Quarterly Dividends Are Nice, But These 3 Investments Will Pay You Monthly: Vanguard Natural Resources, LLC (VNR) and More

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Collecting quarterly dividends can give an investor a nice source of income. It is especially nice if an investor can reinvest these dividends and let the process of compounding take over. Compounding moves quicker and quicker the more shares you own, and moves even quicker if the payout occurs more frequently. Here are 3 companies that distribute a payout every month– one MLP, one REIT, and one royalty trust for the sake of diversification.

The MLP…

OK, so Vanguard Natural Resources, LLC (NYSE:VNR) is technically a LLC, but the company chooses to be taxed as a master limited partnership— or MLP. According to the company, they:

“are a publicly traded partnership focused on the acquisition, development and exploitation of mature long-lived oil and natural gas properties in the United States. Our properties are located in the Permian Basin in West Texas and New Mexico, the Big Horn Basin in Wyoming and Montana, the Arkoma Basin in Arkansas and Oklahoma, the Williston Basin in North Dakota and Montana, Mississippi, and South Texas.”

Vanguard Natural Resources has also recently decided to begin distributing payouts on a monthly basis– and currently yields around 8.80%. The company might make a good play for those who believe that natural gas is currently bottoming because the company seems to be shifting more towards it as the price of natural gas has fallen near historical ten year lows.


Realty Income Corp (NYSE:O) is a real estate investment trust, or REIT, under the Internal Revenue Code and is required to pay out 90% of its taxable income to its shareholders. Realty Income Corporation engages in the acquisition and ownership of commercial retail real estate properties in the United States. The company leases its retail properties primarily to regional and national retail chain store operators. As of December 31, 2006, it owned 1,955 retail properties located in 48 states, covering approximately 16.7 million square feet of leasable space. The company also held a portfolio of 60 properties through its wholly owned subsidiary, Crest Net Lease, Inc. (Crest), as of the above date. The company distributes dividends monthly, and currently yields almost 5%.

And finally, the royalty trust…

San Juan Basin Royalty Trust (NYSE:SJT) operates as an express trust. The company has a 75% net overriding royalty interest carved out of Burlington Resources Oil & Gas Company LP’s oil and gas leasehold interests (the underlying properties) located in the San Juan Basin in northwestern New Mexico. The underlying properties consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico, as well as 1,180.5 net wells. Compass Bank serves as the trustee of the San Juan Basin Royalty Trust. The company was founded in 1980 and is based in Fort Worth, Texas.

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