Current Events > Stocks to invest in to get dividend payments every month

(+) Yeah! (+)

$NKE, $AAPL, $MCD

They pay Dividends every three months on different months so when the dividend payments come out they'll rotate and you'll get payed every month.

So now you'll have consistent positive cash flow every month depending on how much you've invested in them

2Pacavelli posted...

depending on how much you've invested in them

Which should be. . ..?

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$XOM gang

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This is why I'll never get into stocks. People say this, and then I hear that. It's too confusing to know what's the correct advice to listen to

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Or just invest in better companies and make more money...

And aren't dividends super low? Like you could invest $100k and get $50/mo or something silly

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Buying a stock just because it pays it's dividend every month is really stupid

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Bad_Mojo posted...

This is why I'll never get into stocks. People say this, and then I hear that. It's too confusing to know what's the correct advice to listen to

I just dont want to end up owing money

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um, apple's dividend is a drop in the bucket. they're still a growth company.

if you're investing for dividends (read: retiring in less than ~15 years) instead of growth, the companies to look at are:

XOM (energy)- 8.7%
LUMN (telecom) - 9.5%
MO (tobacco/weed)- 8.6%
IRM (REIT) - 9%

Coloradough posted...

And aren't dividends super low?

dividend size is a function of company development. many very large companies, or very well established mid-size companies, have massive dividend payouts because they do not forecast significant growth...ever...but do forecast very long term stability of revenue, so their main profit actions are cost-cutting. these stocks don't appreciate much in price over time, but instead hold value by paying out a huge fraction of their profits as shareholder dividends since operating income mostly does not need to go to new capital expenditures.

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Isnt Apple famously stingy when it comes to dividends ?

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https://www.forbes.com/sites/michaelfoster/2021/02/23/how-to-get-30000-in-yearly-dividends-on-just-250k/?sh=457711b86d1b

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SPHD does 4.67 at 39 for around 11 cents every month, but yeah...high dividend stocks barely have any growth from what Ive seen. Rather invest in growing companies then move it to dividend stocks later at life.

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SPE posted...

Isnt Apple famously stingy when it comes to dividends ?

yes. apple has been building a cash hoard the size of most sovereign nations' treasuries.

their net annual dividend is about 0.63% (20 cents/share/quarter)

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Coloradough posted...

Or just invest in better companies and make more money...

And aren't dividends super low? Like you could invest $100k and get $50/mo or something silly

higher dividend stocks are generally geared to older retirees (see: 70+) living off of sizable life investments. 1m in a 6% stock would yield 60k annually, for instance, assuming (1) price held up and (2) the company was reliable with dividend targets.

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SLVO is a good one. Monthly dividends

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heh, now that i'm looking, NKE's dividend yield is also very low, at 0.77%.

mcdonald's is standard for a company of their size and development at 2.42%.

whoever wrote that little zoom piece clearly just looked up three well known companies that happened to have different ex-dividend months and listed them out. none of those stocks are a good place for someone to invest if their goal is to primarily receive dividends to use for monthly expenses.

awaiting some troll to copy the not-bold part and leave out the bold part.

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Future_Trunks posted...

apple will still use the extra cash to grow and tim cook is getting equity based compensation so he will want stonks to rise lol

you realize that the way apple has made their share price rise, principally, is by buying it themselves, right?

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CableZL posted...

SLVO is a good one. Monthly dividends

So SLVO is about 6.79, and am I seeing right that their dividend payout is like 36%? And this is monthly??

Or am I missing something

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Isn't ATT like 50 cents per share? At $30ish per share seems like you'd get more bang for your buck.

More than once I've heard if you get any appreciable amount of money to put it in T and live off the dividends.

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If you want consistent dividends look at the Dividend aristocrats tbh

I also don't really see the benefit of monthly dividend payments unless you're retired/rich and that is basically your salary

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AlCalavicci posted...

So SLVO is about 6.79, and am I seeing right that their dividend payout is like 36%? And this is monthly??

Or am I missing something

it's an annual net yield of 7.5%

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Damn_Underscore posted...

If you want consistent dividends look at the Dividend aristocrats tbh

I also don't really see the benefit of monthly dividend payments unless you're retired/rich and that is basically your salary

My goal with dividend stocks is to essentially hoard shares over a long period of time until I can match my income from work. Then I'll decide whether I want to keep working or retire.

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Some monthly div tickers Im in:

CLM
WSR

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CableZL posted...

SLVO is a good one. Monthly dividends

A 27.80% dividend seems too good to be true. Whats the catch?

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Orlando_Jordan posted...

A 27.80% dividend seems too good to be true. Whats the catch?

I don't know if there is a catch, but I've been investing in their stocks for about 6 months now and it's doing pretty well for me. Their dividend payout has ranged from 10 cents/share to 21 cents/share in the time I've had their stock. I've just been buying up a bunch of it over time. I'm up to almost 3700 shares. I missed the cutoff date for this month for about 1700 of those, but I still should get about $500 in dividends this month.

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CableZL posted...

I don't know if there is a catch, but I've been investing in their stocks for about 6 months now and it's doing pretty well for me. Their dividend payout has ranged from 10 cents/share to 21 cents/share in the time I've had their stock. I've just been buying up a bunch of it over time. I'm up to almost 3700 shares. I missed the cutoff date for this month for about 1700 of those, but I still should get about $500 in dividends this month.

$500 in dividends? Whoa.

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What's confusing me with SLVO is this:

On Robinhood, the dividend yield is listed as 13.699. On this website:

https://www.nasdaq.com/market-activity/funds-and-etfs/slvo/dividend-history

It's listed at 37.22. Which is correct? If the larger percentage is correct, that means that in 3 years, I make back what I invest in SLVO and anything after that is pure profit. Is that right?

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Div yields on RH can be pretty far off from my experience. Im not sure exactly why, but at times I think they are incorrectly classifying monthly ones as quarterly, or vice versa.

Ill check historicals on dividend.com to do my own calc.

SLVO seems to be all over the place, which is why there are seemingly wild variations in reported yield rates across various sources. Things have really taken off since May 2020, it seems



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SLVO is basically owning SLV and selling calls that are 6% higher than its current value so you basically do well if SLV increases as you'll hit a solid monthly gain on those calls sold each month. But your upside is capped and you have the downside risk.

SLV has outperformed SLVO over the year anyway so just holding that you would get a better gain and not have to realize a dividend gain.

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SK8T3R215 posted...

SLVO is basically owning SLV and selling calls that are 6% higher than its current value so you basically do well if SLV increases as you'll hit a solid monthly gain on those calls sold each month. But your upside is capped and you have the downside risk.

more explicitly, it's owning SLV via ETN.

if the underwriting bank goes under, your shares are forfeit.

it's a debt security.

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@CableZL

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Sackgurl posted...

more explicitly, it's owning SLV via ETN.

if the underwriting bank goes under, your shares are forfeit.

it's a debt security.

Interesting. I believe the bank is Credit Suisse and they've been around since 1859. I doubt they're going anywhere any time soon. It's for sure something to keep an eye on, though. Thanks for bringing that point up.

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CableZL posted...

Interesting. I believe the bank is Credit Suisse and they've been around since 1859. I doubt they're going anywhere any time soon. It's for sure something to keep an eye on, though. Thanks for bringing that point up.

while they are stable, don't let their history be your guide on that. lehman was founded in 1850.

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I like SPG and IRM for dividends.

SPG also net me fantastic appreciation, up 55% in my holdings.

also good to get dividend stonks and set up DRIP. then you get more stonks from reinvestment and thus more dividends. let that shit pile up

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Sackgurl posted...

while they are stable, don't let their history be your guide on that. lehman was founded in 1850.

Good point, yet again. I'll just keep my eye on Credit Suisse while I'm invested so heavily in this.

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CableZL posted...

Good point, yet again. I'll just keep my eye on Credit Suisse while I'm invested so heavily in this.

also be aware that while its current dividend rate is high, the rate of return on the ETN itself was -8.3% since inception, and its dividend didn't use to be nearly this high.

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Sackgurl posted...

also be aware that while its current dividend rate is high, the rate of return on the ETN itself was -8.3% since inception, and its dividend didn't use to be nearly this high.

Yeah, I noticed that. I looked at their full dividend history and decided to start investing in them when they jumped up super high. I put together a spreadsheet of about 100 dividend stocks to track share price, dividend amounts, dividend period, etc. and then looked at dividend payout history of each one before deciding on SLVO about 6 months ago. I can't say I'll be invested in SLVO forever, but it has been pretty good for the past 6 months.

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One could play the game this way, but companies with high dividends have less money to reinvest in themselves and grow.

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Don't sleep on Sunoco (SUN), they pay a really good dividend and weathered 2020 better than other oil stocks as a result.

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onedarksoul posted...

One could play the game this way, but companies with high dividends have less money to reinvest in themselves and grow.

Yeah. I'm gonna be using it as extra income in the short term because I might be buying a house in the next 6 months or so.

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CableZL posted...

Yeah. I'm gonna be using it as extra income in the short term because I might be buying a house in the next 6 months or so.

this is a bad plan

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Sackgurl posted...

this is a bad plan

Why?

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because your risk horizon is 6 months.

you're buying an ETN that sells covered calls on a precious metal index. the prospectus, if you've read it, notes that it is possible to lose the entire investment. that doesn't mean 'eventually'. that means 'suddenly'.

here's their prospectus. i quoted a section of I think you should read.

https://notes.credit-suisse.com/api/DocFile/GetProspectus/SLVO

You may lose all or a significant part of your investment in the ETNs The terms of the ETNs differ from those of ordinary debt securities in that the ETNs do not guarantee payment of the stated principal amount at maturity, or payment upon early redemption or acceleration, and you may incur a loss of your investment. Because the payment due at maturity may be less than the amount originally invested in the ETNs, the return on the ETNs (the effective yield to maturity) may be negative. Even if it is positive, your return on the ETNs may not be enough to compensate you for any loss in value due to inflation and other factors relating to the value of money over time.

(Page 31)

And on page 1, more generally:

An investment in the ETNs involves significant risks and is not appropriate for every investor. The ETNs are intended for investors who are familiar with covered call strategies and the risks associated with options and options transactions. Accordingly, the ETNs should be purchased only by knowledgeable investors who understand the potential consequences of investing in the Index which implements a covered call strategy on SLV Shares. Investors should consider their investment horizon as well as potential transaction costs when evaluating an investment in the ETNs and should regularly monitor their holdings of the ETNs to ensure that they remain consistent with their investment strategies

1) Does the first bolded part describe you?
2) 'Consider your investment horizon' means 'if you can't wait for this to recover, don't buy it.'

They write this in their prospectus to cover their ass from lawsuits.

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My buying a house in 6 months doesn't depend on the health of this stock. I said I'm using it for extra income because it's just that - - extra. The $500 in getting this month will cover the cost of an inspector without me having to dip into my normal income. Whatever I get next month will cover the cost of something else.

If I wasn't getting any dividends at all, I could still buy a house. I'm not gonna be depending on it to pay the mortgage or anything.

It's extra money for now. If I decide to get the house, I'm going back to just reinvesting the dividends once I get settled in and past the initial costs.

I could pay for an inspector without my dividends from SLVO, but why do that if the dividend payout will cover it? That's my thinking.

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do you need the money invested in SLVO to make your down payment

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