4 Picks for Monthly Dividends


Tim Plaehn Image Tim Plaehn Investment Research Analyst, Investors Alley

Looking for a steady stream of reliable income? Tim Plaehn, editor of The Dividend Hunter, highlights a diverse group of four favorite income generating idea that each pays monthly dividends to shareholders.

Steven Halpern:  How are you doing today, Tim?

Tim Plaehn:  Doing really well Steve, how about yourself?

Steven Halpern:  Very good, thanks for taking the time. Could you give our listeners a brief overview of The Dividend Hunter and the strategy underlying the newsletter?

Tim Plaehn:  Yes, The Dividend Hunter is a high yield stock focused investment newsletter.  I’m looking to make stock recommendations, buy and hold stock recommendations with above average yields.  

The strategy focus is to find those high yield stocks where we have a high level of safety at the same time in the current dividends and some potential for dividend growth over time also.

Steven Halpern:  Could you explain your current market outlook and how income investors should approach the recent market weakness?

Tim Plaehn:  Markets like this are tough for everybody because we all hate to see our share prices go down, but I really tried to, you know, if we’re dividend focused investors we kind of almost always have to be in the market.  

I tried to explain to my subscribers—and people I talk to—that periods like these, if buying high quality dividend stocks, they’re just great buying opportunities.  

You can buy at lower prices which will average up your yield and you’re locking in those high yields you see right now, basically, forever or at least as long as you own the stock.

Steven Halpern:  Among the dividend investments that you analyze are some that pay monthly dividends, how common is this and are there benefits to this payment schedule?

Tim Plaehn:  I would say maybe 10% or so of the dividend paying universe, maybe less than that, pay monthly dividends.