You know what's better than a dividend stock? A dividend stock that pays you every month. Earlier this week, I identified five companies with monthly dividends. Today, based on some recommendations from readers on my previous article, I have found five more companies whose monthly dividends could provide you with the income needed to meet your monthly obligations or provide you with steady capital to reinvest and grow your portfolio.
Recent Monthly Payment
Prospect Capital (NYS: PSEC)
Gladstone Investment (NYS: GAIN)
Inland Real Estate (NYS: IRC)
LTC Properties (NYS: LTC)
Shaw Communications (NYS: SJR)
Source: Yahoo! Finance.
Some business development options
Prospect Capital is a business development company, a sort of publicly traded private equity firm. Founded in 1988 and public since 2004, the company provides businesses with capital in many ways. While the company's past expertise has been in the energy and industrial sectors, it has expanded to include investments in more than 60 companies, including health care, manufacturing, and specialty minerals. The company has paid a dividend since its inception as a public company, and its monthly dividend has been around since March 2010.
Gladstone Investment is also a BDC, but it does things a little differently than Prospect. Instead of simply lending capital, Gladstone purchases small and mid-sized businesses in partnership with the management of the company and other investors. It also provides capital in the form of loans or preferred stock investments to others purchasing businesses. The company's stated goal is to pay monthly dividends to investors, and it has done so since July 2005.
Two more picks from a hot dividend sector
Despite being one of the worst performing retail REITs of 2011, Inland Real Estate is still an interesting option with a sizable yield. The company has real-estate holdings in 10 Midwestern states and Florida, focused primarily on the Chicago and Minneapolis-St. Paul areas. At the end of last year, it had an occupancy rate of 93% of its properties, with its largest single tenant being discount grocer SUPERVALU, which occupies 8% of the company's total square footage and provides 7% of yearly revenue.
LTC Properties, on the other hand, primarily invests in long-term health-care facilities, either from purchasing mortgages or by purchasing buildings and leasing them to providers. It was one of the better performing specialized REITs in 2011, and it recently increased its dividend, which has been paid monthly since March 2005.
Canadian cable giant
Shaw Communications provides more than 3.4 million customers with cable television, broadband Internet, home phone service, and other telecommunications services. Though it recently fell short of revenue expectations, it saw a 20% increase in sales year-over-year. But a decision to avoid the cutthroat wireless service market may make it an investment that could help beat a recession.
Dividends are great
I personally like dividends, and if a dividend is paid monthly, it is even better. With the right amount of investment, the income provided by monthly payers can be used to pay some monthly expenses, instead of waiting for what might be a larger dividend every quarter. If you are looking to diversify your portfolio with income-generating stocks, be sure to get a copy of our free report to "Secure Your Future With 11 Rock-Solid Dividend Stocks." Even though none of the included companies pay monthly dividends, it should still be worth your while to get your copy today!
At the time thisarticle was published Fool contributor Robert Eberhard holds no position in any company mentioned. Follow him on Twitter or click here to see his holdings and a short bio. The Motley Fool owns shares of SUPERVALU. Motley Fool newsletter services have recommended buying calls in SUPERVALU. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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