Can You Earn a $40,000+ “Salary” With Monthly Dividend Stocks?

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Can You Earn a $40,000+ “Salary” With Monthly Dividend Stocks?

Monthly dividend stocks baby. Most income investors don’t even realize they exist!

Out of the few thousand stocks that trade publicly, only a few dozen pay monthly dividends. These hidden gems tend to have market caps in the hundreds of millions rather than billions.

Their relative obscurity is perfect for us. We’ll take them over their blue-chip quarterly cousins.

Quarterly dividends are pay days we prefer not to wait for. Plus, the payouts typically disappoint.

Let’s consider the distributions from a $500,000 portfolio split evenly among a group of five mega-cap dividend payers. These are uber-popular, widely held blue chips that you’ll see near the top of most major large-cap funds.… Read more

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My Ranking of the Best 6%+ Yielding Income Investments

Let me start today’s article with an admission: Closed-end funds (CEFs) are my passion—but not only for their 8%+ dividends (often paid monthly).

The main reason I’ve been investing in these terrific high-yield vehicles for years is, in fact, very personal: Over a decade ago, CEFs’ high yields gave me enough passive income to quit my job.

I was a professor at the time, and I decided to quit to live on my income. As I started preaching the gospel of CEFs, more people heard the call, and my CEF Insider advisory, launched back in the spring of 2017, was born.… Read more

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Got $15 or $20? If So, These Stocks Pay Up to 11.1%

Let’s talk income investments that are usually reserved for rich folks: deal-making private-equity (PE) funds!

Usually there’s a sizable fee to get into PE. Unless you know the secret knock at the back-door entrance, which is more our style anyway.

I’m talking about yields from 7% all the way up to 11%. With a cover charge as low as $15!

These business development companies (BDCs) exist thanks to a perfectly legal loophole that lets anyone with an IRA or brokerage account tap into not just one or two private-market companies, but dozens at a time. Instead of shelling out hundreds of thousands of dollars to hit a PE fund’s minimum buy-in, this access typically starts at about $15 to $20 per share.… Read more

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A “Private Equity” Mini-Portfolio That Yields 10%-Plus

Private equity (PE) is a rich guy and gal favorite. PE firms find deals and deliver outsized dividends.

They don’t like dealing with common folk. So, PE shops typically set a minimum of a few hundred thousand dollars or so to invest.

But we contrarians have a better way! By tapping BDCs—or business development companies—we can toss as little as $20 into a PE payer.

Better yet, we can secure yields between 8.5% and 13.1%. We’ll discuss three examples today. Including one that is trading below book value!

If you’ve never heard of business development companies (BDCs), you’re not alone. There are only a few dozen publicly traded BDCs, and even the largest one would be a minnow in the S&P 500.… Read more

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3 BDCs Yielding Up to 8.3%: 2 Duds, 1 Stud

Since traditional banks have backed off on business lending over the years, BDCs (business development companies) have stepped in. They provided much-needed debt, equity, and other financial solutions to small businesses—and much-needed income to dividend investors.

As an asset class, BDCs yield 8%. We’ll discuss three popular payers—with dividends up to 8.3%—in a moment.

Congress whipped up BDCs with a few pen strokes in 1980, creating a structure that’s incentivized to provide smaller companies with financing. BDCs receive special tax privileges, and in exchange, they must return at least 90% of their taxable profits to shareholders as dividends.

If that sounds familiar, that’s because that same tradeoff is enjoyed by real estate investment trusts (REITs), which were formed the same way, 20 years prior.… Read more

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An Extra $44,000 in Dividend Income (Hidden in Plain Sight)

It is challenging to find stocks that pay enough money to retire on. For example, even a 3.3% dividend—generous by today’s standards—isn’t enough to turn a $1,000,000 into an income stream that will last forever.

I’ll save you the math. It’s just $33,000 per year on a million dollars.

Fortunately, this same dividend yield is understated on most mainstream financial websites. In reality, this stock paid 7.7% over the past twelve months. Which means its millionaire investors actually earned $77,000 in dividend income.

Yes, you read that right. There was an extra $44,000 hidden in plain sight thanks to a “special” dividend payment.… Read more

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17 Monthly Dividends That Pay $3,125 Per Month

Mortgage payments. Car payments. Cell-phone bills. Power bills. Water bills. Credit card bills.

Yuck. They’re the only downside to being retired!

These bills show up (or debit our accounts) every single month. That’s OK when we have a normal j-o-b that pays us every couple of weeks, or every month. But this regular bill gets really old when we retire.

Like you, I prefer to retire on dividends (and leave my nest egg alone). Problem is, most dividends are paid out every quarter, not every month.

So, dividend cash flow is (unfortunately) often out of sync with every-30-day expenses.

Some income investors build out complicated dividend calendars that get knocked out of whack whenever they ever have to sell certain stocks.… Read more

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How to Build a $250,000 Nest Egg in 5 Years (With 10% Dividends)

Four years ago, I published an article detailing how a young upper-middle-class professional could quit working and still survive on dividends alone in just five years. It was a claim that many folks thought was impossible to achieve (and they told me so in the comments!).

But history has proven that, in fact, it was true.

Today I want to show you how following the advice I gave back then would have produced financial independence (or an income stream that could cover basic needs) in just five years—and how you can replicate that same success today.

How It Works

Back then, I made three arguments:

  1. A young professional earning $70,000 a year and, being very disciplined, managed to save about two-thirds of that income, could use the stock market to build a substantial nest egg in half a decade.

… Read more

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How to Avoid the Market’s 25% Dividend Drop

Mainstream financial channels have made a big deal out of the current, furious relief rally (“Is it a ‘V-shaped’ recovery?” they muse). Whether it’s a V, a W, an L, a Nike swoosh or (my favorite) a bathtub, the fact is that many cash flows—and hence the dividends they fund—are under siege.

(This is no surprise. The average bear market lasts 12 to 18 months. We are just beginning month three—yikes.)

But all hope is not lost! We can still find secure yields, even reliable monthly dividends to boot, right now. In a moment, we’ll sift through the market’s trash heap to find these valuable sources of income stability.… Read more

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BDCs as the “New Bonds,” with Yields Up to 9.1%, But Are They Safe?

If you want to live off dividends in retirement, you can’t depend on “blue-chip stocks.” They simply haven’t paid enough yield for years:

Even High-Yield Savings Accounts Start to Look Good at These Levels

Source: Multpl.com

The S&P 500’s yield recently hit 1.7%. Think about it in “retirement spending” terms. If you took an entire million-dollar nest egg and put it in the S&P 500, you’d be looking at just $17,000 in dividend income per year. If you have even less to invest, like $500,000, that’s just $8,500 a year—several thousands of dollars below the U.S. Department of Health & Human Services’ poverty guideline of $12,760!… Read more

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