Creating Monthly Dividend Income

Dividend Investors all share the same goal – to obtain a passive revenue stream from dividend income.  The combination of both consistent dividend payments (say 3% to 4% average), and the potential capital appreciation of those investments is a winning strategy.

Every dividend investor has his or her own strategy. My strategy is more of a value play. I like to obtain stocks that are near their 52 week lows, have been punished for bad earnings or unforeseen events
(Bad News Investing), and have low PE and LE ratios. But the end result is the same for most dividend investors – to buy good dividend paying stocks, hold for the long term, and collect dividends.

The Monthly Income Strategy

One strategy for dividend investing is to select dividend paying stocks based on their dividend payout date. So a basket of dividend paying stocks will result in dividends paid out every month. Some stocks pay out dividends monthly i.e. Shaw Communication (SJR.B), but most dividend stocks payout their dividends quarterly.  So the goal is to select a basket of dividend stocks you like, and stagger the quarterly dividend payout dates.  That way you can receive a dividend payment every month. Whether you choose to DRIP your dividends into more shares, or just receive the dividend payout is up to you!


Thanks to the Dividend Monk for pointing out a great site this week in his Weekend Readings. This is a dividend calendar site ilovedividends, a fabulous dividend resource which is absolutely free! How nice is that?  All the major countries are covered: Canada, US, Europe etc. In addition there is also a dividend calendar for the world’s largest companies, and the Warren Buffet portfolio. Nice resource!

Creating a Canadian Monthly Dividend Portfolio

Using some of my favourite stock picks and the ilovedividends Canadian Stocks page, we can easily create a basket of Canadian Dividend stocks with continuous monthly dividends for a dividend portfolio. These are just a sample of blue-chip stocks you could use to build a monthly dividend payout stream. I’m not suggesting you run out and buy these particular stocks, or it’s a properly diversified list, just using them as an example:

Company Symbol Current Price Dividend Yield J F M A M J J A S O N D
Pengrowth Energy PGF $12.53 6.7% * * * * * * * * * * * *
RioCan Real Estate Investment REI.UN $23.28 5.9% * * * * * * * * * * * *
Shaw Communications SJR.B $21.00 4.4% * * * * * * * * * * * *
AGF Management AGF.B $18.03 5.5% * * * *
Husky Energy HSE $26.08 4.6% * * * *
Telus Corp. T $48.97 4.3% * * * *
Bank of Montreal BMO $57.84 4.7% * * * *
Royal Bank RY $53.34 3.7% * * * *
Encana Corp. ECA $31.93 2.5% * * * *
Fortis Inc. FTS $33.95 3.4% * * * *
Average Portfolio Yield = 4.57%

The stocks above are only a small sample of companies you could use. In summary, using a monthly dividend calendar is another great tool you can add to your dividend investing strategy!

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