcement, “The Company has not established a minimum distribution payment level and is not assured of its ability to make distributions to stockholders in the future.” Thus , the segment is volatile.

MOPAY (0) DogonEmojiSEP16

Readers said:

“[A] problem with this analysis is you are comparing companies of VERY different varieties. REITs pay no taxes and their distributions are classified as ordinary income and thus not subject to the 15% or 20% tax rate. MLPs also pay little no taxes at the corporate level, but instead have “distributions”… Comparing REITs, MLPs and regular corporations thus requires a financial analysis…not include[d].” –arbtrdr

“[Y]ou list a few issues here whose distributions are rife with RETURN OF CAPTAL [ROC] at its most destructive form, funds that pay you back your own money each and every month in their distributions with no regard to what they truly earn…- these should not be included in any list containing the word “dividend“. –NYer1

“I can enter or exit a position and still reap dividends for at least 2/3s of the quarter. They also smooth the income stream so I have cash at any given time to make a purchase at dips.” –Ed Invests

“Dividend dog investing really works well for income in my experience. I have been seriously invested in dogs the more unloved the better.” –Urbannek

“…Nice to see another contrarian strategy. This one seems to take a lot of attention in comparison [to Dow dogs], but I like the monthly rebalance.” –colodude

“At this level of risk, I’m only buying monthly dividend payers. Dividend if cut only [sits] for a month and not a quarter.” –Sinjjn Smythe

“…love those monthly payers.” –Hardog

“Some of us are comfortable investing in Dog stocks because we feel the reward is worth the risk. As long as [my sin stock] continues to pay and raise the dividend like it has for 16 years now, it will have a spot in my portfolio.” –Miz Magic DiviDogs

“One thing to point out: These stocks are not buy & hold. If you buy any of these stocks, set a price where you will sell… trailing stops work real good & with mopays you can get out & get back in without losing a whole quarter of dividends…” –drking

“I don’t know how many times I’ve kicked myself for not investing in a beaten down group only to find it spring back up months later.” –User 13258352