Make $1,500 of Passive Income Per Month With These Two High-Yield Dividend Stocks

Find out how Inter Pipeline Ltd (TSX:IPL) and AltaGas (TSX:ALA) can help you generate over $1,000 in passive income every month.

| More on:
Growing plant shoots on coins

Image source: Getty Images

Few people wouldn’t welcome a few extra hundred dollars a month, especially if said income was generated passively. Dividend stocks are, of course, some of the best options to turn to when looking to boost your passive income. Let’s look at two high-yield monthly dividend stocks that can help you generate $1,500 in passive income every month: Inter Pipeline Ltd (TSX:IPL) and AltaGas Ltd (TSX:ALA)

Inter Pipeline (TSX:IPL)

Inter Pipeline — an energy transportation company based in Calgary — has several advantages income investors tend to look for. First, the company has a history of solid dividend increases. Over the past 10 years, Inter Pipeline has increased its yearly dividend payout by 101%, which amounts to an average yearly increase of 20%. Along with a high-dividend yield, which currently sits at 7.84%, this bodes well for income-oriented investors.

Inter Pipeline also has a diversified revenue base to support its dividend payments. The firm’s segments include conventional pipelines, oil sands transportation, and natural gas (NGL) processing. The Alberta region, where Inter Pipeline is based is well known for its rich oil deposits, and the firm’s operations in Saskatchewan and its storage facilities across Europe adds to the company’s diversification.

Further, Inter Pipeline has several growth projects that promise to keep revenues and earnings afloat for years to come — projects such as pipeline construction and a new energy-processing facility located in Alberta. This new facility should provide several benefits to Inter Pipeline, most notably top-of-the-line technology and lower costs.

Given Inter Pipeline’s share price at the time of writing an investment of about $105,250 would help you acquire 5000 shares of the company and earn $8,550 of passive income per year, or just over $700 of passive income per month.

AltaGas

AltaGas has been on a tear this year. The company’s share price has increased by about 34%. AltaGas latest earnings report released a few days ago will likely help this momentum. The firm’s earnings per share figure beat analysts’ estimates by more than 17%. Normalized net income increased by a whopping 188% year over year, while adjusted funds from operations soared by 115%. Note that AltaGas’ increased its revenues across the board, with all its major business segments seeing major growth.

AltaGas expects several projects to be completed this year, which should further expand the company’s revenue base. These projects include the Ridley Island Propane Export Terminal (RIPET), a facility designed to transport 1.2 million tons of propane per year. In the meantime, AltaGas is making an effort to improve its balance sheet by selling various low margins facilities, the proceeds of which will go toward reducing debt.

Though AltaGas hasn’t continuously grown its dividends, the company currently offers a monthly dividend payout at a yield of 5.4%. Investing $186,100 in AltaGas will allow you to earn a yearly dividend payout of $9,600, or $800 per month.

The bottom line

A total investment of $291,350 in these two companies would allow you to earn a monthly income of about $1,500 per year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Prosper Bakiny has no position in any of the stocks mentioned. AltaGas is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

For growth and dividends this April, look to these two REITs that have quite the promising present as well as…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »