3 Monthly Dividend Stocks Investors Should Love

Arc Resources Ltd. (TSX:ARX), Sienna Senior Living Inc. (TSX:SIA), and New Flyer Industries Inc. (TSX:NFI) should be atop the shopping lists of income investors.

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Whether you just opened your first brokerage account or have been investing for years, you must own at least one dividend-paying stock, because they far outperform non-dividend-paying stocks over the long term. With this in mind, let’s take a look at three stocks that pay dividends on a monthly basis, so you can decide if you should buy one of them today.

1. Arc Resources Ltd.: 5.75% yield

Arc Resources Ltd. (TSX:ARX) is one of the largest producers of crude oil and natural gas in Canada. It pays a monthly dividend of $0.10 per share, or $1.20 per share annually, giving its stock a 5.75% yield at today’s levels.

It is also worth noting that Arc has maintained this annual rate since 2010, and its ample funds from operations, including $206.3 million in the second quarter and $397.8 million in the first half of fiscal 2015, could allow it to continue doing so for the next several years.

2. Sienna Senior Living Inc.: 5.35% yield

Sienna Senior Living Inc. (TSX:SIA) is one of the largest owners and operators of senior housing communities in Canada, and it is the largest licensed provider of long-term care in Ontario. It pays a monthly dividend of $0.075 per share, or $0.90 per share annually, which gives its stock a 5.35% yield at current levels.

Investors should also note that the company has maintained this monthly rate since December 2012, and its consistent funds from operations, including $48.3 million in fiscal 2014 and $24 million in the first half of fiscal 2015, could allow it to continue doing so for the foreseeable future.

3. New Flyer Industries Inc.: 3.2% yield

New Flyer Industries Inc. (TSX:NFI) is the leading manufacturer of heavy-duty transit buses in the United States and Canada. It pays a monthly dividend of $0.05167 per share, or $0.62 per share annually, giving its stock a 3.2% yield at today’s levels.

Investors should also note two things. First, New Flyer has paid dividend to its shareholders every month since it went public in August 2005, resulting in 119 consecutive months of payments.

Second, the company increased its monthly rate by 6% in May, and its increased amount of free cash flow, including 46.2% year-over-year growth to $38.8 million in the first half of fiscal 2015, could allow for another increase in the very near future.

Should you buy one of these dividend stocks today?

Arc Resources, Sienna Senior Living, and New Flyer Industries are three of the most attractive dividend-paying stocks in the market. All Foolish investors should consider buying one of them today.

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 Joseph Solitro has no position in any stocks mentioned.

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