A dividend is a distribution, to eligible shareholders, from corporate profits.  The payments, the amount of the payments, the payment schedule, etc. vary from company to company and is determined by the board of directors.

Aside from some tax advantages (qualified dividends paid are taxed at rates lower than the ordinary income tax rate—0% to 20%), dividends are also valuable because they help mitigate some risk and increase profit.  More money earned, is always a good thing. Even better news is that historically speaking, even during a recession, dividend stocks tend to show growth.

• Stock A pays dividends in January, April, July, and October
• Stock B pays dividends in February, May, August, and November
• Stock C pays dividends in March, June, September, and December

This structure provides monthly, cash flow income, directly to your wallet.  You can find payment schedules on the company’s websites, via your preferred trading platform, etc.  Luckily, we’ve done the homework for you, so feel free to copy.

Stock A - (NYSE:ORCL) Annual dividend yield of 1.83%.  Annual dividend of $1.28/share - Quarterly dividend of $0.32/share

Stock B - (NYSE:CLX) Annual dividend yield of 3.27%. Annual dividend of $4.64/share - Quarterly dividend of $1.16/share

Stock C - (NYSE:AWK) Annual dividend yield of 1.76%  Annual dividend of $2.62/share - Quarterly dividend of $0.66/share

Use ours or build your own, either way, now you have the tools and the strategy to turn stock ownership into monthly income.  You can use a combination of multiple stocks to hit your monthly goals as well.  Diversification is key, so try to hit various sectors, just as we did.