Make $1000 A Month With These Dividend Stocks

Generating monthly income is a top priority for everyone. Most of our expenses recur monthly and we need monthly income to keep things going. One of the most attractive features of dividend-paying stocks is that they pay you cash. But most dividend stocks pay out their dividend on a quarterly basis. Wouldn’t it be great to get paid monthly instead of quarterly?

Well you can. There are over 100 stocks that pay dividends monthly and many of them have high yields.

It takes money to make money with dividend stocks. We picked three of those stocks that would provide you with $1,000 a month income with less than $100,000 invested. We put together an example of the number of shares and the amount you would have to invest in each of the three companies to total $1k in dividends per month.

1. Pioneer High Income Trust – PHT

Pioneer high income trust has a dividend yield of 10.6% and pays out 100% of its income. Their dividend growth rate is on the decline but they have be consistently paying their dividend and they have a high yield. They are well below their 5 year dividend average of 12.9%.

Last Price: 15.54
Shares: 2250
Value of Shares: $34,965
Monthly Dividend Paid: $309.38

2. Pimco High Income Fund – PHK

The Pimco High Income Fund has a big yield at 11.3%. This is also below their 5 year average of 14.7% and their latest payout ratio is 129%. So there is a little risk here of the dividend being reduced or of the stock being sold off a little. They have been paying their dividend consistently though for 7 years.

Last Price: 12.89
Shares: 2510
Value of Shares: $32,353
Monthly Dividend Paid: $305.71

3. Alpine Global Dynamic Dividend – AGD

We saved the best for last. Alpine has a huge yield at 14.8% and their payout ratio is only 73%. They are actually above their 5 year dividend yield average indicating that the stock might be slightly undervalued. Another item to watch with the Alpine global dynamic dividend fund is that their monthly payments are not always the same. They tend to jump around from month to month at somewhere between $.06, $.11 and $.13 per share. We will use an average to calculate our numbers below.

Last Price: 7.81
Shares: 4000
Value of Shares: $31,240
Monthly Dividend Paid: $385

Adding it up

In total we have $385 + $305.71 + $309.38 = $1000.09 per month. To reach this level of dividend payouts we had to invest a total of $98,558.90.

4 replies
  1. Buck Inspire
    Buck Inspire says:

    This makes a lot of sense on paper. Dunno how many people have 100K lying around to invest. Does your strategy change depending on your investment capital?

  2. DSO
    DSO says:

    If you are looking to make $1,000 a month with dividend paying stocks, this is an example of how to do that. You can’t do it with less capital.

  3. CDC
    CDC says:

    I certainly follow the logic, but I’m not sure I’d invest $100K in three companies paying out such high ratios. Once a stock is paying out more than it generates through normal operations, it’s either burning cash or counting on additional investments, which dilutes the value of your capital.

    I’d love to see this strategy with three stocks that pay out less than 75% of their earnings.

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