This Formerly Private Lender Just Went Public To Pay You A 10% Yield

A high current yield and monthly dividends are two hot buttons for income focused investors.

In the U.S. most companies pay dividends every quarter, while most of us pay our bills each month. Thus, the three dozen or so stocks that pay monthly dividends get a lot of attention. And of course, with income stocks, the yield is very often your total return, so assuming the dividend is secure, the higher the yield the better. It has been quite a while since I have found a new company that meets both criteria.

Before I tell you about this new monthly dividend income stock, let’s talk about income investing. I work with my Dividend Hunter subscribers to develop what we call the Dividend Hunter mindset. I find that investors buy stocks because of the dividend yields, and then get too wrapped up in the share price action. If you are buying stocks for the dividend income then measuring your income results should be the primary focus, not share price fluctuations.

I recommend having some sort of income tracking system. It may be a spreadsheet, a notebook or an online dividend tracking tool. With an income tracking system, if you see that your income is stable to growing from quarter to quarter, your income stock investments are performing as they should. With this approach, share prices take care of themselves.

In fact, once you start focusing on building your income stream (that you track religiously), it becomes natural to want to buy low and sell high. This is the opposite of what most investors who are pushed by fear and greed do.

The primary analysis metric for dividend paying stocks is to understand how a company generates free cash flow and to check each quarter than enough cash has been generated to support the dividend. This takes some practice, and a different way of looking at income statements.

I know you have read this far to get to the point where I reveal the new high-yield stock. I appreciate your reading through and hope you picked up some new ideas. This is a stock I am adding to my watch list and will be reviewing its earnings results and dividend payments for my subscribers.

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Disclaimer: The information contained in this article is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. and its ...

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