The Advantage of Monthly Dividends Over Quarterly Dividends
Published Jul 20, 2011 on Seeking Alpha

There are several advantages to receiving monthly dividends over quarterly dividends: Compounding takes place quicker; the invested capital is returned faster; there is usually less price volatility of the investment; and many of monthly dividend investments pay dividends that are tax free. According to the database list at WallStreetNewsNetwork.com, there are about a couple hundred different companies that pay dividends monthly, many of which have fairly high yields. Although these investments are often referred to as "stocks," that term is used loosely. These investments are real estate investment trusts, oil income trusts, closed-end bond funds, and closed-end income stock funds, which pay dividends every month. An example is Gas Natural Inc. (EGAS), formerly known as Energy, Inc. It's a distributor of natural gas in Montana, Wyoming, North Carolina, and Maine. It was founded in 1909. The stock pays a yield of 4.6% and sports a price to earnings ratio of... Read more