Today, a post with some information for those who appreciate regular and more frequent dividend payment. With “frequent” I am talking about getting paid twice a month and achieving this by investing in only two companies.
How is this possible? Well, it turns out that there are a few selected companies out there which reward their shareholders by paying dividends every single month. You are reading right. Month in, month out, profits are being shared 12 times a year and sometimes even more often.
I would like to share with you some insight into two of those companies, which pay dividends every single month. One of them rewards its shareholders by the middle, and the other one, at the end of each calendar month. So if you have both of them in your portfolio, you get paid roughly every 2 weeks.
The first company is Realty Income (O)
O is a REIT which is an abbreviation for a Real Estate Investment Trust. And it’s not just any REIT, it’s THE most popular, reliable and trusted REIT out there with monthly dividend distributions. In fact, the company calls itself and trademarked the term “The monthly dividend company”.
It has not only paid reliably dividends every single month for decades, but it also raised the dividend every single year. Markets up- or down, O pays like clockwork in the middle of every month.
The second company is Gladstone Investment Corporation (GAIN).
GAIN is a BDC. Business Development companies are a common choice for high-yield chasing investors and while they have the reputation of being riskier compared to REITs, the expected reward is also higher. GAIN has an excellent reputation and one specific benefit: It not only pays a monthly dividend by the end of every month but it also regularly distributes up to 2 additional participation dividends per year, bringing it occasionally to a total of up to 14 dividend payments a year!
Receiving regular payments every 2 weeks can greatly simplify your life, due to the benefit of receiving cash around the same time when some of your regular, re-occurring payments are due. It can be therefore easily used to cover some of your monthly expenses, such as insurance, utilities, groceries, your kid’s pocket money or whatever comes up.
O and GAIN are obviously not the only monthly-dividend paying companies out there and if you do some research you will quickly find some alternatives. However, no matter which company will catch your interest, please make sure to research it thoroughly and to ensure it matches your risk tolerance.
DISCLOSURE: I am invested in both stocks mentioned in this article.