To talk of dividends, if you are curious about what they are then a simple answer to this is they are a portion of company’s profits that are distributed to share holders regularly. The amount of profit shared among the share holders is a percentage of the stock price.
These are popular because not only the shareholders see the price move but they also receive dividends just for owning the stocks. There are a lot of companies that produce dividends and receiving those on a monthly basis is a very good boost to your pocket.
Here are a few reasons as to why monthly dividend stocks are far better than any other –
- These are way easier to budget for. This is because if you are waiting for the quarterly dividend checks, you will be forced to budget that income for the next several months.
A pile of money will sit in your bank, waiting for you to spend it and tempt you to binge spending.
- These always offers better compound interest. If you receive dividends every month, you will be able to re invest the amount in more stocks and those would grow more with time. The simple matter of fact is that the faster you are able to re-invest, the more and the faster they will bring interest.
- These brings regular income which is pretty enjoyable to see. It would seem like you are earning extra income as your stock price fluctuates, you will still see income being produce.
Now, as you are known to the pros of monthly dividends, you might be curious as to where you can invest in those monthly dividends and what type of companies produce them. So, here are a few points to your rescue –
You will mostly find monthly dividend companies limited to –
- Business Development Organizations –
These are companies that invest in other small to medium companies in order to help them grow in the initial stages of their development. These organizations make their income from the investments in the companies.
- Real Estate investment trust –
These are the companies that own multiple properties and generate income based on the same.
They can be specialized in different fields or niches like apartments, hospitals, office buildings, commercial properties etc.
Each of the real estate investment trusts basically focus on a specific field and produces most dividends.
- Master Limited Partnerships –
These are organizations that generate predictable income streams based on the production/processing/storage and transportation of deplorable natural resources.
Now you know what monthly dividends are and how they are better than any other dividends so without further delay do some research apart from going through the above mentioned points and start investing in monthly dividends to make your profits visible.
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