PA side income is the best kind of income – it doesn’t require any work for it. In the case of dividend stocks, all you have to do is buy shares in a company that’s paying a good, safe yield and watch as the recurring payments balance out your portfolio.
And while it can be difficult to find dividend stocks that pay out each month, one way around this is to buy multiple stocks. With just three dividend stocks paying out on different schedules, you can earn monthly passive income.
How to invest in Healthpeak properties (NYSE: TIP), Lumen Technologies (NYSE:LUMN)and altria (NYSE:MO) can generate $300 in dividend income for your portfolio each month.
1. Healthpeak Properties
Healthpeak is a real estate investment trust (REIT) with a focus on the healthcare industry. It invests in life science campuses, physician offices and senior communities with continuous care. It has a diverse tenant mix that makes it an ideal dividend stock for risk-averse investors.
This year, the company forecasts that its working capital (which REITs typically rely on instead of net income) will be $1.70 per share or more. That leaves plenty of room to cover dividend payments, which will total $1.20 per share over the same period.
At 4.3%, Healthpeak pays more than twice as much S&P500 an average of 1.6%. If you invested roughly $27,900 in the stock, you would receive a $300 dividend each quarter. Healthpeak typically pays a dividend in late February or early March, along with payments in May, August, and November.
2. Lumen Technologies
Lumen is the highest-yielding stock on this list, paying 9.2% annually in dividends. That high yield might be worrisome, but the company’s payout ratio was actually very manageable at under 50%.
Unfortunately, the telecom company has not been a good buy over the past five years, losing more than half of its value over the period as its sales declined. That could change, however, as Lumen is in the process of upgrading its network to its new Quantum Fiber service, which should improve speeds and lead to more growth in the business. This should make Lumen a more sustainable investment going forward.
Lumen pays dividends every March, June, September, and December. And given the high yield, you only have to invest about $13,000 to receive $300 in quarterly dividend payments from the stock.
Another high-yield stock that can generate plenty of passive income is tobacco maker Altria. It has an impressive track record as a Dividend King, and has been increasing its payouts for decades.
However, its future is a bit hazy as the U.S. government seeks to lower nicotine levels in cigarettes and wants to ban Juul — an e-cigarette company Altria invested in a few years ago. As a result, Altria’s future remains unclear, but there are certainly options it can pursue to generate growth, including a switch to cannabis.
Recent government moves suggest there is some risk at Altria, but legislation may be years away and with plenty of money still flowing through its business, the company has time to strategize how it can address these issues (if necessary). and when they take place). Over the trailing 12 months, Altria’s free cash flow totaled $8.1 billion — 24% more than the $6.5 billion it paid out in dividends during that time.
This is still a safe dividend stock for the foreseeable future. It pays an 8.2% yield, which means you’d have to invest about $14,600 in the tobacco giant to receive $300 of its quarterly dividend payments, which typically occur each January, April, July, and October.
By investing in Altria and the other stocks mentioned, you can ensure that you’re collecting a dividend more regularly than every three months.
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David Jagielski does not hold any of the shares mentioned. The Motley Fool recommends Healthpeak Properties, Inc. 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.