Your Pro Canada VIP discount expires tonight! Don't miss out!

Claim your spot and lock in your discount — while you still can!

Start Generating Monthly Income Today With These 3 Stocks

The stock market has been a battleground in 2016, so many investors are turning to dividend stocks for safety. If you are one of these investors, but can’t find the right stock to buy, then this article is for you. I’ve scoured the market and selected three great stocks from different industries that pay dividends on a monthly basis, so let’s take a quick look at each to determine if you should buy one of them today.

1. Crombie Real Estate Investment Trust

Crombie Real Estate Investment Trust (TSX:CRR.UN) owns a portfolio of 260 retail and office properties across Canada, totaling approximately 17.7 million square feet. It pays a monthly distribution of $0.07417 per share, or $0.89 per share annually, which gives its stock a yield of about 6.7% at today’s levels.

Investors must also note that Crombie has maintained this annual rate since 2009. However, I think its increased amount of funds from operations, including 4.1% year-over-year growth to an adjusted $96.6 million in the first nine months of fiscal 2015, and its reduced payout ratio, including 93.6% in the same period, which is below its target ratio of 95%, could allow for a slight bump within the next few months.

2. Vermilion Energy Inc.

Vermilion Energy Inc. (TSX:VET)(NYSE:VET) is one of the largest producers of crude oil and natural gas in North America, Europe, and Australia. It pays a monthly dividend of $0.215 per share, or $2.58 per share annually, which gives its stock a yield of about 6.9% at today’s levels.

Investors should also note the Vermilion has maintained this annual rate since 2014, and I think its ample fund flows from operations, including $379.7 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.

3. CI Financial Corp.

CI Financial Corp. (TSX:CIX) is the third-largest investment fund company in Canada with approximately $145.6 billion in assets under management and advisement. It pays a monthly dividend of $0.11 per share, or $1.32 per share annually, which gives its stock a yield of about 4.3% at today’s levels.

It is also important for investors to note that CI Financial has raised its annual dividend payment for six consecutive years, and its 4.8% increase in June 2015 has it on pace for 2016 to mark the seventh consecutive year with an increase.

Which of these monthly dividend stocks belong in your portfolio?

Crombie REIT, Vermilion Energy, and CI Financial are very attractive investment options for monthly dividend income. Foolish investors should take a closer look at each and consider initiating positions in one of them today.

Are you a fan of REITs? If so, you MUST read this now...

We'd all love to have a steady stream of extra income, but who wants the hassle (and expense!) of buying and managing property and dealing with tenants? We have a much better option: real estate investment trusts (REITs) allow investors like us to purchase shares in a diversified portfolio of properties and earn a share of the profits!

Want to know more? Our just-released report, "Earn $6,000 Per Year in Rental Income Without Becoming a Landlord" has all the details. Just click here now to find out how to get your FREE copy today!

Fool contributor Joseph Solitro has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.