Dividend-paying stocks belong in every investor’s portfolio, because they outperform non-dividend-paying stocks over the long term, and because they are less volatile in times of uncertainty in the market. With these facts in mind, let’s take a look at three stocks trading under $15 that pay dividends on a monthly basis, so you can decide which fits best in your portfolio.
1. Veresen Inc.: 8.6% yield
Veresen Inc. (TSX:VSN) is a leading diversified energy infrastructure company that owns and operates assets across North America, including pipelines, natural gas gathering and processing facilities, and power generation facilities. It pays a monthly dividend of $0.0833 per share, or $1.00 per share annually, giving its stock an 8.6% yield at today’s levels.
It is also important to note that Veresen has maintained this annual rate since 2007, but its increased amount of distributable cash, including 13.1% year-over-year growth to $146.2 million in the first half of fiscal 2015, could allow for a slight increase in the very near future.
2. Superior Plus Corp.: 6.6% yield
Superior Plus Corp. (TSX:SPB) is a diversified business corporation, with operations in the energy, specialty chemicals, and construction industries. It pays a monthly dividend of $0.06 per share, or $0.72 per share annually, which gives its stock a 6.6% yield at today’s levels.
Investors should also note that Superior Plus increased its monthly rate by 20% in October 2014, and its consistent operating cash flow, including $227.4 million in fiscal 2014 and $118.5 million in the first half of fiscal 2015, could allow it to maintain this rate for the long term.
3. Enercare Inc.: 6% yield
Enercare Inc. (TSX:ECI) is one of Canada’s leading providers of water heaters, furnaces, air conditioners, and other HVAC rental products, protection plans, and related services. It pays a monthly dividend of $0.07 per share, or $0.84 per share annually, giving its stock a 6% yield at today’s levels.
It is also important to note that Enercare has increased its dividend for five consecutive years, and its increased amount of distributable cash flow, including 74.3% year-over-year growth to $80.2 million in the first half of fiscal 2015, could allow this streak to continue for the next several years.
Should you buy shares of one of these dividend payers today?
Veresen, Superior Plus, and Enercare are three of the top dividend-paying stocks trading under $15 in the market today. Foolish investors should consider initiating positions in one of them.