How to Earn $3,000 a Month in Dividends: A Comprehensive Guide

Most investors believe they don’t have enough money to retire on when they have $500,000 in their portfolios.

They already do; to convert their “buy and hope” portfolios into $3,279 monthly income streams (or much more), they simply need to do two things:

The result? $3,279. 69 in monthly income every month (from an average 7. 6% annual yield, paid every 30 days). With upside on your initial $500,000 to boot!.

And this strategy isnt capped at $500,000. To increase your passive income to $6,349 or even $12,698 per month, you can purchase additional of my elite eight monthly payers if you have saved a million dollars or more.

However, you are out of luck if you are a billionaire. You can’t expect these Goldilocks payers to take all of your money. These vehicles’ combined market caps of $1 billion or $2 billion make them too tiny for institutional investment.

Which is perfect for humble contrarians like you and me. We can profit from the inefficiencies this ceiling has caused. Ultimately, in a fully efficient market, we would have to choose between upside and dividends. Here, though, we get both.

I recently had a conversation with one of my readers who handles money for a select number of clients. He is utilizing my No Withdrawal Portfolio to help a client, a kind grandmother with $387,000 in savings, live longer than she ever would have imagined:

“She brought me $387,000,” he said. “And wishes to withdraw $3,000 every month for a decade.” “.

“Well, she has been taking out money for eight months at a rate of $3,000 each, and her balance has increased to $397,000 in the process. Should the portfolio maintain its current yield of 7% annually with an additional 2% annually in capital gains, and she takes out $3,000 each month, it will cover my fees and last her for another twenty-seven years!

Real estate is now marketed by many retirement experts as the greatest method to secure monthly income. However, this grandmother isn’t working long hours to fix broken lightbulbs or collect rent checks. She just goes about getting her 20%22dividend pension every month, which is funded entirely by her stocks and funds.

In actuality, her monthly salary exceeds the 20100% financed amount, which explains why her portfolio has increased by $10,000 as she withdraws $3,000 per month.

I’m curious as to how many investors looking into Apple (AAPL) have unintentionally discovered this lesser-known real estate investment trust before quickly entering the correct ticker and returning to reading about iPhones.

Owning 236 hotels in 33 states, Apple Hospitality REIT (APLE) can accommodate about 30,000 guests. Two upscale hotel families, Hilton (HLT) and Marriott (MAR), which include their namesake brands along with Fairfield Inn, Embassy Suites, and SpringHill Suites, are home to the REITs’ properties.

Throughout the years, APLE has produced an amazing growth story, increasing its top line from less than $400 million in 2013 to more than $1 billion last year. Even though the business has been growing quickly, management has been prudent with money and has provided a sizable safety net for the dividend.

In comparison to six dividends of 10 cents each, the company reported 90 cents per share in modified funds from operations (MFFO) through the first half of 2017. MFFO is a modified form of FFO, which is a key indicator of a REIT’s operational performance and dividend health. This translates to a payout ratio of just 26.7 percent, implying that a catastrophe would be necessary to prevent Apple Hospitality from paying its shareholders what they are due.

For a number of reasons, Global Net Lease (GNL) appears to be a top monthly dividend payer.

For one, GNL is a “triple-net lease” REIT. Triple-net leasers shift all of the costs associated with taxes, insurance, and maintenance onto the tenants, in contrast to many REITs that assume those costs. They don’t charge lessees as much as they used to, but the revenue they do bring in should be far more predictable.

Other advantages of GNL include its international diversity—it owns commercial properties outside of the U.S. S. , but also the U. K. , Germany and a few other European countries. Additionally, it distributes roughly 2010% of the dividends at that time. And it’s getting better still; Q2’s revenues, for example, increased by more than 2014% year over year.

But because Global Net Lease is managed externally, it must pay a lot of fees for property management and other services, which severely limits the company’s ability to fund its operations. In the last year, GNL paid out 2097% of its adjusted funds from operations (AFFO) as dividends. Additionally, during the first six months of 2017, this REIT actually paid out slightly more than its total AFO.

Even worse, GNL investors have watched as shares have declined 5% year to date amidst a broad upmarket, eating up a large portion of their income gains.

A play on one of my favorite topics of the last few years, the “experience economy,” is EPR Properties (EPR). “.

In summary, individuals are increasingly spending their money on activities rather than just accumulating goods and junk, and they have begun to place less value on merely That – along with the rise of Amazon. com (AMZN) and other e-commerce companies have destroyed many retail REITs, but they have benefited a few well-positioned businesses, such as EPR

If you have ever gone skiing, to the movies, or spent a few hours at one of those cutting-edge TopGolf driving ranges with fancy bars and high-tech games, you’ve probably helped EPR, which has 378 properties throughout the U.S. S.

However, EPR is much more than just a provider of entertainment; it also owns properties that are utilized by early childhood education centers and public charter schools, among other things.

This highly diversified real estate investment trust (REIT) pays a monthly payout that was just 6% higher this year. Even better, the dividend represents only 2% of AFO, meaning that EPRD has ample capacity to fulfill its obligations.

Although it’s not common, some exchange-traded funds (ETFs) distribute income on a monthly basis as opposed to a quarterly basis. Even better, a few of these monthly ETF payers even provide a monthly income that is largely constant.

Just enough is done by the SPDR Barclays High Yield Bond ETF (JNK), which is also a widely used ETF. But I say stay away.

A portfolio of almost a thousand junk issues, or corporate bonds below investment grade that carry a higher default risk but also require higher yields to offset that risk, makes up the JNK. Nonetheless, SPDR junk ETFs have become a very popular means for investors to get exposure to this high-income bond class because they are so cheap and diversified.

But the JNK pales in comparison to several junk-oriented closed-end funds (CEFs).

Eight of the greatest preferred stocks, REITs (real estate investment trusts), and CEFs (closed-end funds) available are included in my all-star retirement portfolio. Its investments and sectors are well-diversified, and its cash flows supporting these dividends will perform well regardless of what happens to the stock market or the overall economy.

Plus, relentless dividend growth means your 7. 9% yield will be more like 10% in short order.

I’m prepared to show you around this retirement portfolio right now, so don’t worry. To view the eight inexpensive investments contained therein, along with their names, tickers, buy-under prices, and much more, click this link.

This article represents the author’s views and opinions, which may not necessarily represent those of Nasdaq, Inc.

This article represents the author’s views and opinions, which may not necessarily represent those of Nasdaq, Inc.

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Most investors believe they don’t have enough money to retire on when they have $500,000 in their portfolios.

They already do; to convert their “buy and hope” portfolios into $3,279 monthly income streams (or much more), they simply need to do two things:

• Sell anything and everything, even the 2%, 3%, and even 4% of payers who just don’t produce enough to matter And,.
• Buy my 8 favorite monthly dividend payers.

The result? $3,279. 69 in monthly income every month (from an average 7. 6% annual yield, paid every 30 days). With upside on your initial $500,000 to boot!.

And this strategy isnt capped at $500,000. To increase your passive income to $6,349 or even $12,698 per month, you can purchase additional of my elite eight monthly payers if you have saved a million dollars or more.

However, you are out of luck if you are a billionaire. You can’t expect these Goldilocks payers to take all of your money. These vehicles’ combined market caps of $1 billion or $2 billion make them too tiny for institutional investment.

Which is perfect for humble contrarians like you and me. We can profit from the inefficiencies this ceiling has caused. Ultimately, in a fully efficient market, we would have to choose between upside and dividends. Here, though, we get both.

Heck, This Grandma Makes $387,000 Last Forever

Recently I was chatting with a reader of mine who manages money for a select group of clients. Hes using my No Withdrawal Portfolio to make a clients modest savings – a nice grandmother with $387,000 – last longer than she ever dreamed:

“She brought me $387,000,” he said. “And wishes to withdraw $3,000 every month for a decade.” “.

“Well, she has been taking out money for eight months at a rate of $3,000 each, and her balance has increased to $397,000 in the process. Should the portfolio maintain its current yield of 7% annually with an additional 2% annually in capital gains, and she takes out $3,000 each month, it will cover my fees and last her for another twenty-seven years!

Real estate is now marketed by many retirement experts as the greatest method to secure monthly income. However, this grandmother isn’t working long hours to fix broken lightbulbs or collect rent checks. She just goes about getting her 20%22dividend pension every month, which is funded entirely by her stocks and funds.

In actuality, her monthly salary exceeds the 20100% financed amount, which explains why her portfolio has increased by $10,000 as she withdraws $3,000 per month.

How is This Possible? With “B-List” Monthly Payers Like These

Apple Hospitality REIT ( APLE )

Dividend Yield: 6.2%

I’m curious as to how many investors looking into Apple (AAPL) have unintentionally discovered this lesser-known real estate investment trust before quickly entering the correct ticker and returning to reading about iPhones.

Anyone who had missed out on a gem.

Owning 236 hotels in 33 states, Apple Hospitality REIT (APLE) can accommodate about 30,000 guests. Two upscale hotel families, Hilton (HLT) and Marriott (MAR), which include their namesake brands along with Fairfield Inn, Embassy Suites, and SpringHill Suites, are home to the REITs’ properties.

Throughout the years, APLE has produced an amazing growth story, increasing its top line from less than $400 million in 2013 to more than $1 billion last year. Even though the business has been growing quickly, management has been prudent with money and has provided a sizable safety net for the dividend.

In comparison to six dividends of 10 cents each, the company reported 90 cents per share in modified funds from operations (MFFO) through the first half of 2017. MFFO is a modified form of FFO, which is a key indicator of a REIT’s operational performance and dividend health. This translates to a payout ratio of just 26.7 percent, implying that a catastrophe would be necessary to prevent Apple Hospitality from paying its shareholders what they are due.

Apple Hospitality’s (APLE) Payout Is Something You Wont Have to Worry About

Global Net Lease ( GNL )

Dividend Yield:

For a number of reasons, Global Net Lease (GNL) appears to be a top monthly dividend payer.

For one, GNL is a “triple-net lease” REIT. Triple-net leasers shift all of the costs associated with taxes, insurance, and maintenance onto the tenants, in contrast to many REITs that assume those costs. They don’t charge lessees as much as they used to, but the revenue they do bring in should be far more predictable.

Other advantages of GNL include its international diversity—it owns commercial properties outside of the U.S. S. , but also the U. K. , Germany and a few other European countries. Additionally, it distributes roughly 2010% of the dividends at that time. And it’s getting better still; Q2’s revenues, for example, increased by more than 2014% year over year.

However, Global Net Lease is externally managed, which requires it to pay a great many fees for property management and other services – fees that cramp the companys funds from operations to a dangerous extent . GNL paid out 97% of its adjusted funds from operations (AFFO) as dividends last year, and through six months of 2017, this REIT has actually paid out a little more than its total AFFO.

Even worse, GNL investors have watched as shares have declined 5% year to date amidst a broad upmarket, eating up a large portion of their income gains.

The Global Net Leases (GNL) Dividend is Just Your Losses Subtracted

EPR Properties (EPR)

Dividend Yield:

EPR Properties (EPR) is a play on one of my favorite themes of the past few years: the “experience economy.”

In summary, individuals are increasingly spending their money on activities rather than just accumulating goods and junk, and they have begun to place less value on merely That – along with the rise of Amazon. com (AMZN) and other e-commerce companies have destroyed many retail REITs, but they have benefited a few well-positioned businesses, such as EPR

If you have ever gone skiing, to the movies, or spent a few hours at one of those cutting-edge TopGolf driving ranges with fancy bars and high-tech games, you’ve probably helped EPR, which has 378 properties throughout the U.S. S.

However, EPR is much more than just a provider of entertainment; it also owns properties that are utilized by early childhood education centers and public charter schools, among other things.

This highly diversified real estate investment trust (REIT) pays a monthly payout that was just 6% higher this year. Even better, the dividend represents only 2% of AFO, meaning that EPRD has ample capacity to fulfill its obligations.

As A Member of a New Breed of High-Performance REITs, EPR Properties (EPR)

SPDR Barclays High Yield Bond ETF (JNK)

SEC Yield:

Although it’s not common, some exchange-traded funds (ETFs) distribute income on a monthly basis as opposed to a quarterly basis. Even better, a few of these monthly ETF payers even provide a monthly income that is largely constant.

Just enough is done by the SPDR Barclays High Yield Bond ETF (JNK), which is also a widely used ETF. But I say stay away.

A portfolio of almost a thousand junk issues, or corporate bonds below investment grade that carry a higher default risk but also require higher yields to offset that risk, makes up the JNK. Nonetheless, SPDR junk ETFs have become a very popular means for investors to get exposure to this high-income bond class because they are so cheap and diversified.

However, the JNK doesnt hold a candle to a number of junk-focused closed-end funds (CEFs) .

SPDRs JNK Isnt Junk, But Its No Treasure, Either

Dont buy into JNKs junky payouts. Here are 8 better monthly dividend payers.

My Top Elite 8 Monthly Payers for 7.9% Dividends,PlusUpside

Eight of the greatest preferred stocks, REITs (real estate investment trusts), and CEFs (closed-end funds) available are included in my all-star retirement portfolio. Its investments and sectors are well-diversified, and its cash flows supporting these dividends will perform well regardless of what happens to the stock market or the overall economy.

Plus, relentless dividend growth means your 7. 9% yield will be more like 10% in short order.

Im ready to take you inside this “no-worry” retirement portfolio now. Click here and Ill show you the 8 bargain investments inside it and give you their names, tickers, buy-under prices and much more.

This article represents the author’s views and opinions, which may not necessarily represent those of Nasdaq, Inc.

This article represents the author’s views and opinions, which may not necessarily represent those of Nasdaq, Inc.

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How To Make $3,000/Month In Dividends With Only $25/Week