12 Monthly Dividend Stocks for Each Month of 2024

hey Bowden Nation Joseph hog here with a video that will pay for all those unexpected expenses you know what I'm talking about it seems every month it's an unexpected expense eating away at the budget and keeping you poor so I'm sharing 12 monthly dividend stocks one for each month extra monthly income to boost your budget we're already in February so let's just start there just in time for Valentine's Day on the 14th why not get her a dozen roses and a plush groundhog to say I wish every day could be like today and to pay for your Valentine's spending you'll need to invest just 550 and the global x s p 500 covered call ATF ticker xyld with its 13 dividend yield how this is going to work that 13 annual dividend and the 551 dollars invested is going to send you just under six dollars a month so that when February comes around each year you'll be ready with that cash to buy her whatever her heart desires the xyld is the first of two covered call income ETFs that I'm going to highlight this one holding stocks in the S P 500 Index that largest 500 companies based in the United States like apple Microsoft and Warren Buffett's Berkshire Hathaway now that's going to give it some safety versus some of the riskier stocks like the tech Focus NASDAQ then the portfolio managers are going to sell call options each month against these stocks collecting a premium to generate cash for that dividend and that strategy worked great in last year's stock market crash the xyld did lose 20 percent in the sell-off but considering that's only four percent worse than the broader stock market the S P 500 shown here in red while the fund paid out an additional 11.5 percent in dividends beyond that market index overall it's a great way to invest across the stock market but also get a much higher cash return now the xyld and a 13 dividend isn't bad but it's not the highest yield on the list so stick around for that March brings St Patrick's Day on the 17th and before that International fanny pack day on the 9th I recommend buying enough green beer that you skip fanny pack day altogether and sober up just in time for St Patty's festivities to help you do it join us spirits of the month club for an average of 55 you can get a bottle of booze each month and be blissfully ignorant whatever day it is all year long 55 a year on a 10.1 dividend yield means investing 545 dollars in shares of pennant Park floating rate Capital took her pflt pennant is a BDC but specializes in floating rate loans so something that could help it increase that yield as interest rates rise 87 percent of the portfolio is in secured debt on first Lanes with another 13 in equity Investments to give it more of that upside growth of that high percentage of loans with first lien status it's gonna help it protect it from any downturn in the economy while that higher Equity Position will help it rebound later the company's current portfolio of loans to 125 companies is Diversified across more than 30 Industries with an average loan size around 10 million dollars and a 10 average portfolio yield we'll get right back into our list but first I want to personally invite you to get the weekly bow tie our free Weekly Newsletter with all the stock market news strategies and Trends you you need to know each week before the Market opens I'll show you what I'm watching and the stocks that could highlight the week it's all totally free just something I like to do for all you out there in the community so look for that sign up link below back to our list of monthly dividend stocks and after April Fool's Day you might not believe that April 6th is international pillow fight day but you better be ready International pillow fight Day means it's a World War and that means coming prepared with this 20 by 54 inch full-size wrecking machine for that 67 you'll need to invest 930 in the info cap MLP ETF ticker amza and it's 7.2 percent dividend yield it'll be worth it though when you're the last one standing in a pile of bloodied feathers the MLP fund holds master limited Partnerships companies that own oil and gas pipelines as well as storage and processing facilities now these are very high yielding assets because they charge oil companies a fee to transport through the pipelines and then distribute at least 90 percent of their income onto investors the best part about investing in an ETF like this is you you don't have to manage that special K1 tax form you get with individual MLPs and the boom and oil prices last year has taken this one up 16 beating Stocks by 30 while all producing that seven percent dividend yield oil prices are likely to stay higher this year and next which means this is definitely a place you want to be Mother's Day on May 14th follows World tuna day on the 2nd so make this one a twofer and get ma a 24 pack of Chunk light tuna for 45.36 because nothing says I love you like tuna best of all though you'll be able to buy it on just 428 dollars invested in the JPMorgan Equity premium ETF took our jepi and it's 10.6 dividend yield this is easily my favorite among the covered call ETS though I do like that xyld we talked about earlier the portfolio managers here have over 60 years experience in equity and derivatives and it shows in this fund's performance the fund invests in defensive large cap stocks like insurers consumer staples and pharmaceuticals you see here it's all those Bellwether stocks like have the Coca-Cola and United Health that gives it true safety when the market tumbles then the portfolio managers sell those call options on the S P 500 that broad stock market index to generate the cash flow for dividends and that strategy has worked extremely well you see here in a charter the price Returns on the jepi versus these other popular covered call funds including the qylde the nusi and the xyld the jepi Lost just 0.88 over the last two years versus losses of 30 and 33 percent in the inusi and the qyld even a loss of 15 percent in the XY which still got eight more months left to pay for it but I want to explain how these monthly dividend stocks work because I know there's a lot of questions out there about this now while each of these stocks and the funds pay a monthly dividend remember when you see a percentage dividend yield for a stock that is always a yearly basis or a yearly percentage for example we saw that the J Epi here pays a dividend yield of 10.6 and that means the 12 monthly dividend payments together or about 5.85 in this case that is about 10.6 percent of the current stock price that's 5.86 divided by the stock price of 55.19 a share but again remember that is an annual dividend it's paid out over 12 months so a monthly basis most dividend stocks try to pay equal amounts each month so investors can plan it around their needs but some of these like the jepi fund well you get with the fund is able to pay out and what does all this mean well if you want your dividend stocks to pay your bills then you're going to need to do a little planning you can find how much you need to invest by dividing the amount you need by the dividend yield for example to pay for our 45 and I love you tuna with a 10.6 dividend yield fund we divide that 45 by 0.106 or 10.6 percent for 425 now in our example since we only needed that forty five dollars once a year then that's where it ended if you need a certain amount each month though then you're gonna need to multiply that by 12. the J EPI and it's 10.6 yield oh it's going to pay us that amount and 12 monthly installments so if we need that forty five dollars a month I I don't know maybe you're a child of the Sister Wives and you got 12 mothers then 45 times 12 is 540 and then that much divided by that 10.6 percent yield that's going to mean investing five thousand ninety four dollars it's going to give you that forty five dollars every month in dividend income a little confused probably but let's move on next in our monthly stocks to pay the bills June is the most popular month for vacations with nearly one in three U.S adults planning a trip plan ahead here and you can be in Chico California at the yoyo museum for National yo-yo Day on June 6th the museum is free to tour but budget yourself a thousand dollars for the trip and invest nine thousand ninety dollars in shares of horizon technology Finance Corporation took her hrzn and its 11 dividend to pay for Horizon makes secured loans to venture and private equity-backed companies in the Life Science and Technology Industries now that's a market that's taken a hit over the last year's crash but it's a strong growth area to be in for these business development corporations like Horizon the portfolio of loans is well Diversified by sector geography and Company State now all these are going to be those fast growing startups backed by venture capital and again a great niche in healthcare and technology so besides that high dividend yield you usually get from the typical Business Development Corporation here you're going to get a little bit of a growth stock as well the average yield on the portfolio debt is 16.3 percent well above the seven percent dividend yield and in fact I think the biggest yield spread I've seen in BDC stocks that keeps the dividend safe and it's going to mean the stock price should continue to rise Verizon also has all the funding it needs in the near term with a 45 million share offer last year and a hundred million debt facility celebrate the 4th of July and our nation's independence by blowing up a small part of it in fact kill two birds with this one and combine it with take your houseplants for a walk day on the 27th a uh family pack of m98 firecrackers and a median house plant it's going to set you back 35 meaning you could be blowing [ __ ] up for about 466 dollars invested in Gladstone Investment corporation took her gain and it's seven and a half percent dividend yield and Wildlife gain here is because it's going to take a higher equity share than most other bdc's remember those Business Development corporations they're mostly making loans so the upside is going to be capped on that interest rate but Gladstone targets Investments of 25 equity and 75 debt versus a traditional BDC that's going to look for less than 10 equity in the companies it works with now that higher Equity ownership might mean higher risk but it's also going to mean higher Returns on these Investments and we see that here in Gaines history of Returns on equity which is well above the industry average The Five-Year average Roe of 17 is over three times the median Roe and the BDC group and even though this near-term return has come down it's still well above the average for the group Gladstone's current portfolio is spread across 28 companies in 14 Industries so that level of diversification there should help continue those returns even in a sluggish economy their shares have done so well in fact that it's been able to pay out multiple special dividends boosting that cash return more babies are born in August than any other month let me see what were we doing last December if she can hold it in for at least a week though you can be celebrating an international clown week August 1st through the 7th before buying all those diapers a 200 pack of disposable diapers and a red rubber nose is going to set you back 58.69 or 674 if you invest in the Gladstone Capital Corporation ticker glad and it's 8.7 dividend now you're going to notice that most of these individual stocks in our high dividend list are either real estate investment trusts or REITs or Business Development corporations bdc's that's because these are special types of companies they get a tax break if they pass on at least 90 percent of their profits to investors as dividends it means a very high dividend yield but can also expose your portfolio to risk if you have just a lot of your money and just these two types of companies for that reason I usually say have less than 30 or 40 percent of your money in these REITs and bdc's you don't have to invest in every stock on our list just pick out a few you really like here I think the two groups can do well over the next few years on those higher rates but you you do need to know how to analyze these but then if you are kind of over exposing a portfolio to just one type of company especially these bdcs you want to pay special attention to each company's sources of capital and its business for example in here this every BDC is going to show you the industries in which it loans and the types of loans it's making you see here that Gladstone is well Diversified across 17 Industries so a major event in any one group probably isn't going to materially affect the company one great way to get that newborn started is with free Stocks by opening an account on Weeble start an account on Weeble now and get two free shares just for opening the account deposit as little as a hundred dollars to start investing and Weeble is going to give you an additional 10 more free stocks that's up to 12 free stocks or three to three thousand dollars each just for using the link I'll leave below I use Weeble for the stock simulator feature a paper portfolio that lets you follow your strategies and stock picks before investing real money you'll also see analyst research stock price targets and get to invest in multiple markets around on the world even if you don't use the app though use the link I'll leave in the description sign up and make a deposit you'll get those free stocks worth up to twelve thousand dollars and you'll be helping to support the community so I appreciate that September as kids take over the kitchen day on the 13th hopefully not the newborns born in August but you're still going to need money to buy a new Skillet after Junior tried making grilled cheese sandwiches you're getting off cheap on this one though for just 25 or 385 dollars invested in shares of LTC properties ticker LTC and it's 6.5 dividend yield the Real Estate Investment Trust owns 180 properties in 27 states with skilled nursing accounting for about 56 percent of Revenue and assisted living centers bringing in the rest and I like this one because even if vacancies tick up a little bit or or the economic recovery stumbles LTC has over 503 million in an available credit line and 50 million in balance sheet cash the company has a long-term debt of just 689 million but only 185 of that is maturing through the next two years so it's got all the liquidity it needs to make it through recession long term though this is a great play on America's aging population at the demand for senior living facilities and the stock is selling at a discount that dividend yielded nearly seven percent is safe and I think you book another five to ten percent a year in appreciation over the next decade October ends with Halloween but begins with National Noodle Day on the 6th so why not do both and trick or treat as a noodle it's going to cost you just 255 dollars invested and shares of Prospect Capital ticker PSEC at its 10.2 percent dividend yield Prospect is another Business Development Corporation a BDC founded in 2004 with over 16 years of dividends and performance the company manages a 5.7 billion portfolio of 122 investments in companies across 37 Industries and earns that 10 percent yield on his portfolio now that loan portfolio yield is just slightly below the dividend yield but the company has plenty of liquidity to cover the cash return as the portfolio yield increases in fact Prospect has returned a cumulative 20 per share in dividends for more than 3.8 billion since its 2000 for IPO and the payouts just keep climbing that's the purpose of these bdcs is to act as a bank and investor to those mid-sized companies manage those assets and they'll return that 90 of earnings as cash flow to you as an investor November 11th is Veterans Day and just so happens to be a day after the Marine Corps birthday so wish your favorite bow tie veteran a happy birthday seriously how about a 50 donation to the Wounded Warrior Project the Wounded Warrior Project helps service members returning home with programs like mental health career counseling Rehabilitation and family support folks I've seen personally what the wwp has been able to do for my military brothers and sisters support this saved lives just go to woundedwarriorproject.org and you can make a one-time donation or monthly gift any amount here is appreciated on a 7.8 dividend yield investing just six hundred and forty dollars in shares of Gladstone commercial Corporation took her g-o-o-d it's going to spin out that fifty dollars a year for your donation and I thank you for your help the company owns more than 15 million square feet at 122 properties in 28 States across the United States leases are spread across 106 tenants in 19 Industries so this is another greet with multiple property types about half the rent comes from office space with another 41 on Industrial properties and the rest in medical office and Retail occupancy has held at 96.6 percent and with the average lease term about seven and a half years that means even a more severe recession they should be able to support the rent while Gladstone doesn't have a history of dividend increases it does have a long track record of payments and a good yield at a healthy price appreciation just two more months left on our monthly dividend list and besides Christmas spending December is also National Underdog day on the 16th not that Underdog I'm talking about the perennial losers the Arizona Cardinals the most losiness team in the NFL with 790 losses so start the holidays right with an eight pack of super glue for quarterback Tyler Murray for just nine bucks you can bring some holiday joy to Phoenix or just a hundred and twenty three dollars invested and share as a Main Street Capital ticker m-a-i-n and it's 7.3 dividend yield Main Street is another Business Development Corporation here specializing in those loans and the equity investments into mid-size companies which shares producing a 9.2 annual return over the last five years this company has regularly increased the dividend now up 105 since the 2008 IBO and and often pays a special dividend Main Street has 182 portfolio Investments as of the most recent quarter with the largest representing just three percent of the total fare value so a hit to any of these Investments isn't going to hurt the shares much the weighted average portfolio yield on the portfolio is 9.6 so well above that dividend yield giving this one sustainability and room to grow we've got one more dividend stock the highest pain in the group but one of the complaints I hear so often about monthly dividend payers is inconsistent dividends never know when how much a stock is going to pay check out the video here for a weekly dividend stock portfolio though with consistent cash flow every single week for January though and our highest dividend paying stock forget the New Year's resolution to join a gym and celebrate beer can Appreciation Day on the 24th a 12 pack of full-size bottles each month is going to set you back 539 a year but it's going to be well worth it when you black out every other day on the list and save all that money making that forty five dollars a month means investing just under four thousand dollars in shares of agnc investment ticker agnc and it's 13.5 percent dividend yield now this is a mortgage rate an Emory it's a special type of real estate company these REITs borrow money on short-term rates then leverage that up by borrowing two or three times as much to invest in long-term mortgages this is the interest rate on a repurchase agreements a special overnight short-term rate many mortgage rates use and you can see it's been at almost nothing for much of the last decade so these Emirates they're going to use that borrowed money and the invested Capital to invest in more with higher rates so if you take that four five percent interest received on a 30-year mortgage minus the near zero rates they're paying on those borrowed money it's been a very profitable business and great dividend cash flow agnc holds a 61.3 billion dollar portfolio of these mortgages ninety one percent of that is in 30-year fixed terms and most of these in safe agency-backed mortgages two things you want to watch for when investing in these mortgage rates like agencies is the book value per share and the net interest spread Book value on the left here is the value of the mortgages the company holds and you can see this has dropped pretty consistently since last year as interest rates increase the problem there is higher interest rates means those old mortgages and the bonds are worth less because they pay that lower rate than the new mortgage is coming out for example the rate on a 30-year mortgage has doubled from under three percent last year to almost seven percent recently so anyone holding those old mortgages as an investment the inmates the portfolio isn't worth as much compared to those new bonds the good news here though is that the stock is trading for a significant discount to that book value here you can buy a share for eleven dollars each a 12 discount to the actual value of the mortgages held in the portfolio that discount to book value is always a great place to start when you're buying these Emirates another bit of good news here though is that net interest spread here on the right that's the difference between the interest the company pays on its borrowed money and what it collects on those new mortgages you can see the profitability is getting higher here so once those interest rate levels start to level off or or stop increasing so quickly this could again be a great cash flow stock click on the video to the right for that special 12 stock portfolio that will send you a dividend every single week 12 dividend stocks for weekly cash flow don't 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Channel: Let's Talk Money! with Joseph Hogue, CFA

Views: 44,622

Keywords: monthly dividend stocks, monthly dividends, how to live off dividends, dividend stocks, best dividend stocks, top dividend stocks, dividend stocks to buy, dividend stocks to watch, dividend investing, joseph hogue, lets talk money, bow tie nation

Id: ucLHtc-LCfo

Length: 19min 54sec (1194 seconds)

Published: Wed Feb 15 2023