Here’s how you can earn $ 100 every month with $ 27,275
WWhether you’re looking for a way to help pay some bills or just increase your savings, dividend-paying stocks can play an important role in making money on a regular basis. The only unfortunate thing is that many companies pay dividends quarterly rather than monthly.
However, one solution is to invest in dividend-paying stocks that pay out at different times. By stacking them up, you can make sure that there is money coming in every month. Three income stocks with different payment schedules that are good long-term investments are Medical Property Trust (NYSE: MPW), Hasbro (NASDAQ: HAS), and Enbridge (NYSE: ENB).
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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 rents and pays at least 90% of its profits to investors. Medical Properties is a more secure REIT than those focusing on residential properties, as its portfolio is made up of hospitals, which provide high stability. And with a presence in nine countries, it is also geographically diverse.
His cash dividend of $ 0.28 is earning 5.29% today, well above the S&P 500 on average only 1.4%. And while that might seem a little 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. FFOs are what REITs use to assess profitability because they exclude cash and one-time gains or losses. On an FFO basis, the company’s payout ratio is 65% very manageable. Medical Properties also sees no sign of a problem despite the pandemic, noting that its tenants have been “very close to normalized levels” for the past nine months.
This share pays a dividend every January, April, July and October. To collect $ 100 in each of these months, you will need to invest around $ 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.
Gaming and entertainment company Hasbro is a solid investment because of the diversity of its business. Although the company is known for its popular toys (including Power Rangers, GI Joe and many more), its business is much bigger than that. Its combined digital games and entertainment segments generated net sales of $ 461 million for the first three months of the year, while sales of consumer products totaled $ 654 million. And although total revenue of $ 1.1 billion increased only 1% from the period a year earlier, this is due to a decline in the entertainment segment, in which closures from COVID- 19 had a negative impact on theatrical activity. The other segments were each up at least 14% year over year.
But what’s most important to dividend investors is the security of the company’s payments, and with diluted earnings per share of $ 0.84 for the period, the company can easily afford its dividend payout. quarterly $ 0.68. Hasbro distributes its payments in February, May, August, and November. Its 2.83% return is the lowest on this list and will require the largest investment to raise $ 100 per quarter – $ 14,135. However, with great diversification and good prospects for growth (especially once the entertainment segment recovers), this is another stock that you can comfortably hold on to for the long term.
The Enbridge pipeline company is the highest-yielding stock on this list – investors can earn 7.17% a year just from its dividend. It’s also the only company on this list that’s a dividend aristocrat – it has increased its payouts for 26 straight years.
With potentially strong demand for oil now as the economies of North American nations begin to return to normal and make up for lost travel time, there is little cause for concern for Enbridge’s business. And even before the potential increase in throughput from its pipelines, the company still looks strong. The company released its latest results on May 7 and its Distributable Cash Flow (FCC), a key measure used in the industry to assess performance and payout ratios, increased from C $ 2.7 billion l last year to 2.8 billion Canadian dollars for the first three months. 2021. On a per share basis, this comes out at C $ 1.37 – well above the company’s quarterly dividend of C $ 0.835 (which puts it at a payout ratio of 61%).
With Enbridge, you only need to invest $ 5,579 to expect to receive $ 100 in cash each quarter. However, this is potentially the most volatile income stock of the three, since dividend payouts are in Canadian dollars. Enbridge pays dividends at the beginning of each month of March, June, September and December.
The Canadian oil and gas company is one of the safest investments you’ll find in the industry, and with a high return, it’s another great stock that income investors can buy today.
You’ll need to spend almost $ 27,275 to buy all of the dividend-paying stocks mentioned above and collect $ 100 per month. Here’s a summary of the data based on May 28 closing prices:
|Medical Property 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 documents.
By investing in these companies, you can diversify into many different segments including healthcare, gaming, oil and gas. It can help you earn a higher return and supplement your income with recurring payments while making your portfolio more secure in the long run.
10 stocks we prefer at Medical Properties Trust
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David Jagielski has no position in the stocks mentioned. The Motley Fool owns shares and recommends Enbridge and Hasbro. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.