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Three aggressive monthly dividend stocks with a 10 percent yield on average 07%, are in an ideal position to replenish investors’ wallets in the upcoming year.
The fact that there is no one-size-fits-all approach to wealth creation is among the best things about investing on Wall Street. Whatever your approach or style of investing, there are always ways to increase your nest egg.
Still, there are some investing approaches that are very difficult to overcome. Purchasing dividend stocks is one such tactic that has regularly produced positive results for patient investors.
In a recent analysis, Ned Davis Research and the Hartford Funds looked at dividend-paying companies’ performance relative to non-payers over a roughly 50-year period (1973–2022). According to this analysis, dividend payers produced an annualized return of 9. 18% over five decades. In contrast, the non-payers struggled to obtain an annualized return of only 3. 95% over the same timeline.
It should not be shocking that dividend payers have outperformed non-payers, even if the extent of this outperformance may be. Regular dividend payers are usually well-established, profitable on a recurring basis, and able to provide clear long-term growth outlooks. These are exactly the kinds of companies whose values should rise over time.
While not all dividend stocks are created equal—high-yield income stocks occasionally present more risk than reward—careful screening can reveal some real gems with astounding yields that will steadily increase your monthly savings.
To earn $100 in extremely secure monthly dividend income in the new year, just divide $11,925 into three equal investments in the following three high-yield stocks, each of which is averaging a 10 07% yield!.
Craving a consistent stream of passive income? Look no further than dividend stocks! These reliable investments offer regular payouts, allowing you to build wealth over time. In this article, we’ll explore three high-yield stocks that can generate $100 in super-safe monthly dividend income in 2024 with an initial investment of just $11,925.
Why Choose Dividend Stocks?
Dividend stocks have consistently outperformed non-dividend-paying stocks over the long term. A study by Ned Davis Research and the Hartford Funds revealed that dividend-paying companies generated an annualized return of 9.18% over five decades, compared to just 3.95% for non-payers.
3 High-Yield Stocks for $100 Monthly Dividends:
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Realty Income (O): This retail REIT boasts a 5.36% yield and a remarkable 26-year streak of increasing its dividend every quarter. Its focus on recession-resistant businesses and diversification strategies make it a reliable income source.
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PennantPark Floating Rate Capital (PFLT): This BDC offers a 1017% yield and has doubled its monthly payout in 2023. Its focus on first-lien secured debt in small- and micro-cap companies provides a high-yielding, low-risk investment opportunity.
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AGNC Investment (AGNC): This mortgage REIT boasts a 14.68% yield and has maintained a double-digit yield for 13 of the past 14 years. Its focus on agency securities and potential for expansion with interest rate easing make it an attractive option for income-seeking investors.
Investing in these three stocks with a $11,925 split will generate approximately $100 in monthly dividend income in 2024.
Key Takeaways:
- Dividend stocks offer a reliable source of passive income.
- These three high-yield stocks provide a safe and consistent way to generate $100 in monthly dividends.
- Investing in these stocks offers the potential for long-term wealth building.
Remember:
- Conduct thorough research before investing in any stock.
- Diversify your portfolio to minimize risk.
- Consider your individual investment goals and risk tolerance.
By investing in these high-yield dividend stocks, you can create a steady stream of income and achieve your financial goals.
PennantPark Floating Rate Capital: 17% yield
Business development company (BDC) PennantPark Floating Rate Capital (PFLT 0) is a second high-yield stock that after an initial investment of $11,925 (split three ways) can generate $100 in very safe monthly dividend income in 2024. 04%). Twice in 2023, this largely obscure BDC raised its monthly payout.
Businesses known as “middle-market companies” (BDCs) invest in small- and micro-cap companies. BDCs can buy common and/or preferred stock in middle-market companies, invest in their debt, or take on a combination of the two. When it comes to PennantPark, the company’s focus definitely leans toward debt securities.
As of Sept. 30, PennantPark held $906. 3 million in debt from middle-market businesses. Due to their lack of experience, the majority of small and micro-cap businesses frequently do not have widespread access to traditional debt and credit markets. In the rare instances that these smaller companies are able to secure financing, the terms are typically steep. The weighted average yield on debt investments at PennantParks was a cool 12 percent. 6%, as of the end of September.
One more element of Pennant Parks’ debt-securities portfolio that is essential to the company’s success is that 10% of the loans it owns are variable rate loans. The Federal Reserve has increased the federal funds target rate by 525 basis points since March 2022. As a result, PennantParks’ weighted average yield on debt investments increased to the mentioned 12 percent, up 520 basis points. 6% over the trailing two years.
To add to the above, all but $0. 1 million of its $906. 3 million in debt securities is first-lien secured. First-lien secured debtholders are entitled to repayment first should one of the company’s borrowers file for bankruptcy. It should be noted that just 0. In comparison to its cost basis, 9% of the company’s portfolio was non-accrual (i e. , delinquent), as of Sept. 30. This demonstrates how well the company’s loan and investment team was screened.
Realty Income: 36% yield
The first fast-moving income stock that can contribute to a $100 monthly dividend in 2024 is none other than Realty Income (O-4), a retail real estate investment trust (REIT). 05%). Over the last 104 quarters, Realty Income has raised its distribution (a period spanning 26 years)
Realty Income had a difficult campaign in 2023 due to rising Treasury bond rates and worries about a possible U S. recession weighing on most REITs. Given that consumers typically cut back on their spending during recessions, there was evident discontent with anything related to the retail sector.
But Realty Income has shown over the course of about three decades that it’s anything but typical.
Realty Income is unique in part because of its extensive portfolio of commercial real estate (CRE). Approximately 2091% of the total rent over the portfolio of 200 properties, which is larger than 2013, comes from companies that can withstand downturns in the economy. This comprises grocery stores, convenience stores, dollar stores, drug stores, and general merchandise stores, which together make up approximately 339 percent of the company’s annualized contractual rent. These are shops that provide necessities in any kind of economic situation.
Apart from prioritizing industries that can withstand economic downturns, Realty Income has been gradually expanding the variety of properties it owns. Over the previous two years, it has arranged two agreements that have enabled it to join the casino sector. Additionally, it is in the process of paying $9.9 million for all the shares in Spirit Realty Capital. 3 billion. In addition to enhancing Realty Income’s current holdings, Spirit Realty’s CRE portfolio will enable the combined business to further diversify outside of retail.
History offers comfort for investors, as well. Realty Income has increased its earnings per share in all but one of the previous 27 years, despite the fact that past performance does not guarantee future outcomes. Stated differently, Realty Income has a long history of making wise choices.
Lastly, Realty Income is historically inexpensive. Its currently valued at a multiple of 13. In 2024, the projected cash flow will be four times lower than in the previous ten years.
$100 Per Month in Dividends 3 Stocks How Much Money You Need
FAQ
How much do I need to invest to make $100 a month in dividends?
How much to get $1,000 in dividends a month?
How much should I invest to get 100 a month?
How much do I need to invest to make $500 a month in dividends?
How much money do you need to make a month in dividends?
Then take that $1,200 and divide it by your target dividend yield. 4%, in this example. Thus, $1,200 divided 4% which is .04 gives you $30,000. As a result, $30,000 is much you will need to invest to make $100 a month in dividends assuming your portfolio yields 4%.
How much money do you need to make $100 a month?
To make $100 a month in dividends you need to invest between $34,286 and $48,000, with an average portfolio of $40,000. The exact amount of money you will need to invest to create a $100 per month dividend income depends on the dividend yield of the stocks. The dividend yield is the annual dividend paid per share divided by the current share price.
Can you earn $100 a month in dividends?
Once you set up an investment portfolio aligned to the 12 months of the year, you don’t have to do anything extra to earn $100 a month in dividends. With additional passive income each month you could cover your utility bills, pay down debt, or grow your investments.
How do I receive monthly dividends?
In order to receive monthly dividends, you’ll have to find stocks (or other investments) that pay in: It’s important to note that just because an investment pays its dividend in a given month, that doesn’t mean that it’s a good investment. Don’t sacrifice quality for the sake of monthly dividend payments.