How To Build a 12 Month Dividend Portfolio

Choose Quarterly And Monthly Dividend Stocks For Dividends Every Month

The purpose of this article is to address tips for building a 12-month dividend portfolio. So, you can start making dividends every month.

Let’s jump right in…

What Is A 12 Month Dividend Portfolio?

A 12-month dividend portfolio is a collection of dividend stocks. Where stocks are selected specifically to generate dividend payments each month of the year.

How To Build A 12 Month Dividend Portfolio

To achieve the goal of monthly dividend payments, build a diversified dividend portfolio from monthly dividend stocks and stocks that pay dividends quarterly.

First, understand typical dividend payment patterns. Second, select and buy stocks from each of those patterns.

By doing so, you will soon be earning dividends 12 months out of the year.

With those highlights taken care of. Allow me to dive into the details.

Then you will know exactly how to build a 12-month dividend portfolio. Let’s get started with the 4 predominant dividend payment patterns…

money from a 12-month dividend portfolio

Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.

Monthly Dividend Stocks

The easiest way to make a 12-month dividend portfolio is to invest in monthly dividend stocks. However, there are some things to be aware of about stocks that pay monthly dividends.

First, there aren’t that many monthly dividend payers to choose from. Roughly 50 based on my last count.

Second, monthly dividend stocks are clustered in relatively few sectors of the stock market.

Mainly real estate and financial services. Thus, it’s more difficult to build a diversified stock portfolio for dividends every month. By just selecting monthly dividend stocks.

Nevertheless, there are some options to consider for your investment dollars. Such as:

  • Realty Income (NYSE: O)
  • Stag Industrial (NYSE: STAG)
  • Main Street Capital (NYSE: MAIN)
  • Shaw Communications (NYSE: SJR)

You can use a fund approach too. One I like is the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD).

Investing in SPHD is an excellent way to get immediate diversification. While earning dividends every month from the approximately 50 stocks it holds.

Quarterly Dividend-Paying Stocks

On the other hand, I prefer stocks that pay dividends quarterly. They open up many more dividend stock investment options.

There are 3 predominant quarterly dividend payment patterns you should be aware of.

They are:

  • Stocks that pay dividends in January, April, July, and October
  • Dividends paid by stocks in February, May, August, and November
  • Stocks that pay dividends in March, June, September, and December

Thus, you can build a 12-month dividend portfolio by selecting at least one stock from each of the 3 patterns.

Let’s go through some examples of these stocks now…

counting cash from monthly dividend stocks

Stocks That Pay Dividends in January, April, July, And October

First, we have stocks that pay dividends during the first month of each quarter. Specifically, January, April, July, and October.

Some examples include:

  • Altria (MO)
  • Automatic Data Processing (ADP)
  • Chubb Limited (CB)
  • Federal Realty Investment Corp (FRT)
  • Franklin Resources (BEN)
  • Illinois Tool Works (ITW)
  • Kimberly Clark (KMB)
  • McCormick & Company (MKC)
  • Medtronic (MDT)

Next, is the second quarterly dividend payment pattern…

Stocks That Pay Dividends in February, May, August, And November

These stocks pay in the middle month of each quarter.

Several companies that follow this dividend payment cycle include:

  • Abbott Labs (ABT)
  • Air Products and Chemicals (APD)
  • Caterpillar (CAT)
  • Clorox (CLX)
  • Colgate-Palmolive (CL)
  • General Dynamics (GD)
  • Hormel Foods (HRL)
  • Lowe’s Companies (LOW)
  • People’s United Financial (PBCT)
  • Procter & Gamble (PG)

All of these stocks are Dividend Aristocrats. They are stocks that have paid and increased their dividends annually for at least 25 years in a row.

And finally, the last quarterly dividend payment pattern.

Stocks That Pay Dividends in March, June, September, And December

This group of stocks pays dividends during the last month of each quarter.

Notable companies that follow this payment model are:

  • Johnson & Johnson (JNJ)
  • McDonald’s (MCD)
  • Microsoft (MSFT)
  • NextEra Energy (NEE)
  • Raytheon Technologies (RTX)
  • Southern Company (SO)
  • Target (TGT)
  • United Parcel Service (UPS)
  • Walgreens Boots Alliance (WBA)
  • Wisconsin Energy Group (WEC)

Okay. Now you know the main dividend payment patterns. There are others, but they are outliers.

And you know some stocks that fall into each of the patterns. Again, there are many more possible dividend stocks. But far too many to cover for today’s purposes.

Finally, you can either invest in monthly dividend stocks. Also, quarterly dividend stocks. To build your dividend portfolio for monthly dividends.

Next, let’s address some other closely related topics.

FAQs about a 12-month dividend portfolio

Frequently Asked Questions About A 12 Month Dividend Portfolio

Doing so with several frequently asked questions (FAQs). Related to understanding a portfolio built for dividends every month…

How Many Dividend Stocks Should I Own?

For the number of stocks in a monthly dividend portfolio.

First, you can own as few as 1 monthly dividend stock.

Or second, 3 stocks that pay dividends quarterly. As long as each stock of the three pays dividends on different quarterly cycles.

However, 1-3 stocks are typically not considered enough for adequate diversification. Academic research suggests that holding 20-30 stocks is best.

As long as they represent a good cross-section of industries and stock market sectors.

For example, don’t choose 20 utility stocks. Or, 25 consumer staples companies.

How Do I Pick Dividend Stocks?

There is a lot more that goes into picking the best dividend stocks. Aside from when a stock pays its dividends.

So, you should assess other dividend metrics too. When making your 12-month dividend portfolio.

Important things like a company and its stocks…

  • Dividend yield
  • Growth rate
  • Dividend payout ratio
  • Track record of dividend payments

…to name just a few important considerations.

Where Else Can I Find Stocks For My Monthly Dividend Portfolio?

If you are looking for more examples of dividend stocks for your monthly portfolio. Beyond the ones, I have highlighted in this article.

Then consider the Simply Investing Report & Analysis Platform.

It is a robust interactive database of dividend stocks. Providing all the up-to-date dividend metrics.

Plus, recommendations of the best stocks to buy and when to buy them.

I also like the Motley Fool Stock Advisor. For stock recommendations delivered to my inbox every month.

Both of these services take the guesswork out of choosing stocks. For building out a monthly dividend income stream.

Can I Lose Money On Dividend Stocks?

Yes. You can lose money investing in dividend stocks.

Losses in dividend stocks generally occur when one or more of the companies you own encounter financial difficulties. Or, when the stock market overall goes down.

However, you can reduce the potential for losses by selecting stocks of high-quality companies. That have long dividend payment track records. And buying and holding those stocks for long-term investing.

Okay. That’s all for today.

Allow me to share a few parting thoughts…

Creating A 12 Month Dividend Portfolio

Earning dividends every month is an excellent way to supplement your income. Set your 12-month dividend portfolio up the right way to make a passive monthly income from dividends.

To do so, choose the right mix of high-quality stocks that pay dividends quarterly. Along with a few monthly dividend stocks sprinkled into your portfolio.

Before you know it, you will be making dividends every month.

Finally, are you hungry for more knowledge about making money from dividends? If so, check out all of

Our Dividend Investing Informational Guides

conclusions about making monthly dividends
The conclusion is written on a whiteboard

Disclosure & Disclaimer: I am not a licensed investment adviser, financial adviser, or tax professional. And I am not providing you with individual investment advice, financial guidance, or tax counsel. Furthermore, this website’s only purpose is information & entertainment. And we are not liable for any losses suffered by any party because of information published on this blog.

A 12 Month Dividend Portfolio Explained