A 3 Stock Diversified Portfolio That Pays Every Month!

Sounds impossible? Not really. As anyone who follows my blog knows, I prefer to invest in dividend paying stocks. I also like to get paid dividends every month of the year. So I have included in my portfolio stocks that pay dividends in different quarters. My current stock portfolio contains 23 dividend paying stocks. Each month I receive dividends from 5 to 6 different companies. I purposely constructed my portfolio in this manner, so I would see constant returns month after month. All dividends are paid in to a money market account with my brokerage and earn interest until I decide where and when to re-deploy the cash.

So how can you have a diversified portfolio of stocks that pay you a dividend every month and still only own three stocks? It's quite simple, you do as I have and purchase shares in companies that pay in different quarters. As an example, I've picked 3 stocks from my own portfolio. They are:

1. AT&T-- Telecommunications Industry (Ticker Symbol T) Paid last dividend in November 2007.

2. Anheuser Busch--Brewery (Ticker Symbol BUD) Paid last dividend in December 2007.

3. General Electric--Diversified Manufacturer (Ticker Symbol GE) Paid last dividend in January 2008.

These are all solid companies that have a long history of paying out dividends on a regular basis and should do well for years to come. They are part of my core portfolio. I have no intention of selling these stocks in the forseeable future. I am using these only as an example. They are involved in very different industries, thus providing a diversified portfolio and they pay dividends in different quarters, allowing the investor to receive a dividend each month of the year. Like I said, I am using these only as an example, you may prefer 3 different stocks for your own portfolio, but you get the idea.

As I mentioned earlier, from my personal portfolio I already receive 5 to 6 payments per month, every month of the year. I plan to continue building my positions in my current investments until the monthly payouts equal my income from work and then I will be free to choose whether I wish to continue working or not. From time to time I have to make adjustments in my portfolio, liquidating stocks that are not performing well and replacing them with new ones. However, I've found that I much prefer investing according to what I'm going to be paid in the form of dividend income, instead of trying to decide what stocks are going up in price. One bonus I've discovered by investing this way is that companies who consistantly pay and increase their dividends tend to be very stable price wise. So all things considered, this strategy has worked out very well for me.