[Practical Investment] If You Build a Portfolio Investing in Nike, Apple, and McDonald's, You Can Receive 'Monthly Dividends' from January to December

Samsung, POSCO, and 6 Others Quarterly Dividends
Effect of Eased Stock Price Adjustment
Positive Impact from Stable Earnings

[Asia Economy Reporter Park Jihwan] Receiving monthly rent in addition to a salary is the dream of all office workers. The most representative method is to earn rental income through income-generating real estate investments that provide monthly rent, but the skyrocketing real estate prices in recent years are the biggest obstacle.

Is there a way to receive monthly income like rent in the stock market, where individual investors have more than doubled in one year due to last year's Donghak Ant craze? By investing in quarterly dividend stocks, it is possible to create an investment portfolio that receives dividends every month like rent. Quarterly dividends refer to a system where dividends are paid to shareholders four times a year, including March, June, September, and the year-end dividend.

In the United States, where quarterly dividends are common, investment strategies that receive monthly dividends are active. About 80% of the stocks included in the S&P 500 index pay dividends quarterly. For example, JP Morgan, Nike, and P&G pay dividends in January, April, July, and October. Apple and AT&T pay dividends in February, May, August, and November. Microsoft, ExxonMobil, Johnson & Johnson, and McDonald's pay dividends in March, June, September, and December. By constructing an investment portfolio with Nike, Apple, and McDonald's, it is possible to receive dividends every month from January to December like monthly rent.

In Korea, the possibility of receiving a salary through stock investment is also increasing. This is because the number of companies paying quarterly dividends is growing. Currently, among domestic listed companies, five companies pay quarterly dividends: Samsung Electronics, POSCO, Hanon Systems, Ssangyong Cement, and Hyosung ITX. Especially in this shareholder meeting season, Shinhan Financial Group, SK Telecom, and Seegene have newly introduced quarterly dividends. As a result, the number of domestic listed companies paying quarterly dividends has increased to eight. If you invest in stocks with different dividend cycles using the U.S. stock market along with Samsung Electronics and POSCO, it is possible to receive dividends like a salary. However, it is still difficult to implement a strategy to receive monthly dividends solely with domestic stocks due to the lack of domestic quarterly dividend stocks.

So, what are the benefits for investors when receiving quarterly dividends? Above all, since dividends are received more frequently and in installments, the price adjustment range around the ex-dividend date can be mitigated. When dividend dates are spread out, the volume of sell-offs due to ex-dividend decreases.

There is also a positive psychological effect. A company regularly paying dividends means it is generating stable earnings. Kim Hoejae, a researcher at Daishin Securities, said, "In dividend investing, stable dividends along with high dividends are important," and added, "Introducing quarterly dividends means that earnings have become more solid and it provides shareholders with a sense of stability, which is meaningful."