3 Top Stocks to Buy for Monthly Dividend Income

Interested in earning monthly dividend income? If so, consider buying Whitecap Resources Inc. (TSX:WCP), Canadian Apartment Properties REIT (TSX:CAR.UN), and Cineplex Inc. (TSX:CGX).

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If you’re interested in adding a monthly dividend stock to your portfolio, or are looking to build a portfolio full of them, then this article is for you. I have scoured the market and compiled a list of three of the top stocks from three different industries that pay dividends on a monthly basis, so let’s take a quick look at each to determine if you should buy one or all of them today.

1. Whitecap Resources Inc.: 6.4% yield

Whitecap Resources Inc. (TSX:WCP) is one of the largest producers of crude oil and natural gas in British Columbia, Alberta, and Saskatchewan. It pays a monthly dividend of $0.0625 per share, or $0.75 per share annually, giving its stock a 6.4% yield at today’s levels.

Investors should also note that Whitecap has raised its dividend in each of the last two years, and its increased amount of funds from operations, including a 16.6% year-over-year increase to $254.6 million in the first half of fiscal 2015, could allow this streak to continue in 2015. However, lower oil and gas prices may cause the company to be cautious and simply maintain its current monthly rate until prices recover.

2. Canadian Apartment Properties REIT: 4.4% yield

Canadian Apartment Properties REIT (TSX:CAR.UN) is one of the largest residential landlords in Canada, with ownership interests in 46,617 residential units in and near major urban centres across the country. It pays a monthly distribution of $0.10167 per share, or $1.22 per share annually, which gives its stock a 4.4% yield at current levels.

It is also important to note that the company has raised its distribution for four consecutive years, and its strong operational performance in the first half of fiscal 2015, including a 6% year-over-year increase in normalized funds from operations to $95.4 million, could allow this streak to continue in 2016.

3. Cineplex Inc.: 3.1% yield

Cineplex Inc. (TSX:CGX) is the largest owner and operator of movie theatres in Canada, with 162 theatres that serve approximately 74 million guests each year. It pays a monthly dividend of $0.13 per share, or $1.56 per share annually, giving its stock a 3.1% yield at today’s levels.

Investors should also note that Cineplex has raised its dividend for five consecutive years, and its increased amount of free cash flow, including a 2.1% year-over-year increase to $68.5 million in the first half of fiscal 2015, could allow this streak to continue in 2016.

Should you buy one or all of these stocks today?

Whitecap Resources, Canadian Apartment Properties REIT, and Cineplex are three of the most attractive monthly dividend-paying investment opportunities in their respective industries. All Foolish investors seeking monthly dividend income should take a closer look and strongly consider establishing positions in at least 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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