I want to know what kind of stocks are good for constant returns, the price of the stock is not my main interest, what I am interested in is monthly/quarterly returns for a stable income source. Also what would be an optimal amount to invest to get returns of ~ 2000 USD monthly


1 Answer 1


There are no stocks that can produce a stable constant return. Stocks are based on business values, which fluctuate over time as the expected future business performance fluctuates.

Even stocks that produce a constant dividend yield to not guarantee constant returns, since the dividend yield is a function of the price, so as the price of the stock rises/falls, so does the dividend. This compounds the fact that bonds must rise in price to make up for the dividend paid out, or they will decay away.

There are many bond and other "fixed income" products like mortgage backed securities that will provide a constant income if they held to maturity. They can also fluctuate in value, but not nearly as much as stocks on average, and if you never sell them, the interim value doesn't matter.

You could also talk to a financial planner about annuities and other insurance-like products, but they tend to come with higher fees than if you invested in bonds or bond funds directly, mostly as compensation for doing the administrative work for you (just like active mutual funds charge a higher fee than passive ones).

To get about 2,000 USD monthly you'd need to figure out what yield you can get on (relatively) safe investments. For example, if you could get a 4% annual yield (0.333% monthly), you'd need to invest 2,000 / 0.00333 = 600,000 USD.

  • thanks that's a really good explanation
    – YaRmgl
    May 31, 2022 at 13:47
  • IMHO, preferred stock also deserves a mention. Perpetual preferreds, in particular, do provide a stable amount of quarterly dividend income, even though share prices fluctuate with market conditions and interest rates. May 31, 2022 at 18:45
  • Preferred stocks are a worthy mention. I added a nice chunk of investment grade perpetuals in the past 6 weeks, something I always do when the yield exceeds 6%. I had to DCA a bit and short some other issues to diminish the losses but the rally over the past 3 weeks solved that problem. It has been a long time since we've had an interest rate cycle in the US. Jun 1, 2022 at 4:20

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