Get Paid Monthly With This High-Yield Utility Fund

Some of my favorite dividend stocks and funds will pay you monthly, instead of quarterly.  I find it most gratifying to see these dividend payments show up in my account every month.  And you will too.  Because this is about as close to instant gratification as you can get in the investment world.

You see real results from your investments.  Month after month, their payments to you just keep showing up in your stock account.  Or in your mailbox, if you choose to receive checks paid to you.  And it feels just like you are getting a monthly paycheck.  Except better, because you didn’t have to work for it.

Wells Fargo Utilities and High Income Fund (NYSE: ERH) is one such monthly payer.  As its name implies, many of the funds top investments are in utility stocks.  And utility stocks have long been an investment for those looking for income.

This is because utility companies have a virtual monopoly over the area they service.  Just think of it.  It’s highly unlikely some other company is going to come into a region and compete with them.  Because they would have to invest millions in power generation equipment.  And it would take years to build the plant, and get through all of the regulations, before they ever saw a dime of profit.

So the existing utility companies have a monopoly.  And pricing power without competition.  Now it’s not unlimited pricing power because they are regulated by the local governments.  But the pricing seems to work out to be pretty generous.  No doubt you’ve experienced this as you paid your latest utility bill.

Yet another nice feature is that there will always be a demand for their product – power.  Our modern way of life requires it.  So when you combine this product demand with virtual monopoly and pricing power, utilities are able to generate some pretty safe dividend income for you.

And their payouts can be pretty high, too.  Wells Fargo Utilities and High Income Fund (NYSE: ERH) currently pays a dividend of almost 7% (6.88 as of this writing).  That is an exceptional yield in today’s low interest world.

The share price of ERH is also in my sweet spot at about $13 a share.  Because I tend to favor stocks in the $10 – $40 range when I can find them.  And at about $13 a share, it fills the bill.  At that price, just about anyone can afford to invest in them.

While the current $13.13 a share seems like a fairly good price, it’s close to the three-year high.  As I considered this dividend paying investment, I could do three things.  I could go ahead and buy it and start collecting the dividends.  Or I could just put it on my watch list.  Or I could buy it on a pullback in price.

I like to buy stocks and funds at a discount.  So I decided to put in an order to buy it if it pulls back 10%.   Ten percent of $13.13 is $1.31, so I put in an order to buy it if the price goes down to $11.82 a share in the next 60 days.

It costs me nothing to put in this order.  It will just sit out there for the next two months, waiting for the price to come down.  And it will automatically buy if the price drops to this point.  And you’d be surprised how often you can pick up a fund at a discount using this technique.

So if it pulls back to that point, I get a great fund investment at a good price.  And at that price, the yield is even better at 7.6%.  And if it doesn’t pull back to that price in 60 days, that’s okay too.  I’ve got my Warren Buffett mindset on.  Which means I am only interested in buying good dividend paying stocks and funds at good prices.

To learn more about getting paid with dividend stocks, and other ways to buy at a discount, you may be interested in my latest book Your Future Paychecks And Raises: Get Dividend Checks In Your Mailbox paid to the order of YOU!  You can check it out for free right here at

To your health and prosperity – John

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