7 High Yielding Monthly Paying Dividend Stocks

One of the main motivations for income investors is to earn monthly dividends by investing in companies which provide a stable and predictable dividend income.

Buying a stock with monthly dividend rather than a quarterly payout has an added advantage: you can multiply your income faster by more frequently reinvesting in the company’s stock.

It works exactly the same way as compounding works in an interest-paying bank account, where you can multiply your income by reinvesting your profit. But most of the blue-chip companies included in the S&P-500 index pay quarterly dividends.

Investors seeking a monthly dividend income are usually left with real estate income trusts (REITs) or business development companies with a basket of risky portfolios.

If you’re looking for a stable monthly income from your stock investing, here are the seven top monthly dividend stocks.

10 Best Yield Ideas In An Low Interest Stock Market

With Treasury yields near historical lows and dividend-paying stocks near record highs, it is getting harder for investors to find income while minimizing the risk of capital losses.

We identified 10 companies with above-market yields, below-market price/earnings ratios, and other favorable payout- and earnings-related characteristics that could reward shareholders in multiple ways in coming years. Ranked by yield, from a high of 4.3% to a low of 2.4%.

These are the results...

These Are Warren Buffett’s 5 Top Dividend Stocks

Warren Buffett’s Berkshire Hathaway  isn’t known as a top dividend stock, but that doesn’t mean that Buffett doesn’t understand the power of income investing.

“The Oracle of Omaha” has maintained a strict no-dividend policy at the insurance giant for years. Since 1962, Berkshire has paid out only one distribution to shareholders; Warren Buffett even joked he, “must have been in the bathroom,” when that decision was made.

But while he may be stingy with shareholders, Buffett doesn’t mind collecting dividends himself. Every year, the conglomerate earns billions in distributions.

His portfolio has become a virtual “who’s who” of top dividend stocks.So if you’re looking for yield, you could do worse than skimming through Berkshire’s holdings.

No, the company isn’t a good idea for income investing, but Warren Buffett’s portfolio is filled with some of the best dividend stocks around. Here are five:

9 Best Undervalued Stocks To Buy And Hold For The Next 9 Years

The best holding period is forever, according to Warren Buffett, and we all should agree. 

Buying shares of high-quality businesses and holding them for years is the best way to compound your wealth. 

And if you can buy those shares at a discount to fair value, even better.

I evaluated 60 different companies this week to determine whether they are suitable for Defensive Investors. 

Out of those 60 companies, only 21 were found to be undervalued or fairly valued and suitable for either Defensive or Enterprising Investors.

Here are the 9 best results...

Why High-Yield Dividend Stock UBS Group Could Be A Buy

UBS is a $37 billion revenue-generating machine providing financial services to high net worth individuals and institutions throughout the world.

What makes UBS different from many others is that 50% of it business comes from fees from private wealth management. Investment banking accounts for 27% of all revenues while commodity banking services for personal and corporate clients contributes 15%. Asset management for corporate benefit plans takes up the remaining 8%.

In its core private wealth business, UBS has a loyal following among the world's wealthiest families. It takes about $10 million just to open a private bank relationship. Monthly fees are based on assets under management and do not vary greatly year to year.

Approximately 80% of its core income comes from recurring fees. UBS does not seek the highest absolute investment returns. Most clients are more concerned with capital preservation. This means that UBS enjoys some stability in its business.

UBS stock has fallen over 28% in 2016, pushing its $0.63 per share dividend to a yield of 4.5%. Dividend payments are limited to once a year so investors needing more frequent income will find their needs better met elsewhere.

UBS cut its dividend during the financial crisis and only recently began making payments again. Financial stocks usually employ a lot of leverage, which can make them riskier investments during recessions. As well, banks with heavy European exposure are being hit hard today, so investors should proceed with caution.

These are the corporate fundamentals and the dividend history compiled in two charts...

UBS Group -- Yield: 6.20%

UBS Group (NYSE:UBS) employs 60,093 people, generates revenue of $13,714.23 million and has a net income of $6,646.89 million. The current market capitalization stands at $55.59 billion.

UBS Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,143.20 million. The EBITDA margin is 50.49% (the operating margin is 17.87% and the net profit margin 20.79%).

Financials: The total debt represents 18.84% of UBS Group assets and the total debt in relation to the equity amounts to 321.14%. Due to the financial situation, a return on equity of 11.71% was realized by UBS Group.

Twelve trailing months earnings per share reached a value of $1.29. Last fiscal year, UBS Group paid $0.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.90, the P/S ratio is 1.61 and the P/B ratio is finally 0.88. The dividend yield amounts to 6.20%.

Stock Charts:

Long-Term Stock Price Chart of UBS Group (UBS)

Long-Term Dividend Payment History of UBS Group (UBS)

Long-Term Dividend Yield History of UBS Group (UBS)

These are several high yielding competitors of UBS...