Many senior investors rely on dividend income to supplement their pensions. Most stocks pay dividends quarterly. For retirees who are on a tight budget and need to balance income and expenses on a monthly basis, having dividends coming into their bank account every month provides peace of mind.
Here are three stable stocks that pay reliable monthly dividends.
Shaw Communications
Shaw Communications (TSX: SJR.B)(NYSE: SJR) is a Calgary-based diversified media company with a broad portfolio of assets including cable, satellite, internet, and television. Shaw owns Global TV as well as 18 specialty channels including HGTV Canada, Food Network Canada, History, and Showcase.
The company is successful at growing its average revenue per user and has a long history of increasing its dividend.
Shaw currently pays a monthly dividend $0.09167 per share, which works out to $1.10 annually. This translates into a 4% yield based on the current $27.50 share price.
Baytex Energy Corp
Baytex Energy Corp (TSX: BTE)(NYSE: BTE) is an oil and gas company based in Calgary. Most of Baytex’s production (86%) is weighted towards lucrative oil and natural gas liquids. The company’s three key oil resource plays include Eagle Ford, Peace River Oil Sands, and Lloydminster. All are located in top producing areas in Texas, Alberta, and Saskatchewan.
Baytex has a good track record of raising its monthly dividend. The most recent hike was last month. Baytex pays investors $0.24 per share on a monthly basis, which translates into $2.88 annually. At the current stock price of $48, this oil company gives investors a hefty 6% yield.
Inter Pipeline
Inter Pipeline (TSX: IPL) is a petroleum transportation, storage, and natural gas liquids extraction business. Based in Calgary, the firm owns assets in Western Canada and Europe. With the recent announcement of the completion of its Polaris Pipeline expansion project, IPL is well positioned to provide investors with continued dividend growth and capital appreciation.
Over the past 10 years, IPL has delivered an average annual return of 23% to investors.
IPL pays a monthly dividend of $0.1075 or $1.29 per year. The stock is currently trading at $33.60 giving investors a nice 3.8% yield.
