One of the best parts of owning stocks is getting paid through dividends. There is nothing like seeing a deposit coming into your account when you haven’t done anything. Unfortunately, this usually only happens quarterly or semi-annually for most stocks. If we add a few different positions to our portfolio, we can create an account that pays us every week. Today we are going to be taking a look at the weekly dividend portfolio.
Why a Weekly Dividend Portfolio?
If you have been following along, we created a portfolio that pays you every month previously. The advantage of having dividends come in more frequently is two fold. First, we are able to eliminate some variation in our portfolio by increasing the frequency and amount of our dollar cost averaging. The second benefit is the psychological element. Personally, the more frequently I see my investments increasing, the more I strive to keep growing them myself. This can work extraordinarily well when you are just starting out and need that mental boost.
Build the Weekly Dividend Portfolio
To build a weekly dividend portfolio we are going to be looking at 2019 dividend payments. Another thing we want to look for is securities that haven’t cut their dividends in 2020. During the pandemic many companies have faced uncertainty which has caused them to reduce expenditures. This isn’t ideal for our portfolio so we want to make sure we still have companies that are not only paying their dividends, but also increasing them as well.
In order to create a weekly dividend portfolio we are going to need a minimum of 13 stocks that pay quarterly or 12 that pay monthly. I have created a sample portfolio for 2019 that gives us weekly dividends for all of 2019 comprised of 14 stocks.
|Stock||1st dividend||2nd dividend||3rd dividend||4th dividend|
|Kimberly – Clark Corporation 2.70% Yield||1/3/2019||4/2/2019||7/2/2019||10/2/2019|
|Illinois Tool Works Inc. 2.31% Yield||1/10/2019||4/10/2019||7/10/2019||10/9/2019|
|Fifth Third Bancorp 5.21% Yield||1/15/2019||4/15/2019||7/15/2019||10/15/2019|
|Cisco Systems Inc 3.37% Yield||1/23/2019||4/24/2019||7/24/2019||10/23/2019|
|JPMorgan Chase & Co 3.52% Yield||1/31/2019||4/30/2019||7/31/2019||10/31/2019|
|Lowe’s Comapnies, Inc|
|Apple Inc 0.71% Yield||2/14/2019||5/16/2019||8/15/2019||11/14/2019|
|Caterpillar Inc. 2.93% Yield||2/20/2019||5/20/2019||8/20/2019||11/20/2019|
|Simon Property Group, Inc. 7.88% Yield||2/28/2019||5/31/2019||8/30/2019||11/29/2019|
|Visa Inc. 0.61% Yield||3/5/2019||6/4/2019||9/3/2019||12/3/2019|
|Johnson & Johnson 2.73% Yield||3/12/2019||6/11/2019||9/10/2019||12/10/2019|
|Mcdonald’s Corporation 2.42% Yield||3/15/2019||6/17/2019||9/17/2019||12/16/2019|
|BlackRock, Inc. 2.46% Yield||3/21/2019||6/20/2019||9/24/2019||12/23/2019|
|Qualcomm Incorporated 2.29% Yield||3/28/2019||6/27/2019||9/26/2019||12/19/2019|
These 14 stocks will give you a payout 52 weeks a year. If you put the same amount into each stock, you would have an average forward yield of 2.90%. Not too shabby considering the amount of growth stocks that we have in this portfolio.
Alternatives for these Securities
Now obviously I picked 14 stocks and already in 2020 SPG has cut their dividend from their previous highs. If you are looking to create a weekly income portfolio I suggest you do your own research. I personally use Market Chameleon to find pay dates of dividends in the past and the future. You can use their dividend screener to find a portfolio that fits your criteria and risk tolerances. There are hundreds of dividend stocks out there and as long as you can find one during each week of the quarter, you can create your own weekly dividend portfolio.
We also ignored ETFs for the purpose of this example. ETFs and Index investing are great strategies and can provide even more diversification for these strategies. There are also plenty of dividend paying funds which you can use to create a more steady flow of income with less risk if you choose to do so.
Generating Even More Money
If you are interested in making even more money from this portfolio, I suggest you check out the Wheel Strategy. This will allow you to sell option contracts on your portfolio to create even more income. I implement a combination of these strategies to get the stocks at a price point I want, then let the income roll in on a monthly or weekly basis. Some of the stocks I picked are also growth stocks, as well as a couple dividend aristocrats. These stocks have had past dividend growth and will hopefully grow more in the future. If you can continue reinvesting those dividends your portfolio will turn into a real cash machine.
Weekly Dividend Portfolio In Conclusion
Now you have it, our weekly dividend portfolio for 2019. These dates change year to year as the company announces their ex-dividend dates so it is important to check when you will be receiving your dividend payouts. Do you get paid weekly from your stock portfolio? Let me know in the comments below!