This Little-Known 7.3% Yielder Pays Investors Monthly

To live off the passive income from stocks, one of the important things to pay attention to is the company’s distribution policy. Nowadays, most dividend-paying companies follow a quarterly distribution schedule. That is, shareholders have to wait three months between every two dividend payments. However, because most of our bills have to be paid monthly, it would take a lot of planning ahead to balance monthly expenses with quarterly dividend income.

And that’s the first reason why Chatham Lodging Trust (NYSE:CLDT) is special. The company completed its initial public offering (IPO) in 2010 and started by paying quarterly dividends. But in 2013, CLDT increased its payment frequency to monthly, and it has been paying uninterrupted monthly dividends ever since. (Source: “Dividends History,” Chatham Lodging Trust, last accessed September 10, 2019.) The payout has also gone up over the years. Chatham Lodging’s first monthly dividend—which was paid in February 2013—was $0.07 per share. Today, CLDT stock’s monthly dividend rate stands at $0.11 per share, marking a total increase of 57%.

Source: Income Investors

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