By David Letke
I apologize for being late with this part of the article, I was traveling (or attempting to) back to Mississippi to get my puppy and see my kids for a week. The trip was terrible at best, but that is a different story altogether.
So, back to the story at hand. I took all of the 401K money that I had accumulated over the years and my savings and profits from the sale of some property, paid off all of my bills, then started looking into investments that would pay me monthly or quarterly.
I started with a google search of the highest paying dividend stocks. Then I searched for stocks paying monthly dividends.
Most of the lists I came up with included some of the same stocks, so I started a list on a piece of paper. That turned into a
mess, so a spreadsheet was started. The information I put on the list was the NASDAQ symbol, the sector the stock was in (ie: energy, REIT, pharma, retail, etc), the cost per share, the dividend frequency, the dividend amount, and the percentage.
Next was the page that had the total amount I had ready to invest and the minimum amount I thought I needed to have coming in each month plus 20 percent. Then I went through numerous scenarios of how to diversify the amount I was going to invest into which stock. This was a nerve-racking experience for me and my over-analytical mind, so I contacted my financial advisor. I gave him the information on what I wanted long-term and what I was working with as far as total investment dollars and he said “sure, we can make that happen!” , so I went back to my lists and spreadsheets for some more figuring.
I took a little bit of money and opened a Robinhood account so I could play and see how all of this works. I bought into 8 stocks for $5,000.00 just to get a feel for it. I also opened an E-Trade account with a couple of hundred dollars.
I discovered that REITs and Energy sectors were where it was at. Face it, those are 2 things everyone needs, housing or
commercial space for businesses and gas/oil/electricity to power those buildings. Yes, the dollar amount of the stocks goes up
and down like a see-saw, but all stocks do. I was looking to get the most bang for my buck in dividends while still remaining
somewhat safe in my total investment. I chose a few that looked good and set up another meeting with my advisor. He took the list and started pulling them up on his screen and we discussed each one, the pros and cons. He didn’t find any cons on my list except that they were all micro or small caps and LLCs or partnerships. Their price-to-earnings ratios and other metrics seemed to be good, so we bought them. This was just the beginning of a wonderful working relationship. This process of research, sharing the info with my advisor, taking his feedback, and having him invest the money continued until I had invested all that I was going to invest. There were 2 that they couldn’t do for me due to the fact that they did not handle those particular stocks, and he was not mad that I bought those on E-trade.
So, what is the list of stocks I bought and the information on
them? The suspense is killing me too, so here it is:
The ones highlighted in yellow are monthly dividend payers.
For example, CLM. $25,000 will get you (at today’s price) 1800 shares and a monthly dividend check of $290.00 (1.16% monthly or 13.92% annually)$25,000 of GOF is 1310 shares and a check monthly of $238.00 (.95% monthly or 11.45% annually) $25,000 of ORC will get you 5020 shares and a monthly check of $326.00 (1.3% monthly or 15.6% annually)
USAC and MPLX are 2 of my favorite quarterly payers.
$25,000 USAC is 1573 shares and a quarterly check of $826.00 (1.10% monthly, 13.2% annually) $25,000 MPLX is 830 shares and a quarterly check of $571.00 (.76% monthly and 9.12% annually)
With this information, you could easily invest $125,000 and earn $15,796 annually on dividends, which is a 12.63% return on
investment. You do need to keep up with it though, watch for news feeds from GOOGLE and YAHOO about your particular choices just to be on the safe side. My advisor does this for me now, but I still check out articles that pop up and I speak with my advisor about every other week just to see if he heard something that I didn’t.
AGAIN, I AM NOT A FINANCIAL ADVISOR, THIS INFORMATION IS FROM MY PERSONAL EXPERIENCE, I AM JUST SHARING THAT INFORMATION WITH YOU. I AM INVESTED IN ALL OF THE STOCKS LISTED IN THIS ARTICLE AND AM AVERAGING 11.5% RETURNS. THIS IS NOT A FINANCIAL GUARANTEE NOR ENDORSEMENT FOR ANY STOCK, ADVISOR, SERVICE, ETC.
ALSO, YOU WILL NEED TO CONSULT YOUR TAX ADVISOR FOR INFORMATION ON HOW DIVIDEND PAYMENTS ARE TAXED IN
YOUR PERSONAL SITUATION.
I WILL PROVIDE MY ADVISOR’S NAME AND CONTACT INFORMATION UPON PERSONAL REQUEST AND I WILL ALSO
BE HAPPY TO DISCUSS OR ASSIST FURTHER WITH ANY INFORMATION LISTED IN MY ARTICLE. JUST MESSAGE THE
PAPER AND REFERENCE THIS ARTICLE WITH “INFO PLEASE” AND INCLUDE YOUR CONTACT INFORMATION, AND I WILL GET
BACK TO YOU AS SOON AS I RETURN TO MERIDA ON THE 15TH OF NOVEMBER.
Thanks for taking the time to read my article and I hope that it can help you! Please feel free to share or cross-post this article so it may help others!
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