MENU

Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

3 of the Best Monthly Dividend Stocks Money Can Buy

If you’re interested in monthly dividend stocks, whether you’re looking to add one to your existing portfolio or are looking to build a portfolio full of them, then this article was written with you in mind. I’ve scoured the market and compiled a list of my three favourite monthly dividend stocks, so let’s take a closer look at each to determine if you should buy one or more of them today.

1. Corus Entertainment Inc.

Corus Entertainment Inc. (TSX:CJR.B) is one of Canada’s leading media and content companies with assets that include 45 specialty television services, 39 radio stations, 15 conventional television stations, and a global content business. It pays a monthly dividend of $0.095 per share, or $1.14 per share annually, which gives its stock a yield of approximately 9.8% at today’s levels.

Investors should also make two important notes.

First, Corus’s 4.6% dividend hike in February 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 the company’s ample free cash flow, including the $58.8 million it generated in its first half of fiscal 2016, and its acquisition of Shaw Media Inc., which closed on April 1 and is expected to immediately have a positive impact on earnings and free cash flow, will allow it to raise its dividend before the end of the year.

2. Exchange Income Corporation

Exchange Income Corporation (TSX:EIF) is a Canadian-based corporation that is focused on investing in profitable, well-established companies with strong cash flows in the aviation and manufacturing industries. It pays a monthly dividend of $0.16 per share, or $1.92 per share annually, which gives its stock a yield of approximately 6.4% at today’s levels.

Investors should also make two important notes.

First, EIC’s 10.3% dividend hike in August 2015 has it on pace for fiscal 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.

Second, I think the company’s very strong growth of free cash flow less maintenance capital expenditures, including its 89.9% year-over-year increase to $3.02 per share in fiscal 2016, its low payout ratio, including 60% in fiscal 2015 compared with 106% in fiscal 2014, and its growing portfolio of cash flow-generating companies will allow it to announce another dividend hike when it releases its first-quarter earnings results on May 11.

3. Enbridge Income Fund Holdings Inc.

Enbridge Income Fund Holdings Inc. (TSX:ENF) owns a diverse portfolio of high-quality, low-risk energy infrastructure assets, including liquids pipelines and storage facilities, wind farms, solar farms, and waste heat recovery facilities. It pays a monthly dividend of $0.1555 per share, or $1.866 per share annually, which gives its stock a yield of approximately 6.4% at today’s levels.

Investors should also make two important notes.

First, Enbridge’s two dividend hikes since the start of 2015, including its 10% hike in December 2015, has it on pace for fiscal 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.

Second, the company has a target dividend-payout ratio of 80% of its cash available for distribution and an annual dividend-per-common-share growth target of 10% through 2019, making it one of the top dividend-growth plays in its industry.

Wait! The Motley Fool just issued a 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'll 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 find out how you can 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.