Want $300 in monthly dividend income? These 3 TSX stocks could get you there
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Do you want $300 in monthly dividend income? Believe it or not, you can find actions that can make this possible. Most dividend stocks pay quarterly, but a few pay monthly. If you invest $100,000 at an average return of 3.6%, all in stocks with monthly dividends, you will collect $300 per month. Assuming, that is, the dividend is not cut. Sometimes companies reduce their dividends, but on the other hand, some companies increase their dividends. In this article, I’ll explore three Canadian dividend-paying stocks that could earn you $300 a month – with less over $100,000 invested.
National premiere (TSX:FN) is a Canadian mortgage lender. It partners with mortgage brokers to help people get loans that are right for them. Often, when people go to buy a house, they are not satisfied with the rate offered by their bank. They want to shop. In such situations, they will go to a mortgage broker, and a mortgage broker might help them find a loan from a company like FN.
This saving has mixed effects on companies like First National. On the one hand, First National is earning ever-increasing interest income on existing mortgages as interest rates rise. On the other hand, the rise in interest rates also leads to a decrease in new issues of mortgage loans. It’s a mixed bag, but overall FN’s revenue grew 10% in the last quarter. So, the company’s approach is working for now. And, his stock has a yield of 6.98%!
Pembina pipeline (TSX: PPL)(NYSE: PBA) is a Canadian pipeline company with a return of 5.6%, paid monthly. If you invest $100,000 in it, you will earn $466 per month, assuming that dividend do not change. Now, the Pembina Pipeline dividend could change – in a good way. The company’s payout ratio (dividend divided by earnings) is very low for a pipeline company, just 20%! During the last quarter, PPL earned $3.24 per share and paid only $0.64 per share. Thus, the company does not pay out so many dividends that it has nothing left to invest in its business. Moreover, the company is growing. During the last quarter, PPL delivered:
- $2.7 billion in revenue, up 37%
- $3.24 earnings per share, up 219%
- $574 million in cash from operations, down 26.9%
Cash flow from operations aside, it was a pretty good performance. The company has increased its revenue a lot, if it can maintain that, the cash position might improve. Above all, do not invest everything of your money in this company, but a small position in a diversified energy portfolio might make sense.
Keyera Corp. (TSX: KEY) is a energy store with a dividend yield of 6.67%. You don’t need to invest a ton of money at this yield to get big cash flow. With a return of 6.67%, you only need to invest around $54,000 to get $300 in monthly cash flow. That’s not a lot to save, all things considered, but it could go a long way.
Of course, you should never put all your money into one energy stock like Keyera. Stocks with exorbitant yields often have such high yields because they are riskier than average. KEY almost doubled its revenue in its most recent quarter, but it increased its debt by about $400 million. Strong earnings growth is typical of oil companies this year, but unlike many of its competitors, KEY is not paying down debt. It seems riskier than other oil companies, but these are the types of risks you need to take if you want a gigantic return.