I love dividends. Why?
I like it when people give me money. What’s better than having cold hard cash deposited into your brokerage account?
However, there is one issue with dividends. Most companies only pay you once every three months.
That might be OK for some investors. But for those of us who rely on dividends to pay the bills, balancing monthly expenses with quarterly payouts can be a bit of a hassle.
Thankfully, there’s a way around this problem. By researching dividend schedules, you can find a combination of stocks that pay distributions in different months. That way, you can scatter your payments throughout the year.
To help get you started, I have picked three of my favourite income names that are organized in exactly this fashion. With this basket of stocks, you should be able to collect a dividend every single month.
January, April, July, and October
The past 10 years have been good for Potash Corp of Saskatchewan Inc (TSX:POT)(NYSE:POT) shareholders.
The company is making money hand over fist thanks to higher fertilizer prices. This has allowed management to hike Potash Corp’s dividend 22-fold over the past decade.
But the crazy part is, this company could just be getting started. According to the United Nations, the world’s population is expected to surpass 9 billion people by 2050. To grow more food on less land, farmers will need ever greater quantities of fertilizer.
That’s why potash demand, a key fertilizer ingredient, is expected to soar. Producers like Potash Corp are poised to make a fortune… and that will mean more dividend hikes for shareholders
February, May, August, and November
If you’re looking for consistency, Canadian Utilities Limited (TSX:CU) is about as steady as it gets.
This business is the definition of recession-proof. No matter what the economy is doing, people always need to keep the lights on. That means this company’s cash flows are as steady as bond coupons.
March, June, September, and December
Take the number of years Canadian Utilities has paid distributions and triple it. Now add a decade. Then add a few more years for good measure.
That’s how long the Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) has paid a dividend to shareholders. This financial giant has mailed a cheque to investors every year since 1869 — only one year after Canadian Confederation.
And don’t expect that tradition to end anytime soon. CIBC has one of the strongest balance sheets of the Big 5 banks. Bloomberg Markets Magazine was so impressed, it named the company the soundest bank in North America… for two years running.
That means this dividend is one of the safest around.