Get 2 monthly checks from just 6 stocks

These shares offer regular dividends, a key to steady income. And most are rated as low risk.

By TheStockAdvisors Jun 18, 2012 10:59AM
By Beth Piskora, S&P Capital IQ, The Outlook

Investors looking for 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 issues -- one in each time slot -- you would receive two dividend checks per month.

These stocks provide the potential for a consistent dividend stream. In addition, all the stocks in the table earn our four- or five-star "buy" rating for expected above-average price appreciation over the next 12 months.

Below, we've listed each stock along with its recent dividend yield. We've also gone one step further and identified exactly how many shares to purchase in order to receive monthly income of about $100.

EARLY JAN., APRIL, JULY, OCT.

    Coca-Cola (KO) -- yielding 2.8% (100 shares)
    Merck (MRK) -- yielding 4.5% (120 shares)
    Nike (NKE) -- yielding 1.3% (140 shares)

MID-JAN., APRIL, JULY, OCT.

    Altria Group (MO) -- yielding 5.1% (120 shares)
    Heinz (HNZ) -- yielding 4.0% (100 shares)
    Sempra Energy (SRE) -- yielding 3.6% (85 shares)

EARLY FEB., MAY, AUG., NOV.

    AT&T (T) -- yielding 5.2% (115 shares)
    Deere (DE) -- yielding 2.6% (110 shares)
    Kinder Morgan Energy (KMP) -- yielding 6.3% (40 shares)

MID-FEB., MAY, AUG., NOV.

    Abbott Laboraties (ABT) -- yielding 3.3% (100 shares)
    CVS Caremark  (CVS) -- yielding 1.5% (310 shares)
    Home Properties (HME) -- yielding 4.4% (75 shares)

EARLY MARCH, JUNE, SEPT., DEC.

    Exxon Mobil (XOM) -- yielding 2.8% (85 shares)
    Honeywell (HON) -- yielding 2.7% (135 shares)
    NextEra Energy (NEE) -- yielding 3.7% (85 shares)

MID-MARCH, JUNE, SEPT., DEC.

    Chevron (CVX) -- yielding 3.6% (55 shares)
    ITC Holdings (ITC) -- yielding 2.0% (140 shares)
    Travelers (TRV) -- yielding 3.0% (110 shares)

For example, in order to receive monthly income of about $100, you could buy 100 shares of Coca-Cola, 120 shares of Altria, 40 shares of Kinder Morgan Energy Partners, 100 shares of Abbott Labs, 85 shares of ExxonMobil, and 55 shares of Chevron.

At recent prices, that six-stock portfolio would cost $32,565 (before brokerage commissions) and provide annual income of $1,189, for a yield of 3.6%, which is higher than the recent 2.5% yield on the S&P 500.

Also note that from the list above, Deere, Honeywell and Chevron are rated as medium risk. All of the other stocks are rated low risk.

More from The Stock Advisors
1Comment
Jun 18, 2012 3:29PM
avatar

SEP gas pipeline,  6.45%, $ 1945/yr on a $30 stock and natural gas is the future for the US trucking industry and the coal power plants refit over the next 10 years. Rest of world pays 4-5 x what US pays.You think our US companies will figure how to capitalize on that. Damn right they will. Sooner or even sooner this country will finally tell OPEC, IRAN and other thieves "We don't need your stinkin oil"

 

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