Did I calculate this correctly?

[tree-hugger]

I was reading one of the articles on the site about a stock called SNH. I believe it was a Real Estate Investment Trust. This was a few days ago so forgive me if my info is incorrect. But from what I could gather, it seemed as if it would pay a good deal out in monthly dividends if you owned enough shares. I looked into the stock as of today and I'm wondering if my calculations are correct:

The Stock price is 19.95 and the div/yield are 1.56/7.90% so...

In theory, if I owned say 300 shares or more of this stock, I could be making over $2000/month in dividend checks?
I could be getting this all bass akwards so that's why Im asking. Someone clear this up for me? Thank ya in advance.

[ingrownstudentloans]

Tree,

SNH pays quarterly dividends.  The $1.56/7.90% that you posted is the annual dividend distribution rate/payment.  The below chart shows the last 12 months of dividend payments from SNH.  As you can see, you would get $.39/share (provided the payout remains the same for the next quarter and every quarter after that).  So, using your hypothetical, your 300 shares would get you $117.00 every quarter or $468.00 each year (again assuming the payment remains constant).  The dividend payment amount would increase if you DRIP'd the previous payments, but you would not be getting $2,000 each month or even each year.  If you ever do find an investment that pays $2,000/month indefinitely on a $5,985.00 investment, you should do 1 of 2 things: 1) run away fast because it is WAAAAYYY too good to be true, or 2) if it checks out, send me a message because I want in!!!!!

I hope that helped.

Past Dividends
Ex-dividend date   Amount   Record date               Pay date
April 22, 2015           $0.39   April 24, 2015               May 21, 2015
January 21, 2015   $0.39   January 23, 2015       February 24, 2015
October 15, 2014   $0.39   October 17, 2014       November 21, 2014
July 16, 2014           $0.39   July 18, 2014               August 21, 2014

[tree-hugger]

Well, I'll be! I didn't think it could that easy! Nothing ever is, is it? :) Thank you for clearing that up! And I'll keep you posted if I come across that pot o' gold!

[ingrownstudentloans]

I'll keep you posted if I come across that pot o' gold!

Please do!!

Welcome to the board!  Based on your question, and this is a comment not meant in any way to be a dig, you have a lot to learn about investments, dividends, etc...take the time to learn and fully understand before jumping in to buy stocks that you read about on this or any internet message board.  If you take the time to read and digest you will find that it never is THAT easy but it also is not THAT difficult to come up with a game plan that you feel comfortable with and that will help to build your stache.  Best of luck.