If you are looking to build an income-generating portfolio, then you have come to the right place. I have searched the market and found three stocks from three different industries that pay dividends on a monthly basis, so let’s take a closer look at each to determine if you should buy one or more of them today.
1. Timbercreek Mortgage Investment Corp.: 8.7% yield
Timbercreek Mortgage Investment Corp. (TSX:TMC) is an active investor, owner, and manager of global real estate and related assets. It pays a monthly dividend of $0.06 per share, or $0.72 per share annually, giving its stock an 8.7% yield at today’s levels. It is also very important for investors to note that the company reduced its dividend by 10.5% in July to preserve capital and maintain its credit quality, but I think its current rate is sustainable for the long term.
2. RioCan Real Estate Investment Trust: 5.2% yield
RioCan Real Estate Investment Trust (TSX:REI.UN) is the largest REIT and the largest owner of shopping centres in Canada, with 353 retail properties comprising of more than 79 million square feet of gross leasable area. It pays a monthly dividend of $0.1175 per share, or $1.41 per share annually, giving its stock a 5.2% yield at current levels. Investors should note that the company has only increased its dividend once in the last three years, but its increased amount of funds from operations, including 8.8% year-over-year growth to $138 million in the first quarter of fiscal 2015, could allow for a significant increase in the very near future.
3. Morneau Shepell Inc.: 4.7% yield
Morneau Shepell Inc. (TSX:MSI) is the largest provider of human resources consulting and outsourcing services in Canada. It pays a monthly dividend of $0.065 per share, or $0.78 per share annually, giving its stock a 4.7% yield at today’s levels. It is also worth noting that the company has maintained this monthly rate since January 2011, and its consistent free cash flow generation could allow it to continue doing so for the foreseeable future.
Could your portfolio use monthly income?
Timbercreek, RioCan, and Morneau Shepell are three of the market’s most attractive monthly dividend-paying stocks. All Foolish investors should take a closer look and strongly consider beginning to scale in to positions in at least one of them today.
