Get Paid Monthly: 4 Stocks and Funds to Buy

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Investors in the U.S. are lucky to a certain extent — most U.S. companies that pay dividends make quarterly payouts. If you go abroad, a lot of companies pay semiannually or annually.

But despite the fact that American companies pay quarterly, this doesn’t fit well with many people’s expenses. If you’re like me, you have a lot of monthly bills, and it therefore makes sense that companies should make dividend payouts monthly. In the end, you get the same amount of money, but insofar as you use dividend payments in order to pay for your living expenses you should own a couple of monthly dividend paying stocks and funds in your portfolio.

1. Realty Income Corp. (NYSE:O)

Realty Income is probably the best known monthly dividend payer, and it is also somewhat controversial. The company is a real estate investment trust (REIT), meaning that shareholders get special tax treatment if the company agrees to pay out the bulk of its cash-flow in the form of dividends. In particular, Realty Income is involved in commercial real estate in the United States. It owns strip malls and leases properties to retailers all over the country. These retailers make monthly payments to Realty Income, and after the company pays its expenses, it distributes this income to shareholders.

Right now, the company pays a 5.2 percent dividend yield — $0.18/month on a $42/share stock. The shares have weakened recently as investors are concerned about the company’s leverage. Investors are also more generally concerned about REITs as it loses value if bond yields rise. But so far this year, bond yields have been rising, and so have shares of Realty Income, which are up 12 percent year-to-date.

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