Dividend-paying stocks have a very predictable payout timeline, making them a welcome addition to any well-rounded investment portfolio. Stocks pay dividends monthly, quarterly, semi-annually and annually, giving investors plenty of opportunity to earn predictable income.
Receiving steady dividend income is one of the best ways to generate returns over the long term.
Weekly Income Strategy
By combining the various payout schedules, investors can ensure they receive dividend payments on a monthly basis from some of Wall Street’s highest-quality dividend-paying common stocks and REITs. Although it may seem complicated at first, all you need is a handful of stocks to make this strategy a reality. For example, Wal-Mart Stores Inc. (WMT) pays dividends in January, April, June and September. Blackstone Group (BX) issues payouts in February, May, August and November. Johnson & Johnson (JNJ) has a payout schedule of March, June, September and December.
If you look closely, these stocks reveal another pattern. Wal-Mart pays its dividend in the first week of January, April, June and September, whereas BX issues payments in the second week of February, May, August and November. Meanwhile, Johnson & Johnson tends to pay out during the second or third week of March, June, September and December.
The chart below includes several other dividend stocks that follow the same pattern: namely, they pay quarterly and on different weeks.
By combining these stocks into a single portfolio, investors can receive dividend payments on almost every week of the year.
12 Stock Portfolio Strategy
Let’s consider a list of common stocks and REITs that would be part of the portfolio. The typical dividend pay dates of these common stocks and REITs are shown below under the respective week of the year.
| 1st Week | 2nd Week | 3rd Week | 4th Week | 5th Week | |
|---|---|---|---|---|---|
| January | Wal-Mart Stores, Kimberly-Clark | Altria Group | W.P. Carey Inc. (REIT) | Cisco | |
| February | AT&T | Blackstone Group | Apple | Caterpillar Inc. | Simon Property Group (REIT) |
| March | Pfizer | Johnson & Johnson3 | Praxair | Lockheed Martin2, Avery Dennison1 | |
| April | Wal-Mart Stores, Kimberly-Clark | Altria Group | W.P. Carey Inc. (REIT) | Cisco | |
| May | AT&T | Blackstone Group | Apple | Caterpillar Inc. | Simon Property Group (REIT) |
| June | Wal-Mart Stores, Pfizer | Johnson & Johnson3 | Praxair | Lockheed Martin2, Avery Dennison1 | |
| July | Kimberly-Clark | Altria Group | W.P. Carey Inc. (REIT) | Cisco | |
| August | AT&T | Blackstone Group | Apple | Caterpillar Inc. | Simon Property Group (REIT) |
| September | Wal-Mart Stores, Pfizer | Johnson & Johnson3 | Praxair | Lockheed Martin2, Avery Dennison1 | |
| October | Kimberly-Clark | Altria Group | W.P. Carey Inc. (REIT) | Cisco | |
| November | AT&T | Blackstone Group | Apple | Caterpillar Inc. | Simon Property Group (REIT) |
| December | Pfizer | Johnson & Johnson3 | Praxair | Avery Dennison1 | Lockheed Martin2 |
1AVY pay date can be in the third or fourth week of the month.
2LMT pay date can be in the fourth or fifth week of the month.
3JNJ pay date can be in the second or third week.
Note: The total number of stocks represented in the above table is 15 instead of 12. This has been done to factor in that for certain weeks we have multiple payouts.
The Bottom Line
A total of 12 stocks is all you need to earn a dividend payout every single week. This strategy can ensure your portfolio earns a steady income regardless of the market cycle.
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