Recurring dividend income can help boost your savings, help pay bills, and/or even allow you to retire early. There is a huge incentive to build a strong portfolio of high-yielding stocks as the return can be huge over the long term.
And while most Dividend stocks They only pay you quarterly, and you can create a stream of recurring monthly income by investing in at least three of them that pay at different times during the quarter. If you invest $20,000 in… Verizon Communications (NYSE: VZ), Organon & Company (NYSE: OGN)and Bank of Nova Scotia (NYSE: pence)you can create a diversified portfolio with $300 in dividends each month of the year.
Investing at the top Communications provider Like Verizon it could be a great move for dividend investors. These companies tend to generate a steady stream of revenue from their subscribers. While customers may switch back and forth between telcos, the larger players know what levels to pay to ensure long-term stability in their operations. Verizon is certainly no exception to this.
Although there may be short-term fluctuations at times, this has historically created fairly sound businesses to invest in. In each of the past three years, the company has generated revenues of more than $130 billion, and its operating profits are typically low. More than 20% of its top line.
Last month, Verizon increased its dividend for the 18th consecutive year. With this increase, the stock now yields 6.2%. With an investment of $20,000, you will receive quarterly dividends of $310 every time the company makes a payment – February, May, August, and November.
Organon is a healthcare company focused on women’s health. I started from Merck In 2021, and since then she has been working on her own.
Like Verizon, it has also created a stable business to invest in, with annual revenue typically exceeding $6 billion. Its operating margins are also fairly strong at over 20%. This year, the company expects revenues to range between $6.2 billion and $6.5 billion.
While Organon doesn’t have a long record of paying dividends, this is actually the main reason why investors would want to keep this stock in their portfolios. At 6.4%, it offers a close yield Five times the Standard & Poor’s 500 The average is about 1.3%.
With the current yield, investing $20,000 in the stock would produce approximately $320 per quarter. Organon typically pays dividends every March, June, September and December.
Another high-yielding stock to consider investing in today is Bank of Nova Scotia, also known as Scotiabank. The Canadian-based bank is among the safest dividend stocks you can own. Dividends have been paid for more than 190 yearsThe first batch dates back to 1833.
Scotiabank last reported earnings in August. During the nine months ended July 31, its revenue totaled C$25.1 billion, up 5% year-over-year. Net income of C$6.2 billion during that period also rose modestly by about 2% compared to the same period last year.
The Bank’s resilience is demonstrated by its impressive and consistent ability to pay dividends through a variety of economic forces and market conditions. Even with interest rates lower in Canada, bank stocks appear to be in strong shape.
US investors will have some volatility in their dividends from stocks due to the foreign exchange effect (dividends are paid in Canadian dollars). However, with a dividend yield of about 5.9%, investing $20,000 in Scotiabank should net you close to $300 each time it pays out, every January, April, July and October.
Between Scotiabank and the other stocks on this list, investors who buy shares of all of these companies can be sure to receive dividends every month of the year.
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David Jagielski He has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck. The Motley Fool recommends Bank of Nova Scotia and Verizon Communications. The Motley Fool has Disclosure policy.
Do you want to distribute $300 in dividends every month? Invest $20,000 in each of these three stocks Originally published by The Motley Fool