November 24, 2022
  • November 24, 2022

3 Monthly Dividend Stocks to Maintain Income by The Motley Fool

By on May 31, 2022 0

© Reuters. 3 Monthly Dividend Stocks to Keep Generating Income

A rarely mentioned common frustration with income stocks is finding a working frequency to maintain the income. This can be frustrating for everyone, not just new investors. And while it’s possible to budget on different dates, the more pressing question is: why would you?

The market offers several high-income stocks that pay a monthly dividend. For those looking to establish a reliable monthly income, the following actions may be good options to consider.

Stable business, solid monthly income Canadian Utilities (:CU) is a well-established and well-diversified utility. The company enjoys a growing presence in Canada, Australia, Mexico and Puerto Rico. Canadian Utilities’ operations are broad and include both generation and distribution.

Utilities are great investments because they generate predictable revenue streams. These revenues are guaranteed by long-term regulated contracts that can span decades. It also means that utilities can pay handsome dividends to shareholders.

In the case of Canadian Utilities, the company posted a return of 4.46%. Given current stock prices, that return equates to just over $130 in monthly income on a $35,000 investment.

While that might be reason enough for most investors, there is one more point worth mentioning. Canadian Utilities has offered a slight annual increase in its dividend and has done so for 50 consecutive years.

This feat makes Canadian Utilities the only Dividend King in the market today. By extension, this also makes the stock a great addition to any well-diversified portfolio.

Growth and income are the norm (for now) Another great choice for long-term investors is one of Canada Telecom. Fortunately, one of Canada’s major telecoms pays on a monthly basis, and that’s Shaw Communications (TSX:SJR.B)(NYSE:SJR).

Telecoms are amazing businesses. They provide an increasingly needed service to their subscribers, which has only increased since the start of the pandemic.

In the case of Shaw, the company is an acquisition target by one of its larger peers, Rogers Communications (TSX:). This deal called for Rogers to absorb parts of Shaw, and shareholders could get a nice boost from the current share price. This deal still faces opposition on antitrust grounds.

For now, that means potential shareholders can buy Shaw stock (which still trades below Rogers’ price) and take advantage of that monthly dividend.

This dividend corresponds to a yield of 3.28%. This translates to income of $95 per month on an investment of $35,000.

Owning without a Mortgage REITs are among the best-kept secrets in the market. They give investors the ability to invest in what could be hundreds of properties and claim a monthly distribution.

There are key differences between owning a rental property. First, your risk is spread across all of these properties. Second, you don’t have to worry about finding tenants. Oh, and let’s not forget the best part either: you don’t need a down payment to start earning that monthly income.

RioCan Real Estate (TSX:REI.UN) is a great option if you want your income to continue flowing on a monthly basis. RioCan is one of the largest REITs in Canada, with a focus on commercial and retail sites. That being said, in recent years this mix has shifted more towards mixed-use residential properties.

These new mixed-use properties are located in the transit corridors of major metropolitan areas. This makes them attractive to residents, businesses and investors.

The current yield offered by RioCan is equivalent to an attractive yield of 4.50%. Given this initial investment of $35,000, RioCan can provide a monthly income of just over $130.

Keep income flowing each month Monthly income stocks are ideal for investors who need a more frequent distribution schedule. They also offer investors an excellent option for long-term growth through monthly reinvestments.

In my opinion, the stocks mentioned above would do well as part of a well-diversified portfolio.

The post office 3 Monthly Dividend Stocks to Keep Generating Income appeared first on Motley Fool Canada.

Dumb Contributor Demetris Afxentiou holds a position with Shaw Communications. The Motley Fool has no position in the stocks mentioned.

This article first appeared on The Motley Fool