For many, the idea of earning a monthly income from the stock market seems like a distant dream. However, as one investor from the «Corpo Slave Investor» community has highlighted, it’s a very achievable goal.
By carefully selecting a portfolio of dividend-paying stocks on the Philippine Stock Exchange (PSE), investors can create a passive income stream that provides regular payouts throughout the year. The key lies in understanding which companies distribute dividends and their payment frequency, a process that requires diligent research.
This guide, inspired by the insights of a seasoned investor, breaks down how to construct a dividend portfolio that can provide a consistent monthly income. It is crucial for every investor to remember to conduct their own due diligence, as market conditions and company policies can change.
The strategy involves diversifying your portfolio across companies that pay dividends at different times of the year. By combining stocks that pay quarterly, tri-annually, semi-annually, and annually, you can ensure that cash flows into your account on a regular basis.
Quarterly Dividend Payers
These are the cornerstones of a monthly dividend income strategy, as they provide the most frequent payouts.
- Real Estate Investment Trusts (REITs): By law, REITs are required to distribute at least 90% of their distributable income to shareholders on a quarterly basis. This makes them a reliable source of regular cash flow.
- Holding Firms: Some major holding firms, such as LT Group, Inc. (LTG), are known to distribute quarterly dividends, sometimes with special bonus dividends on top of their regular payouts.
- Telecommunications: Globe Telecom (GLO) is an example of a telecommunications company that consistently provides dividends to shareholders every quarter.
- Banks: Certain banking institutions like BDO Unibank, Inc. (BDO) have a history of distributing dividends on a quarterly basis, making them a solid inclusion for a steady income.
Tri-Annual Dividend Payers
These stocks can fill in the gaps between quarterly payouts, adding to the monthly income stream.
- Banking: Metrobank (MBT) has historically distributed dividends every four months. As the source noted, their latest payout was in late March 2025, offering a dividend yield of approximately 6.88%.
Semi-Annual Dividend Payers
These companies provide larger, less frequent payouts that can be strategically timed to complement the other dividends in your portfolio.
- Utilities: Meralco (MER) is a prime example. Its dividends have shown a consistent increase over the past five years, reflecting a strong and stable business.
- Telecommunications: Unlike Globe, PLDT (TEL) has a history of paying dividends on a semi-annual basis.
- Port Operations: International Container Terminal Services, Inc. (ICTSI), a global port terminal operator, is known for its semi-annual dividend distribution.
- Food & Beverage: The food giant Jollibee Foods Corporation (JFC), which operates in numerous countries, also falls into this category with its semi-annual dividend payouts.
Annual Dividend Payers
While they only pay once a year, these stocks can provide a substantial lump sum to round out the portfolio.
- Holding Firms: Companies like Alliance Global Group, Inc. (AGI) and Aboitiz Equity Ventures, Inc. (AEV), with diverse investments across various sectors, typically distribute dividends on an annual basis.
This list primarily includes common shares, but preferred shares are another option to explore for dividend income. It’s crucial to understand that a company’s dividend payout is not guaranteed. It is subject to the approval of the company’s Board of Directors (BOD). As the original post highlighted, some companies may halt dividend payouts due to factors such as low earnings or profits. The timing of dividend releases may also change, with the notable exception of REITs, which are legally mandated to distribute quarterly.
The conclusion is clear: earning a monthly income from the PSE is entirely possible. By strategically building a portfolio of dividend-paying stocks with varying payout schedules, you can create a reliable source of passive income. The key takeaway is to view the stock market not just for capital appreciation but also as a way to supplement or even replace your salary through dividend income.
While maintaining a day job, it is wise to strive for additional income streams like the stock market, always ensuring you do your own thorough research and due diligence before making any investment decisions.
