3 Monthly Dividend Stocks Yielding Up to 9.2%

Medical Facilities Corp (TSX:DR), Crescent Point Energy Corp (TSX:CPG)(NYSE:CPG), and Student Transportation Inc (TSX:STB)(NASDAQ:STB) are some of my favourite income ideas.

| More on:

Need monthly income?

Ever since the Great Recession, low interest rates have forced many savers to consider dividend-paying stocks. The problem is that most companies only make payments once every three months. That can make it hard to manage monthly bills with quarterly income.

Thankfully, some firms have recognized the value of delivering dividends on a more frequent basis. Investors can now pick between many companies that pay distributions monthly, which makes things easier from a budgeting standpoint.

With that theme in mind, let’s take a look at some of my favourite stocks that crank out monthly income.

1. Student Transportation Inc

In 1997, Dennis Gallagher had a simple goal: build the number one student transit company on the continent.

Less than two decades later, Gallagher’s firm, Student Transportation Inc (TSX:STB)(NASDAQ:STB), has become a huge success. Today, the company is the third-largest school bus operator in North America, with over 9,000 vehicles serving hundreds of counties.

This business doesn’t take a Ph.D. to understand, but that’s exactly why I love it. Children don’t stop going to school during a recession. And with over 200 lucrative municipal contracts, Student Transportation has been able to lock in revenues for up to eight years.

That has translated into a predictable stream of income for shareholders. Today, the stock pays out five cents per share each month, which comes out to an annual yield of 7.8%.

Don’t bet against this company. I expect that payout to grow as Student Transportation continues its march to number one in the industry.

2. Crescent Point Energy Corp

Over the past decade, Crescent Point Energy Corp (TSX:CPG)(NYSE:CPG) has grown from a tiny upstart into one of the largest energy companies in Canada.

In 2003, Chief Executive Scott Saxberg started the firm by buying up unpopular oil leases. Through a series of smart acquisitions, he has assembled a remarkable portfolio of shale assets. Since its inception, Crescent Point’s oil production has soared more than tenfold and early investors have made fortunes.

The firm’s best days might still be ahead. Crescent Point has done a great job squeezing more barrels out of old wells through new drilling techniques. As a result, the company is gushing cash flow and currently yields more than 9.2%.

Of course, whenever a stock’s yield gets so high, you have to wonder if the dividend is at risk. That said, Crescent Point locked in prices for most of its future production long before oil started plunging. The price of crude would have to fall below US$45 per barrel—and stay there for a few months or so—before management would even consider a dividend cut.

3. Medical Facilities Corp.

Medical Facilities Corp (TSX:DR) is an ex-income trust that owns six surgical centres throughout California and the Midwest. But what the company lacks in an original name, it more than makes up for through income.

Here’s what I like about this business: people don’t stop getting sick just because the economy takes a downturn. That means the company’s cash flows are as steady as bond coupons.

For shareholders, this has translated into dependable dividends. Unlike many ex-income trusts, the firm maintained its payout after converting to a corporation in 2011. As a result, this stock delivers a hearty nine cents per share each month, which comes out to an annual yield of 5.8%.

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 meter measures energy use.
Dividend Stocks

3 Utility Stocks That Are Too Cheap to Ignore

Some utility stocks are priced too low to overlook. Here are three stellar options that every investor should consider buying…

Read more »

stock research, analyze data
Dividend Stocks

Rogers Stock Rose 10% in November: Is it a Buy Today?

Which is a better in the Canadian telecom sector: BCE or Rogers stock?

Read more »

Dividend Stocks

2 TSX Dividend Stocks Offering Big Income in a Bearish Market

A bear market is the time to buy dividend stocks and lock in long-term income. Here are two stocks that…

Read more »

Dividend Stocks

These 2 Dividend Payers Are Outpacing the TSX

Some leading TSX dividend stocks are outperforming the market. CN and ENB stock are two to watch.

Read more »

TFSA and coins
Dividend Stocks

Retirees: How to Earn Tax-Free Income in 2023 to Supplement Your OAS and CPP Payouts

These two high-yielding ETFs can help retirees meet their retirement income needs.

Read more »

Dividend Stocks

3 Canadian Utility Stocks for Passive Income

Canadian utility stocks have fallen and you can pick up serious bargains for passive income and growth. Here are three…

Read more »

TFSA and coins
Dividend Stocks

Passive Income: 2 Top TSX Dividend Stocks to Buy for a TFSA

These top TSX stocks pay growing dividends with attractive yields.

Read more »

grow dividends
Dividend Stocks

Manulife Stock Rose 7% in November: Is it a Buy Today?

Should investors consider Manulife (TSX:MFC) stock amid surging inflation, rising interest rates, and geopolitical concerns?

Read more »