We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Investors can construct a portfolio that allows them to get paid monthly.
Dividends provide a nice buffer against the impact of drawdowns in other positions.
KO, CAT, and MCD would provide the necessary blend needed for monthly income.
While most stocks pay quarterly dividends, investors can still construct a portfolio that allows them to get paid monthly.
For example, the first stock pays dividends in January, April, July, and October. The second stock pays out in February, May, August, and November. And finally, the third stock will pay its dividend in March, June, September, and December.
So, investors can reap steady monthly paydays with just a little positioning.
A combination of Coca-Cola (KO - Free Report) , Caterpillar (CAT - Free Report) , and McDonald’s (MCD - Free Report) shares would provide precisely the blend needed for this portfolio. Let’s take a closer look at each one.
Coca-Cola Gains Market Share
Shares were up nicely following its latest set of better-than-expected results, with the stock also sporting a favorable Zacks Rank #2 (Buy).
As shown below, analysts have upwardly revised their EPS expectations higher nearly across the board over recent months, with the one exception being a small downward revision concerning its next quarterly release.
Image Source: Zacks Investment Research
Concerning headline figures in its latest release, adjusted EPS grew 5% to $0.77, with the company also gaining value share in total nonalcoholic ready-to-drink (NARTD) beverages. The company is also a member of the elite Dividend Aristocrats group, further underpinning its dividend reliability.
Caterpillar Keeps Paying
Caterpillar is the world’s largest construction equipment manufacturer. We see its iconic yellow machines at nearly every construction site.
Like KO, the company is a member of the elite Dividend Aristocrats group, with shares currently yielding 1.4% annually. While the current yield may be on the lower end, Caterpillar’s 7.9% five-year annualized dividend growth rate picks up the slack.
Below is a chart illustrating the company’s dividends paid on a quarterly basis.
Image Source: Zacks Investment Research
McDonald’s Keeps Growing
We’re all familiar with the restaurant titan McDonald’s, seeing those golden arches at seemingly every stop. Analysts have modestly upped their EPS expectations across the board over recent months, a positive sign concerning near-term share performance.
Image Source: Zacks Investment Research
MCD shares presently yield 2.5% annually paired with a payout ratio sitting at 61% of the company’s earnings. Dividend growth has been solid, with MCD sporting a 8.4% five-year annualized dividend growth rate.
Bottom Line
Investors love dividends, as they provide a nice buffer against the impact of drawdowns in other positions and provide a passive income stream.
And while most companies pay their dividends on a quarterly basis, investors can construct a portfolio that allows for monthly payouts with just a bit of positioning.
For those interested in this type of portfolio, the combination of all three stocks above – Coca-Cola (KO - Free Report) , Caterpillar (CAT - Free Report) , and McDonald’s (MCD - Free Report) – would provide the necessary blend needed.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
This 3 Stock Portfolio Provides Monthly Income
Key Takeaways
While most stocks pay quarterly dividends, investors can still construct a portfolio that allows them to get paid monthly.
For example, the first stock pays dividends in January, April, July, and October. The second stock pays out in February, May, August, and November. And finally, the third stock will pay its dividend in March, June, September, and December.
So, investors can reap steady monthly paydays with just a little positioning.
A combination of Coca-Cola (KO - Free Report) , Caterpillar (CAT - Free Report) , and McDonald’s (MCD - Free Report) shares would provide precisely the blend needed for this portfolio. Let’s take a closer look at each one.
Coca-Cola Gains Market Share
Shares were up nicely following its latest set of better-than-expected results, with the stock also sporting a favorable Zacks Rank #2 (Buy).
As shown below, analysts have upwardly revised their EPS expectations higher nearly across the board over recent months, with the one exception being a small downward revision concerning its next quarterly release.
Image Source: Zacks Investment Research
Concerning headline figures in its latest release, adjusted EPS grew 5% to $0.77, with the company also gaining value share in total nonalcoholic ready-to-drink (NARTD) beverages. The company is also a member of the elite Dividend Aristocrats group, further underpinning its dividend reliability.
Caterpillar Keeps Paying
Caterpillar is the world’s largest construction equipment manufacturer. We see its iconic yellow machines at nearly every construction site.
Like KO, the company is a member of the elite Dividend Aristocrats group, with shares currently yielding 1.4% annually. While the current yield may be on the lower end, Caterpillar’s 7.9% five-year annualized dividend growth rate picks up the slack.
Below is a chart illustrating the company’s dividends paid on a quarterly basis.
Image Source: Zacks Investment Research
McDonald’s Keeps Growing
We’re all familiar with the restaurant titan McDonald’s, seeing those golden arches at seemingly every stop. Analysts have modestly upped their EPS expectations across the board over recent months, a positive sign concerning near-term share performance.
Image Source: Zacks Investment Research
MCD shares presently yield 2.5% annually paired with a payout ratio sitting at 61% of the company’s earnings. Dividend growth has been solid, with MCD sporting a 8.4% five-year annualized dividend growth rate.
Bottom Line
Investors love dividends, as they provide a nice buffer against the impact of drawdowns in other positions and provide a passive income stream.
And while most companies pay their dividends on a quarterly basis, investors can construct a portfolio that allows for monthly payouts with just a bit of positioning.
For those interested in this type of portfolio, the combination of all three stocks above – Coca-Cola (KO - Free Report) , Caterpillar (CAT - Free Report) , and McDonald’s (MCD - Free Report) – would provide the necessary blend needed.