Here are dividend stocks for daily cash flow that I recommend you have in your portfolio for long term growth.
Bow Tie Nation, this is it! You asked for it and we’re finishing up our portfolio of daily dividend stocks! We all love dividend income here in the nation but HATE waiting for it, so we’re building a portfolio of dividend stocks that don’t make you wait! A dividend investing strategy that will put cash in your account every single day!
In this video, I’m revealing 17 dividend stocks with an average yield of 4.9%…that’s nearly three-times the yield on the broader market. Better still, combine these with the stocks in the first two videos in the series and you’ll create a portfolio that pays you every day!
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How to Create a Dividend Portfolio for Daily Cash
We can do this because most dividend stocks pay out on extremely consistent schedules. Investors love the certainty and dividend-paying companies try paying out in the same week, even the same day every three months. That means, with a little bit of strategy, we can fill our portfolio with income stocks that will time our payments for every day of the week.
Now, how this is going to work, is through these three videos, I’ll highlight those dividend income stocks that will be paying out in the next month. For example, today we’ll highlight 17 dividend stocks that will pay out in December, March, June and September. I’ll show you exactly how I found these stocks later in the video but here you can see that I analyzed almost 400 dividend stocks to find the perfect income portfolio for each and every month.
The goal here is going to be about 60 stocks that will generate a dividend income on every weekday of each month. And the best part, not only is this going to be a well-diversified portfolio producing constant dividends, I’ve picked the best dividend stocks with a yield over 4%…that’s twice the average dividend yield on the market.
Dividend Stocks for Constant Cash Flow
Let’s jump right into that list, then I’ll show you how I put together the portfolio of daily dividend stocks!
We’re getting started with a fan favorite, Iron Mountain, ticker IRM and one of the best dividend yields on the list at nine percent.
IRM is a records management provider with more than 225,000 clients trusting it to store hard copy documents as well as digital transformations and storage. But the real value here comes in the form of the company’s real estate where all this is stored, more than 90 million square feet across almost 1,500 properties.
The company is set up as a real estate investment trust which means it gets a special tax break if it distributes at least 90% of profits to investors. That means you get that sky-high 9% yield, with the stock going ex-dividend about mid-month in December, March, June and September.
IRM is a great start to our dividend portfolio and has grown its payout by 27% over the last five years.
Now remember, the dates you’re going to see here on these dividend stocks are the ex-dividend date. How it works is a company’s Board of Directors declares the next dividend and the ex-dividend date. That ex-dividend date is the first day the shares trade WITHOUT the dividend, so if you want that payout, you want to make sure you pick up the shares at least one day before this.
The idea here isn’t to jump in or out of these dividend stocks so this isn’t going to matter as much to you long-term investors. Just put the stock in your portfolio and you’ll get that dividend every time it comes around.
Next on the list of daily dividend stocks, powerhouse Altria Group, ticker MO and its 8.8% dividend.
Now if you’re set against investing in some of these vice stocks, then you can always substitute out another dividend payer that goes ex-dividend around the same time but for yield and dividend certainty, it’s hard to beat Altria.
Besides owning the dominant tobacco brand in the U.S. and a dividend that has grown by 53% over the last five years, Altria has some key investments that will help it grow. The company holds a 10% stake in the world’s largest brewer, Anheuser-Busch, and a 45% stake in cannabis giant Cronos Group. So you’ve got very stable cash flow from the tobacco and alcohol segments and that moonshot potential in cannabis.
Altria is one of the later stocks to go ex-dividend on our list, late in December, March, June and September. That means you’ll usually get your dividend payment about two weeks later.
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Our first stock in the financials, $12 billion KeyCorp, ticker KEY, and its 5.8% dividend yield.
KeyCorp is a small regional bank with branches in 16 states but concentrated mostly in Ohio and New York. And those of you in the Nation now, financials are one of my favorite sectors for the next couple of years. The sector has been slammed by low rates and is trading at a deep discount.
Case in point, shares of KeyCorp trade for just 0.81-times book value which is a 38% discount to the 1.3 multiple it traded at last year. So potentially a lot of value to be unlocked if interest rates start heading higher and the economy keeps growing.
Beyond valuation and the high dividend yield, KeyCorp has lately made some strong acquisitions in technology names like HelloWallet and Laurel Road, which could give it surprise growth above other regional banks.
The dividend payment has boomed 146% over the past five years and usually goes ex-dividend during the first days of the month in December, March, June and August.
Another value play here, $3.5 billion oil play, Devon Energy, ticker DVN, and its 5% yield.
Next to financials, energy is my other big call for the next few years, and in fact, I’ve added Devon Energy into our 2021 Bow Tie Nation portfolio on Stockcard.
If you’re looking for one sector where everyone is fearful and it may be time to be greedy, it’s in the energy space. The price of oil crashed this year on loss of demand and the entire sector has fallen 49% year-to-date.
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Being ahead of this means finding those cash-rich, best of breed oil companies with the survivability to recover when the market does and Devon is one of the best in the space. The company has nearly $1.5 billion in balance sheet cash and will have no problem keeping up with its debt.
Despite dropping into negative earnings last quarter, the company still beat the market estimate by 30% and is expected to return to profitability by the first quarter.
Shares usually go ex-dividend mid-month in December, March, June and September and paid out a special dividend August this year. Even the lowest analyst estimate has shares up 42% over the next year for a potentially huge upside along with the dividend.
I’ll leave a link below so you can follow the 2021 Bow Tie Nation portfolio on Stockcard. You’ll get immediate updates whenever I buy or sell a stock from the portfolio, even before the video comes out. The portfolio is free to follow but I’ve also negotiated a special discount for the community, use the promo code bowtienation, that’s all one word and lower-case, and you’ll get an exclusive 10% discount beyond the free trial.
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Omnicom, ticker OMC, is the world’s second-largest ad holding company spanning public relations, traditional and digital advertising.
Ad spending is the first to go when company budgets get tight so it’s no surprise that Omnicom has sold off this year but it’s still a solid company. The company has over $3.3 billion in balance sheet cash, so no near-term financial problems, and is trading at a discount of 38% from its peak.
Management has a history of beating expectations and is positioned to take advantage of the growth in digital ads. The dividend payment has grown a respectable 30% over the past five years and shares go ex-dividend early- to mid-month.
Adding some diversification here with Archer-Daniels Midland, ticker ADM, and its 2.9% dividend.
Agricultural producers have just started rebounding this year after years of trade war pain and I think there’s further to go for processors like ADM. The company has one of the largest networks for crop storage and transportation which should do well as the trade picture improves.
Even under the weaker environment, the dividend here grew by 28% over the last five years and I expect that to pick up. Shares go ex-dividend mid- to late-month in November, February, May and August.
Another energy name here with Schlumberger Limited, ticker SLB, and its 3.3% dividend yield.
Now this one is probably the riskiest of my energy bets but still a fairly solid company with $3.8 billion in balance sheet cash. As an oil-field services company, Schlumberger has seen its revenue plunge this year as explorers pull back and let some of their fields go into maintenance.
The company is one of the best in its industry with an advantage in drilling that’s hard to beat so there’s a very good chance this one survives and produces not only that dividend but a hefty price return as well. The dividend was cut 75% in June to protect cash flow but still pays that 3.3% yield and goes ex-dividend usually towards the beginning of the month.
How to Pick Dividend Stocks for Daily Payments
We’ve got ten more dividend stocks to highlight and stick with me because we’ve got the highest yields coming up.
I want to go through real quickly how I picked these stocks, how I put the portfolio together, so you can find your own dividend stocks or just adjust the portfolio when you need to.
Now the concept is easy but it took hours to put together the data on this. I took the 366 stocks in the S&P 500 that pay dividends, nearly 400 large-cap companies, I then went to the stock page for each one. You can find this on any investing platform but I went to Yahoo Finance and then to this Historical Data tab.
From here, I changed the time period and then to Show Dividends Only to see the dividend dates for the last five years. I took that and copied it into my spreadsheet for every single stock, noting the dividend dates over the last year.
Once I did that, I could note when each dividend stock paid out on each day and then could pick the best for our portfolio. For example, for today’s video, there were 178 stocks going ex-dividend mid-November and into December.
This allowed me not only to create an income portfolio that pays out nearly every weekday of the month but also to select only the strongest companies with the highest dividend yields.
More Dividend Stocks You Can Count On
Prologis, ticker PLD, is in one of my favorite real estate types right now and pays a 2.25% dividend.
My Bow Tie Warriors out there, you know I love real estate. Got my professional start there as a commercial property analyst and have my own rentals but some of the property types are looking UGLY this year!
Eight of the 12 REIT property sectors are posting losses this year with some getting absolutely smashed. Retail down 39%, lodging is down 49% and office space is down 30% for 2020. But there are some sectors doing relatively well like industrial, self-storage and data centers are booming.
And Prologis is a leader in that industrial space with 900 million square feet of logistics and warehouse property. Strength in the segment is being driven by ecommerce and the need for those distribution centers and it’s a great long-term trend to be in.
The dividend payment has increased by 45% over the last five years and usually goes ex-dividend mid-month December, March, June and September.
CBOE Global Markets, ticker CBOE, operates the options exchange in Chicago and pays a 2% dividend yield.
CBOE is one of the smaller exchanges that have yet to be consolidated into the larger companies but still operates the largest U.S. options exchange as well as a futures exchange. With the growth in retail stock trading this year, I’m surprised shares haven’t done better and I like this one as a rebound play.
The dividend has nearly doubled, growing 83% over the last five years and it’s a great cash-flow stock going ex-dividend late-month in November, February, May and August.
Another investor favorite on the list here with the 3M Company, ticker MMM, and its 3.5% dividend yield.
3M is one of the oldest companies on the list, around since 1902 and one that has increased its dividend for an amazing 62-consecutive years.
The company operates in four segments; industrial, transportation and electronics, healthcare and consumer which gives it a breadth you probably won’t find anywhere else and helps protect that cash flow.
As big as it is, the dividend growth surprised me here with 43% growth in the payment in the last five years along with a stable price return. Shares go ex-dividend mid-month in November, February, May and August.
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Another in the financial sector, this one in insurance with Prudential Financial, ticker PRU and its 6.7% dividend.
Prudential is the second-largest life insurer in the U.S. with significant exposure in Japan as well. The entire industry has been hit on those low interest rates, making it harder for insurers to earn a return on their cash reserves, but management has released a plan to cut $500 million in costs to boost the bottom line.
Shares trade for a 30% discount on a price-to-book value, trading for just 0.4-times the book value of assets and this one has grown the dividend by a solid 57% over the last five years.
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Six more dividend stocks to round out the list and next is Waste Management, ticker WM, and its 1.9% dividend yield.
Now a 2% yield might not sound so great but this stock has produced an annualized 12.2% return on top of that yield over the last decade. It’s the largest solid waste services company in the U.S. with over 250 land fills and let’s face it, probably one of the most stable business models there is.
The share price isn’t the only thing growing with the dividend up 42% over the last five years and one where you can count on future growth.
I highlighted Huntington Bancshares, ticker HBAN, recently as a favorite in the financials and its 6.3% dividend yield.
Huntington is another small regional bank with branches across eight states in the Midwest. The bank has doubled the amount in its loan loss provision account to over $1.7 billion and has still been able to consistently beat earnings expectations. It’s trading at a 35% discount to last year’s price-to-book multiple and if loan defaults aren’t as bad as feared, could see a major earnings surprise.
Even with the slowdown over the past year, the dividend has grown 114% over the last five years for a great yield on top of that price potential.
A little more of a safety pick here with PPL Corporation, ticker PPL, and its 6% dividend.
PPL is a regulated utility provider in Pennsylvania and Kentucky that recently announced plans to sell off its UK operations. That will take a lot of the uncertainty out of the business model and allow the company to focus on its U.S. operations. The move gives it more dividend stability and should also improve investor sentiment in the shares.
And that dividend uncertainty has played out with just a 10% dividend growth over the past five years, the lowest in our group, but I think you see it start rising from here.
Another agriculture play here with FMC Corporation, ticker FMC, and its 1.6% dividend yield.
Now another one with a relatively low dividend but an amazing total return, producing a 12.6% annual price return over the last decade, on top of that yield.
FMC is a pure-play crop chemical company and should benefit from that long-term trend to food demand and the need for higher crop yields. Shares are fairly valued here but it’s hard to argue with a 166% growth in the dividend over five years and that kind of long-term price return.
A little riskier bet in the real estate space is Ventas, ticker VTR, a healthcare REIT and its 4.3% dividend.
Ventas owns a portfolio of 1,200 properties across medical office, hospital and healthcare but concentrated in the senior living and skilled nursing niche. Most healthcare properties have been hit this year but most especially the senior care market but it looks like even this is turning more positive.
Occupancy hasn’t declined significantly and with a vaccine approval, we should get better investor sentiment in names like Ventas. Shares are down 41% from last year’s peak and the company did cut the dividend this year to protect cash flow but I think it can be a strong long-term investment.
Valero Energy, ticker VLO, offers our highest yield of the group with a dividend just under 10%.
One of the largest refinery operations in the U.S. with 14 facilities in North America and the U.K., the company is uniquely positioned to refine lower-quality crude and has been able to produce higher profit margins.
The refineries have been hit just like all energy companies but quality names like Valero will survive. The company also owns over 3,100 miles of pipeline and other midstream assets that give it a transportation advantage.
Valero is one of the very few in the energy space to maintain its dividend this year and has nearly doubled it over the past five years.
The 17 stocks in this months portfolio produce a dividend yield of 4.9%, just slightly above the entire 56-stock portfolio with a 4.2% yield. That’s 56 dividend-paying companies in every sector with a yield more than double the overall market that is going to put cash in your pocket every single day!
Investing in Dividends is Safe and Steady
What is the one thing everybody wants?
Everybody wants some more money, but not everyone is willing to work hard for it. What if you are someone who does not want to have to work for your money? Well, you can just leave that up to the stock market! Stocks are a way of owning part of a company, and owning something means having rights to some of what that business makes. When companies make money they have to decide what to do with it, put it in the bank (savings), invest in new equipment (capital expenditures) or give it back to shareholders (dividends).
However most companies choose option number 3, giving dividends back! There are two types of dividends: cash dividends and stock dividends. Cash dividends are just that, money! You will get a check in your mailbox or direct deposited into your account. The amount changes every quarter, since it depends on how much the company made.
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Dividends are one of the most important things when it comes to buying stocks. There are many different types of investors you can be, but dividends should definitely make up a big part of your strategy. If you do not actually get money every time the company makes money then what good does it do? Well dividends are taxed less than regular income, so if you want to keep more of your own money they allow for this! Not only this, but it is very safe. When they give you that money, it is real money in your bank account (or brokerage statement). If something bad happens to the stock market then there is no chance they will go bankrupt and stop paying out dividends.
There are many different types of dividends you can get: quarterly dividend, special dividend, variable dividend, high yield dividend , etc. They have different rules for how often you get them or how much they are. A good company will usually payout a very high percentage of their earnings each year as cash dividends – usually 4-5%. You are probably thinking this sounds too good to be true, and you would be right. There are a few things to keep in mind when investing in dividend paying stocks.
Dividends are one of the most important things when it comes to picking stocks, they can make a huge difference over time! They allow companies to pay back investors for all their hard work while still having some left over for themselves. Plus they offer lower risk than normal investments because they do not fluctuate as much as the stock price does. However beware that dividends may decrease or stop completely if you invest in a company during a bad period. It is also very important for investors looking for these high yields to have a lot of research on their potential investments.