Investing $ 27,550 in These 3 Dividend Stocks Can Earn You $ 100 Per Month
IInvesting in dividend paying stocks can be a great way to grow your portfolio, even if you are wondering if your investments themselves will increase in value. Recurring income can help you increase your savings and provide you with more money to invest in other stocks. You can even use the dividend income to pay bills or cover expenses. The only downside is that many dividend paying stocks don’t pay out on a monthly basis. However, by owning multiple income investments, you can ensure that you receive dividends each month.
Three stocks with different payment schedules that could be attractive options for income investors include Properties of Healthpeak (NYSE: PIC), TC Energy (NYSE: TRP), and Western Union (NYSE: WU). Not only can they diversify your portfolio, they all earn you more than the 1.3% return you will get on the average market share. S&P 500. Here is how you can earn $ 100 each month with each of these investments.
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1. Properties of Healthpeak
Healthpeak Properties Real Estate Investment Trust (REIT) can offer investors a relatively secure way to earn income. The company’s healthcare asset portfolio, which includes retirement communities and medical practices, allows investors to benefit from stable tenants. And as the company enriches its portfolio, there is potential for more dividend income in the future; REITs must return at least 90% of their profits to shareholders.
For the period ending June 30, Healthpeak reported adjusted and diluted funds from operations (FFO) of $ 0.40, identical to the same period last year. And for the full year, he expects the Adjusted Diluted FFO to be in a range of $ 1.55 to $ 1.61. FFO what REITs use to assess their financial performance; it is often a better indicator than net income, which includes non-cash expenses such as depreciation and depreciation.
The company’s quarterly payment of $ 0.30 is well supported by its recent results. Annually, at $ 1.20, the dividend would represent 77% of the adjusted earnings of $ 1.55 (the low of the forecast) that Healthpeak is forecasting this year. The health care stock usually makes dividend payments every February (this year was early March), May, August, and November. And with a 3.4% return, investing $ 11,765 would be enough to collect $ 100 for each of those quarterly payments.
2. TC Energy
TC Energy is in the energy infrastructure business and is more secure than your average stock of oil and gas. Over the past four years, its profit margin has been 23% or more, and each year sales have consistently been around C $ 13 billion.
In the company’s most recent results, which TC Energy announced on July 29, the company said it was moving forward on a C $ 21 billion investment program to pursue more infrastructure opportunities. And while such a large down payment could be a concern for income investors, the company says the projects are all “backed by long-term contracts and / or regulated business models.”
All of this could lead to some great long term results to supplement its already strong numbers. In the second quarter, TC Energy reported earnings per share of C $ 1 for the period ending June 30, which is higher than its quarterly dividend payments of C $ 0.87. Management expects to be able to continue increasing its dividend payments from 5% to 7% thanks to the growth opportunities. Over the past two decades, the company has increased its dividend by a compound annual growth rate of 7%.
TC Energy stock returns just over 6%, and an investment of $ 6,590 would be enough for it to generate $ 100 every time it pays you a dividend, that is, every January, April, October and July. This can be a solid investment if you are looking for oil and gas exposure without wanting to take too much risk.
3. Western Union
Financial services company Western Union is benefiting from growth in digital money transfers which in its second quarter results (also for the three month period ending June 30) reached a record $ 265 million. Revenue of $ 1.3 billion during the period was up 16% from the same period last year. Net profit of $ 223 million also increased 37%.
The company will get an influx of cash from its next announced sale of Western Union Business Solutions (which helps businesses manage currencies and improve bottom lines) to Goldfinch Partners and The Baupost Group for $ 910 million in cash. The company said it could use the sale proceeds for share buybacks, dividends or to pursue growth opportunities, including acquisitions.
Management expects EPS for 2021 to be between $ 1.82 and $ 1.92. The bottom of that range would still be almost twice as high as its annual dividend of $ 0.94. Its 4.4% return could increase if the company increases payments following its divestiture. But for now, you’ll need to invest $ 9,195 in the stock to receive a $ 100 dividend every March, June, September, and December.
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