Most investors still wait four long quarters for a dividend check, then wonder why their monthly budgets refuse to cooperate. Moreover, the small dividend yield of 1-3% will compound slowly if you reinvest and is unlikely to cover your expenses if you are already retired.
The best idea is to balance your dividend portfolio using a barbell strategy. Have a few high-yield dividend payers in your portfolio, not too high to be unsustainable, but high enough to truly make a difference in the long run. You can balance that risk by also holding solid blue-chip dividend stocks.
The following three dividend stocks get you a 7% yield that is paid monthly, a very rare characteristic in today’s market.
This post originally appeared at 24/7 Wall St.