MENU

First Brexit… then Trump… Now, it’s time for Pro

Is your portfolio really prepared for what’s coming next?

To help investors like you navigate this historically uncertain — yet high-flying — market and prepare for an inevitable downturn, we’re re-opening our Motley Fool Pro Canada service to a select few new members for a short time.

To discover how Pro Canada could help you to increase your upside potential… reduce your downside risk… and earn paycheque-like income in the process, simply click here — before the small number of spots we have left are all gone!

3 Monthly Dividend Stocks to Buy for Your Grandchildren

As Foolish investors know, dividend-paying stocks generate much higher returns than non-dividend-paying stocks over the long term. It is for this reason that I think dividend-paying stocks should be the primary holdings in portfolios that seniors build for their grandchildren. With this in mind, let’s take a look at three monthly dividend stocks with high and safe yields of 4-6% that could be bought today.

1. Alaris Royalty Corp.

Alaris Royalty Corp. (TSX:AD) is one of the leading providers of alternative financing solutions to private businesses across North America. It pays a monthly dividend of $0.135 per share, or $1.62 per share annually, which gives its stock a yield of about 5.8% at today’s levels.

It is also important to make two notes.

First, Alaris has raised its annual dividend payment for five consecutive years, and its recent increases, including its 3.8% hike in July 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.

Second, I think the company’s increased amount of net cash from operating activities, including its 20.8% year-over-year increase to $0.64 per share in its fourth quarter ended on December 31, 2015 and its 1.2% year-over-year increase to $1.65 per share in its fiscal year ended on December 31, 2015, will allow its streak of annual dividend increases to continue going forward.

2. Pembina Pipeline Corp.

Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) is one of the leading transportation and midstream service providers to North America’s energy industry. It pays a monthly dividend of $0.16 per share, or $1.92 per share annually, which gives its stock a yield of about 5.6% at today’s levels.

It is also important to make two notes.

First, Pembina has raised its annual dividend payment for four consecutive years, and its recent increases, including its 4.9% hike on March 17, has it on pace for 2016 to mark the fifth consecutive year with an increase.

Second, I think the company’s increased amount of cash flows from operating activities, including its 6.3% year-over-year increase to an adjusted $2.53 per share in fiscal 2015 and its growing fee-for-service asset base, including its recently acquired natural gas-processing assets from Paramount Resources Ltd., will allow its streak of annual dividend increases to continue for the foreseeable future.

3. CT Real Estate Investment Trust

CT Real Estate Investment Trust (TSX:CRT.UN) is one of Canada’s largest owners of commercial real estate with 290 properties across the country. It pays a monthly distribution of $0.05667 per share, or $0.68 per share annually, which gives its stock a yield of about 4.8% at today’s levels.

It is also important to make two notes.

First, CT has raised its annual distribution for two consecutive years, and its 2.6% hike in November 2015, which took effect this January, has it on pace for 2016 to mark the third consecutive year with an increase.

Second, I think the company’s consistent growth of funds from operations, including its 9.8% year-over-year increase to an adjusted $0.808 per share in fiscal 2015, could allow it to announce another dividend hike at some point in 2016.

Should you buy one of these stocks for your grandchildren?

Alaris Royalty, Pembina Pipeline, and CT REIT can help put your grandchildren on the path to financial freedom, so take a closer look at each and strongly consider buying at least one of them today.

Earn $6,000/year in rental income with these REITs

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: 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.