Most income shares pay out dividends on a semi-annual basis. Yet there’s a small pool of stocks that pay out income each month. These represent a unique opportunity for me to enhance my cash flow but also to reinvest money regularly to build my investment pot. Here are two good examples I’m looking at right now.
A long-term property play
The first company is the Balanced Commercial Property Trust (LSE:BCPT). The FTSE 250-listed firm currently has a dividend yield of 6.33%. Over the past year, the stock’s down a modest 7%.
The trust was launched back in 2005, so it has a long track record. It holds a portfolio of commercial property around the UK, ranging from office blocks to industrial warehouses. From the lease agreements and rental income, it can provide regular dividend payment to shareholders.
These payments have been consistent over the past decade, with some still made even during the pandemic. This bodes well for the future, especially now that I think we’re over the worst of the slump in the broader property sector.
A risk is that with the rise in remote working, demand from clients for office space could fall in the coming years. This is true, but I like the diversified scope of the portfolio, so it’s not purely reliant on office tenants.
When I look at the track record, I think this is a stock I could see myself buying and holding for the next decade.
An eye-catching 9% yield
Next up is the TwentyFour Select Monthly Income Fund (LSE:SMIF). As the name suggests, it pays out dividends each month. TwentyFour is the asset manager that runs the fund, with this particular one focusing on bonds and fixed income securities.
It targets less liquid assets in the bond market. Although this can be a potential risk due to it being harder to buy and sell something like this, it does mean there can often be large value opportunities. As a result, it tries to provide a return to shareholders not only through the coupon payments, but also through price appreciation from whatever it buys.
Over the past year, the share price is up 4%, with a current dividend yield of 9%. This makes it very attractive to me, in that I can benefit from this yield in monthly instalments. I don’t have to wait for a lump sum once or twice a year.
The fund isn’t huge, with a market-cap of £196m. But even if it expands, I think it can cope with managing more assets without it hindering the investment strategy that’s been working well in the past.
Both stocks look very appealing and I’m seriously considering buying them for my portfolio.
The post 2 monthly income shares I’d buy and hold for the next decade appeared first on The Motley Fool UK.
Should you invest £1,000 in Twentyfour Select Monthly Income Fund Limited right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Twentyfour Select Monthly Income Fund Limited made the list?
See the 6 stocks
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFFFFF”, ‘color’, ‘#FFFFFF’);
})()
More reading
Here’s why I’m steering clear of Rolls-Royce shares
Down 10% in 2 months, this FTSE 100 stock seems like a no-brainer buy!
This UK stock’s just jumped 32%. But there could be more gains to come
After the BP share price hit 52-week lows, could now be the time to jump in?
Is this FTSE 100 stock ready to bounce back?
Jon Smith has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
