Building Passive Income from Monthly Dividend Stocks

Many passive income seekers like myself love dividend stocks. What’s not to appreciate when you get paid on a regular basis. Most commonly they pay quarterly or monthly in Canada and US however quite sparsely semi-annual and annually in other countries.

Key issues with quarterly dividends or other less frequent payments

Firstly, for retirees who rely on dividend income to supplement their pensions it takes a lot of organizing to make sure that bills and other obligations are paid on time. 

In effect, with less frequent dividend income, it is more difficult for retirees to budget as monthly expenses such as rent, utilities, groceries, insurance etc. still come out regularly when one stops working. Less frequent dividend income will be a problem for most of them.

Secondly, the quarterly paying companies may not also pay dividends on the same month or date of the month, which means that you will have inconsistent income each month. You really need to be highly organized with your budgeting by writing it down on your calendar. 

In the same way, with technology these tasks however seem to be a little easier as you can set up reminders on your computer, tablets, and smartphones.

Finally, when someone who doesn’t have enough pension and savings at the time of retirement one may to sell his/her investments in an untimely manner.

Advantages of monthly dividend income

For someone who has regular monthly bills to pay,  investors who are close to retirement or one who is already retired, it makes a lot of sense to focus on dividend stocks that pay regular monthly dividends.

Furthermore, It is a lot easier to budget if you have stocks that pay a dividend on a monthly basis. Most of these companies also pay dividends on a specific date such as every 15th or at the end of the month. It’s practically simpler to budget for monthly expenses when you have income that comes out on a specific date.

One of my strategies is holding equities that pay dividends midway of the month on the 15th and at the end of the month such as to mimic my working years of receiving income bi-weekly or twice a month. 

Additionally, partnering with monthly dividend paying companies can accelerate my positions quickly by reinvesting those dividends either in same company or picking undervalued ones. As a result, The magic of compound interest works quicker when reinvesting the dividends on a more frequent basis.

These monthly dividend paying companies are a buy and hold. Unless its fundamentals dramatically change such as earnings deteriorate 3 quarters in a row, suspending and cutting dividend then it triggers a sell action. Our ultimate goal is to live off its dividends without harvesting the capital. You may check our TFSA dividend income which I update monthly.

Above all, the huge benefit of monthly paying dividends is taking advantage of opportunities to buy undervalued stocks that are available. Unlike quarterly paying ones that you have to wait and perhaps miss out on those opportunities as you don’t have available funds.

Here’s the complete list of our monthly dividend stocks:


NOTE: Dividend yields are reflected at the time of writing.

If you like to build your monthly passive income through dividends and if you sign up this link and add money to a non-registered personal account, you will earn a cash equivalent of two random stocks and I will earn a cash equivalent of one stock. See more details with this link .


My Final Thoughts


Monthly dividend stocks offer investors passive income streams for easy budgeting which are very beneficial for income-seeking investors and retirees.

Furthermore, It is also a great opportunity for young investors seeking to build their passive income by increasing their positions quicker by purchasing equities and reinvesting the dividends on a more frequent basis.


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2 months ago

Great website ! and an impressive list of monthly dividends paying stocks 🙂 all mine are quarterly paying as i’m still far from retirement but it’s a great list for sure.

2 months ago

I’m definitely loving my monthly dividends where I can maximize the potential with compound interest.

Keith Pendleton
Keith Pendleton
19 days ago

Great write up!

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