3 Monthly Dividend Stocks Yielding up to 8.7%

Collect monthly dividend income from Dream Office REIT (TSX:D.UN), Enerplus Corp (TSX:ERF)(NYSE:ERF), and Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR).

Who wants monthly dividend income?

Sure, traditional blue-chip stocks are a good option. But for those of us who count on dividends to pay the bills, syncing quarterly payouts with monthly expenses can be a hassle.

Some companies, however, have discovered the value of paying shareholders more frequently. Today, there is a growing group of stocks that pay dividends every month. It’s a win-win for everyone: Companies gain a loyal investor base while shareholders can better match their income to expenses.

Of course, a stock that pays a monthly dividend isn’t automatically a good investment. You still have to dig into the financials. So to help get you started, here are three high quality names that reward shareholders every 30 days.

1. Enerplus Corp.

Many oil drillers have jumped on to the monthly payout bandwagon. To attract investors, these producers have adopted the growth-plus-income model: expanding production and rewarding shareholders with juicy dividends.

Enerplus Corp. (TSX: ERF)(NYSE: ERF) is a great example of this approach. With exposure to the Bakken region as well as other fields in Alberta and Saskatchewan, the company’s oil output is soaring. And while investors wait for this growth story to play out, they’re being compensated with an 8.7% dividend yield.

Of course, the recent plunge in energy prices has knocked the wind out of drillers. That said, Enerplus has hedged most of its production out at much higher rates. The company can remain profitable even if oil falls further.

2. Shaw Communications Inc.

Shaw Communications Inc.’s (TSX: SJR.B)(NYSE: SJR) cable operations are a wonderful business. Each year the company raises prices. Maintenance costs are only a small percentage of revenues. The rest can be paid out to shareholders.

Customers could switch to a competitor, but that hardly seems worth the hassle. The only true threat to the company’s business are cord-cutters; people who drop their cable packages to stream TV shows online. However, Shaw owns that cord, too.

For investors, this means the stock is gushing cash flow. Today, Shaw pays out a monthly dividend of 9.17¢ per share. That comes out to an annualized yield of 3.6%.

3. Dream Office REIT

Real estate investment trusts, or REITs, are special property holding companies. Thanks to a loophole in the tax code, these businesses can avoid corporate income taxes. And because many REITs receive monthly rents from tenants, it makes sense for them to pay their unitholders in the same fashion.

Dream Office REIT (TSX: D.UN) is one of my favourite names in this space. However, this firm isn’t your traditional landlord. Instead, Dream specializes in office properties, renting out its buildings to tenants like Enbridge Inc., Telus Corporation, and the Government of Canada.

This has translated into a steady stream of rental income. Today, Dream pays a monthly distribution of 18.66¢ per unit, which comes out to an annual yield of 8.7%. But as the trust’s old leases rollover, I’d expect that payout to grow significantly.

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 Robert Baillieul has no position in any stocks mentioned.

More on Dividend Stocks

A person builds a rock tower on a beach.
Dividend Stocks

CPP Pension: Boost Your Payouts by $5,232 per Year

You can raise your after-tax CPP by making RRSP contributions. Alimentation Couche-Tard (TSX:ATD) is a good RRSP stock.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

Here are three no-brainer stocks that are suitable for anyone getting started on their investing journey.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

3 Top Dividend Stocks That Keep Raising Their Payouts

These three TSX stocks are ideal buy as they consistently raise their payouts, depicting their healthy financials.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

This 5% Dividend Stock Pays Cash Every Month

This monthly dividend stock offers cash every month, but also returns that continue to climb higher from being in a…

Read more »

Solar panels and windmills
Dividend Stocks

How Much Will TransAlta Renewables Pay in Dividends This Year?

TransAlta Corporation’s (TSX:TA) acquisition of TransAlta Renewables stock holds significant implications for income-oriented investors who previously held this monthly dividend…

Read more »

STACKED COINS DEPICTING MONEY GROWTH
Dividend Stocks

3 Stocks That Can Help You to Get Richer in the Next 5 Years

Consistent growth stocks with a relatively bright future are one of the most trustworthy ways to grow wealth.

Read more »

Dividend Stocks

3 Blue-Chip Stocks Every Canadian Should Own

These Canadian blue-chip stocks are backed by well-established businesses and a growing earnings base, enabling them to generate above-average returns.

Read more »

grow money, wealth build
Dividend Stocks

Is This 7.25%-Yielding Dividend Grower the Ultimate Income Stock?

This top Canadian dividend stock has increased the distribution annually for nearly three decades.

Read more »