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Seeking Paydays? 3 Dividend Aristocrats Worth a Look

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While most stocks pay quarterly dividends, investors can still construct a portfolio that allows them to get paid monthly.

How? Let me explain –

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 

KO is a member of not only the elite Dividend Aristocrats group, but the Dividend Kings group as well, further underpinning its dividend reliability. As shown below, the company has rewarded its shareholders handsomely for years.

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Image Source: Zacks Investment Research

Caterpillar

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, showing its reliability. Below is a chart illustrating the company’s dividends paid on an annual basis.

Zacks Investment Research
Image Source: Zacks Investment Research

McDonald’s

We’re all familiar with the restaurant titan McDonald’s, seeing those golden arches at seemingly every stop.  MCD shares presently yield 2.3% annually, paired with an 8.2% five-year annualized dividend growth rate.

Below is a chart illustrating the company’s dividends paid on an annual basis.

Zacks Investment Research
Image Source: Zacks Investment Research

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.


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Caterpillar Inc. (CAT) - free report >>

CocaCola Company (The) (KO) - free report >>

McDonald's Corporation (MCD) - free report >>

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