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Slide Show | November 2012

12 Stocks to Get Dividends Every Month

We found a dozen great stocks with a payment
schedule that will line your pockets with cash
each month throughout the year.

Follow @JeffreyRKosnett

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12 Stocks to Get Dividends Every Month

January: Occidental Petroleum (OXY)

Yield (as of November 23): 2.8%
52-week high: $106.68
52-week low: $72.43
5-year-dividend growth rate: 18.1%
Last dividend increase: 17.4% in April 2012
Also pays in: April, July, October
Oxy is primarily a domestic oil and gas
producer, with much of its exploration in
California and in shale formations in Texas and
North Dakota. It differs from some other large
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oil companies in that it doesn't have a lowprofit refining and marketing business. It also
says, emphatically, in its investor presentations that increasing its dividend is a higher priority than making acquisitions,
buying back stock or piling up reserves.

January: Occidental Petroleum (OXY)

February: Realty Income (O)

Yield (as of November 23): 4.6%
52-week high: $44.22
52-week low: $32.76
5-year-dividend growth rate: 3.9%
Last dividend increase: 0.2% in October 2012
Also pays in: Every month

This real estate investment trust pioneered the

strategy of buying or building free-standing
drugstores, restaurants, cinemas, fitness centers
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and similar buildings and leasing them to
familiar chains, which pay the rent,
maintenance and taxes. Realty Income pays dividends every month and raises the rate several times a year, though slowly
and usually by small amounts. The REIT is safe and consistent, with more than 500 consecutive monthly dividends to its
credit.
February: Realty Income (O)

March: Intel (INTC)

Yield (as of November 23): 4.6%
52-week high: $29.27
52-week low: $19.23
5-year dividend growth rate: 14.4%
Last dividend increase: 7.1% in September
2012
Also pays in: June, September, December

Intel, which makes semiconductors and

processors, has been one of tech's most
committed dividend-payers, although its 2012
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increase was only half the size of its average
hike over the past five years. Intel is wrestling
with slowing growth in sales of desktop and laptop computers, its largest sources of sales and earnings. That makes Intel the
one stock on this list that we might replace. But then again, if you want a tech stock that yields more than the general stock
market, Intel is your best choice.
March: Intel (INTC)

April: Wal-Mart (WMT)

Yield (as of November 23): 2.3%
52-week high: $77.60
52-week low: $57.00
5-year dividend growth rate: 16.9%
Last dividend increase: 8.9% in April 2012
Also pays in: July, October, January

Wal-Mart's stock is near its all-time high and

earnings are sizzling, so you can expect good
dividend growth for the foreseeable future. The
five-year growth rate is inflated by an
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unusually large boost in 2011; 10% to 12% is
closer to the norm. That's plenty to underscore
that Wal-Mart doesn't mind sharing its wealth even when the economy is growing slowly.
April: Wal-Mart (WMT)

May: Procter & Gamble (PG)

Yield (as of November 23): 3.2%
52-week high: $70.83
52-week low: $59.07
5-year dividend growth rate: 10.8%
Last dividend increase: 7.0% in May 2012
Also pays in: August, November, February

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May: Procter & Gamble (PG)

June: McDonald's (MCD)

This is the archetypal solid, predictable, lowstress growth stock. It is so huge that a 7% to
10% dividend growth rate may be all you can
expect -- but that's good enough considering
that it usually yields more than 3%.

Yield (as of November 23): 3.5%

52-week high: $102.22
52-week low: $83.31
5-year dividend growth rate: 20.4%
Last dividend increase: 10.0% in December
2012
Also pays in: September, December, March

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McDonald's started getting serious about

dividends in 2006, and it still is. Admittedly,
the latest increase was less than the recent
average because business in general hasn't been
great. Sales were down all over the world in

the most recent quarter. But that's unlikely to happen again.

June: McDonald's (MCD)

July: Kimberly-Clark (KMB)

Yield (as of November 23): 3.4%
52-week high: $88.25
52-week low: $69.40
5-year dividend growth rate: 7.4%
Last dividend increase: 5.7% in April 2012
Also pays in: October, January, April

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Figure on another dividend hike early in 2013.

July: Kimberly-Clark (KMB)

August: AT&T (T)

The maker of Kleenex, Huggies and Scott

paper products resembles Procter & Gamble in
that it makes familiar household products, it
isn't risky, and it has lifted its payout every
year . . . for the past 40 years. The company
and the shares have had an excellent 2012.

Yield (as of November 23): 5.2%

52-week high: $38.58
52-week low: $27.76
5-year dividend growth rate: 5.1%
Last dividend increase: 2.3% in February
2013
Also pays in: November, February, May
The share price has fallen back 15% from its
high in early October. But it is still up for the
year, and the current dividend yield is again
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over 5%, the highest in the Dow Jones
industrial average. AT&T and Verizon
dominate the wireless business, and although AT&T may sometimes leave you frustrated if you're a customer, it's good to be
a shareholder.
August: AT&T (T)

September: Johnson & Johnson (JNJ)

Yield (as of November 23): 3.5%
52-week high: $72.74
52-week low: $61.71
5-year dividend growth rate: 9.1%
Last dividend increase: 7.0% in June 2012
Also pays in: December, March, June

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A blue-chip cash machine with a great group of

global health businesses, J&J grows just
enough to raise dividends between 5% and
10% a year while the shares almost never
misbehave. This is the way the stock market is
supposed to work for patient, loyal investors.

September: Johnson & Johnson (JNJ)

October: Automatic Data Processing (ADP)

Yield (as of November 23): 3.1%

52-week high: $59.96
52-week low: $48.49
5-year dividend growth rate: 12.1%
Last dividend increase: 10.1% in January
2013
Also pays in: January, April, July

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ADP is a giant payroll processor that makes

some of its profits investing the money it holds
for employers before the paychecks are cashed
and deposited. It's also a financial fortress, with
$1.1 billion in cash and little debt. That means

its dividends are ironclad and rise at a decent pace.

October: Automatic Data Processing (ADP)

November: Vale (VALE)

Yield (as of November 23): 6.7%
52-week high: $26.87
52-week low: $15.77
5-year dividend growth rate: 26.4%
Last dividend increase: 1.6% in May 2012

Vale is a global diversified company based in

Brazil with an irregular dividend schedule. We
like it because there's usually a big payment in
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November, plus occasional extra dividends
whenever the company decides they are in
order. For example, while the payment in November 2012 was roughly the same as the one in 2011, Vale issued a good-size
payment in May 2011, too. With metals prices rebounding from a slump, Vale ought to pay good dividends in 2013.
November: Vale (VALE)

December: American Electric Power (AEP)

Yield (as of November 23): 4.6%

52-week high: $45.41
52-week low: $36.97
5-year dividend growth rate: 4.3%
Last dividend increase: 2.2% in December
2011
Also pays in: March, June, September
AEP is one of the safest traditional (regulated)
electric utility stocks because it operates in 11
states, which spreads the risk arising from
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storms and other controversies. It also pays a
below-industry-average 52% of its earnings as
dividends. That gives AEP scope to raise dividends even in slow years, and it makes the chance of a cut almost
unimaginably small. AEP shares also yield more than most other electric systems -- a hard-to-explain bonus that has landed
this utility in the Kiplinger Income 25 , the collection of our favorite income investments.
December: American Electric Power (AEP)

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