While most stocks pay quarterly dividends, investors can still construct a portfolio that allows them to get paid monthly.
How? Let me explain –
The first stock pays dividends in January, April, July, and October. The second stock pays out in February, May, August, and November. And finally, the third stock will pay its dividend in March, June, September, and December.
So, investors can reap steady monthly paydays with just a little positioning.
A combination of Coca-Cola KO, Caterpillar CAT, and McDonald’s MCD shares would provide precisely the blend needed for this portfolio. Let’s take a closer look at each one.
Coca-Cola
KO is a a member of not only the elite Dividend Aristocrats group, but the Dividend Kings group as well, further underpinning its dividend reliability. As shown below, the company has rewarded its shareholders handsomely for years.
Image Source: Zacks Investment Research
Caterpillar
Caterpillar is the world’s largest construction equipment manufacturer. We see its iconic yellow machines at nearly every construction site.
Like KO, the company is a member of the elite Dividend Aristocrats group. While the current annual yield may be on the lower end, Caterpillar’s consistent commitment to increasingly rewarding shareholders fills the gap nicely.
Below is a chart illustrating the company’s dividends paid on an annual basis.
Image Source: Zacks Investment Research
McDonald’s
We’re all familiar with the restaurant titan McDonald’s, seeing those golden arches at seemingly every stop.
Below is a chart illustrating the company’s dividends paid on an annual basis.
Image Source: Zacks Investment Research
Bottom Line
Investors love dividends, as they provide a nice buffer against the impact of drawdowns in other positions and provide a passive income stream.
And while most companies pay their dividends on a quarterly basis, investors can construct a portfolio that allows for monthly payouts with just a bit of positioning.
For those interested in this type of portfolio, the combination of all three stocks above – Coca-Cola KO, Caterpillar CAT, and McDonald’s MCD – would provide the necessary blend needed.
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Free: See Our Top Stock And 4 Runners UpCaterpillar Inc. (CAT) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
