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How can I invest in dividend stocks to get a monthly income which also should be safe or less risky?

Yes and sort of. You can invest in dividend stocks to generate monthly income. There are a few monthly payers but most of them are risky. There is only one or two monthly paying stocks I would recommend to invest in for monthly income.

For the rest, you would have to buy stocks which pay dividends in different month, for example, buy a stock which pays dividends in January, April, July, and November, then another stock which pays dividends in February, May, August, and December, etc.

To mitigate risk you want to choose high quality dividend growth stocks (dividend aristocrats) which are stocks which have a great and log history of paying the dividends and increasing the dividends. For example Johnson & Johnson stock increased the dividend in 2008 and there were many others who did the same. Yes, the stock dipped a lot in value, but the income it paid to me was consistent, steady, and rising. So while others were panicking and selling, I was buying. And I bought JNJ for $45 a share when everybody else was predicting end of the world. Look where JNJ trades today. And my 3% income back then grew to 15% today.

So, it is doable. You have to look at your investment as income machine, not speculation and you must be OK to hold and buy more when the stock goes lower. Dividend aristocrats are well established and reliable companies which you can trust and do not have to worry much. Of course, there will be stocks, time to time, which were once aristocrats but later on screwed up (like GE). But, if you know how to invest in dividend stocks properly, you will see early warning signals to get rid of a stock before it is too late (many experienced dividend growth investors could foresee the GEs problems and got out before the stock cut the dividend and subsequently tanked to $4 a share. To learn more, I would recommend a book “The Single Best Investment” by Lowell Miller.

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