Investments With Fortnightly Dividends

There are several investment options that pay out on a monthly basis. These include savings accounts, certificates of deposit, dividend-paying stocks, bonds, annuities, rental real estate, and real estate investment trusts (REITs).

Some of the best monthly dividend stocks include STAG Industrial, EPR Properties, Realty Income, AGNC Investment, Gladstone Commercial, LTC Properties, Dynex Capital, Main Street Capital, and Prospect Capital.

For those seeking a more passive approach to investing, exchange-traded funds (ETFs) and mutual funds offer diversified portfolios of stocks, bonds, or other assets. These funds typically pay out on a quarterly basis.

It is important to note that the level of risk and return varies among these investment options.

High-yield savings accounts

• Flagstar Bank: 5.55% APY
• Poppy Bank: 5.50% APY
• My Banking Direct: 5.45% APY
• Forbright Bank: 5.30% APY
• Vio Bank: 5.30% APY
• North American Savings Bank: 5.30% APY
• BrioDirect: 5.30% APY
• Ivy Bank: 5.30% APY
• TotalDirectBank: 5.26% APY
• Jenius Bank: 5.25% APY
• Newtek Bank: 5.25% APY
• UFB Direct: 5.25% APY
• Evergreen Bank Group: 5.25% APY
• VirtualBank: 5.25% APY
• CFG Bank: 5.25% APY

Certificates of Deposit (CDs)

CDs typically have higher interest rates than savings and money market accounts, making them an attractive option for those seeking higher returns than traditional savings accounts. The interest rate on a CD is usually fixed, although there are variable-rate CDs available that could earn a higher return if interest rates rise. The interest earned on a CD is usually compounded and paid to the account, generally on a monthly or quarterly basis.

When opening a CD, it is important to consider the interest rate, term, principal, and financial institution. The interest rate is usually fixed but can be variable, and the term refers to the length of time that the funds will be deposited. The principal is the amount that will be deposited, and the financial institution will set factors such as early withdrawal penalties.

One downside of CDs is the lack of flexibility in accessing funds. Withdrawing money from a CD before the maturity date will result in an early withdrawal penalty, which can be a significant portion of the interest earned. Additionally, it is important to note that CDs may not keep up with inflation, and there may be better investment options depending on economic conditions.

Overall, CDs can be a good option for those seeking a safe and predictable investment with higher returns than traditional savings accounts. However, it is important to carefully consider the terms and potential penalties before committing to a CD.

Dividend-paying stocks

• Regular Income: Dividends are usually paid out on a quarterly basis, but some companies distribute dividends monthly, providing a steady stream of income for investors.
• Potential for Capital Appreciation: In addition to receiving dividends, investors can also benefit from capital appreciation if the stock price increases over time.
• Diversification: Investing in a diverse range of dividend-paying stocks across different sectors and industries can help reduce risk and provide a more stable source of income.

When considering dividend-paying stocks, it's important to look for companies with a strong track record of paying dividends consistently. Some companies, like Realty Income (O), have even trademarked themselves as "The Monthly Dividend Company," reflecting their commitment to providing regular dividend payments.

Additionally, it's worth noting that dividend-paying stocks can be a good option for investors seeking a conservative approach. For example, companies in sectors like real estate investment trusts (REITs) and business development companies (BDCs) tend to focus more on income generation than growth, making them attractive options for those seeking regular dividend payments.

Dividend exchange-traded funds (ETFs) are another option for investors. These funds can be purchased like individual stocks and offer good diversification, providing investors with more options for receiving regular income.

Overall, dividend-paying stocks can be a great addition to an investment portfolio, especially for those seeking a steady income stream and a more conservative approach to investing.

Rental real estate

When purchasing rental real estate, it is important to consider the location. Look for areas with low property taxes, good school districts, and walkable amenities such as restaurants and parks. A low crime rate, easy access to public transportation, and a growing job market can also signal a larger pool of potential renters. It is also crucial to have knowledge of leasing practices, mortgage loans, tenant and landlord relationships, and property management.

There are different types of rental properties to choose from, including vacation homes, multi-family homes, single-family homes, condos, and apartment buildings. The process of obtaining a loan for a rental property is similar to that of a primary residence, but lenders typically charge higher interest rates due to a higher default rate.

As a rental property owner, it is important to be aware of the associated federal tax responsibilities. Rental income must be reported, and expenses can generally be deducted.

Rental property owners can choose to manage the property themselves or hire a property manager, who typically charges between 8% and 12% of the collected rents. While hiring a property manager can be costly, they can provide valuable services such as arranging maintenance and repairs, screening tenants, and handling late rent payments.

In addition to regular maintenance and upkeep costs, owners should also consider purchasing landlord insurance, which covers property damage, lost rental income, and liability protection in case of an accident on the property.

Overall, investing in rental real estate can provide a steady monthly income, but it requires a commitment of time and money, as well as a broad range of knowledge and expertise.

Business ownership

Firstly, investments in businesses are generally highly illiquid, meaning that converting them into cash can be difficult and time-consuming. This lack of liquidity can impact your ability to access your money when needed. Additionally, business ownership carries considerable risk. The success of a business depends on various factors, including market demand, competition, economic conditions, and effective management. As an owner, you may need to invest substantial time, effort, and financial resources with no guarantee of a positive return.

Another aspect to consider is the level of expertise required. Successful business ownership often calls for substantial expertise in areas such as management, finance, marketing, and industry-specific knowledge. It may also require a significant amount of patience as building a profitable business can take time.

Despite these challenges, business ownership can be a rewarding investment option. It offers the potential for substantial financial gains and the satisfaction of building and running your own enterprise. If you are considering this path, it is essential to conduct thorough research, seek expert advice, and carefully evaluate your own skills, resources, and risk tolerance.

Frequently asked questions