Strategy: How to Build a Monthly Dividend Machine
The Calendar Method
Most US companies pay quarterly. By combining 3 stocks with different schedules (e.g., Jan/Apr/Jul/Oct + Feb/May/Aug/Nov + Mar/Jun/Sep/Dec), you can receive checks every single month.
Monthly Payer Powerhouses
SCHDBest for Dividend Growth. Qualified dividends with lower tax rate (15%).
JEPI / JEPQBest for Income. Uses covered calls to generate 7-10% yields paid monthly.
Realty Income (O)Best for Real Estate. 'The Monthly Dividend Company' pays rent to you.
Key Takeaways
- Don't chase yield blindly. Look for payout sustainability.
- Combine SCHD (Growth) + JEPI (Income) for a balanced approach.
- Reinvest dividends (DRIP) to compound faster.