5 Monthly Dividend Stocks Yielding Up to 9%

Dividend stocks—such as Enerplus Corp. (TSX:ERF)(NYSE:ERF), Inter Pipeline Ltd. (TSX:IPL), and RioCan Real Estate Investment Trust (TSX:REI.UN)—crank out reliable monthly income.

| More on:
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

If I could show you how to earn steady, monthly income from your portfolio, would you be interested?

As regular readers know, I’m a big advocate for owning dividend stocks. But for those of us who rely on our investments to pay the bills, syncing quarterly distributions with monthly expenses is kind of a hassle. Thankfully, there’s a small basket of stocks that pay dividends every month in contrast to the typical quarterly schedule.

It’s not hard to see why companies are switching over to more frequent payouts. Businesses gain a loyal shareholder base and investors are better able to match their income with expenses. It’s a true win-win for everybody involved.

Unfortunately, widely held names are rare in this group. Many of them are ex-income trusts that converted into corporations, but stuck to their high-yield traditions. However, there are enough blue-chip stocks in this universe to build a reliable stream of monthly income.

Here are five top names to get you started.

Stock

Current Yield

Market Cap

Enerplus
4.0% $3.1B
Inter Pipeline
4.7% $10.5M
RioCan REIT 4.8% $9.4B
Dream Global REIT 7.8% $1.2B
Timbercreek Mortgage Investment
9.0% $331.4M

Source: Yahoo! Finance

Let’s say a few words about these companies.

Real estate investment trusts, or REITs, give you all the perks of becoming a landlord, but without any of the hassles. These firms buy properties, collect rent from tenants, and pass on the income to investors. And because they receive payments monthly, it only makes sense for them to pay unitholders in the same fashion.

Dream Global REIT (TSX:DRG.UN) and RioCan Real Estate Investment Trust (TSX:REI.UN) are some of my favourite names in this space. Both of these firms own sprawling business empires, consisting mostly retail, office, and other commercial properties. Because their corporate tenants have a lot more “rent money” than most people, these trusts sport some of the biggest yields around.

For investors who want a higher claim on real estate earnings, Timbercreek Mortgage Investment Corp. (TSX:TMC) is a safer alternative. This company provides smaller short-term loans not offered by other financial institutions. Because of this gap in the market, borrowers are willing to pay a big premium on these customized products. As a result, Timbercreek is gushing cash flow and currently yields a tidy 9%.

Energy companies are also getting into the monthly dividend game. Drilling programs are expensive. So, to attract the investment dollars they need, many oil names have resorted to paying big distributions. Enerplus Corp. (TSX:ERF)(NYSE:ERF) is my favourite example of this growth-plus-income model. Today the stock yields 4%, but production growth should push that payment higher in upcoming years.

Once again, for investors who can’t stomach the wild swings in energy prices, Inter Pipeline Ltd. (TSX:IPL) is a good substitute. In exchange for moving and storing commodities like oil and gas, the company receives a fee that it passes onto investors. And because the total volume of energy moving through its network is remarkably stable, Inter Pipeline’s cash flows resemble bond coupons.

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

Payday ringed on a calendar
Dividend Stocks

How to Convert $500 Monthly Investment Into $200 Monthly Income

If you want the stock market to give you regular monthly income, you have to invest in the stock market…

Read more »

worry concern
Dividend Stocks

3 Ultra-Safe Dividend Stocks for Jittery Investors

Motley Fool investors nervous about the market downturn should consider these ultra-safe dividend stocks that keep paying passive income no…

Read more »

House Key And Keychain On Wooden Table
Dividend Stocks

Is the Real Estate Boom Finally at an End?

It might be hard to believe, but Canada’s decades-long housing boom might be at an end.

Read more »

Caution, careful
Dividend Stocks

3 Mistakes to Avoid When Investing in a Recession

Avoid making these crucial investing mistakes during market downturns to protect your investment portfolio.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Dividend ETFs for Easy Passive Income

Canadians can earn generous passive income the easy way from two dividend ETFs with monthly payouts.

Read more »

Payday ringed on a calendar
Dividend Stocks

TFSA Pension: How Retired Couples Can Get an Extra $815 Per Month in Tax-Free Passive Income

Retirees now have an opportunity to buy top dividend stocks at cheap prices to generate high-yield, tax-free passive income inside…

Read more »

exchange traded funds
Dividend Stocks

2 Dividend-Paying ETFs You Can Buy in 2022

These two dividend-paying ETFs in Canada allow them to earn a steady stream of passive income.

Read more »

Dividend Stocks

Attention Canada: It’s Time to Buy These REITs in Your TFSA

Rising interest rates created a correction in REIT prices. It’s time to buy some REITs in your TFSA and lock…

Read more »