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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 Great Monthly Dividend Stocks for Beginner Investors

If you’re new to investing and are interested in buying a monthly dividend stock or are looking to build a portfolio full of them, then this article is for you. I’ve scoured the market and selected three stocks from different industries that have high and safe yields of 4-7%, so let’s take a quick look at each to determine if you should buy one or all of them today.

1. H&R Real Estate Investment Trust

H&R Real Estate Investment Trust (TSX:HR.UN) is one of North America’s largest diversified REITs with ownership interests in over 500 office, retail, industrial, and residential properties across Canada and the United States. It pays a monthly distribution of $0.1125 per share, or $1.35 per share annually, which gives its stock a yield of about 6.2% at today’s levels.

It is also very important for investors to make two notes.

First, the company has maintained its current annual distribution rate since fiscal 2013.

Second, I think H&R’s consistent growth of funds from operations, including its 3.7% year-over-year increase to $1.95 per share in fiscal 2015, and its low payout ratio, including 69.2% of its funds from operations in fiscal 2015, will allow it to raise its dividend when it reports its first-quarter earnings results in May.

2. Shaw Communications Inc.

Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is one of Canada’s leading pure-play connectivity providers, and it is the country’s fourth-largest wireless carrier. It pays a monthly dividend of $0.09875, or $1.185 per share annually, which gives its stock a yield of about 5.1% at today’s levels.

It is also very important for investors to make two notes.

First, the company’s 7.7% dividend hike in March 2015 has it on pace for fiscal 2016 to mark the 13th consecutive year in which it has raised its annual dividend payment.

Second, I think Shaw’s streak of annual dividend increases can continue going forward for the following three reasons:

  • It generates ample free cash flow, including $291 million in its first half of fiscal 2016
  • It has a modest dividend-payout ratio, including 64.9% of its free cash flow in its first half of fiscal 2016
  • Its two “transformative transactions” that closed in the last two months, including its $2.65 billion sale of Shaw Media and its $1.6 billion acquisition of WIND Mobile, sets the company up for long-term growth

3. CI Financial Corp.

CI Financial Corp. (TSX:CIX) is one of Canada’s largest wealth management firms and investment fund companies with nearly $143 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 4.8% at today’s levels.

It is also very important for investors to make two notes.

First, the company’s 4.8% dividend hike in June 2015 has it on pace for fiscal 2016 to mark the seventh consecutive year in which it has raised its annual dividend payment.

Second, I think CI Financial’s consistent growth of free cash flow, including its 7% year-over-year increase to $596.6 million in fiscal 2015, and its modest payout ratio, including 60.7% of its free cash flow in fiscal 2015, will allow it to raise its dividend when it reports its first-quarter earnings results on May 5.

Motley Fool issues rare "double down" stock alert

Not to alarm you but you recently missed an important and rare event. Stock Advisor Canada issued a "double down"... and history suggests it pays to listen. Because 10 of the most lucrative "double downs" in one of the Motley Fool's premier services skyrocketed an average of 434%! So, simply click here to discover why Motley Fool "double downs" have some investors rocking with excitement. Five years from now, you wish you'd grabbed this stock. Click here to learn more.

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.”

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