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
TheStreet Open House

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 Stockpickr.com 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), 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) and Chevron (CVX). 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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