As Foolish investors know, dividend-paying stocks far outperform non-dividend-paying stocks over the long term, and some prefer to receive their dividends on a monthly basis. With both of these factors in mind, let’s take a look at three monthly dividend stocks with yields up to 8.1% that you could add to your portfolio today.
1. First National Financial Corp.: 8.1% yield
First National Financial Corp. (TSX:FN) is a Canadian-based originator, underwriter, and servicer of residential and commercial mortgages. It pays a monthly dividend of $0.125 per share, or $1.50 per share annually, giving its stock an 8.1% yield at today’s levels. The company has also increased its annual dividend payment each of the last three years, and its consistent cash flow should allow this streak to continue in 2015.
2. Gamehost Inc.: 7.8% yield
Gamehost Inc. (TSX:GH) owns and operates four casinos in Alberta, Canada. It pays a monthly dividend of $0.0733 per share, or $0.88 per share annually, giving its stock a 7.8% yield at current levels. It is also important to note that the company has maintained this monthly payment since 2008, and its consistent free cash flow generation could allow it to continue doing so for another seven years.
3. TransAlta Renewables Inc.: 6.8% yield
TransAlta Renewables Inc. (TSX:RNW) is Canada’s largest producer of wind power. It pays a monthly dividend of $0.07 per share, or $0.84 per share annually, giving its stock a 6.8% yield at today’s levels. The company has also increased its annual dividend payment every year since its initial public offering in 2013, and its consistent funds from operations could allow this streak to continue for the next several years.
Could your portfolio use some monthly income?
First National Financial, Gamehost, and TransAlta Renewables are three of the top monthly dividend-paying stocks in the market today. All Foolish investors should take a closer look and strongly consider initiating positions in one or more of them.
