Does a Dividend Ladder Still Work in 2026?

 

In 2021, I wrote an article titled How to Create a Dividend Income Ladder From Scratch, where I explained a straightforward but effective income strategy: by selecting dividend-paying investments with different payment schedules, you can create a series of cash-flowing dividends that arrive regularly throughout the month instead of sporadically throughout the year.

The focus of that article was not speculation or yield chasing. It was about structure, discipline, and reliability — turning periodic dividend payments into a smoother and more predictable income stream.

Now, after navigating the past five years of market volatility, inflation, rising interest rates, dividend cuts, and recoveries, it is fair to ask:

Does a dividend ladder still work in 2026?

The short answer is yes.
The more complete answer is yes — when built with realism and discipline.

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What a Dividend Ladder Is (and Is Not)

A dividend ladder is not a product or a fund. It is an income-timing framework.

In the United States, most dividend-paying companies distribute cash on a quarterly schedule. Bond funds often pay monthly, usually early in the month. REITs and Business Development Companies (BDCs) tend to pay mid-month, while covered-call and option-income funds frequently pay toward the end of the month.

By combining investments with different payment schedules, you can spread dividend income across the calendar so that cash arrives regularly, not just in March, June, September, and December.

This is the same framework described in my 2021 post on building a dividend income ladder, and the mechanics still apply.

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Why the Dividend Ladder Still Works in 2026

The dividend ladder works because it is built on business cash flow, not market prices.

• Companies continue to generate profits

• Profitable businesses distribute cash to shareholders

• Dividends are paid according to declared schedules

• Income is not dependent on daily price movements

Markets fluctuate.
Dividends — when sustainable — continue.

That is why dividend ladders have survived multiple market cycles, including the turbulent period of the past five years.

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Dividends and Inflation: An Important Clarification

It is factual and well-documented that many high-quality dividend-paying businesses have historically provided a degree of inflation protection.

This happens because:

• Strong businesses can raise prices over time

• Earnings grow with economic activity

• Dividends increase as cash flow grows

While no dividend is guaranteed, companies with long records of dividend growth have often increased payouts faster than inflation over extended periods.

This is an important distinction:
A dividend ladder built around growing dividends behaves very differently from one built purely on static high yield.

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An International Perspective: Not Just a U.S. Strategy

Although the dividend ladder framework is often discussed in a U.S. context, it is not limited to U.S. markets.

In many international markets — including the UK, Europe, Australia, and parts of Asia — companies often pay dividends twice per year rather than quarterly.

These dividends are frequently asymmetrical, consisting of:

• A smaller interim dividend

• A larger final dividend

While the timing is different, the ladder concept still works. Instead of smoothing income month-to-month, the ladder smooths income across the year by:

• Holding companies with different payment months

• Combining equities with bond funds or income funds

• Offsetting irregular payments with diversification

The principle is the same: spread income sources across time.

 

 

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What Has Changed Since 2021

While the ladder still works, construction standards matter more in 2026.

Higher Interest Rates

Income investors now have real alternatives:

• Cash earns interest

• Government bonds provide competition

• Risk must be justified

Dividend investments must now earn their place in the ladder.

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Yield Chasing Has Been Exposed

Over the past five years, many high-yield strategies failed:

• Dividend cuts broke income plans

• Capital losses erased years of income

• Poor coverage was punished

A dividend ladder only works if the rungs remain intact.

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How to Build a Dividend Ladder in 2026

The structure is familiar, but discipline is essential.

Early-Month Income

Often includes:

• Investment-grade bond funds

• Conservative monthly income ETFs

• Lower-volatility income strategies

These provide stability.

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Mid-Month Income

May include:

• REITs with reliable cash flow

• BDCs with disciplined lending practices

• Businesses that survived recent downturns intact

Balance income and risk carefully here.

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Late-Month Income

Often consists of:

• Covered-call strategies

• Option-income funds

• Selected quarterly dividend stocks filling calendar gaps

These add income, but should not dominate the ladder.

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Filling the Gaps With Dividend Stocks

Once the monthly framework is in place, individual dividend-paying stocks can be used to fill gaps.

Focus on:

• Long payment histories

• Sustainable payout ratios

• Businesses that generate cash across cycles

This remains consistent with the principles outlined in How to Create a Dividend Income Ladder From Scratch.

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What Does Not Belong in a Dividend Ladder

A dividend ladder is not the place for non-dividend-paying growth stocks.

This does not mean you should avoid growth stocks. It simply means they belong in a separate portfolio with a different purpose.

Growth portfolios aim for capital appreciation.
Dividend ladders aim for income reliability.

Mixing the two blurs objectives and weakens discipline.

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The Dividend Snowball Still Exists

Reinvested dividends combined with regular contributions still create compounding growth over time.

Progress feels slow at first.
Acceleration comes later.

This has not changed in 2026.

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Final Thoughts

Yes — a dividend ladder still works in 2026.

It works because:

• Cash-flowing businesses still exist

• Many dividends still grow faster than inflation over time

• Structure reduces reliance on market timing

• Discipline rewards patience

Markets change.
Principles endure.

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Disclaimer

This article is provided for educational purposes only and reflects personal experience and opinion. It is not financial advice.

Investing involves risk, including the possible loss of capital. Before making any investment decisions, you should consider your own financial circumstances and, if appropriate, seek advice from a licensed financial adviser or other qualified professional.

I Am Cautious On GLP-1 Stocks

 

So first what are GLP-1 stocks.?

 

These are the large drug manufacturers.  Most famously Eli Lilly.  But there are many more.

 

The GLP-1 drugs were originally developed for use by Type 2 Diabetics.

 

They basically slow down the absorbtion of nutrients in food.  Pricipally Glucose.

T
hey do this by slowing down the rhythmic contractions of the intestines,  meaning that food moves through the gut more slowly, one can feel less hungry and miracle, one can lose weight.

So now the GLP-1 family of drugs are the fashionable weight loss drug of the year.

I am a Type 2 Diabetic.

I did try this family of drugs a couple of years ago.  The side effects for me were horrible.  Stomach cramps, constipation, gut pain.  The weekly ritual of injecting the drug.

I gave up after a couple of months and completely changed my diet.  I ate fresh and non processed foods.

I lost over 120 pounds and reduced my insulin medication to zero.

I now watch people clamouring for GLP-1 drugs for weight loss.

The thing is, these drugs are long term.  Yes they work in the short term.  With possible side effects which are as yet unknown.

You will lose weight.

I watch people tout the GLP-1 regime as the easy answer.  They eat whatever they want and lose weight.  Yes they can pack in all of the processed foods, bread, pasta, ice cream.  Hey and they lose weight as well.

But what will the long term side effects of these drugs be?

I cannot know.  But having experienced using the drugs for a couple of months.  They get to be problematic.

Plus once started they are meant for long term use.  A lifetime of use.

Can one face a regular routine of injections for life, for a weight loss regime?  I doubt that one can.

They seem an easy solution.  But how often in the past has easy lasted.

I own several of the GLP-1 pharmaceuticals companies in my portfolio but I don't buy them for the GLP-1 pipeline.  I bought them for other treatments for  treating other diseases.

While we are seeing a boom in the demand for GLP-1 drugs.  I don't see it lasting and when it fails.

What lawsuits and damages will be pouring into the courts  leaving an oh so bitter taste on the lips of the pharmaceuticals investor who only saw a sweet sugar paved road to a magic weight loss drug on the horizon.

Go carfully into those realms.

Why Wait For a Pay Raise? Build Your Own Pay Raise Machine.

 

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I did over ten years ago and here is where you can find your "Pay Raise Machine"  construction plan.

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Will Amazon recover from it's recent Fall in the Market

 

I should say that I am a long time holder of Amazon stock and I like the look of it for the long term, but there always has to be a but,

Amazon is a good company, I hold it because I believe in the Amazon brand and the Amazon Web Services part of the company. Amazon also now owns much of its own distribution and real estate, less of interest to me, but valuable.

Paying a thousand dollars or more was just too high a price, at it’s high price of over $3,000 if I added it to my Roth IRA, it took almost all of my annual allowance of $7,000 to buy two shares of stock. That is a lot of cash in a stock that could fall and rise by hundreds of dollars per day.

 

Continue reading here:https://vvxddgnxgemqdexe.quora.com/Will-Amazon-bounce-back-from-the-set-back-in-the-stock-market

 

 

 

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What Crypto Currencies Pay Dividends?

 Generally crypto currencies do not pay dividends.

But that being said it is possible to earn interest from owning crypto currencies.

I know of two companies which pay you interest on your crypto coins.  Coinbase and Block Fi.

I have accounts with both of these companies and have earned regular interest from both.

My account with Coinbase pays me interest at differing rates and times depending upon the coin and tokens which I hold.  For instance I can earn up to 5% on my Cosmos investment this pays me interest at about weekly intervals. But I can earn around 2.75% on Algorand coin but that is paid daily.

Coinbase also allows you to buy smaller amounts of crypto, but does charge a $0.99 fee for all of their transactions.  So if fees are something that you wish to avoid, or you want to invest in small sums, Coinbase could be a little expensive.

One little thing that can earn you extra is the feature "Earn as you Learn" offered by coinbase. Here you can read a training article or watch a video and then answer very simple questions about what you just saw. I have earned about $40 in free crypto just from this feature alone.

You can also earn crypto here by sharing your link with friends.  Sharing your link can earn you $10 in free bitcoin if your link is used to open a new account. You actually both earn $10 in free Bitcoin.  To open an account with Coinbase click here.

 

I also have an account with Block Fi.

Block Fi is the least expensive in terms of fees but you do have to make a minimum deposit, here it is a $20 minimum bank transfer  but there is no up front fee, I think they are also taking some extra cash in their spread as the Bitcoin here is a fraction higher than on Coinbase, but not excessively so.

Block Fi is also more generous on their interest payments.  You can earn up to 9% at the moment on some Dollar based crypto and Bitcoin and Etherioum carry interest rates around 4%.

You can see  your estimated interest earning build each day, but these are only estimates, real interest is added on the last day of the calendar month.  That then compunds your investment for the next month.

Trading currencies within the platform is easy, so you can buy in a dollar based crypto like GUSD earn 9% on your deposit and then use the GUSD to buy Bitcoin or Etherioum if you see the price is attractive. That is my strategy on this platform.

Block Fi also pays you in Bitcoin if you introduce a friend to the site.  You can earn Several levels of payment depending on how much the friend opens their account with.  To open an account with Block Fi go here.

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by Shirtoe

What Would You Do With $1,000?

 One thousand dollars can seem to be a lot of money, when you have no money.

I am in the happy position where I can lay my hands on a thousand dollars, just at the click of a mouse button.

I am not talking in terms of credit cards nor am I talking of home equity lines of credit.  I have several tens of thousands invested.  This has come to me over the past fifteen years, but I have invested since the late 1970's.  To read how I built an investment stream that pays me daily you can read "Creating a Dividend Ladder""

 

One thousand Dollars is just ten Benjamin's 

That will not buy you much on it's own. I am talking for myself here, $1,000 can pay your rent, in part, for a month, buy you a month worth of food, pay off part of a loan. But for me, I would look to invest it.

So what would I invest it in?

I would look to my M1 Finance account. There I could invest it in a multitude of companies.

I have a portfolio of 100 company stocks and Exchange traded funds.

You can see my portfolio as it stands today at My Dividend Portfolio. If you use this link to open an account, you will receive a bonus of around $30 sometimes up to $50. I will also receive a commission for introducing you , this is at no cost to you.

I could also buy about two Vanguard S&P 500 Exchange Traded Fund shares ( VOO ). This holds all of the top 500 companies in the U.S. stock market in a very low cost Exchange Traded Fund. It therefore guarantees at least near market returns, plus some quarterly returns in the form of dividends.

So for me investment is where I put all of my income. Then I use the proceeds of the investments to pay for day to day expenses.

Some of the spare change, if I have any, would go to possibly investing in either California Municipal Bonds, these are reasonable payers of regular monthly dividends, but have the bonus of being free of income tax since I live in California.

I might also put some in to Crypto currencies like Bit coin or Etherium, I have an account at Block Fi where I stake some of these coins to receive a monthly interest payment.  You can receive $10 in free Bitcoin when you open a Block Fi account using my link here. Get $10 of Bitcoin when you open a Block Fi account here.

Please support my Blog by taking a look at My Amazon Store, if you make any purchase I may receive a small commission at no extra cost to you.

January 2, 2022: I beat the DJIA and NASDAQ in 2021!

 So 2021 is now history and we can look back at what worked last year and plan for the new year in the markets.

Last year was a relatively good year. My main portfolio rose just over 22% from the beginning of January until the end of December.  It beat both the Dow Jones Industrial index and the NASDAQ index. It lagged the S&P 500 by a few percentage points but two out of three isn't that bad.

My M1 account has now topped $5,000 and is cash flowing just over $28 per quarter.  The cash snowball is building fast on that front with just over $120 earned in almost two years.

You can see my M1 portfolio here.  If you use this link and fund a new account with just $100  both you and I will receive a $30 bonus, so you begin your account with a 30% profit before your fist trade is made.

On the crypto front, I have two accounts.  One with Block Fi where I have staked my crypto funds. There is a good return coming in there, in just six weeks I have earned over $1 on just over one hundred dollars of stked crypto.  Items like Bitcoin, Cosmos and Etherium.

Staking is easy just create an account and place your crypto currency in the  pool then in a few hours you will see your account receive interest on your money. At the end of the month the income is then added to your account so the funds compound quickly.  To open a Block Fi account go here If you open an account with this link both of us will receive a bonus payment of bitcoin.

My other crypto account is with Coinbase. This account has some ability to stake your crypto currency but also lets you earn new crypto by taking simple tests.  I have earned about $36 in coins just taking a simple quiz which comes up on the site about every ten days. A dollar here and there helps boost those staked earnings.

To open a Coinbase account go to here.  We will also both earn a bonus amount of approximately $10 in Bitcoin when you fund your new account.

Going back to my stock portfolio. This being a new year I took the opportunity to take a look at my dividend yield for the next year.  This being the yield on cost I took the estimated dividend for the next year and then divided this by the total cost of my portfolios. The actual price that I have paid, not the value of the stock at todays market price.

My original yield on cost four years ago was around 2.1%  that was about the same as the S&P yield.

My yield on cost on January 1, 2022, was 4.17%.

This growth has come from my long holding time, some stocks have been there since 2006. Plus last year saw lots of my companies increasing their dividends.

A thing to remeber is when you buy a stock and it pays a dividend you receive that percentage yield on the stock for as long as the stocks pays a dividend or the stock increases its dividend, when such an increase occurs your price paid remains the same, but your yield on cost increases dramatically.  

My Apple stock, AAPL pays only about 0.4% buying at todays prices of around $170.  I have owned AAPL since 2006 so my cost per share is less than $50 the yield of AAPL for me is 1..76% and will grow as AAPL grows its dividend.

Well that's all for now.  Thanks for reading and please consider opening accounts at M1, Block Fi or Coinbase, their bonus payments are genuine, and once opened you too can share links which will earn you some side income if you share a link.

Also thank you for supporting me with purchases from my Amazon Store. Take a look at the latest offers here.