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 TheStockAdvisors Jul 10, 2013 11:07AM

Businessman offering money © Andrea Bricco/Brand X Pictures/Getty ImagesBy 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).


More from TheStockAdvisors.com

27Comments
Jul 10, 2013 11:39AM
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or you could put all 43000 in a long term tax free bond fund and earn 200 dollars a month in tax free income...
Jul 10, 2013 12:05PM
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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. 

Jul 10, 2013 11:29AM
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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.

Jul 10, 2013 1:55PM
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Danny, where to you find tax free munis that pay out 5.58%? That was the yield of the past. Today's real yielf is about 3.5%.
Jul 11, 2013 12:15AM
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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 !!!!!!!!!!!!!!!!!

Jul 11, 2013 8:32AM
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This is only true if the stock of the companies you buy don't go down in value or reduce their dividend which happens often enough.  I bought a stock not too long ago that is down 30% this year and the dividend is down to $0.95 from $1.25 per share. 
Jul 11, 2013 12:22AM
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Wow--- $1100 annually!!!!!!!

 

That is a rounding error on my annual bills. Could subsidize kids spending money for half the year maybe

Jul 11, 2013 6:58AM
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Another stroke of brilliance by the MSN money gurus.  What would we do with out them??

Jul 11, 2013 12:23PM
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People looking to increase monthly income by $100 aren't going to have the money to buy the stocks. The best way to increase your income $100 a month would be to get a 2nd job in sales, food and beverage service. I doubt working even a single Saturday shift will pay only $25 equaling the $100 a month. If you make $8 and hour for an 8 hour shift making $64 minus withholding, the take home will equal an extra $200 a month and working 2 shifts will give an extra $400 a month. Get a second job!
Jul 16, 2013 12:38AM
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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.     .  

 

Jul 10, 2013 1:45PM
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Who the hell has $43,000 to drop all at once to buy 6 stocks?  I can show you how by putting .01 into a savings account you can become a millionaire in 40 years.  Doesnt mean it can happen in the real world.
Jul 10, 2013 1:26PM
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You could also buy 2,000 shares of FSC and 2,000 shares of GGN for $40,980 and receive two monthly checks totaling $432 a month or $5,179 year.
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