7 Dividend Stocks That Pay Me $1,800 Per Month

hey everyone welcome back to the channel so in today's video i'm going to share seven dividend stocks that pay me thousands of dollars per month to own these stocks and most of these i've had my portfolio for quite a while now but we've been seeing a really big shift from tech stocks uh rotating into a lot of these like more traditional value stocks uh and a lot of these do end up paying dividends so i'm gonna share uh kind of like each one of these break it down why i own them uh but of course as you probably already know by now i'm not a financial advisor this is certainly not any type of advice i'm just you know sharing some of my personal opinions here and some of the stocks that are in my portfolio also before we get into the video don't forget to get your five free stocks on moomoo it's an investing app where you can buy and sell stocks so you know i buy and sell some of these dividend stocks on the platform so i'll leave a link to it down below in the description free stocks i think it's a pretty great deal it's the best uh investing app deal that you're going to see out there at the moment so i'll leave that link down below that's the only little promotion we're doing here so let's get into the video we first need to understand just a really brief reason why companies pay dividends because this is going to help you understand uh like what you can set expectations for because there's things called dividend traps there's all kinds of other problems and then we'll go into these seven dividend stocks but this is really important don't skip this part trust me um so you need to understand why companies pay dividends so basically when a company makes money they have a couple of options of what they can do with those profits option number one is they can take the money that they make uh over the course of a year and they can reinvest that back into uh like you know making new products or like research and development or maybe like for example when uh apple makes money they will reinvest a lot of that back into making the next iphone and the next ipad and the next mac right so companies can reinvest it back into the business and not pay the shareholders at all option two they can do things like share buybacks where basically you end up owning more of the company because they decrease the amount of shares in the pool as a whole and then there's another option which is paying out essentially cash payments or dividends uh usually on a quarterly basis to shareholders so dividends can be a great way to make some money in the stock market but you also have to keep in mind sometimes it means that you know like the company tends to be mature they're making money and so they think the best way to get that money back to the shareholders is just to give it a cash payment um instead of like reinvesting it back into the business so you want to make sure that dividends are sustainable in a stock if you see a dividend where it has a yield of like 15 or 20 percent typically that's going to be something called a dividend trap and you want to be aware of those i've fallen into those when i first started investing so make sure that if a company's paying a dividend that they can sustain that dividend payment um and don't just fall for the ones that have like really high payments because sometimes they can be big big dividend traps okay so the first dividend stock that i invest into is jpmorgan chase so this is essentially the largest uh bank in the united states um and there's a couple of reasons why i like j.p morgan um so right now they pay about a 2.5 2.6 yield uh as a dividend on their stock so essentially you're getting about four dollars in dividends per share of jpmorgan over the course of a year um so two and a half percent while it might feel a little bit low for dividend stocks right now at the current market environment i think it's actually one of the best options in terms of dividend payments uh i remember back to when i started investing in dividend stocks in literally 2009 2010 2011 and dividends were like eight nine ten percent on a lot of these companies that's just because the stock price was a lot lower than and now stocks are a lot higher because of the market conditions um and so 2.6 i believe is actually a pretty good uh payment uh for a company like jpmorgan and so the final reason why i'm just gonna like explain why i have this in my portfolio is because i think they are one of the best positioned financial institutions in the country right now uh if you look back to the financial crisis back in 08 they actually bought bear stearns at like two dollars a share they were one of the best uh companies in terms of the amount of cash that they have on their balance sheet um and so they do have that that likes feeling of security uh for consumers uh and also for investors knowing that they are not like overstretched you know like like some of these other uh ones like lehman brothers for example back in the day um was kind of overstretched with some of their different things and they ended up you know going bankrupt um so jp morgan that's why i like it uh if you had a hundred shares of jp and was paying four dollars per share as a dividend that'd be about four hundred dollars per year in dividends if you owned 100 shares and you can see how that scales up of course you own a thousand shares you're getting like four thousand dollars per year um if you own you know 10 000 shares get like 40 000 per year so it certainly scales up pretty quickly there okay let's talk about the next dividend stock that is in my portfolio i'm a little bit biased on this one uh but it's a company called air products so on an annual basis air products pays about six dollars and 48 cents per share uh in dividends so it comes out to about two and a half or two point six percent kind of similar to jp morgan at the moment although the stock price has come down a bit about 15 uh so far year to date so actually that yield is going up now it's 2.6 maybe if the stock falls a little bit more it might go up to three percent uh and i'm actually getting a little bit excited about that to potentially buy some later on down the road um so air products essentially what it is it's based in pennsylvania so that's why i'm a little bit biased because i've understood this company for a while i grew up around it so i was able to see kind of how the company has been moving along over the past couple of decades here um so air products essentially it's a very boring business it's not like a consumer-facing business uh so typically when uh like manufacturers or any type of industrials need certain types of uh gases uh they are going to call up their products and buy it from them so very boring like i said but i think they have a really great moat uh they definitely don't have a monopoly but they have a pretty good moat um and they're doing some really big projects with hydrogen i think they're one of the leading uh companies in in the hydrogen market uh and also in the helium market um so basically yeah like for example let's say that the ford plant uh in detroit needs liquid nitrogen or they need oxygen or they need like maybe some other type of random gas uh to manufacture something they end up buying it from air products they have a couple of competitors but overall i think it's a pretty good business um it's it's something that is pretty resilient even like if for example consumers don't spend as much as long as they're still manufacturing and industrials it's a company that i think is is pretty well hedged uh in in that case um and they are pulling in billions of dollars they have some pretty solid uh profit margins and like i said the stocks down about 15 percent on the year even though they're still pulling in so much cash and so that's why i'm getting excited to hopefully buy some more uh throughout this year i'm gonna average into it as well but air products uh once once again like i said about a two and a half or two point six percent yield uh on that stock so if you had 100 shares of air products you'd be making about 648 dollars per year in dividends um from owning that stock so it's one of the ones in my portfolio let's move on to the third dividend stock in my portfolio and it's one that you might be pretty familiar with which is pepsico so uh pepsi you know obviously a competitor to coca-cola i don't think i have to really explain what they do so let's just talk about their dividend here so pepsi pays out about a 4.30 dividend over the course of a year obviously this is coming out in four quarterly payments so you can just divide four dollars and thirty cents divided by four to see what you'll be making on a quarterly basis uh and this actually in line with air products and in line with jpmorgan comes out to about two and a half percent yield based on the stock price it promises could be some other ones in here that are a little bit higher or actually another one that's me a little bit lower as well um but pepsi look uh they had a couple of uh meetings recently where they explained that yes they're gonna be raising the prices uh some by at least 10 percent they're gonna be raising their prices on some of their products and they feel as though they have really solid pricing power and uh they feel as though uh they can certainly raise those prices without consumers uh you know cutting back on costs and not buying their products so this means that pepsi is able to hopefully pass their rising cost because you know there's a lot of inflation right now hopefully they're able to pass those on to uh consumers um and also something interesting about the beverage industry i mean coca-cola and pepsi really almost have a monopoly on the industry because any time that a new beverage company pops up one of them will just buy it up like for example like like gatorade and powerade and like honest tea and basically every drink brand in like the grocery store that you see it's either owned by coca-cola or pepsi so alternatively you know it like coca-cola i would feel just as safe having that in my portfolio as well uh those two companies are very similar and they also pay some pretty similar uh dividends as well so the next dividend stock is one of the uh oldest stocks in my portfolio of all time and it's a company called ppl uh and so this is uh an electric company in pennsylvania essentially where i grew up um and so they're paying i think a dollar 66 per share as a dividend which comes out to about uh 5.6 or 5.7 yield on this stock as a dividend on an annual basis um and so i've owned this stock for uh almost like 10 years now i've i've this is like one of the first stocks that i ever invested into um and i can tell you that their dividend payment has been very stable over the course of my investing career so over a decade they've been paying usually around that yield is around like five percent of course you know if there's an economic downturn and the revenue declines their profits decline then you know they probably will have to slash that dividend uh but for my investing career they've held it up and so it's not a crazy growth stock it's not one that you know has 10x in the past few years uh but it's one that i feel pretty stable with i understand the industry and so i do like to have it as a part of my portfolio and it does have that higher yield compared to some of the other ones on this list um but you know with that of course there is some risk as well looking at the the utility industry as a whole there can be a lot of risks like energy prices and all kinds of other things that that could affect companies like ppl so the next stock in my portfolio that pays a dividend is waste management i've also been investing in waste management for a pretty long time uh and they pay out two dollars and sixty cents per share per year uh so this comes out to you know whatever 2.60 cents is divided by four that's about what uh uh 65 cents per quarter um and so this comes out to like 1.6 so it's not extremely high it's not one that's like you know giving you 10 yields uh but i think overall this is an industry that i feel very safe with especially you know potentially going into uh slower economic growth this year which you know looking at the macros like i i definitely have some concerns um and so uh you know people are always gonna have to pay for waste management people are always going to pay to uh have their their trash their garbage and their recycling taken care of they're not gonna just throw it in their backyard and so waste management has a pretty good setup there and really when you look at their competitors they have a company i believe it's called republic services but other than that you know they just have some small regional competitors but overall i think they have a really good grab on the entire industry in the united states and they're doing some really big interesting projects with things like biofuels and all kinds of other things that they're really pouring back into r d um so that's why they're paying a little bit of a lower dividend because they still do have really nice profit margins overall the stock has been killing it for the past like five or ten years um i remember when the stock was like thirty dollars a share now it's up you know well over a hundred dollars um but yep it's one that i like to have in my portfolio okay so another one that i have in my portfolio is exxon mobil um so i think it's important to have some type of energy in a portfolio um and i was conflicted on this for a while because you know i didn't want to like put all my money into an industry that's dying and also you know not the most environmentally friendly uh but i did realize at one point that i wanted to have a nice hedge and make sure that my portfolio was well-rounded and i'm glad that i did that i'm glad that i did invest a little bit of my money into the energy sector because you know if you look so far year to date uh energy stocks are up like 30 percent and tech stocks are down like 30 so it does give some layer of security you'll notice that like all the stocks in this portfolio in the dividend portfolio are very different in different industries and that's for a reason i don't want to have all my eggs in one basket all in tech or all in banks or all in you know energy i like to have it pretty spread out so exxon mobil they actually pay a pretty solid dividend they're paying over four percent um and so what you're going to be getting per share on an annual basis is 3.52 cents uh per year which comes out to like i said about four and a half percent yield now actually this was actually like an eight percent dividend last year um but it's lower now because the stock essentially doubled uh just in the past like four or five months um so that's why it's uh the yield has gone down a lot um but nonetheless you know i think it's it's like i said important to have exposure to the the energy industry i also have a number of other stocks as well uh but what you'll notice is that uh companies that may be like a solar company or a wind company while i do have some of those in my portfolio they're not paying out dividends um because usually they're not profitable um and they are a lot riskier as well um so that's why i like having a portion of my assets in something like this now there are alternatives to that as well like shell or bp or chevron or hess there's so many different energy companies out there but exxon mobil i felt as though had the best cash producing ability um and also the the best hedge in my portfolio to make sure that it stays somewhat stable um so the final dividend stock that i want to share with you here today is one that i think sounds kind of funny saying this um but it is a railroad company called union pacific so people usually just don't think about railroads uh because they feel as though you know this is something from 150 years ago and investing into a railroad it sounds weird because you know they're not really making more railroads in the united states uh most of that has already been done and if anything they're closing certain types of railroad paths but the truth is that you know you have to realize that it's actually really inexpensive to ship shipping containers uh via rail compared to like 18 wheelers and tractor trailers um and so a company like union pacific is paying a 4.72 cents per share on an annual basis uh so that comes out to about 1.95 yield uh as a dividend on this railroad stock but actually the stock is up i believe like you know five or six hundred percent just in the past uh i don't know time frame you know that is specifically but just in the past like five to ten years so it's up quite a bit which is a little bit concerning uh because you know i don't like buying stocks when they're up so much um but if you look at their balance sheet if you look at the amount of money that they're producing a lot of it is because there's just so much coming in from china and from other countries that we're importing now and so we need to utilize the railroads so much where you know a lot of things will come into like the la portes for example it'll go straight to the rail yard and it'll get shipped out throughout the country rather than just like trucking that out it just wouldn't really make much sense economically also there's a lot of products like uh for example lumber and you know like all kinds of different products that you don't want to uh ship on a truck or you can't ship on a truck and you have to use railroads so they actually have a pretty good setup there i believe and honestly it's not really going anywhere uh in in the next like couple of decades we're gonna be using rails uh for quite a while unless we start building tunnels uh and find that to be economical which i don't think is gonna be the case so those are the dividend stocks that pay me a couple thousand dollars per month um you know i feel pretty safe with these of course if stocks go down a lot uh and if we have some type of market crash i'm probably gonna end up just buying more because these are companies that are pulling in cash most of these can pass on a rising cost of inflation to their customers and so that's why i honestly sleep pretty well at night holding some of these stocks all right so thanks for watching the video and of course if you want to get those five free stocks you can check out moomoo down below in the description it's an affiliate link helps support these videos uh you know just trying to pay my bills and buy some more stocks here so uh thanks for watching the video and i'll see everybody in next week's video

Channel: Nate O'Brien

Views: 1,044,583

Keywords: nate o'brien, dividend stocks, best dividend stocks, dividend investing, best monthly dividend stocks, monthly dividend stocks, top dividend stocks, dividend stocks to buy, high dividend stocks, are monthly dividend stocks a good investment, monthly dividend stocks to buy, passive income, top monthly dividend stocks, dividend stock list, top dividend stocks to buy

Id: lFyeLeP44kY

Length: 16min 41sec (1001 seconds)

Published: Mon Feb 14 2022