Most dividend stocks only pay investors on a quarterly basis. Most corporate bonds and government Treasury bonds only pay interest payments semi-annually. Passive income paid monthly is a perfect way to help with monthly expenses and other costs. ...

Another month, another market high. Singapore’s Straits Times Index (SGX: ^STI) crossed the 4,500 mark two Fridays ago (7 November), marking a new all-time high for the local index. You may have questions.Subscribers of The Smart Dividend Portfolio have their own queries too.  Here are a few common ones (paraphrased):What if I missed out on buying CapitaLand Integrated Commercial Trust (SGX: C38U) and Sheng Siong (SGX: OV8) — is it too late to buy now? The stock market has done well but I am two years away ...

Dividend stocks are drawing interest as investors aim to protect their portfolios from market volatility amid growing concerns about stretched AI stock valuations. Last month, a Redditor shared his dividend income details and portfolio on r/Dividends, a community of dividend investors with 287,000 members. The investor said his portfolio generated $16,378 in October, yielding about 14%. Don't Miss: The AI Marketing Platform Backed by Insiders from Google, Meta, and Amazon — Invest at $0.81/Share Before N ...

Core Viewpoint - The ongoing government shutdown is nearing its end, leading to renewed market optimism and a focus on generating passive income through dividend stocks, with potential for significant returns by 2026. Group 1: UnitedHealth (UNH) - UnitedHealth Group offers an annual dividend yield of 2.7% with a payout ratio of 49.99%, significantly above the sector average of 1.58% [2] - Despite a 35% decline in stock price year-to-date due to leadership changes and investigations, recent earnings reports showed a 12% year-over-year revenue increase, indicating potential recovery [4] - Management has raised its full-year earnings per share (EPS) outlook to at least $16.25, suggesting positive future performance [5] Group 2: Realty Income (O) - Realty Income, known as "The Monthly Dividend Company," has a 5.7% annual yield and a payout ratio of 207%, with shares trading at $57.16, reflecting an 8.47% increase year-to-date [6] - The company benefits from a stable, cash-generating business model based on a diversified portfolio of commercial properties secured through long-term net leases, which keeps operating costs low [7] - Following strong quarterly results, Realty Income raised its investment guidance to $5.5 billion, highlighting its competitive advantage and readiness for expansion [8]

Core Viewpoint - Dividend investors should consider Realty Income, Federal Realty, and Ares Capital for their attractive yields and consistent performance in their respective sectors [2][3]. Group 1: Company Overview - Realty Income is the largest net lease REIT with over 16,500 properties, focusing on retail and unique asset types like vineyards and casinos [7][9]. - Federal Realty is a leader in the strip mall sector and is the only REIT to achieve Dividend King status, with over 50 years of dividend increases [5][6]. - Ares Capital operates in the business development sector, providing high-interest loans to smaller companies, which inherently carries more risk [10][14]. Group 2: Dividend Yields - Ares Capital offers the highest yield at 9.4%, followed by Realty Income at 5.6%, and Federal Realty at 4.7% [4]. - Federal Realty emphasizes quality over quantity in its property holdings, which supports its consistent dividend growth [6]. Group 3: Business Models and Risks - Realty Income's business model allows for reliable dividends due to its scale and diversified property portfolio [8][9]. - Federal Realty's focus on redevelopment and strategic asset sales enhances its value and dividend reliability [6]. - Ares Capital's dividend is less reliable due to its exposure to economic downturns, which can affect the ability of its borrowers to repay loans [12][14]. Group 4: Investment Considerations - Federal Realty and Realty Income are considered stable, "boring" investments suitable for those seeking consistent dividends [15]. - Ares Capital, while offering a high yield, may not be suitable for conservative investors due to potential dividend volatility [15].

Core Viewpoint - The article discusses two primary methods for generating monthly income through investments, focusing on the advantages of monthly dividend-paying stocks like Realty Income and Agree Realty over quarterly dividend payers [1]. Group 1: Monthly Income Generation - Investors can either buy multiple quarterly dividend stocks to create a monthly income stream or opt for investments that pay monthly dividends [1][3]. - Managing three different quarterly dividend stocks can be complex, requiring careful tracking to ensure a steady income stream [3][4]. Group 2: Monthly Dividend Stocks - Monthly paying dividend stocks are less common, necessitating careful selection to ensure they are sound investments [4]. - AGNC Investment, while offering a high yield of 14%, has a declining dividend history and stock price, highlighting the importance of understanding the underlying investment [5][7]. Group 3: Realty Income and Agree Realty - Realty Income and Agree Realty are traditional property-owning REITs that utilize a net-lease approach, minimizing operational costs for tenants [8]. - Realty Income has a portfolio of over 15,600 properties, while Agree Realty has around 2,600 properties, making Realty Income the larger player in the market [9]. Group 4: Financial Metrics - Realty Income offers a dividend yield of 5.4%, while Agree Realty has a yield of 4.2%, both significantly higher than the S&P 500's yield of approximately 1.2% [11]. - Realty Income has increased its dividend annually for 30 years, whereas Agree Realty has a 10-year streak with a shift to monthly payments in 2021 [11]. Group 5: Growth Potential - Realty Income's dividend has grown by about 30% over the past decade, while Agree Realty's dividend has increased by 60% during the same period, indicating a stronger growth trajectory for Agree [13]. - Given its smaller portfolio, Agree Realty may find it easier to sustain higher growth rates compared to Realty Income [13]. Group 6: Investment Strategy - Realty Income and Agree Realty are considered reliable income stocks that can serve as foundational investments, with the potential for adding more aggressive income options [14].

Core Insights - As indexes approach all-time highs, investors are seeking alternatives to traditional equities to mitigate uncertainty and volatility [1] - Income funds are highlighted as a viable option since they do not depend on earnings growth, unlike equities [1] - A hybrid investment strategy combining classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds [1] Investment Strategy - The strategy involves creating a balanced portfolio that includes high-quality dividend stocks and other income-generating assets [1] - This approach aims to provide a solid base for long-term growth and reliable income for bill-paying needs [1] - The total return from this hybrid system is reported to be on par with the S&P index [1]

Group 1 - The primary financial goal is to achieve financial independence by increasing passive investment income to cover basic living expenses [1] - A strategy is to invest in high-yielding dividend stocks, specifically targeting Realty Income, Enbridge, and Main Street Capital for the upcoming year [2] Group 2 - Realty Income is highlighted as a leading passive income investment, offering a current yield of nearly 5.5%, significantly higher than the S&P 500's average yield of 1.2% [4] - The REIT has a strong track record with 664 consecutive monthly dividend payments and 132 increases since its public listing in 1994 [5][6] - Realty Income maintains a diversified portfolio and a conservative financial profile, enabling it to continue acquiring income-producing properties and support its growing dividend [6] Group 3 - Enbridge has a long history of reliability, having paid dividends for over 70 years and increased its payout for 30 consecutive years, showcasing resilience in the volatile energy sector [9] - Main Street Capital is noted for its durable and steadily rising monthly dividend, supplemented by additional quarterly payments [8]

Core Insights - Dividend stocks are essential for a reliable income strategy, but not all dividend payers are equal [1] - Different types of dividend stocks serve various roles in a portfolio, balancing income and growth [1] Group 1: Types of Dividend Stocks - **Dividend Aristocrats**: Companies in the S&P 500 that have increased dividends for at least 25 consecutive years [2] - **Dividend Kings**: Companies that have raised dividends for 50 or more consecutive years, demonstrating strong financial discipline and resilience [4][6] - **Dividend "Zombies"**: Companies that have paid dividends for over a century without interruption, providing consistent income [8][9] - **REITs and BDCs**: Offer high yields, often between 5-10% or more, but with slower growth [10]

Core Insights - Dividend stocks are crucial for total returns, contributing nearly 31% to the S&P 500 index's total returns since 1926 [1] Group 1: Realty Income - Realty Income pays a monthly dividend and has a current yield of 5.4%, trading nearly 28% below its all-time highs [3][4] - The company has increased its dividend for 31 consecutive years, with a compound annual growth rate (CAGR) of 4.2% [4] - Realty Income's diversified portfolio includes over 15,600 properties across 91 countries, primarily in non-discretionary businesses [6][7] Group 2: Chevron - Chevron has expanded its asset base significantly through the acquisition of Hess, projecting an incremental free cash flow of $12.5 billion from 2024 to 2026 [8][10] - The company has increased its dividend payout for 37 consecutive years and offers a reliable dividend yield of 4.4% [9][10] - Chevron's upcoming investor day on Nov. 12 is expected to provide updates on long-term financial goals and cash-flow projections [10] Group 3: American Water Works - American Water Works is a regulated water utility serving over 14 million people and has increased its dividend for 17 consecutive years [11][12] - The company is targeting a capital spending of $40 billion to $42 billion, with a rate base CAGR of 8% to 9% and earnings per share CAGR of 7% to 9% [15] - The stock is trading almost 25% off all-time highs, indicating potential for share-price appreciation [14]