"Sale-leaseback"

• A monthly dividend trust is a business that operates according to a "sale-leaseback" structure. The company's primary motivations are to create capital for businesses and provide its investors, with a monthly dividend. The trust does this by buying the commercial property of a businesses, which constitutes the sale aspect of the transaction, and then extending a lease agreement to the former owner, which allows him to continue his business from the same location.
  
  

Capital

• When the economy is slow, obtaining the necessary credit or loan to expand or improve a business can be difficult, even for a business with good credit. Likewise, when a company is able to secure capital, it can often expect to pay a higher than average interest rate on borrowed funds. If a franchise owner has 100 franchises and invests in a monthly dividend trust, in which he sells each franchise for $ 1 million he now has 100 million dollars worth of capital to reinvest in his company.
  
  

Dividend

• Monthly dividend trusts, or "sale-leaseback" companies, are able to pay their investors a dividend each month from the rent proceeds that each business owner pays to the trust. The trust also manages each investor's property portfolio. In addition to the standard monthly dividend paid to each investor, such trusts are often able to give increasingly higher dividend payouts year over year, sometimes with multiple increases in the same year.
  
  

Investing

• Because monthly dividend trusts are not widely known, it may take some research to find one in which to invest. Likewise, due to the high-income investment required for this type of investment, experts don't recommend it for novice investors. An investment analyst or stockbroker specializing in non-traditional investments is most likely to be able to help you choose an appropriate monthly dividend trust. Monthly dividend trusts are available on major stock exchanges like the New York Stock Exchange.