Want extra income every month? Invest in These 3 High Yielding Dividend Stocks

IInflation makes 2022 a tough year for everyone. Rising costs mean less disposable income for consumers, which can make it harder to grow savings and pay bills. But if you have money you can afford to invest, you can increase your monthly income and improve your financial situation by buying dividend-paying stocks.

Viatris (NASDAQ: VTRS), Hasbro (NASDAQ: A)and JPMorgan Chase (NYSE: JPM) all pay attractive returns well above average S&P500 payment of 1.4%. And while none of these stocks pays a dividend on a monthly basis, they have different payment schedules, and investing in all three can ensure you receive money every month.

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1. Viatris

Healthcare company Viatris is a relatively new stock, born in 2020 through a merger between pharmaceutical company Mylan and PfizerUpjohn, an off-patent company. And Viatris continues to tinker with its business, announcing in February that it would sell its portfolio of biosimilars to Biocon Biologics for $3.3 billion. Viatris plans to use the cash to invest in its business while returning capital to shareholders.

Simplifying a business can allow management to avoid having to overstretch its financial resources, which in turn can make the dividend more secure. But even without the transaction, Viatris’ dividend looked manageable. Last year, the company paid just under $400 million in dividends. And with free cash flow over $2.5 billion, he had more than enough to pay for that and pay off some of his debt.

Although investors dumped the stock after news of the sale to Biocon Biologics, for income investors it could be a good investment. With a yield of 4.5%, Viatris can generate significant income for your portfolio. And given that the company appears determined to return capital to shareholders, it’s a positive sign that dividend increases could also occur in the future of the stock. Viatris currently pays dividends every March, June, September and December.

2.Hasbro

Hasbro is a name synonymous with board games and toys. Magic: The Gathering, Play-Doh, and Monopoly are some of its most popular brands that investors and consumers are likely familiar with. But for people looking for recurring income, Hasbro might also be popular for another reason: its dividend.

The entertainment stock pays a quarterly dividend of $0.70, which the company raised by a few cents earlier this year. It earns 3.1% annually with payouts in February, May, August and November. And the company is in excellent shape to support those payments, with operating cash flow of $134.7 million for the period ended March 27 sufficient to support its dividend payments ($94.5 million).

With consumers no longer stuck at home, Hasbro still expects mid-single-digit operating profit growth this year. It’s a good sign for growth and income-oriented investors that despite such challenges, the company is still likely to generate growth. It’s one of the many reasons why Hasbro is a great investment.

3. JPMorgan Chase

Bank stocks are generally strong when it comes to paying dividends. If there is turbulence in the economy, a bank may not increase its dividend payouts, but the odds of it not offering a payout are low. One of the best dividend yields from a bank stock today comes from JPMorgan Chase. At 3.2%, First Bank offers investors a high yield with an incredibly low payout ratio of less than 30%. Its payments are made in January, April, July and October.

There is some uncertainty about the performance of banks this year. Fears of a recession are looming, but interest rate hikes will help them take advantage of wider spreads between what they pay depositors and how much they take on loans. Today, it’s still a hugely profitable business that in the first three months of 2022 generated $8.3 billion on reported revenue of $30.7 billion, for a profit margin. incredibly strong 27%.

In the long term, it is prudent to bet on the big banks, as they generally prosper as the economy develops. And while there are challenges ahead, the company’s low payout ratio of just 29% means there’s no reason to worry about JPMorgan’s dividend right now.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Hasbro and Viatris Inc. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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