A Portfolio for Steady Dividends

02/20/2020 5:00 am EST

Focus: STRATEGIES

Beth Piskora

Head of Editorial Operations, CFRA

Investors looking for income from their investments generally want that income to be paid regularly throughout the year, suggests Beth Piskora, vice president of editorial at CFRA Research in the firm's industry-leading newsletter The Outlook.

To help investors accomplish this, we’ve grouped these 18 stocks according to the dates on which they usually pay quarterly dividends. By purchasing just six of these issues — one in each time slot — you would receive two dividend checks per month.

We’ve gone one step further and identified exactly how many shares to purchase in order to receive monthly income of about $100.

For example, you could buy 355 shares of First Horizon, 55 shares of JPMorgan Chase, 95 shares of AT&T, 50 shares of Magellan Midstream Partners, 170 shares of CenterPoint Energy, and 140 shares of Exelon.

At recent prices, this sector-diversified six-stock portfolio would cost $31,835 and provide annual income of about $1,200 for a yield of 3.8%, much higher than the S&P 500’s recent 1.8% yield.

All of the stocks are ranked 4-STARS (Buy) or 5-STARS (Strong Buy) by CFRA for expected above-average price appreciation in the next 12 months. This list is not tracked for performance.

(MoneyShow editor's note: Below are each company's name, symbol and CFRA Research STAR rating, followed by each stock's recent yield as well as the estimated number of shares needed to generate monthly income of $100.)

EARLY JAN., APRIL, JULY, OCT.

Alexandria R.E. Equities (ARE — 5-STARS) — yielding 2.5% (50 shares)
First Horizon National (FHN — 4-STARS) — yielding 3.2 (355 shares)
Walmart (WMT— 4-STARS) — yielding 1.8 (95 shares)

MID-JAN., APRIL, JULY, OCT.

Johnson Controls (JCI — 4-STARS) — yielding 2.5 (190 shares)
JPMorgan Chase (JPM — 4-STARS) — yielding 2.6 (55 shares)
Medtronic (MDT — 4-STARS)— yielding 1.8 (95 shares)

EARLY FEB., MAY, AUG., NOV.

AT&T (T — 4-STARS) — yielding 5.4 (95 shares)
Bristol-Myers Squibb (BMY — 5-STARS) — yielding 2.7 (110 shares)
CVS Health (CVS — 5-STARS) — yielding 2.6 (100 shares)

MID-FEB., MAY, AUG., NOV.

Apple (AAPL — 4-STARS) — yielding 1.0 (65 shares)
Magellan Midstream Partners (MMP — 5-STARS) — yielding 5.2 (50 shares)
Schwab (SCHW — 4-STARS) — yielding 1.4 (295 shares)

EARLY MARCH, JUNE, SEPT., DEC.

Atmos Energy (ATO — 5-STARS)   — yielding 2.3 (85 shares)
CenterPoint Energy (CNP — 5-STARS) — yielding 4.3 (170 shares)
DuPont (DD — 4-STARS) — yielding 2.3 (165 shares)

MID-MARCH, JUNE, SEPT., DEC.

Analog Devices (ADI — 4-STARS) — yielding 1.8 (95 shares)
Broadcom (AVGO — 5-STARS) — yielding 4.2 (15 shares)
Exelon (EXC — 5-STARS) — yielding 3.1 (140 shares)

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