This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Stockpickr: Stock Plays for Baby Boomers

With a generation of baby boomers set to retire en masse over the next decade, there are at least two compelling reasons to look at stocks that pay monthly dividends:

  1. If you happen to be among those preparing to retire, it's nice to have that monthly income.
  2. With so many people piling into these stocks, they will be solid investments with plenty of capital appreciation as well as dividend payments over the next five to 10 years.

Not surprising, the most popular blog post on was Stockerblog's list of 200 Stocks That Pay Dividends Monthly. And related to that blog post is the portfolio of the Top 100 Highest-Yielding Stocks That Pay Monthly Dividends, which offers an easy glance at which funds are invested in which stocks.

Some of the best mutual funds and hedge funds seem to be jumping on the monthly-paying-stocks bandwagon.

Take, for example, one of the highest-yielding monthly dividend payers, Pengrowth Energy Trust (PGH - Get Report), a Canadian oil royalty trust that yields about 15%. Among those invested in the stock is the Dreman Value Fund, which is run by Contrarian Investment Strategies author David Dreman. Dreman's Large Cap Value fund has delivered a phenomenal average annual return of 17% since its inception in 1991.

Dreman recently has been increasing his positions in some mega-cap stocks, such as Bank of America (BAC - Get Report) and Chevron (CVX - Get Report). Chevron pays its 3% dividend quarterly, not monthly; however, it trades at just 4.2 times cash flows. Bank of America, considered perhaps the most stable bank in the world -- particularly when compared with troubled peer Citigroup (C) -- has a 4.4% dividend and trades at a forward P/E of only 9.

For the rest of Dreman's holdings, check out the David Dreman page on Stockpickr.

Another fund loading up on Pengrowth Energy Trust is the Royce Opportunity Fund, which has returned an average of 14.8% annually over the past five years, a full 8.5% above the average return of its benchmark.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAC $15.81 0.00%
BIF $8.84 0.00%
CVX $106.68 0.00%
PGH $3.32 0.00%
AAPL $128.46 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs