How to get 2 dividend checks a month
By buying just 6 stocks, income investors can ensure a monthly payout from a couple of them.
By Beth Piskora, S&P Capital IQ, The Outlook
Investors looking for regular income from their investments generally want that income to be paid out regularly throughout the year.
To help investors accomplish this, we've grouped 18 stocks according to the dates on which they usually pay quarterly dividends. By purchasing just six of these issues -- one in each time slot -- you would receive two dividend checks per month during the course of the year.
We've gone one step further and identified how many shares to purchase in order to receive monthly income of about $100.
All the stocks in the table are ranked four or five stars (our top two "buy" ratings) for expected above-average price appreciation over the next 12 months.
Early Jan., April, July, Oct.
Baxter (BAX) -- 100 shares
Coca-Cola (KO) -- 175 shares
Merck (MRK) -- 115 shares
Mid-Jan., April, July, Oct.
Altria Group (MO) -- 115 shares
Cisco Systems (CSCO) -- 295 shares
Essex Property Trust (ESS) -- 40 shares
Early Feb., May, Aug., Nov.
A.O. Smith (AOS) -- 415 shares
Deere (DE) -- 100 shares
Kinder Morgan Energy Partners (KMP) -- 40 shares
Mid-Feb., May, Aug., Nov.
CVS Caremark (CVS) -- 215 shares
Home Properties (HME) -- 70 shares
Rock-Tenn (RKT) -- 165 shares
Early March, June, Sept., Dec.
ExxonMobil (XOM) -- 80 shares
Honeywell (HON) -- 120 shares
KLA-Tencor (KLAC) -- 125 shares
Mid-March, June, Sept., Dec.
Chevron (CVX) -- 50 shares
ITC Holdings (ITC) -- 130 shares
Travelers (TRV) -- 100 shares
As an example, you could buy 100 shares of Baxter, 40 shares of Essex Property Trust, 40 shares of Kinder Morgan Energy Partners, 215 shares of CVS Caremark, 80 shares of ExxonMobil, and 50 shares of Chevron.
At recent prices, the six-stock portfolio would cost $43,980 (before brokerage commissions) and provide annual income of $1,197, for a yield of 2.7%, higher than the recent 2.1% yield on the S&P 500 ($INX).
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I agree Danny and think $43,000-44,000, could or should generate a little more then 3.5% on average and still be in fairly safe investments.
My goal has been to accomplish 6% on a very diversified portfolio...
I manage to get somewhere between 5.3 to 5.6%, And 6% seems un-attainable.
Keeping in mind that we invest in about 10 Sectors at least and now only run 3 Portfolios of:
Brokerage, IRA and a ROTH.
Anyone can get 7-8%...Even more, but the diversification is there for a reason.
I know they write about this every so often, but it's very easy to accomplish..
Picking investments in different dividend paying Sectors, can deliver weekly or 2-3 checks a month.
With about 16-20 stock picks, the staggered dividend payments come in accordingly.
Having maybe 3-4 in the above list, they are part of our plan also.
Much depends on the amounts invested and the shares or companies owned.
Unfortunately by not re-investing any of the divs, compounding and appreciation can be lost..
And so to speak you are living paycheck to paycheck...
But with hard times afoot, many have been put in this position.
You could put that 43k in T and get $182 a month. T went as low as $20 and they never cut their div.
Would I plunk it all on 1 stock? NO !!!!!!!!!!!!!!!!!
Wow--- $1100 annually!!!!!!!
That is a rounding error on my annual bills. Could subsidize kids spending money for half the year maybe
Another stroke of brilliance by the MSN money gurus. What would we do with out them??
Why would anyone put 43,000, to get a return of 100.00 a month , You only get the money if the company is run well.. real estate is a tad better , but not as much as I thought and I knew it would not be real profitable 1. By the time you pay insurance. 2. water 3. trash, 4. taxes 5. HOA's 6 not to mention repairs and a 10 percent to a management co. .
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