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.
Stock funds generally pay dividends quarterly. Some bond funds, like short term bond funds, pay monthly.
Stock funds generally pay dividends quarterly. Some bond funds, like short term bond funds, pay monthly.
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Some stocks pay dividends. Bonds pay interest. But generally not monthly.
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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..
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http://www.bank-of-tidewater.com
Create a portfolio of good closed end funds.
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http://hubpages.com/hub/closed-end-money
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.
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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.
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