Exploring Monthly Dividend Stocks for Building a Robust Dividend Portfolio
Investors seeking a stable and predictable income stream may consider building a dividend stock portfolio. Among the available options, some stocks pay dividends monthly, potentially providing a more consistent cash flow. However, it is important to understand that these monthly payers are relatively rare compared to quarterly payers.
Understanding Monthly Dividend Payers vs. Quarterly Dividends
While there are a few monthly dividend stocks that perform well, they do not generally outperform their quarterly paying counterparts consistently. Well-established companies like Johnson Johnson (JNJ), Realty Income (O), and 3M (MMM) have a long history of increasing dividends over multiple decades. These companies consistently pay out increasing dividends regardless of market conditions, making them solid picks for dividend investors.
Exploring Reliable Monthly Dividend Stocks
For investors who are particularly interested in monthly dividend payers, several options are available. The Realty Income Corporation (O) is a prime example, as it is a real estate investment trust (REIT) known for its consistent monthly dividends. Another option is the PCIInvestors Trust (PCI), which is an investment company that focuses on real estate investments and pays monthly dividends to its shareholders.
It is crucial to understand that PCI is technically not a stock but an investment company. This distinction is important because it affects the nature of the investment and the associated risks. It is advisable to thoroughly research these securities, including their financial statements, management team, and long-term growth prospects.
A Comprehensive List of Monthly Dividend Stocks
For a comprehensive list of currently 58 monthly paying stocks, you can refer to the Big 2020 List of All 58 Monthly Dividend Stocks. This resource provides detailed information on each stock, including historical performance and dividend trends.
When evaluating these monthly dividend stocks, it is important to look beyond just the payment frequency. Instead, focus on the track record of the companies behind the dividends. Companies that consistently increase their dividends over time are generally a better investment, regardless of whether they pay monthly or quarterly.
Learning from High-Performance Dividend Companies
To build a strong dividend stock portfolio, it is crucial to learn from companies that have demonstrated a long-term commitment to increasing dividends. The two key companies that stand out are Johnson Johnson (JNJ) and Realty Income (O). JNJ has paid increasing dividends for over 50 years, and Realty Income has maintained a consistent monthly dividend for over 50 years. These companies not only provide a stable income stream but also show resilience in various market conditions.
Additional Resources for Dividend Investors
For those just starting to explore dividend investing, there are valuable resources available. Services like Sure Dividend offer a wealth of information and a free daily newsletter devoted to dividend stocks. By joining the Morning Dividend Newsletter, investors can stay informed about the latest trends and high-quality dividend stocks.
In conclusion, while monthly dividend stocks offer a unique advantage for some investors, it is essential to focus on the long-term stability and performance of the companies behind the dividends. Educating yourself about these companies and staying up-to-date with industry trends will help you build a robust and reliable dividend portfolio.