The Ultimate Monthly Dividend Portfolio

It’s the dream for income investors and retirees…

Collecting cash payouts every month like clockwork.

But getting your investment funds and stocks to pay out on a consistent basis is no easy feat.

Many of them pay on a quarterly or biannual basis.

So once you’ve properly allocated your assets, your scheduled payouts are top-heavy a few months of the year.

And the remaining months, you simply have to tighten your belt.

That’s no way to pay your bills and keep your lifestyle on track.

Especially for senior citizens and others who are on a fixed income.

You need scheduled payments to arrive on time every month – no questions asked. At Wealthy Retirement, we know this.
So we put our Research Team to work scanning the markets for the best monthly dividend payers.

In the end, we created an five-stock portfolio that’s pays a fat 4.8% yield.

We will reveal this unique portfolio in a moment. But first, we need to cover the most powerful wealth-building force in the universe…

The Power of Compounding
We’ve seen compounding referred to as “the most powerful force in the universe,” “the royal road to riches” and “the greatest mathematical discovery in human history.”

Albert Einstein called it the “eighth wonder of the world.”

Compounding is a simple investment strategy in which you put your money in an investment that pays a return. At the end of the year, you take your return and reinvest it with your original stake. Your dividend, or interest, earns a return too, building a bigger dividend – or higher interest payments – the next year.

A snowball is the best analogy for compounding. As you roll the ball through the snow, the surface area gets bigger. The more surface area on the snowball, the more snow it picks up. The snowball gains mass slowly at first… but pretty soon, it’s so large you can’t move it.

Compounding is slow and boring at first. But gradually, the dividends grow and your reinvestments increase. One day, you wake up to find your account producing thousands of dollars per year in dividends and your wealth a giant snowball.

Here’s a mind-blowing example from a study conducted by Richard Russell of the Dow Theory Letters on the power of compounding…

An 18-year-old girl puts $2,000 into an account each year from age 19 to 25 then stops contributing and lets it compound at a rate of 10% until age 65. That means she has contributed only $14,000 in total. But because of compounding, by age 65, she’s almost a millionaire, with $944,641 in her account.

Now, let’s say this girl has a twin brother. He’s not as disciplined and continues to blow his money on useless things. Finally, at age 26, he realizes he needs to start saving too.

He puts $2,000 per year into his account starting at age 26. He also lets his money compound at a rate of 10% until age 65. Except he contributes $2,000 every single year from age 26 to 65. That means he’s contributed $80,000 in total… more than five times what his sister has contributed.

By age 65, he’s almost a millionaire too, with $973,074 in his account.

Who’s the winner?

The sister contributed only $14,000 ($2,000 per year over seven years) and ended up with $944,641. That’s a net gain of $930,641, or 66 times her original investment.

The brother contributed $80,000 ($2,000 per year over 40 years) and ended up with $973,074. That’s a net gain of $893,074, or 11 times his original investment.

The sister was able to accomplish much better results with much less money… all because she realized the power of compounding money over long periods of time.

If you missed this, go back and read the example again until you realize what happened.

Not only is compounding an incredible wealth builder, but it’s also simple to do. First, you need an investment that generates a return every year for many years in a row. Then, you need time and perseverance to let the dividends grow.

Compounding doesn’t require vigilance, activity or effort to make it work. In fact, it works best when you forget about it altogether.

So warm up your compounding engine, and get your portfolio growing. It’s the only time-proven way to win the retirement income race.

And the best way to start is with a monthly income portfolio. You can reinvest these dividends every month like clockwork.

The Ultimate Monthly Dividend Portfolio

The majority of dividend-paying stocks pay investors on a quarterly basis. This makes it very challenging to create a diversified portfolio of monthly paying stocks.

But thanks to exchange-traded funds (ETFs), investors can get consistent, high-yield monthly payouts with a nice mixture of stable stocks.

We like the idea of monthly payouts over quarterly payouts for two reasons: It’s great for spenders and savers alike.
First, it makes managing cash flow easier. You can budget your income stream alongside your bills with more predictability.
Second, it can turbocharge compounding and hand you greater total returns. Dividends reinvested monthly can compound at a faster rate than those paid quarterly.

When our Research Team went looking for monthly paying ETFs, we found more than 40 funds offered by major institutions.

But we made sure to approach with caution. Some funds offer high double-digit yields that are unsustainable. They offer up big yields hoping to attract yield-hungry investors.

And some are overcharging investors. It’s one of our golden rules of investing – keep expenses low. So we paid close attention to expense ratios.

In the end, we found five monthly dividend-paying funds that provide sizable and stable yields, without charging a fortune…

The portfolio of funds above hands you an average yield of 4.8%. That is more than double the “risk-free” rate that government bonds offer.

A $20,000 investment into each fund would hand you $4,802 in annual dividends. That’s more than $400 a month you could spend or reinvest as you see fit.

If you’re looking for an easy and cheap way to bring an extra income stream into your life, these ETFs are a springboard for success. They provide the opportunity to grow your wealth with the power of compounding and live the lifestyle you want well into retirement.

Good investing,
The Wealthy Retirement Research Team

P.S. I’ve been working for months on a secret income project, and I just hit a breakthrough.

“Since publishing my book, Get Rich with Dividends, I’ve helped thousands of people achieve their retirement goals.

And today, I’m going to share with you perhaps one of the most astonishing income strategies I’ve ever uncovered from our trusted partner, Alexander Green – Chief Investment Strategist at The Oxford Club.

Check out Alex’s presentation on what he’s calling “The Single-Stock Retirement Play”

This may help end the retirement crisis in America.

Hoping these Ultimate Monthly Dividend Stocks help you, and looking forward to hearing from you soon,

Marc Lichtenfeld
Chief Income Strategist, The Oxford Club