Monthly Dividends For Retirement Portfolios

by: Regarded Solutions

One of the big things many folks who are thinking of retirement - or are retired already, or are ready, willing, and able - think about is a monthly source of cash flow. Not just quarterly or semi annually, but a check each month to help pay bills, wants, needs, desires, or just to know they can get something every month.

Much has been written here of late about a dividend/growth portfolio vs. an annuity for regular monthly income. This article has a wealth of information about that question.

The general consensus is that a portfolio of dividend growth stocks is probably the way to go for the vast majority of folks, but some people really want to have that regular check coming in each and every month.

It's understandable, I suppose, because I love monthly checks also. The question for investors in dividend and growth stocks is, how can we set up a portfolio that never misses a month?

The following stocks can be positioned in a core portfolio to achieve that goal for you:

The Big Dozen

1) General Electric (GE) -pays in January - $.15/share dividend-$16.67/share on 11/4 - *ESS is Bullish

2) Aqua America (WTR) - pays in February - $.165/share dividend-$22.39/share on 11/4 - *ESS is Bearish

3) McDonalds (MCD) - pays in March - $.70/share dividend-$93.00/share on 11/4 - *ESS is Bullish

4) Automatic Data Processing (ADP) - pays in April - $.36/share dividend-52.15 on 11/4 - *ESS is Neutral

5) Verizon (VZ) - pays in May- $.50/share dividend-$37.45/share on 11/4 - *ESS is Bullish

6) M&T Bank (MTB) - pays in June - $.70/share dividend-$73.13/share on 11/4 - *ESS is Neutral

7) Kimberly-Clark (KMB) - pays in July - $.70/share dividend-$69.69/share on 11/4 - *ESS is Neutral

8) Colgate-Palmolive (CL) - pays in August - $.58/share dividend-$88.52/share on 11/4 - *ESS is Neutral

9) American Electric Power (AEP) - pays in September - $.47/share dividend-$39.87/share on 11/4 - *ESS is Bullish

10) Sysco (SYY) - pays in October - $.26/share dividend-$27.84/share on 11/4 - *ESS is Neutral

11) Realty Income (O) - pays in November (actually it pays monthly!) - $.145/share dividend-$33.79/share on 11/4 - *ESS is Neutral

12) ConocoPhilips (COP) - pays in December - $.66/share dividend-70.50/share on 11/4 - *ESS is Very Bullish

*An ESS rating is a tool from Starmine that places a recommendation on 1500 stocks, compiled from independent research providers.

These are 12 stocks that pay every month. Pretty cool if you ask me, and well diversified, good solid companies, with growth potential, sound management, and also options are available on each to use the options strategy that I have been discussing.

Let me also add that eventually you will be getting more than one dividend each month because by paying quarterly, which each of these stocks does (aside from O, which pays monthly), there will at some point be overlap, so you will get multiple dividends each month.

My Opinion

This assortment of stocks offers many benefits and one could do much worse than having each of these in a core portfolio to get consistent dividends each month of the year. Action should be taken now, so that you can start 2012 off with a dividend, if you decide this is the way to go.

Disclosure: I am long GE.