Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
Dividend Investing Ideas Center
Sam Bourgi Jan 04, 2018
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. Learn how covered calls can strengthen your position through choppy market conditions.
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.
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.
This strategy provides regular income through all stages of the business cycle, ensuring steady growth even during volatile periods. Although 2017 was an exceptional year for stocks, double-digit percentage gains will be more difficult to justify in the future as markets contend with overvaluation and a whimpering Trump rally. Investors in search of greater diversification and more consistent results can use this strategy with great success. Best of all, they only need to rely on proven dividend stocks with a sizable track record of regular payments.
If you’re struggling to choose the best dividend stocks, our Dividend Screener can help. This advanced tool helps investors screen dividend plays based on several distinct criteria, such as dividend yield, sector and payout date.
Weekly options are another great way to boost your weekly income. Click here to learn more about this unique strategy and how you can capitalize on blue-chip companies such as Apple (AAPL ) and ExxonMobil (XOM ).
A total of 12 stocks is all you need to earn a dividend payout every single week. This strategy can ensure your portfolio earns steady income regardless of the market cycle.
Check out what investors are currently most interested in by visiting our Most Watched Stocks page.