How to Get a Dividend Check Every Month of the Year

For investors looking for steady income, these three stocks can collectively provide you with a dividend check in each of the 12 months.

Aug 31, 2014 at 1:00PM

One of the best arguments for investing in dividend-paying stocks is that they provide income that you're free to spend anywhere you want. These regular checks can help cover the regular expenses of life. But most dividend stocks pay their dividends quarterly.

If you're an investor who would prefer to receive a more steady stream of income, there is a solution available to you. By digging deeper into companies' dividend payment schedules, it's possible to find a small group of dividend stocks that pay their investors in different months. With these stocks, you can scatter dividend payments throughout the year. That way, your portfolio will generate a more consistent income stream.

For example, if you invest $25,000 in a portfolio yielding 4%, you will generate $1,000 in annual income. If your dividends are received quarterly, you'll get $250 every three months. Instead, you could receive about $83 every month.

Even better, dividend growth stocks increase their dividends regularly, and that will significantly increase your income potential over time. For example, if you invest in companies that raise their dividends by 8% per year, your $83 monthly income will rise to $122 per month in just five years.

Here are several dividend stocks you can invest in that will collectively pay you a dividend each and every month out of the year.

January, April, July, and October
For a company that pays its first quarterly dividend in the first month of the year, I recommend one of the most well-known dividend stocks of them all: tobacco giant Altria Group (NYSE:MO). Altria has increased its dividend 48 times in the past 45 years, including a recent 8% dividend bump. Its success owes to its industry leadership with its Marlboro brand and its interests in smokeless tobacco, cigars, wine, and a voting stake in brewing company SABMiller.

Altria pays a solid 4.5% yield, and its payout is well-supported by its profits.

February, May, August, and November
For each of these four months, investors can look to a company with a long track record of paying, and raising, its dividend. That would be consumer products giant Procter & Gamble (NYSE:PG). P&G holds a stable of popular brands that are used in millions of households across the country every day. In fact, P&G has 25 "Billion-Dollar Brands" that each bring in at least $1 billion in annual sales. These include Crest, Tide, and Gillette, for example.

 This portfolio of must-have products allowed P&G to raise its dividend again this year, bringing the current yield to 3.2%. P&G has paid dividends for 124 consecutive years, since its incorporation in 1890. This year marked the 58th in a row in which the company raised its dividend, and its payout ratio remains comfortable at 61%.

March, June, September, December
A good pick for these months would be oil and gas company Chevron (NYSE:CVX) for its diversification and strong dividend. Chevron is the second-largest oil company in the United States. It currently yields 3.3% and has a long track record of raising its dividend.

Chevron has upped its payout for 27 years in a row, and there should be future increases in store, given that the company distributes just 39% of its earnings.

The Foolish bottom line
These three stocks provide yields that are higher than what you'll get from the broader stock market -- and way higher than the current rates on bank certificates of deposit and savings accounts. Altria, Procter & Gamble, and Chevron are large, stable businesses that are putting up solid growth.

Even better, these stocks have long track records of raising their dividends each and every year, meaning your income potential will grow with time. And because these businesses are strongly profitable, their dividend payments are well-protected by underlying profits.

If generating monthly income is your goal, it's entirely possible to receive a dividend check in every month of the year.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Bob Ciura owns shares of Altria Group. The Motley Fool recommends Chevron and Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers