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Welcome to Episode #396 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is joined by Bryan Hayes, Zacks Stock Strategist and editor of the Income Investor newsletter, to talk about how to create a stock portfolio that also generates on average of $100 a month, or $1200 a year.
Looking for a $100 a Month Payout
It doesn’t sound like much, does it? Just $100 a month. But depending on the yield on each stock, it may take you a bigger investment than you think to get there.
This podcast is talking about individual stocks, not dividend paying ETFs. With a diverse set of stocks, it’s possible to generate $1200 a year and you may get the benefit of stock appreciation as well.
Tracey and Bryan looked at 5 large cap stocks as larger companies are more likely to pay dividends, and to raise the dividend payout, consistently over time.
Where should you look to generate a $100 a month, or $1200 a year?
VICI Properties owns 93 experiential properties including 54 gaming properties. It’s holdings include sports and wellness including Bowlero, Canyon Ranch, Great Wolf Resorts, Kalahari Resorts, and Homefield. VICI also owns some of the most iconic names on the Las Vegas strip including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.
VICI is a REIT and is currently paying an annual dividend of $1.66 per share, which is yielding 5.6%. If you owned only VICI, you would have to buy 722 shares at the cost of $21,267, to generate $1200 a year.
Should VICI be on the short list for those looking for a REIT?
KeyCorp is a regional bank headquartered in Cleveland, OH with a market cap of $14.3 billion. The banks have been battered over the last 2 years. Shares of KeyCorp have dropped about 30% during that time.
But is a turnround coming? KeyCorp is up 6% year-to-date. It pays an annual dividend of $0.82, which is yielding 5.3%.
If you only bought KeyCorp, you would need to buy 1463 shares at the cost of $22,375 to generate the $1200 a year.
In Feb 2024, Meta Platforms announced its board of directors had authorized a quarterly dividend. This was a first for the social media company. Meta Platforms is now paying an annual dividend of $2.00 a share, which is a yield of just 0.4%.
With a yield that low, it will take a lot of firepower to generate $1200 just from owning Meta Platforms. An investor would need 600 shares, at the cost of $296,412, to generate the $1200 payout.
Should Meta Platforms still be a part of a passive income portfolio even with its low yield?
ExxonMobil is one of the world’s largest energy and chemical companies. It is a dividend aristocrat. It has raised its dividend every year for 41 years. ExxonMobil says its annual increase averages 5.8% over those 41 years.
ExxonMobil is currently paying $3.80 for a yield of 3.3%. An investor would need to buy 315 shares for $37,443, to generate $1200 a year in passive income.
ExxonMobil shares are up 18.6% year-to-date. Should energy stocks be in your passive income portfolio?
Eli Lilly is a big pharmaceutical company that is producing a weight loss drug. Investors looking for passive income have historically looked to big pharma companies like Eli Lilly because they tend to pay them. However, Eli Lilly is not a member of the dividend aristocrats, because while it has paid a dividend for many years, from 2009-2014 it did not increase it.
Eli Lilly is paying an annual dividend of $5.20 per share, for a yield of 0.7%. Shares have soared 165% over the last 2 years, pushing the yield down. Investors would have to buy 230 shares, at a cost of $175,346, to generate $1200 a year.
Should Eli Lilly be part of a passive income portfolio?
What Else Should You Know About Owning Dividend Stocks and Generating $100 a Month?
Tune into this week’s video podcast to find out.
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How to Create a Stock Portfolio that Pays $100 a Month
Welcome to Episode #396 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is joined by Bryan Hayes, Zacks Stock Strategist and editor of the Income Investor newsletter, to talk about how to create a stock portfolio that also generates on average of $100 a month, or $1200 a year.
Looking for a $100 a Month Payout
It doesn’t sound like much, does it? Just $100 a month. But depending on the yield on each stock, it may take you a bigger investment than you think to get there.
This podcast is talking about individual stocks, not dividend paying ETFs. With a diverse set of stocks, it’s possible to generate $1200 a year and you may get the benefit of stock appreciation as well.
Tracey and Bryan looked at 5 large cap stocks as larger companies are more likely to pay dividends, and to raise the dividend payout, consistently over time.
Where should you look to generate a $100 a month, or $1200 a year?
5 Dividend Paying Stocks to Consider
1. VICI Properties Inc. (VICI - Free Report)
VICI Properties owns 93 experiential properties including 54 gaming properties. It’s holdings include sports and wellness including Bowlero, Canyon Ranch, Great Wolf Resorts, Kalahari Resorts, and Homefield. VICI also owns some of the most iconic names on the Las Vegas strip including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.
VICI is a REIT and is currently paying an annual dividend of $1.66 per share, which is yielding 5.6%. If you owned only VICI, you would have to buy 722 shares at the cost of $21,267, to generate $1200 a year.
Should VICI be on the short list for those looking for a REIT?
2. KeyCorp (KEY - Free Report)
KeyCorp is a regional bank headquartered in Cleveland, OH with a market cap of $14.3 billion. The banks have been battered over the last 2 years. Shares of KeyCorp have dropped about 30% during that time.
But is a turnround coming? KeyCorp is up 6% year-to-date. It pays an annual dividend of $0.82, which is yielding 5.3%.
If you only bought KeyCorp, you would need to buy 1463 shares at the cost of $22,375 to generate the $1200 a year.
Is a bank like KeyCorp a bargain right now?
3. Meta Platforms (META - Free Report)
In Feb 2024, Meta Platforms announced its board of directors had authorized a quarterly dividend. This was a first for the social media company. Meta Platforms is now paying an annual dividend of $2.00 a share, which is a yield of just 0.4%.
With a yield that low, it will take a lot of firepower to generate $1200 just from owning Meta Platforms. An investor would need 600 shares, at the cost of $296,412, to generate the $1200 payout.
Should Meta Platforms still be a part of a passive income portfolio even with its low yield?
4. ExxonMobil Corp. (XOM - Free Report)
ExxonMobil is one of the world’s largest energy and chemical companies. It is a dividend aristocrat. It has raised its dividend every year for 41 years. ExxonMobil says its annual increase averages 5.8% over those 41 years.
ExxonMobil is currently paying $3.80 for a yield of 3.3%. An investor would need to buy 315 shares for $37,443, to generate $1200 a year in passive income.
ExxonMobil shares are up 18.6% year-to-date. Should energy stocks be in your passive income portfolio?
5. Eli Lilly and Co. (LLY - Free Report)
Eli Lilly is a big pharmaceutical company that is producing a weight loss drug. Investors looking for passive income have historically looked to big pharma companies like Eli Lilly because they tend to pay them. However, Eli Lilly is not a member of the dividend aristocrats, because while it has paid a dividend for many years, from 2009-2014 it did not increase it.
Eli Lilly is paying an annual dividend of $5.20 per share, for a yield of 0.7%. Shares have soared 165% over the last 2 years, pushing the yield down. Investors would have to buy 230 shares, at a cost of $175,346, to generate $1200 a year.
Should Eli Lilly be part of a passive income portfolio?
What Else Should You Know About Owning Dividend Stocks and Generating $100 a Month?
Tune into this week’s video podcast to find out.