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Are there any mutual fund index funds that offer monthly dividends?


if not, how can you distinguish if a mutual fund offers monthly dividends?

Trick way to play this if you can only find quarterly pay mutual funds. Buy three that pay on different cycles -one paying a different month in each quarter. That way you get monthly income from non-monthly funds!

Bond mutual funds almost always pay monthly dividends. If you're just looking for equity funds, ETFs will pay monthly dividends. Report It

ASk a broker.. Go to Edward Jones for instance.

No.

I own FT. It pays a monthly dividend which yields around 7% annually.

I'm sure there are others, but this one is highly leveraged in an industry I am bullish about. It is a closed fund also.

Read "The Intelligent Investor" by Benjamin Graham. There's a whole chapter on mutual funds and why closed funds are better.

Closed-ended funds can.

Open ended cannot for tax reasons. For an open-ended find to give quarterly dividends, they would have to invade principal (because companies do not reliably give out dividends each month). Invading principal would have some peculiar tax consequences and can also be seen as a "forced redemption" wich is frowned upon by the SEC.

What you can do is open an account at a brokerage and have them automatically withdraw a given amount from your fund for you each month and send you the proceeds from the sale/redemption.

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The only index mutual funds that I know of that offer monthly dividends are index bond funds.

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