9 Stocks With Which To Create A Monthly Income Portfolio

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 |  Includes: CLX, GSK, INTC, KMB, MO, PAYX, PG, PM, WPZ
by: Greg Group

Income investing aims to select securities that provide a steady stream of income. The first thought of income investing is fixed income such as bonds or funds that comprise income investments. However, stocks may be the best play in today’s low interest rate environment for dividend income. Stocks of high quality provide a dependable stream of dividends. This is great for income investors seeking quarterly dividend checks. But for the income investor seeking monthly income checks, there is a better solution of combining a portfolio of stocks to create a monthly income portfolio.

The table below shows 9 high yield dividend stocks and the months they distribute their dividends. Here is how you build your monthly income portfolio with stocks. Select one stock with dividends in January, one in February and one in March. These three stocks will continue the sequence throughout the other quarters of the year. Combined, these stocks will create a monthly dividend check for each month of the year.

The stocks selected for the monthly portfolio are high quality stocks with a consistent dividend history. These stocks all have a dividend yield of 3% or better with some above 5%. There are three stocks for each sequence such as three stocks with dividends in January, February, March and so on. Invest in all nine stocks to get three dividend checks per month.

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Source: Monthly Income Plan.

Proctor & Gamble (NYSE:PG) provides consumer packaged goods in the United States and internationally.

  • Dividend yield – 3.25%;

  • Dividend growth 1 year - 8.97%;

  • Dividend growth 5 year average - 11.11%;

  • EPS Growth next year versus previous year – 8.83%;

  • PE – 16.4

Clorox (NYSE:CLX) manufactures and markets consumer and institutional products worldwide. The company operates in four segments: Cleaning, Lifestyle, Household, and International.

  • Dividend yield – 3.68%;

  • Dividend growth 1 year - 9.09%;

  • Dividend growth 5 year average - 15.65%;

  • EPS Growth next year versus previous year – 8.60%;

  • PE – 31.2

Paychex (NASDAQ:PAYX) provides payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses.

  • Dividend yield – 4.38%;

  • Dividend growth 1 year - 3.23%;

  • Dividend growth 5 year average - 8.79%;

  • EPS Growth next year versus previous year – 7.95%;

  • PE – 19.9

Intel (NASDAQ:INTC) engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide.

  • Dividend yield – 3.41%;

  • Dividend growth 1 year - 33.3%;

  • Dividend growth 5 year average - 16.00%;

  • EPS Growth next year versus previous year – 4.49%;

  • PE – 10.5

Williams Partners (NYSE:WPZ) focuses on natural gas transportation, gathering, treating and processing, storage, natural gas liquid fractionation, and oil transportation activities in the United States. The company operates in two segments, Gas Pipeline, and Midstream Gas and Liquids.

  • Dividend yield – 5.02%;

  • Dividend growth 1 year - 8.73%;

  • Dividend growth 5 year average - 10.68%;

  • EPS Growth next year versus previous year – 5.46%;

  • PE – 17.6

GlaxoSmithKlein (NYSE:GSK) engages in the discovery, development, manufacture, and marketing of pharmaceutical products, over the counter (OTC) medicines, and health-related consumer products worldwide.

  • Dividend yield – 4.99%;

  • Dividend growth 1 year - 8.69%;

  • Dividend growth 5 year average – 4.13%;

  • EPS Growth next year versus previous year – 13.98%;

  • PE – 22.1

Altria (NYSE:MO) engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally.

  • Dividend yield – 5.77%;

  • Dividend growth 1 year – 7.89%;

  • Dividend growth 5 year average – (13.77%);

  • EPS Growth next year versus previous year – 7.35%;

  • PE – 17.0

Kimberly Clark (NYSE:KMB) engages in the manufacture and marketing of health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care.

  • Dividend yield – 3.96%;

  • Dividend growth 1 year – 6.06%;

  • Dividend growth 5 year average – 7.397%;

  • EPS Growth next year versus previous year – 8.92%;

  • PE – 16.9

Phillip Morris (NYSE:PM) manufactures and sells cigarettes and other tobacco products.

  • Dividend yield – 4.09%;

  • Dividend growth 1 year – 20.31%;

  • EPS Growth next year versus previous year – 7.39%;

  • PE – 16.0

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.