In the world of dividend stocks, most companies follow a quarterly distribution schedule.
Imagine a scenario where, instead of waiting for a dividend check every three months, you are getting paid every month.
It’s entirely feasible.
A select group of companies pays monthly dividends. Realty Income Corp. (NYSE:O), for instance, has been doing so for decades. Because tenants typically pay rent every month, real estate has been a popular sector for investors looking to earn passive monthly income.
However, the key isn’t solely in finding monthly dividend-payers. By strategically selecting and combining companies that distribute their dividends in different months, it’s possible to craft a portfolio that generates monthly returns.
You don’t even need that many stocks to do it. Below is an example of three stocks that, when combined, yield dividends on a monthly cadence.
Just remember, stocks are volatile and dividends are not carved in stone. So always conduct comprehensive research and due diligence before diving in.
Procter & Gamble Co. (NYSE:PG)
Procter & Gamble is deeply entrenched in the consumer staples business. With well-known brands like Tide, Bounty, Gillette and Pampers, the company offers a range of products that households buy regularly, allowing it to generate consistent revenue through thick and thin.
The resilient business model allowed the company to not only pay reliable dividends but also to increase them year after year.
In April, P&G’s board approved a 3% increase to the quarterly payout to 94.07 cents per share, marking the 67th consecutive year the company has raised its dividend.