Get Paid Monthly: The Dividend Stock Portfolio

My Monthly Dividend Portfolio

    My dividend stock portfolio is equally weighted (all equities are equally proportioned). Thus, my dividend payouts vary greatly depending on which equities are paying out a dividend that month, but it can easily be adjusted to generate a more steady stream of passive income throughout the year assuming these companies continue their dividend payouts. This portfolio consists of 2 companies that pay out a monthly dividend, 6 that pay quarterly, and 1 ETF paying a monthly dividend. The quarterly dividend companies are picked based on the months these companies typically pay out their dividend in order to ensure that 2 companies are paying out a dividend each month. Overall with this portfolio, you will be receiving 5 dividend payments every month. 

Quarterly Dividend Companies:

January: Comcast (CMCSA) and Verizon (VZ)

We could very well argue that both Comcast and Verizon are members of oligopolies in their industries. Comcast owns and operates Xfinity (residential cable and internet), Comcast Business (commercial services provider) Xfinity Mobile (Partners with Verizon to provide coverage), NBC, Telemundo, TeleXitos, Cozi TV, MSNBC, CNBC, USA Network, Syfy, NBCSN, Oxygen, Bravo, E!, Universal Pictures, Peacock, DreamWorks Animation, Illumination, Universal Animation Studios, and Universal Parks & Resorts. It would take nothing short of a natural disaster of biblical proportions for Comcast to go out of business, and I can own shares of Comcast confidently knowing that they will increase revenues over time. Verizon, on the other hand, is the largest wireless wireless carrier in the United States, and provides services to over 100 million people as of 2020. That, my firends, is roughly a third of the US population. Verizon holds a massive market share and with the expansion on 5G networks and the internet of things, the number of devices connected to their network will only expand. These two companies may not be growing at the rate of a company like Tesla, but they are very well established in their industries and continually increasing revenue will yield continuing increase in their dividend payout.      

February: AT&T (T) and Apple (AAPL)

AT&T reported having over 90 million subscribers in the United States in Q2 of 2020. Like Verizon, that is almost a third of the US Population. AT&T, however, functions more like a hybrid of Comcast and Verizon. AT&T is deeply embedded in the entertainment industry with ownership of DirectTV and WarnerMedia which includes Cartoon Network, Cinemax, DC Comics, HBO, TBS, TNT, and Warner Bros. WarnerMedia alone reported a revenue of $34.2 Billion in 2019 while AT&T reported a total revenue of $181.2 Billion. AT&T will continue to dominate in many years to come, and AT&T has been know for paying out a massive dividend for many years now. Our second company for this month, Apple, needs no description. Apple was the first company to reach a $2 Trillion valuation. I'm typing on a MacBook with my iPhone next to me playing a station on Apple Music through my AirPods Pro while wearing an Apple Watch. This company reported a revenue of $260.2 Billion in 2019 and quarterly revenue of $59.7 Billion for Q3 of 2020, during a period of massive unemployment globally. Apple will continue making a lot of money for a long time to come. People love their products. They announced the iPhone 12 will be sold without a charger and many will still buy it. So before you pre-order your new iPhone, buy some Apple stocks.           

March: Coca Cola (KO) and Bank of America (BAC)

While Coca Cola may not be the on the same level as the companies previously discussed, Coca Cola is still on of the most recognizable brands in the world. Their carbonated sugar beverages are consumed everywhere and produce a revenue of $37.27 Billion in 2019. Cola Cola has been a consistent dividend payer for decades now. Bank of America, on the other hand is one of the biggest banks in the United States, and despite the name, Bank of America is a multinational corporation. Bank of America also owns Merrill Lynch, another titan in the financial industry. 

     

Monthly Dividend Companies:

Stag Industrial Inc (STAG) and Realty Income (O)

Both of these companies are REIT's. Real Estate Investment Trusts are companies that own income producing real estate that are required to pay out at least 90% of their net earnings to shareholders as dividends in order to qualify as securities. Furthermore, REITs must continue the 90% payout regardless of whether the share price goes up or down. Stag Industrial owns multiple distribution warehouses, among other types of properties, throughout the United States. Their largest tenant is none other than Amazon. Realty Income is very similar, but most of their properties are retail stores whereas Stag leases warehouses. Realty Income's tenants include CVS, Walgreens, Walmart, Kroger, Fedex, and Home Depot. Both of these companies' income stream involves companies that lead their respective industries. 

Monthly Dividend ETF:

iShares Preferred and Income Securities ETF (PFF)

The greatest thing about PFF is the fact that it contains preferred shares. Preferred shares are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued. If the company enters bankruptcy, preferred stockholders are entitled to be paid from company assets before common stockholders. Most of these shares also have a fixed dividend. IE a company may cut their common stock dividend, but their preferred share holders may likely still receive a dividend. Holdings include Bank of America, JP Morgan Chase, Citigroup, and Wells Fargo.

 This portfolio is tailored to provide a healthy dividend in the long run. I may be adding more companies in the near future. I'm looking to add 3 more quarterly dividend paying companies, another monthly dividend company, and another ETF in order to branch into some other sectors. Some companies I'm considering adding are Lowe's (LOW), Pepsi (PEP), JP Morgan Chase (JPM), and 3M Co (MMM). Part of the issue however is that, a lot of the reliable high dividend paying companies are in the financial sector, but overall, I plan on having about 15 to 20 companies and ETF's in total. As always, this is not financial advice as I am not a financial advisor. This is the beginning phases of my dividend portofolio. 

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