Benzinga - by Jing Pan, Benzinga Staff Writer.
In the world of dividend stocks, most companies follow a quarterly distribution schedule.
Imagine a scenario where, instead of waiting for a dividend check every three months, you are getting paid every month.
It's entirely feasible.
A select group of companies pays monthly dividends. Realty Income Corp. (NYSE:O), for instance, has been doing so for decades. Because tenants typically pay rent every month, real estate has been a popular sector for investors looking to earn passive monthly income.
However, the key isn't solely in finding monthly dividend-payers. By strategically selecting and combining companies that distribute their dividends in different months, it's possible to craft a portfolio that generates monthly returns.
You don't even need that many stocks to do it. Below is an example of three stocks that, when combined, yield dividends on a monthly cadence.
Just remember, stocks are volatile and dividends are not carved in stone. So always conduct comprehensive research and due diligence before diving in.
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Procter & Gamble Co. (NYSE:PG)
Procter & Gamble is deeply entrenched in the consumer staples business. With well-known brands like Tide, Bounty, Gillette and Pampers, the company offers a range of products that households buy regularly, allowing it to generate consistent revenue through thick and thin.The resilient business model allowed the company to not only pay reliable dividends but also to increase them year after year.
In April, P&G's board approved a 3% increase to the quarterly payout to 94.07 cents per share, marking the 67th consecutive year the company has raised its dividend.
At the current share price, P&G offers an annual yield of 2.6%. The company usually pays dividends on the 15th day of each February, May, August and November.
Coca-Cola Co. (NYSE:KO)
Beverage giant Coca-Cola is another company with an impressive track record of returning cash to investors.In 2022, it paid shareholders $7.6 billion in dividends.
In February, Coca-Cola announced its 61st consecutive annual dividend hike, raising the quarterly payout from 44 cents to 46 cents per share. The company now yields 3.4%.
Coca-Cola's dividends typically arrive in April, July, October and December.
PepsiCo Inc. (NASDAQ:PEP)
Established beverage companies can pay consistent dividends. And rather than choosing between Pepsi and Coke, why not opt for both?It's easy to see why both companies can be resilient: Even in a recession, a can of Coke or Pepsi is still affordable to most people.
In addition to producing beverages that grace store shelves worldwide, PepsiCo boasts a popular convenience foods portfolio featuring household names such as Lay's, Doritos and Cheetos.
PepsiCo has paid a higher dividend to shareholders for 51 years straight. It currently offers a dividend yield of 3.2%.
Shareholders of PepsiCo can expect to get paid in January, March, June and September.
Together, P&G, Coca-Cola and PepsiCo provide distributions that span every month of the year.
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