The 3 Top Stocks For Dividends Every Calendar Month

When trying to construct a portfolio that will support financial independence – the ability to retire if you want to and live entirely from passive income – it is very helpful to be receiving dividend checks each month.

Creating a portfolio that generates dividends in every calendar month means investors will not have to go without income in certain months while they wait for the next quarterly, semi-annual, or annual dividend check.

Instead, investors will receive cash flow each month. While many stocks pay quarterly dividends, they do not all abide by the same schedule. This article explores three stocks that pay quarterly dividends but do so on varying schedules so that an investor who owns all three will receive one dividend payment in each calendar month.

Even better, all three stocks have high dividend yields above 5%.

The most obvious and simple way to create a monthly passive income stream is to invest in monthly dividend stocks. While this could work, it also severely restricts your potential investment universe and therefore your ability to select high returning stocks. Furthermore, it may cause you to take on excessive risk and even suffer dividend cuts as you seek to achieve diversification within such a restricted pool of stocks.

We believe a far better way of achieving a monthly dividend cash flow stream is by diversifying across dividend-paying stocks that issue their payouts in complementary quarters such that dividend checks pour in during each month of the year. This way, investors can invest across a much larger universe of stocks while still reaping the benefits of receiving monthly dividends.

In the rest of this article, we will highlight our top three picks that will combine to provide a fairly stable and diversified stream of monthly dividends alongside strong total return potential.

January/April/July/October: Seagate Technology plc (STX)

  • Dividend Yield: 5.3%

Seagate Technology pays its dividend in the months of January, April, July, and October at a current forward yield of 5.3%. It provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It manufactures and distributes hard disk drives, solid-state drives (SSDs), and storage subsystems.

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Sure Dividend would like to thank David Morris for providing the inspiration for this article..

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