What kind of investing gives you a dividend or check every month, etc?

Posted by admin
investing
petrol asked:


I have a retirement account (403b) that I invest money into every month. However, I’d like to expand my investing and do the “stocks and bonds” thing to get a dividend as “income” on a regular basis. How does one go about setting something like this up? All of the people I know that trade dont speak “little guy” so I am asking here for the n00b investor info.

Gina
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    • This entry was posted on Saturday, April 3rd, 2010 at 12:45 pm and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    6 Responses to “What kind of investing gives you a dividend or check every month, etc?”

    1. jeff410 Says:
      April 5th, 2010 at 12:18 pm

      Stock funds generally pay dividends quarterly. Some bond funds, like short term bond funds, pay monthly.

    2. William Says:
      April 6th, 2010 at 7:19 am

      Some stocks pay dividends. Bonds pay interest. But generally not monthly.

    3. ernesthinton Says:
      April 9th, 2010 at 4:54 pm

      Tidewater bank in Norfolk, Virginia pays a Monthly interest check on your Certificate of Deposit:

      It was taken over by SouthTrust Bank and later by Wachovia and now by Wells Fargo..

    4. Uncle D Says:
      April 10th, 2010 at 2:02 am

      Create a portfolio of good closed end funds.

    5. HillClimber Says:
      April 12th, 2010 at 9:16 pm

      You want a stock or mutual fund that is categorized as “income” or “trust”. There are good income bond funds that have taken a hit and this would be a good time to buy the dip for the long haul. These funds make a distribution every month or quarter which you can elect to reinvest or have sent you by check. Look at closed end funds with PIMCO (see PMF) or Hartford (see HSF). A trust is required by law to make a distribution monthly or quarterly. A good little Real Estate trust is symbol IRET. This is an old highly respected company in North Dakota that has weathered the recent storm - very popular with retired folks in that part of the country. I and family members have owned these for years and have no regrets.

    6. Chris B Says:
      April 14th, 2010 at 6:07 am

      Most bonds pay semi-annual interest, rather than monthly. Common and preferred stocks usually pay quarterly. Some closed end funds pay monthly, but I have seen a lot of closed end funds deteriorate over the past 12 years. If you wanted to build your own common stock portfolio, then find stocks that pay dividends in different months, eg: a stock that pays in Jan, April,July and Oct. and a stock that pays in Feb, May, July and Nov, etc. You can design a portfolio that spreads these dividend payments. Look for big blue chip companies and mix the sectors, so you are diverse.