💸 All monthly dividend stocks
Every Wednesday it’s Dividend Day.
In this series, I will teach you 5 things about dividend investing in less than 5 minutes.
1️⃣ Monthly Payments
Dividend investors love getting paid regularly.
But most companies only pay dividends a few times a year.
If you want to receive a dividend every single month, here are 12 companies that pay monthly dividends.
Source: Stock Masters
2️⃣ Investing beats inflation
Inflation reduces how much you can buy with your money.
Over 20 years, $1 has lost 40% of its purchasing power.
Source: St. Louis FRED
The 20-year inflation-adjusted return of the Dow Jones?
150%.
And if you would have reinvested your dividends?
300%.
Compounding is a powerful tool to fight inflation.
Source: Finchat
3️⃣ A dividend quote
John Burr Williams had a big influence on Warren Buffett.
He focused on dividends and developed the Dividend Discount Model (DDM) to estimate a stock's intrinsic value based on its expected future dividend payments.
"A cow for her milk, a hen for her eggs, and a stock, by heck, for her dividends." - John Burr Williams
4️⃣ All monthly dividend stocks
If you like receiving dividends monthly, here’s a list of all 54 stocks that distribute dividends every month.
Click the picture to visit the entire list.
Source: Stock Analysis
On Saturday, I’ll show you how to build a dividend portfolio that pays you a dividend every single month of the year.
5️⃣ Example of a dividend stock
Paychex, Inc. (PAYX) makes money by providing payroll processing, human resource, and benefits outsourcing services to small- and medium-sized businesses.
They charge recurring subscription fees as well as one-time fees for some services.
- Profit Margin: 32%
- Forward PE: 25.7x
- Dividend Yield: 3.1%
- Payout Ratio: 77.8%
Source: Finchat
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That’s it for today
In case you missed it:
Used sources
- Interactive Brokers: Portfolio data and executing all transactions
- Finchat: Financial data