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SERIES: BEGINNER STOCK INVESTING
Balance Your Stock Portfolio in Time and in Dividend Payout
What the heck are JAJO, FMAN, MJSD, and 12MO?
Disclaimer: I am not a professional financial advisor, nor are my articles meant to be financial advice. I am a buy-and-hold investor who has followed that strategy for over 30 years and have met with some success, which I would like to pass on to you. If you need financial advice regarding your investments, please consult with a fiduciary in your area.
As you build your Roth IRA portfolio for your retirement years, you should be filling it with stocks from good, solid companies that pay dividends every year. Since you will need this income to support you after you retire, you ideally will want the amount of income you earn from your Roth each month to be roughly the same.
To ensure yourself of a roughly even payment amount each month, you must consider not just the amounts you receive in dividends from each of your stocks, but also the times of year when the dividends from your stocks are paid.
I never thought about payout schedules as a beginning investor, but once I noticed that certain stocks didn’t follow the March, June, September, December pattern, I paid more attention and realized I was missing out on an entire dimension of investing.