Monthly billing can actually work to your advantage. There’s something intriguing about a careful reader earning 8.8% returns each month on their investments in monthly dividend payers, which, as it turns out, are quite rare. Most companies or funds typically offer dividends quarterly instead of monthly.
Only about 6% of dividend payers issue payments monthly. The remainder often pays out either quarterly or annually, so it’s wise to stay on top of your financial responsibilities, like those upcoming mobile phone bills.
I usually get my monthly emails from Verizon pretty quickly, often within a day or two. Just recently, I noticed $267.26 is set to be deducted from my account on August 20th.
Verizon, fortunately, reminds customers that with Autopay, “nothing is necessary.” It’s almost as if they’re suggesting that automatic payments mean you automatically lose money!
In the brighter side of my phone plans, there are no landlines—just the costs associated with my cell phone. But be careful—don’t let your budget imbalance slip away! Cutting the cord on cable may have seemed like a victory years ago, but wireless services seem equally, if not more, costly.
For instance, YouTube TV offers a plan priced at $82.99, but on the upcoming bill due August 29th, I see a total of $131.95 plus tax. How did I end up paying more than half of that as a premium? Well, they include sports streaming in 4K for an additional $9.99 a month, plus NFL Redzone at another cost of $10.99. Yeah, and I also bought WNBA season tickets to enjoy some games with my daughter over the summer.
And let’s not forget about the necessity of air conditioning here in Sacramento! Just a few days ago, I paid the utility $187.76, which, surprisingly, feels like a lighter bill for summer months.
Big expenses—the mortgage—is another story. Thankfully, it’s automatically deducted from my account on the first of the month. I’ve been at it for 11 years now, and when we refinanced in 2021, we reduced it to a 15-year commitment. I also have my “basketball dad” car—a 2019 Acura MDX—that I’m still paying down, although I’m not completely attached to it.
It’s just the nature of monthly spending, right? I’m sure lots of you face similar financial routines.
But there’s a solution for those draining monthly expenses. Monthly dividends could really help balance things out.
Now, you might be thinking, “But only 6% of companies pay monthly dividends. How do I find them?” Good question! Our reverse income report highlights a sort of “virtual monopoly” in this area. We’ve identified 18 monthly payers generating an average yield of 8.8%. That’s pretty impressive, right? If someone were to invest $1 million in this selection, it could yield about $7,333.33 each month as passive income.
The exciting part is that the initial investment remains intact—or even appreciates! Over the last decade, our portfolio has achieved a 10.7% annual return, with the bulk coming through cash dividends, most of which are paid out monthly.
One standout is the Doubleline Income Solutions Fund (DSL), the biggest player in our monthly dividend sector, added back in April 2016. With a current price of $16.99 per share, we’ve received 111 monthly dividends totaling $15.27—that adds up to 90% of the original purchase price in payouts. It’s almost like free money at this point!
Imagine investing in something that’s traded like a blue-chip stock and essentially earning back your investment over ten years through monthly dividends. The payout streams remain strong!
Importantly, DSL isn’t just a mediocre choice—it’s significantly better than that. Managed by Jeffrey Gundlach, a prominent figure in bond investment, DSL aims to capitalize on various market opportunities to sustain its regular monthly payments of 11 cents.
Currently, DSL offers a 10.9% return. So, for a $100,000 investment, that translates to around $10,900 a year in passive income—that breaks down to about $908.33 in monthly dividends directly to you.
This level of income might just cover your Verizon bill, your YouTube TV subscription, and even your home’s air conditioning expenses.
A $50,000 investment in DSL would yield about $454.17 each month, which is still quite substantial for meeting those monthly obligations.
And as an investor, you shouldn’t limit your options. Diversifying your portfolio with DSL alongside other stable monthly payers is essential. It’s all about ensuring a solid monthly cash flow while managing risk effectively—just ask any successful investor.
Our focus is on creating a robust portfolio of monthly dividend payers that stands strong against market fluctuations and economic uncertainty.
If this talk about monthly dividends has sparked an “Aha!” moment for you, you’re absolutely welcome! For too long, Wall Street has offered subpar financial advice that barely scratches the surface.
The typical 4% withdrawal rule? Don’t rely on that.
Traditional wisdom isn’t cutting it when it comes to building passive income. It’s time to reevaluate your financial strategies. Move away from “buy and hope” and strengthen your reliance on dividends.
There’s a safer, simpler way to secure monthly dividends exceeding 10% annually. This is my approach to turning investments into a reliable monthly income stream.
