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I've been searching for equity-only, no-load mutual funds that disburse a monthly dividend. Hopefully such funds would also increase the dividends over time. No bond funds or REIT funds although I recognize that some allocation/balanced funds might fit the bill. Apparently there is no way to screen for them. So I need to appeal to your collective wisdom. Any ideas?
only closed-end funds would do this due to their option-writing or leverage strategies. open-end equity mutual funds don't distribute dividends monthly, because underlying stocks have either quarterly or semi-annual dividends.
hello sir I think you maybe asking for very strict criteria I can only think of - dvy or LSIIX Loomis or double line fund
but most of these distribute DIV quaterly or bi-annually
I think rono has ncv - take a look at this hybrid but may have lots of reits in 'em. couple of others bonds related for reasonable income plannings NAI AGIC Intl & Prem PTY PIMCO Corporate&I NGZ AGIC Global Equit PHK PIMCO High Income. PMF Pimco Municipal PFL Pimco Income Strategies
IMHO - in these market environments- probably very difficult for business to survive, hire new employees, growth or EVEN to increase dividends overtime. You can always consider privatized corp bonds [bi-yearly dividends] which I use, for instance I've bought X - US steal bond [4% of risks of default over the next 5 yrs] few months back. You probably may not find a better deal out there.
Not what you are asking for but maybe they serve the purpose. I read an article recently about the Vanguard Managed Payout Funds. Apparently, there are 3 funds available, conservative to aggressive, that send you a monthly payout. The goal is to maintain or increase principle over time while sending you monthly payments like an annuity would. It did stress that they are not an annuity and the payment percentage can change over time. If I recall correctly, the article said right now the funds are paying out 3, 5 and 7%, conservative to aggressive.
Anyway, I thought they were interesting for anyone wanting to draw income from their funds.
Here is a link to the Vanguard page. Can't remember where I read the article, M* I think.
The very popular S&P 500 low volatility etf SPLV distributes a monthly dividend; just from memory, I think the annual yield is something like 2.8%. It's really concentrated - ~60% in utilities & staples, so be sure to check out that aspect of it.
Reply to @fundalarm: Stock dividend payments may be quarterly, but different stocks pay in different months, so there's always a stream of income. If the frequency of security payouts drove fund dividends, then bond funds would not pay out monthly, since bonds typically have semiannual coupons. (Many bond funds in fact declare dividends on a daily basis, just like money market funds.)
Much of the payout by funds is just on paper, anyway - if people are automatically reinvesting dividends, the fund doesn't cut them a check.
Perpetual Bull has the right idea for pure equity funds - go plumbing through the Lipper categories Equity Income and Global Equity Income.
File under the "be careful what you wish for" category: Alpine "dividend" funds pay out dividends monthly, and one even has "accelerating dividends" in its name: AADDX, ADVDX.
There seem to be some others in the categories that pay out monthly (e.g. Eaton Vance Global Div Income - EDIAX - that appears to be NTF at TD Ameritrade), but they still require a lot of digging to find.
Interesting idea to look at CEFs. Unfortunately, most of the CEFs in the list are pure bond funds. Fortunately, CEFconnect has a screener that makes it, if not easy, at least somewhat easier than other places to locate equity-only funds. It lets you screen on type of fund (e.g. all US equity funds) and then, five at a time, look at a page that shows all the details, including frequency of distributions (monthly, quarterly, etc.)
Assuming that frotbo was interested in funds that behaved like "conventional" mutual funds (no leverage, no managed payouts), the results I came up with were:
(all US equity excluding real estate, not leveraged, not managed distributions) - 47 funds, of which the only ones with monthly distributions were: GNT (covered calls) GOF (G&I) IGD (covered calls) CFD (commodities)
If you are willing to accept managed distributions (be very careful that you understand what this is), you get several more US equity funds with monthly payouts (out of 29 with no leverage but with managed distributions): CRF (general domestic equity) EOI (covered call) EOS (covered call) GLU (utilities) MFV (G&I) ZTR (G&I)
Going through the same exercise (not leveraged, not managed distributions) with the Non-US/Other categories, removing only Global Income and Emerging Market Income from the search, one gets 50 funds, of which the following have monthly payouts: AGD (global equity div) IID (global equity div)
There are four non-US, non-leveraged funds with managed distributions; none of which may monthly payouts.
For completeness, here are the leveraged fund results:
non-US (both with and without managed payouts): 19 funds; the monthly payouts are AOD (global equity div) INF (global equity) CHW (global G&I) CGO (global G&I) DEX (global G&I) LGI (global G&I) LOR (global G&I)
US (both with and without managed payouts): 53 funds; the month payouts are BTF (general equity) CSQ (G&I) DDF (G&I) DNP (G&I) ETO (tax-advantaged equity) ETG (tax-advantaged equity) EVT (tax-advantaged equity) FIF (energy) GDV (tax-advantaged equity) GUT (utilities) GGN (energy/resources) HTD (tax-advantaged equity) UTG (utilities) TPZ (G&I) ERH (utilities)
Reply to @msf: some of these are traded at unsustainable preimums; at least one going through the rights offering; several return capital to shareholders thus losing over 70% of their NAV during recent years to support the unreasonable distribution yields. I suggest to anyone interested in closed end funds, to move slowly and get educated before any significant investment. for full disclosure, i've been investing into cef's since 2008, moving very slowly and making a mistake or two, but generally successfully. i think it is a very rewarding market due to limited liquidity and various discount opportuities -- but requires much attention and discipline.
I agree completely. That's why I started the list above with unleveraged, no managed distribution funds, and included the comment that one needs to understand managed distributions before thinking about funds that use it. CEFs, like commodity "index" funds, and lots of other vehicles (even bond funds with current yield vs. SEC yield), have more complexity than a cursory look suggests.
Sounds like you've done your homework and know what you've gotten yourself into. I like your slow and steady approach; glad its been rewarding for you.
Comments
I think you maybe asking for very strict criteria
I can only think of - dvy
or LSIIX Loomis
or double line fund
but most of these distribute DIV quaterly or bi-annually
I think rono has
ncv - take a look at this hybrid but may have lots of reits in 'em.
couple of others bonds related for reasonable income plannings
NAI AGIC Intl & Prem
PTY PIMCO Corporate&I
NGZ AGIC Global Equit
PHK PIMCO High Income.
PMF Pimco Municipal
PFL Pimco Income Strategies
IMHO - in these market environments- probably very difficult for business to survive, hire new employees, growth or EVEN to increase dividends overtime. You can always consider privatized corp bonds [bi-yearly dividends] which I use, for instance I've bought X - US steal bond [4% of risks of default over the next 5 yrs] few months back. You probably may not find a better deal out there.
http://seekingalpha.com/article/773611-u-s-steel-has-value-for-long-term-investors
http://seekingalpha.com/article/321676-are-you-paying-too-much-for-your-bonds
regards.
NOIEX
AZNDX
GABEX
ADVTX ( Sister fund of ARDEX that is closed) I might add this myself!
JPVTX ( I own this one )
BUFBX
I'm sure i've missed some
Manning & Napier has two such funds in the pipeline. I think they can give you the best of both worlds. Check out the link.
Strategic Income Moderate Series
Strategic Income Conservative Series
http://www.sec.gov/Archives/edgar/data/751173/000119312512185169/d339311d485apos.htm#toc339311_3
Anyway, I thought they were interesting for anyone wanting to draw income from their funds.
Here is a link to the Vanguard page. Can't remember where I read the article, M* I think.
https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/aggregateviews?cl=00000104
I like Salient MLP Energy and Infrastucture (SMF) more in the MLP space, but FIF pays a monthly dividend.
Strategic Income Conservative Series
http://www.sec.gov/Archives/edgar/data/751173/000119312512185169/d339311d485apos.htm#toc339311_3
MSCBX and MSMSX
Stock dividend payments may be quarterly, but different stocks pay in different months, so there's always a stream of income. If the frequency of security payouts drove fund dividends, then bond funds would not pay out monthly, since bonds typically have semiannual coupons. (Many bond funds in fact declare dividends on a daily basis, just like money market funds.)
Much of the payout by funds is just on paper, anyway - if people are automatically reinvesting dividends, the fund doesn't cut them a check.
File under the "be careful what you wish for" category: Alpine "dividend" funds pay out dividends monthly, and one even has "accelerating dividends" in its name:
AADDX, ADVDX.
There seem to be some others in the categories that pay out monthly (e.g. Eaton Vance Global Div Income - EDIAX - that appears to be NTF at TD Ameritrade), but they still require a lot of digging to find.
http://www.dividenddetective.com/monthly-dividends.htm
Assuming that frotbo was interested in funds that behaved like "conventional" mutual funds (no leverage, no managed payouts), the results I came up with were:
(all US equity excluding real estate, not leveraged, not managed distributions) - 47 funds, of which the only ones with monthly distributions were:
GNT (covered calls)
GOF (G&I)
IGD (covered calls)
CFD (commodities)
If you are willing to accept managed distributions (be very careful that you understand what this is), you get several more US equity funds with monthly payouts (out of 29 with no leverage but with managed distributions):
CRF (general domestic equity)
EOI (covered call)
EOS (covered call)
GLU (utilities)
MFV (G&I)
ZTR (G&I)
Going through the same exercise (not leveraged, not managed distributions) with the Non-US/Other categories, removing only Global Income and Emerging Market Income from the search, one gets 50 funds, of which the following have monthly payouts:
AGD (global equity div)
IID (global equity div)
There are four non-US, non-leveraged funds with managed distributions; none of which may monthly payouts.
For completeness, here are the leveraged fund results:
non-US (both with and without managed payouts): 19 funds; the monthly payouts are
AOD (global equity div)
INF (global equity)
CHW (global G&I)
CGO (global G&I)
DEX (global G&I)
LGI (global G&I)
LOR (global G&I)
US (both with and without managed payouts): 53 funds; the month payouts are
BTF (general equity)
CSQ (G&I)
DDF (G&I)
DNP (G&I)
ETO (tax-advantaged equity)
ETG (tax-advantaged equity)
EVT (tax-advantaged equity)
FIF (energy)
GDV (tax-advantaged equity)
GUT (utilities)
GGN (energy/resources)
HTD (tax-advantaged equity)
UTG (utilities)
TPZ (G&I)
ERH (utilities)
Sounds like you've done your homework and know what you've gotten yourself into