Passive Income from Investments

[SJW 10]

What would be best to invest in to get good monthly or quarterly income from?

 

I know there are bonds and preferred stock but how about options?

[MadMarketScientist 11]

What would be best to invest in to get good monthly or quarterly income from?

 

I know there are bonds and preferred stock but how about options?

 

In the US there are certain resource stocks called MLP's that pay nice quarterly distributions. a big one is Kinder Morgan (KMP). There are also resource royalty stocks that pay nice monthly distributions, a popular one is Mesa Royalty Trust (MTR). In Canada, they used to have income trusts that pay nice monthly\quarterly distributions but they were all forced to convert to corporations (tax reasons). But some of them still pay decent monthly distributions. A favorite of mine is Pembina Pipeline Corp (PPL). I prefer monthly distributions because the compounding works a little faster. But at the end of the day, if you are after income, you need to find something where the principle is *safe*.

 

MMS