MENU

3 shares to pay you dividends every month

If you’re a full-time employee it’s nice knowing that you will be paid every month. However for an investor, most businesses on the ASX only pay quarterly or half-yearly dividends.

Owning shares in the following three businesses would see you receive a dividend payment every month:

G8 Education Ltd (ASX: GEM)

G8 is one of Australia’s largest childcare providers. It operates hundreds of centres across Australia and can keep growing with its acquisition strategy.

It pays a dividend in January, April, July and October. It’s currently trading at 12.7x FY17’s estimated earnings with a grossed-up dividend yield of 9.37%.

Arena REIT No 1 (ASX: ARF)

Arena is a real estate investment trust (REIT) that focuses mainly on owning childcare centres and leasing them to operators such as G8.

Childcare is a growing industry and Arena is benefiting from this quite substantially. Its operating earnings are growing quickly for a REIT, which allowed management to increase its latest distribution by 10.8% compared to last year.

Arena pays a distribution in February, May, August and November. It’s trading with a trailing distribution yield of 5.47%.

ResMed Inc. (CHESS) (ASX: RMD)

ResMed is listed on the ASX and in the US. It is a healthcare company that is trying to help people with sleep apnea. It is doing this both through raising awareness of the issue and with treatment using its devices.

The business is doing well, in its latest results to 31 December 2016 it revealed that sales had grown by 16.7%.

ResMed pays a quarterly dividend in March, June, September and December. It’s currently trading at 23.4x FY17’s estimated earnings with a trailing unfranked dividend yield of 1.33%.

Foolish takeaway

A portfolio of just three companies wouldn’t be a good idea, but it does show how you can create a portfolio to pay a dividend every month if you want to make it happen.

However, I don’t think any of the above three companies are great picks at today’s prices. Plus, you shouldn’t buy a company just because of when it pays a dividend.

It's better to own a portfolio of winners such as these three businesses instead.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

Discover the name of this "new breed" of blue chip along with 2 others in our new FREE report "The Motley Fool's Top 3 Blue Chips Stocks For 2017."

Click here to receive your copy.

Motley Fool contributor Tristan Harrison has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.