Stock mutual funds that pay monthly dividends

Many people need additional monthly income.

For example, retirees may need to augment Social Security payments. For these people, mutual funds that produce a steady income stream may help satisfy this need.

Depending upon the nature of the fund, such investments can increase monthly income while simultaneously preserving capital. Funds that produce monthly income are loosely classified as "growth and income funds" or "income funds.

Sometimes they are categorized as "managed payout funds" or "replacement funds. The portfolio of a fund that pays monthly dividends generally falls into one of several categories. Mutual funds that pay monthly income include money market funds, U.

Monthly Dividend Stocks

Mutual funds send you a DIV or a similar document before January 31 that accounts for the funds that have been paid out.

Income from a mutual fund must be reported to the Internal Revenue Service, even if it was immediately reinvested.

Whether the income is taxable depends upon whether the fund has invested, wholly or partially, in tax-exempt securities. Fund distributions are reported using a form or A. Filing a Schedule B might also be necessary. A EZ cannot be used to report mutual fund income. Morningstar characterizes money market funds and funds that invest primarily in U.

Treasuries as very conservative investments. A January article appearing in the Wall Street Journal lamented the effect of falling interest rates on income funds, which in turn result in lower income for investors. Shelly Morgan has been writing and editing for over 25 years for various medical and scientific publications.

Although she began her professional career in pharmacological research, Morgan turned to patent law where she specialized in prosecuting patents for medical devices. She also writes about renal disease and hypertension for several nonprofits aimed at educating and supporting kidney patients.

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Visit performance for information about the performance numbers displayed above. Skip to main content. More Articles How to Invest for a Monthly Income The Best Mutual Funds for Retired People If My Only Income Is From Social Security Disability Benefits Do I Have to File a Tax Return?

Can an IRA Be Paid Out as Monthly Income? Are SSI Benefits Affected by Unemployment Earnings? Why Some People Like to Keep Their Mortgages Into Retirement. Definitions Funds that produce monthly income are loosely classified as "growth and income funds" or "income funds.

Portfolio The portfolio of a fund that pays monthly dividends generally falls into one of several categories. Tax Implications Mutual funds send you a DIV or a similar document before January 31 that accounts for the funds that have been paid out. Cautions Morningstar characterizes money market funds and funds that invest primarily in U.

Top Dividend paying Mutual Funds, Balanced Funds Equity Oriented, Advisorkhoj

Publication - Investment Income U. New and World Report: Best Fit Growth and Income Vanguard: Vanguard Managed Payout Funds Wall Street Journal: It Isn't Any Easier for Income Investors Janus: Fidelity Income Replacement Funds Morningstar: Where to Put the Emergency Fund MoneyRates. Money Market Accounts vs. About the Author Shelly Morgan has been writing and editing for over 25 years for various medical and scientific publications. Recommended Articles Taxes on a Retirement Account: Annual Tax Planning for Social Security Does Investing in Stocks Provide a Monthly Income?

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The Best 8 Funds For Regular Dividend Income | Investopedia

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