The other morning I read an article on Kiplinger - Great Stocks to Get Dividends Every Month, and I decided to make some calculations and speculations, as right now I'm looking to invest some money in dividend paying stocks and idea of getting dividends every month seems a very good option to make a living.
My goal for 2017 is to invest $8,561 throughout the year, not mandatory all money should be invested in stocks, in fact I have already invested about a quarter of that money in Latvian peer to peer lending marketplace - Mintos. See: Review of Mintos Peer to Peer Lending After One Month of Investing
Another, again about a quarter of my money, goal for 2017, I'm planing to invest in dividend paying stock in Baltic NASDAQ Market, see: Dividend Paying Stocks In Nasdaq Baltic Market By Yield.
And right now, an option to invest in the US dividend stocks, though with much lower yields than Baltic market, seems a good way to diversify my investment portfolio in 2017.
12 Dividend Stocks to Invest to Get Payments Every Month
|Cardinal Health Inc||CAH||82.04||1.8||2.2||1||04,07,10||Quarter|
|AbbVie Common Stock||ABBV||65.88||2.56||3.9||2||05,08,11||Quarter|
|The Coca-Cola Co||KO||42.29||1.48||3.5||4||07,10,12||Quarter|
|General Electric Company||GE||30.28||0.96||3.2||7||01,04,10||Quarter|
|United Parcel Service, Inc.||UPS||106.73||3.32||3.1||9||03,06,12||Quarter|
|Verizon Communications Inc.||VZ||49.35||2.31||4.7||11||02,05,08||Quarter|
|Valero Energy Corporation||VLO||66.57||2.8||4.2||12||03,06,09||Quarter|
In fact, above listed companies makes dividend payments quarterly, not monthly, though by acquiring a few of them or all, you could build up a portfolio with monthly dividends.
Also, as you can see, dividend yield for companies listed above doesn't reach 5%, with just a four companies paying yield higher than 4%, and three of them less than 3% annually, depending on your investment goals and strategy you might like to invest in stocks with dividend payments lower than 3%, but speaking of me - 3% is the lowest margin I'm looking to acquire a dividend paying stock
For example Microsoft Corporation (MSFT) historically paid dividends in March, June, September and December. Using such scenario you will need at least to acquire stocks from 3 different companies, to build a monthly dividend payments throughout the year every month.
Please remember: your capital is at risk when investing in stocks and you could actually lose some, if not all money, as stock prices might drop. invest only money you are comfortable to lose.
Returning to my investment goals and plans for 2017 - as I don't have much cash to invest in stocks, here are 5 stocks I'm considering to add to my dividend stock portfolio:
- The Coca Cola company - as an active consumer of this drink, I believe it's a good idea to invest in products you use, though I actually know, that Coke probably is not the healthiest drink
- Microsoft Corporation - again, as an active MS Windows and MS Office user, I love the idea investing in products I use daily
- General Electric - with a dividend yield at 3.2% this stock comes as the cheapest option, and as I don't have much cash to invest, seems a reasonable option to diversify
- AT&T Inc - with one of the highest yields at 4.8%, AT&T inc is an utility company, and I believe utilities as one of the best investment options
- Verizon Communications Inc. - the same reasons I'm considering AT&T Inc.
Investments in above mentioned 5 stocks would generate a monthly dividend payments every month.
My strategy is simple - next I will invest about USD 4,000 to acquire stocks in above mentioned companies. Why chose 5, why not to stick with one? Simple - diversity. My goal is to build a liquid and growing portfolio using many investment strategies. My goal at the end of 2017 is to invest in stocks about 40-50% from my initial $8,561 plan for 2017. Some 20-40% for peer to peer lending and probably some 10% - 40% in mutual funds.