Whether you are looking for a way to help pay some bills or just boost your savings, dividend stocks can play an important role by bringing money in on a consistent basis. The one unfortunate thing is that many companies pay dividends every quarter rather than every month.
However, one way around that is to invest in dividend stocks that pay at different periods. By stacking them, you can ensure that some money is coming in each month. Three income stocks with different payout schedules that are good long-term investments are Medical Properties Trust (MPW -1.51%), Hasbro (HAS 11.85%), and Enbridge (ENB 0.68%).
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1. Medical Properties
A real estate investment trust (REIT) can be a great source of recurring income for investors. It collects rent payments and pays out at least 90% of its profits to investors. Medical Properties is a safer REIT than those that focus on residential properties, as its portfolio is made up of hospitals, which provide lots of stability. And with a presence in nine countries, it is also geographically diverse.
Its $0.28 cash dividend yields 5.29% today, well above the S&P 500 average of just 1.4%. And while that might seem like it is a bit too high, Medical Properties reported funds from operations (FFO) per share of $0.43 in its most recent results for the period ending March 31. FFO is what REITs use to assess profitability, as it excludes cash and one-time gains or losses. On an FFO basis, the company's payout ratio is a very manageable 65%. Medical Properties also sees no signs of trouble despite the pandemic, noting that its tenants have been "very close to normalized levels" for the past nine months.
This stock pays a dividend every January, April, July, and October. To collect $100 in each of those months, you will need to invest approximately $7,561 based on last week's closing price of $21.17. With more stability than your average REIT and a solid payout, Medical Properties is an investment that could look great in any portfolio.
2. Hasbro
Gaming and entertainment company Hasbro makes for a solid investment due to the diversity of its business. While the company might be known for its popular toys (including Power Rangers, G.I. Joe, and many others), its business is much bigger than that. Its digital gaming and entertainment segments combined for $461 million in net revenue for the first three months of the year, while consumer product sales totaled $654 million. And although total revenue of $1.1 billion was only up by 1% from the prior-year period, that's due to a drop in the entertainment segment, in which COVID-19 shutdowns have negatively impacted the theater business. The other segments were each up by at least 14% year over year.
But what's most important for dividend investors is the safety of the company's payouts, and with diluted earnings per share of $0.84 for the period, the company can easily afford its $0.68 quarterly dividend payment. Hasbro distributes its payments in February, May, August, and November. Its yield of 2.83% is the lowest on this list and will require the largest investment to collect $100 per quarter -- $14,135. However, with some great diversification and good growth prospects (especially once the entertainment segment picks up), this is another stock you can comfortably hold for the long term.
3. Enbridge
Pipeline company Enbridge is the highest-yielding stock on this list: Investors can earn 7.17% annually just from its dividend. It is also the only company on this list that is a Dividend Aristocrat -- it has raised its payouts for 26 years in a row.
With potentially strong demand for oil now as the North American nations' economies start to get back to normal and make up for lost travel time, there's little reason to be worried about Enbridge's business. And even before the potential surge in throughput on its pipelines, the business still looks strong. The company released its latest results on May 7, and its distributable cash flow (DCF), a key metric used in the industry to evaluate performance and payout ratios, rose from 2.7 billion Canadian dollars last year to CA$2.8 billion for the first three months of 2021. On a per-share basis, that comes out to CA$1.37 -- well above the company's quarterly dividend of CA$0.835 (putting it at a payout ratio of 61%).
With Enbridge, you'll need to invest just $5,579 to expect to receive $100 in cash every quarter. However, this is potentially the most volatile income stock of the three, since the dividend payments are in Canadian dollars. Enbridge makes dividend payments at the start of every March, June, September, and December.
The Canadian oil and gas company is one of the safer investments you'll find in the industry, and with a high yield, it's another great stock for income investors to buy today.
Summary
You'll need to spend close to $27,275 to buy all the dividend stocks noted above and to collect $100 per month. Here's a summary of the data based on closing prices from May 28:
| Stock | Investment | Yield | Annual Payment | Quarterly Payment |
Payment Schedule |
|---|---|---|---|---|---|
| Medical Properties Trust | $7,561.44 | 5.29% | $400.00 | $100.00 | January, April, July, October |
| Hasbro | $14,134.28 | 2.83% | $400.00 | $100.00 | February, May, August, November |
| Enbridge | $5,578.80 | 7.17% | $400.00 | $100.00 | March, June, September, December |
| TOTAL | $27,274.52 | 4.40% | $1,200.00 |
Source: Company filings.
By investing in these companies, you can diversify into many different segments including healthcare, gaming, and oil and gas. Doing so can help you earn a stronger return and supplement your income with recurring payouts while also making your portfolio safer over the long haul.
