Stocks that pay monthly dividends

Today's topic is about stocks. Since the recession, a lot of people have moved away from the stock market. Many people have lost lots of money in the market. But in fact, now is the time to buy stocks not sell. Many stocks are at record low levels. In fact, in the last couple of months, I have notice the market move up. I have a 401-K through work. It hit a low, but now, I have seen it rebound to where it was before we got hit hard with the recession, and it shows signs of moving further up.

I am not a genius when it comes to the stock market, but I try to do my research the best I can. I trade stocks through Ameritrade. There are other brokers out there too - E-Trade, Scott Trade, etc. They usually have low transaction fees. There fees for buying and selling is about $9.99 per trade.

What I have done is put together a portfolio of stocks that pay on a monthly basis. So, each month, I get money. They don't pay much per month, but the price of the stock was low enough that I could accumulate more of the stock and with time, your return will pay for the money you have invested. Some examples of stocks that pay on a monthly basis - stock symbols:

ADX, AWF, CHY, CSQ, EOI, ETG, EVV, IDD, NUV, PHK, PPR, SBR, SJT

There are a few examples of stocks that pay monthly dividends. Their yields range depending on the price of the stock. For example:
AWF dividend yield as of 6/30/09 is: 10.60% closing price was $10.27 per share. Monthly dividend payout: .0925¢ per share
CHY dividend yield as of 6/30/09 is: 10.10% closing price was $10.22 per share. Monthly dividend payout: .0825 per share
SBR dividend yield as of 6/30/09 is: 4.90% closing price was $44.29 per share. Monthly dividend payout: .18276 per share

Some of the stock's dividends vary from month to month. They may pay less or they may pay more. Also, their stock price varies from day to day as well, affecting the overall yield of the dividend.

Banks don't pay you that kind of yield on your savings or checking or cd accounts that you have. If you can afford to, open an account with a online broker. Every time you get a pay check, send in $25.00 or whatever you feel comfortable with. Let it accumulate. When you have enough money to buy some shares, do so. If you buy the stock before the record date, you can earn a dividend for that month. In general, it takes about 3 business days to settle a trade. For example; if you buy a stock on Tuesday, June 30, it will settle on Friday, July 3rd. If the date of record is on Monday, July 6, you would be eligible for the dividend declared for that month.

If you want long-term investing, look into stocks that have a strong history of payout. A good company that has a good record of payout is Johnson and Johnson (JNJ). If you look at their history, they pay dividends on a quarterly basis - every 3 months. They have continually raised their dividend on a constant basis. This company is a solid company. Other good companies to invest long-term are Coca-Cola (KO) and McDonalds (MCD).

Another way to invest is to look for companies that do stock splits (not reverse splits). An example of a stock split is when a company has a stock price of $100.00 per share. They declare a 2 for 1 stock split. That means that for every stock you own, you will receive 2 shares, but in turn, the price of the stock will be cut in half - that is, if you own 10 shares and a stock split is declared of 2 for 1, you will own 20 shares, but the price will be $50.00. Companies from time to time, will do this, but be aware of any company that does this on a regular basis. It could mean trouble long term. The reason they do this is to make the price per share more attractive to more buyers, in turn more buyers, means the price will go up again - more money for you.

There is also an investment called a DRIP (Dividend Re-Investment Plan). This means, that every time a company pays you a cash dividend, you will automatically buy that stock with the dividend you received. Sometimes, the money you make will not be enough to purchase a complete share, so the shares are bought in fractions. Over time, without you really missing the money, you can accumulate more stocks and it will continue to grow making more dividends. You will have to check with your broker if you are interested in this plan and they can give you more information about this.

These are just examples of stocks that pay dividends. Use your own judgement. Do your own research. I am not recommending to purchase these stocks, they are merely examples.

I hope this was informative and will help you make some extra cash. Please be sure to pass this along. Tell you friends and family and have them bookmark this blog. The more people, the better.

Thanks for reading.