The monthly dividend ladder is starting to take shape for the money tree. Working on completing the current goal, the hardest part is to decide which high quality dividend paying stocks I would like to include on the ladder.
Goal
As you may recall in my last post, my recent goal is set on building a monthly dividend ladder. This will be another investment vehicle to serve as a recurring passive income stream adding height to the Money Tree.
Dividend Ladder: 1st Purchase
At the time of posting, I already purchased the first rung of the dividend ladder with Pfizer (PFE). In being true to the selection criteria, I decided to purchase 3 shares of PFE at $35.90 per share for a total investment of $107.70. At this price with an expected quarterly dividend of $0.39 per share, that results in ~ 4.35% annual dividend yield. The ex-dividend date was Jan 28th, 2021 and to be paid on March 5th, 2021.
Dividend Ladder: 2nd Purchase
Quickly after the healthcare sector investment with Prizer, I quickly found my second investment for the dividend ladder. Moving towards the Financial sector and taking an initial stake in Bank of Montreal (BMO). Keeping the initial investment to around $100, I purchased 1 share of BMO at $74.32 per share for a total investment of $74.32. At this price with an expected quarterly dividend of $0.8327 per share, that results in ~4.48% dividend yield. The ex-dividend date was Jan 29th, 2021 and to be paid on February 26th, 2021. Also to note with BMO, watch the currency noted in their announcements as it is stated in Canadian $’s
Looking for the 3rd rung....
With having both PFE and BMO in the investment portfolio, I am on the lookout for a high quality dividend paying stock paying in the Jan/Apr/Jul/Oct frequency. This next investment will need to be away from the Healthcare and Financial sector to help with the diversification strategy. With that in mind, I am off to find the next gem for the ladder….stay tuned
I am a finance professional with over 20 years of experience and very passionate about all topics related to finance; enjoying the aspect of teaching and educating others along the way. All in all, I will show you how big this money tree can get over time as I get the branches (Earn, Save, Invest) as high as possible…Click here to see my financial progress to date: How high is the Money Tree?
