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Dividend Calendar: How to Spread Payouts Across the Whole Year

6 min readCompound

Key takeaways

A dividend calendar is a schedule of dividend payouts over time — it helps investors know when and how much money is coming to their account.

Key dates for every dividend

For each payout, track four dates:

The most important date for you is the ex-dividend date. If you buy on or after this date, you will not receive the dividend for that round.

Payment frequency by region

US companies pay quarterly — in March, June, September, and December. European companies prefer annual or semi-annual payouts. UK companies are an exception — they pay semi-annually, but some pay quarterly. Australian REITs pay quarterly; Japanese companies pay semi-annually.

Tip: If you want monthly passive income from dividends, combine US companies with different payment cycles — group A (January, April, July, October), group B (February, May, August, November), group C (March, June, September, December).

How to build a portfolio with even payouts

Divide positions into three groups by payment cycle. Each month, income then comes from a different group of companies. An alternative is ETFs that aggregate dividends — distributions are typically quarterly or monthly depending on the fund.

Limits of a dividend calendar

A dividend is not guaranteed. A company can cut or cancel it — this happened on a massive scale in 2020. Therefore, monitor not only the yield but also the payout ratio (the share of earnings paid out — ideally below 70%) and the payment history. More on selecting dividend ETFs can be found in the overview of Dividend Aristocrats. For a full picture of passive income from investments, also see the power of compound interest.

FAQ

What is the ex-dividend date?

The date from which you must hold the share to receive the dividend for the current round. If you buy on or after this date, you will not receive the dividend for this round — it goes to the new owner.

How can I receive dividends every month?

Divide your portfolio into three groups of US companies with different quarterly cycles — January/April/July/October, February/May/August/November, March/June/September/December. Each month income then flows from a different group.

How long do I need to hold a share to get the dividend?

It is enough to hold it the day before the ex-dividend date. You can sell it the next day and you will still receive the dividend for this round. But be aware: the share price usually drops by the amount of the dividend on the ex-date.

Are dividend payments guaranteed?

No. A company can cut or cancel a dividend. Monitor the payout ratio (ideally below 70%) and the payment history for the past 10 years. Aristocrats with 25-year track records are more reliable.

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