What are the best monthly dividend stocks to buy?
The five stocks on the NYSE or Nasdaq with the highest forward dividend yield that also trade for $25 or less as of April 2024 include Jiayin Group Inc., Petroleo Brasileiro, Frontline Plc, Hercules Capital, and Apollo Commercial Real Estate Finance, Inc.
| COMPANY | SECTOR | MARKET CAP |
|---|---|---|
| Prospect Capital (PSEC) | Financial services | $ 2.6 billion |
| Paramount Resources (POU.TO) | Energy | $3.1 billion |
| Gladstone Investment (GAIN) | Financial services | $439 million |
| LTC Properties (LTC) | Real estate | $ 1.3 billion |
- Verizon Communications VZ.
- Johnson & Johnson JNJ.
- Philip Morris International PM.
- Altria Group MO.
- Comcast CMCSA.
- Medtronic MDT.
- Pioneer Natural Resources PXD.
- Duke Energy DUK.
The five stocks on the NYSE or Nasdaq with the highest forward dividend yield that also trade for $25 or less as of April 2024 include Jiayin Group Inc., Petroleo Brasileiro, Frontline Plc, Hercules Capital, and Apollo Commercial Real Estate Finance, Inc.
- Coal India Ltd.
- Oil and Natural Gas Corporation Ltd.
- Power Grid Corporation of India Ltd.
- Tech Mahindra Ltd.
- ITC Ltd.
| Stock | Market Capitalization | 12-month Trailing Dividend Yield |
|---|---|---|
| Gladstone Investment Corp. (GAIN) | $500 million | 6.9% |
| Modiv Industrial Inc. (MDV) | $112 million | 7.7% |
| LTC Properties Inc. (LTC) | $1.3 billion | 7.2% |
| Realty Income Corp. (O) | $44 billion | 6.4% |
In theory, investing in stocks that pay dividends monthly versus quarterly could work in an investor's favor if they're able to compound their money faster. So not only could they benefit from more regular dividend income payments, they could also potentially see more income from those stocks over time.
| Dividend Stock | Current Dividend Yield* | Analysts' Implied Upside* |
|---|---|---|
| Home Depot Inc. (HD) | 2.5% | 10.5% |
| Procter & Gamble Co. (PG) | 2.4% | 15.4% |
| Johnson & Johnson (JNJ) | 3.1% | 25.3% |
| Merck & Co. Inc. (MRK) | 2.4% | 10.6% |
| Stock | Dividend yield |
|---|---|
| First American Financial Corp. (FAF) | 3.8% |
| Pfizer Inc. (PFE) | 6.6% |
| Coca-Cola Co. (KO) | 3.3% |
| Johnson & Johnson (JNJ) | 3.4% |
| Company | Dividend Yield |
|---|---|
| Franklin BSP Realty Trust Inc. (FBRT) | 11.60% |
| Angel Oak Mortgage REIT Inc (AOMR) | 11.58% |
| Altria Group Inc. (MO) | 9.79% |
| Washington Trust Bancorp, Inc. (WASH) | 9.16% |
Do you pay taxes on dividends?
Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.
A dividend is typically a cash payout for investors made quarterly but sometimes annually. Stocks and mutual funds that distribute dividends are generally on sound financial ground, but not always. Stocks that pay dividends typically provide stability to a portfolio but may not outperform high-quality growth stocks.
| Company Name | LTP | % Change |
|---|---|---|
| DIL | 8.15 | 1.24 |
| Kanani Industries | 3.9 | -1.27 |
| Dynamic Cables Ltd | 445.1 | 2.18 |
| Hilton Metal Forging | 116.9 | 0.34 |
| S.No. | Name | ROCE % |
|---|---|---|
| 1. | Hindustan Zinc | 46.32 |
| 2. | Lloyds Metals | 81.99 |
| 3. | NMDC | 30.22 |
| 4. | Apar Inds. | 51.14 |
The Coca-Cola Company's ( KO ) dividend yield is 3.22%, which means that for every $100 invested in the company's stock, investors would receive $3.22 in dividends per year. The Coca-Cola Company's payout ratio is 74.22% which means that 74.22% of the company's earnings are paid out as dividends.
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
Dividend-paying Stocks
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month.
Dividend Summary
The next Coca-Cola Co dividend is expected to go ex in 2 months and to be paid in 2 months. The previous Coca-Cola Co dividend was 48.5c and it went ex 1 month ago and it was paid 21 days ago. There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.9.
If you were to invest in a company offering a 4% annual dividend yield, you would need to invest about $900,000 to generate a monthly income of $3000. While this might seem like a hefty sum, remember that this investment isn't just generating income—it's also likely to appreciate over time.
The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets.
Can you live off monthly dividends?
It is possible to achieve financial freedom by living off dividends forever. That isn't to say it's easy, but it's possible. Those starting from nothing admittedly have a hard road to retirement-enabling passive income.
There is no hard and fast rule for how many dividend stocks to start a portfolio, but a good starting point is to aim for a minimum of 10. This will give you a good mix of different companies and sectors and help to diversify your risk.
The ex-dividend date is the first day the stock trades without its dividend, thus ex-dividend. If you want to get the dividend payment, you need to own the stock by this day. That means you have to buy before the end of the day before the ex-dividend date to get the next dividend. In other words, it's the cut-off date.
Dividend Yield
Apple's annual dividend in 2021 was $0.88 ($0.22 paid quarterly). Based on Apple's stock price as of March 1, 2022 of around $163 per share, the dividend yield is approximately 0.50%.
Does Amazon distribute dividends? We have never declared or paid cash dividends on our common stock.
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