Looking for shares that pay dividends on a monthly basis? I've found the following three which I've added to my long term investment portfolio:
1. Calamos Convertible and High Income Fund (CHY:NYSE)
Recent price--$13.55 per share with a dividend yield of 7.53%. They have a price to earnings of 6.4 and their current dividend of $1.02 is less than 50% of current earnings per share.
2. iShares S&P US Preferrd Stock (PFF:NYSE ARCA) Recent price of $40.12 with a dividend yield of 6.19%. PFF is an exchange traded fund (ETF) heavily invested in the financial sector (over 86%).
3. Realty Income (O:NYSE) A real estate investment trust (REIT) which invests in commercial properties with long-term leases. They have a dividend payout of 4.90% on their recent share price of $35.41.
All three of the issues mentioned above pay dividends every month. If you're looking for monthly payouts, you may want to have a look for yourself. Of course you would need to do further research to see if they fit in with your own investment plan.
Showing posts with label ETF. Show all posts
Showing posts with label ETF. Show all posts
Friday, May 20, 2011
Monday, May 31, 2010
INVESTING IN PREFERRED STOCK THROUGH ETF'S
Recently I decided to look into investing in preferred stocks, as a means of boosting dividend cash flow. I currently hold around 30 different stocks in my regular investment portfolio, so I'm not really interested in adding a lot of new stocks to keep track of. So instead of researching individual stocks, I decided to simplify the move by purchasing shares of an ETF that invests in preferred stocks.
The one I've chosen to add to my portfolio is ISHARES S&P U.S. PFD STOCK (PFF :NASDAQ). Their current dividend of $2.92 works out to a 7.98% yield on their recent stock price of $36.62. Since their top ten holdings are all financials, I won't be concentrating a great deal of my investment capital in this fund, but I don't think it out of line to invest around 5% of my cash in the fund. At their current yield, I could have all my money back, from dividends alone, in less than 9 years and anything after that would be icing on the cake. I could also benefit from any further recovery in the financial sector, while reducing risk by spreading my investment over a wide range of financials held by the fund. This will be a long term addition to my portfolio.
Normally I strongly advocate investing in individual stocks over funds. In a case like this however, where I don't want to expend a lot of time and energy researching individual investments, I've opted for an ETF to broaden my investments and take advantage of the preferred stock issues.
The one I've chosen to add to my portfolio is ISHARES S&P U.S. PFD STOCK (PFF :NASDAQ). Their current dividend of $2.92 works out to a 7.98% yield on their recent stock price of $36.62. Since their top ten holdings are all financials, I won't be concentrating a great deal of my investment capital in this fund, but I don't think it out of line to invest around 5% of my cash in the fund. At their current yield, I could have all my money back, from dividends alone, in less than 9 years and anything after that would be icing on the cake. I could also benefit from any further recovery in the financial sector, while reducing risk by spreading my investment over a wide range of financials held by the fund. This will be a long term addition to my portfolio.
Normally I strongly advocate investing in individual stocks over funds. In a case like this however, where I don't want to expend a lot of time and energy researching individual investments, I've opted for an ETF to broaden my investments and take advantage of the preferred stock issues.
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