Stock Funds that make monthly dividend payments (bond, brokerage, mutual funds)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Are there any mutual funds or ETFs, preferably that hold shares in S&P 500 companies, that pay out monthly dividends to shareholders?
I know that many bond mutual funds do, and some preferred stock funds do as well, but I am not aware of any common stock mutual fund that pays out its dividends monthly.
Are there any mutual funds or ETFs, preferably that hold shares in S&P 500 companies, that pay out monthly dividends to shareholders?
I know that many bond mutual funds do, and some preferred stock funds do as well, but I am not aware of any common stock mutual fund that pays out its dividends monthly.
Franklin Income Fund (FKINX), pays a monthly dividend.
FKINX looks interesting, but I notice it is a mix of stocks and bonds (and a 4.25% fee to buy).
I wonder why ordinary funds, such as S&P 500 index funds, don't offer a monthly dividend? Their holdings no doubt generate quarterly dividends, and of course companies are on different quarterly cycles, so it seems that each month the fund would be getting dividend income from the holdings that could be distributed back to the fund holders. It can't be that expensive to distribute those earnings monthly. I know the distributions would vary somewhat by month due to differing dividend rates, but I would expect them to be similar.
FKINX looks interesting, but I notice it is a mix of stocks and bonds (and a 4.25% fee to buy).
I wonder why ordinary funds, such as S&P 500 index funds, don't offer a monthly dividend? Their holdings no doubt generate quarterly dividends, and of course companies are on different quarterly cycles, so it seems that each month the fund would be getting dividend income from the holdings that could be distributed back to the fund holders. It can't be that expensive to distribute those earnings monthly. I know the distributions would vary somewhat by month due to differing dividend rates, but I would expect them to be similar.
What difference would it make? If the dividend for the quarter is $3, is $1 per month better than $3 per quarter? Just take the $3, spend $1 and set $2 aside. In each of the next two months, spend $1. There, problem solved.
FKINX looks interesting, but I notice it is a mix of stocks and bonds (and a 4.25% fee to buy).
I wonder why ordinary funds, such as S&P 500 index funds, don't offer a monthly dividend? Their holdings no doubt generate quarterly dividends, and of course companies are on different quarterly cycles, so it seems that each month the fund would be getting dividend income from the holdings that could be distributed back to the fund holders. It can't be that expensive to distribute those earnings monthly. I know the distributions would vary somewhat by month due to differing dividend rates, but I would expect them to be similar.
The cost would be 3 times higher if I had to process payments 12 times a year vs 4 times. I'm not sure what their cost are but I'd bet it's higher than youd imagine
What difference would it make? If the dividend for the quarter is $3, is $1 per month better than $3 per quarter? Just take the $3, spend $1 and set $2 aside. In each of the next two months, spend $1. There, problem solved.
Or...the fund could pay you dividend in the month it was earned, instead of making you wait two months for it and give the mutual fund company free use of your money for those two months?
That's why the original question was inquiring about funds that pay their participants on a monthly basis as the dividend payments are received by the fund, and not about how to ration dividend payments over three months. Some people would like to receive their dividends on a more timely basis.
The cost would be 3 times higher if I had to process payments 12 times a year vs 4 times. I'm not sure what their cost are but I'd bet it's higher than youd imagine
How much does an automated direct deposit cost? I have a hard time believing it would raise the costs that much. That said, I'm not familiar with how mutual fund managers handle all of the working pieces of disbursements.
How much does an automated direct deposit cost? I have a hard time believing it would raise the costs that much. That said, I'm not familiar with how mutual fund managers handle all of the working pieces of disbursements.
Who said it's all direct deposit? That's maybe part of the bigger problem however even automated payment systems cost something and I'm sure there is a volume mechanism to said cost. I work for a large brokerage firm and we spend a lot processing payments for clients
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
