One of the great things about investing is that you can own fairly safe stocks while getting a paycheck from those companies every month. One such company has the ticker symbol of O, Realty Income. They pay 4.3% annually in monthly installments, and the stock has grown by around 33% in the past year. Realty Income is one of the best companies in the world for getting superb dividends and capital gains at the same time.
Another amazing monthly payout company is TLT, Barclays 20 Year Treasury Bond Fund. TLT is part of the iShares group of fixed income, U.S. government stocks. The dividend is only 2.5% each year, but the stock has grown more than 20% in the past year. Gaining 20% or more each year is an investor's dream. Some people think we are in a bond bubble, but I believe TLT can continue to grow. The Federal Reserve has stated that interest rates will probably stay low for the next two years, and they are also actively buying U.S. bonds. We also have a lot of investors and institutions who prefer the safety of bonds, and they have no desire to own a lot of stocks.
Thus, buying O and TLT now may be one of the best things you have ever done. The stock market has lost a lot of steam lately, but good dividend stocks will continue to flourish. You will also get a bit of cheer every month when you see the payout from these two stocks in your investment account. Just be certain to sell the stocks if they drop 10% or more to protect your capital. You can always buy them back later.
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Be careful with O.... when rates go up, the capital losses will destroy whatever distributions you have saved up ... please tell me you're not doing a DRP, at least. All the same, best of luck to you.
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