You know what’s better than a dividend stock? Owning a dividend stock that pays you every month.
Sure, your regular old dividend payers are always an option, but coordinating quarterly payouts with monthly bills is a bit of a hassle. Thankfully, some businesses have started paying investors more frequently.
Today, there are hundreds of stocks that pay distributions monthly. And for those of us who rely on dividend income, this certainly makes it easier from a budgeting standpoint. So, with this theme in mind, here are four top monthly dividend payers.
1. Dream Office REIT
Real estate investment trusts, or REITs, are a way for folks to invest in property without the hassle of becoming a landlord.
These firms own real estate, collect rent from tenants, and pass on the income to investors. Moreover, because REITs collect payment from tenants monthly, it only makes sense for them to pay unitholders on the same schedule.
I have frequently touted Dream Office REIT (TSX: D.UN) as one of my favourite trusts for reliable income. Since this firm went public in 2001, it has never missed a single payment to unitholders. Today, Dream pays a monthly distribution of 18.67 cents per unit, which comes out to an annualized yield of 8.6%.
2. Timbercreek Mortgage Investment Corp
Timbercreek Mortgage Investment Corp (TSX:TMC) is the market’s best kept secret. On average, the stock trades hands fewer than 50,000 times per day—only a tiny fraction of more well-known names. But investors in the know have counted on this stock for its reliable dividends.
Timbercreek is a mortgage investment corporation, or MIC for short. These companies provide smaller, short-term mortgages not typically offered by other financial institutions. Because of this gap in the market, borrowers are typically willing to pay a big premium for these customized loans.
For shareholders, this has translated into a safe double-digit yield. Timbercreek allows you to invest in a diversified portfolio of mortgage loans backed by top-quality real estate. Altogether, the fund yields a tidy 9.3%.
3. Inter Pipeline Ltd
You have probably never heard of this company, but it’s critical to your daily life.
Inter Pipeline Ltd (TSX:IPL) owns energy pipelines, terminals, and processing facilities across western Canada. In exchange for transporting energy products like oil and gas, the company charges a fee, which it then passes on to investors. Needless to say, without the commodities Inter Pipeline ships through its network, our society would grind to a halt.
And because the company has a near-monopoly on these assets, its cash flows resemble bond coupons. Today, Inter Pipeline pays a monthly dividend of 12.25 cents per share. That comes out to a full-year yield of 4.8%.
4. Shaw Communications Inc.
Cable providers like Shaw Communications Inc. (TSX: SJR.B)(NYSE: SJR) are hated among consumers…and for good reason.
In most places, there aren’t exactly two companies competing for your business. High barriers to entry mean incumbents like Shaw can earn thick, juicy profits without the threat of new rivals eating into margins.
So, if you can’t beat them, you might as well join them. For shareholders, this quasi-monopoly has turned into a lucrative stream of income. Today, Shaw pays out a monthly dividend of 9.17 cents per share, which comes out to an annualized yield of 4.1%.
