Retirees: 2 Top Income Stocks That Pay You Every Month

Here’s why RioCan Real Estate Investment Trust (TSX:REI.UN) and Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) are solid picks for reliable income.

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The cost of living keeps going up, but it seems like pension payments just aren’t keeping pace.

Of course, the government gives retirees a bit more every year to cover inflation, but many people are looking at their bank accounts at the end of every month and wondering why the drawdown seems to be increasing when they essentially buy the same stuff all the time.

Add in the odd special expense like a new set of winter tires and things can get tight pretty quickly.

As a way to make up the difference, some retirees turn to dividend stocks, but most companies pay distributions on a quarterly basis. That’s fine when the budget allows for the delay in receiving the funds, but it would be nice to get a cheque every month.

Fortunately, some companies do just that.

Here are the reasons why I think investors looking for monthly income should consider RioCan Real Estate Investment Trust (TSX:REI.UN) and Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR).


RioCan is in the retail property business with 293 buildings located Canada and another 47 in the United States.

Most of RioCan’s anchor tenants in Canada are big names that sell groceries, medicine, and household goods. These companies are more than capable of riding out a rough patch in the economy and are less likely to see a sales impact if consumers start to cut back on discretionary spending.

For the moment, things seem to be rolling along nicely. RioCan reported solid Q3 numbers and even raised the rent by nearly 9% on 1.3 million square feet of space.

RioCan is also developing condo projects at some of its sites. The program is in its early stages, but the potential for some nice additional cash flow is significant if the idea catches on.

The company pays a monthly distribution of 11.75 cents per unit that yields about 5.7%.


Shaw is losing some cable customers as Canadians migrate to online sources of entertainment, but the company is making up for it with higher prices and new Internet subscribers.

With “pick and pay” coming to TV subscriber in 2016, some analysts are concerned that content owners could be left out in the cold. Shaw owns the Global TV network and some of the country’s most popular specialty channels, including HGTV and Food Network, so the company should be fine under the new system.

Shaw avoided the temptation to plough billions into a mobile network and has instead decided to invest in data centres through its 2014 acquisition of ViaWest. That move is working out well and provides a nice revenue stream that is not tied to the telecom and media sector.

Shaw delivered solid results in its latest earnings statement. Net income hit $276 million, or $0.57 per share, up from $0.40 per share in the same period last year.

The company pays a monthly dividend of 9.875 cents per share that yields about 4.5%.

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 Andrew Walker has no position in any stocks mentioned.

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