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3 Monthly Dividend Stocks With Yields up to 12.7%

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

1. Dream Office Real Estate Investment Trust

Dream Office Real Estate Investment Trst (TSX:D.UN) owns 174 commercial properties in urban centres across Canada, which total approximately 23.35 million square feet of gross leasable area. It pays a monthly distribution of $0.18666 per share, or $2.24 per share annually, giving its stock a 12.7% yield at today’s levels.

It is also important to note that Dream Office has maintained this monthly rate since April 2013, and I think its consistent funds from operations, including an adjusted $273.06 million in fiscal 2014 and an adjusted $210.52 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.

2. Morneau Shepell Inc.

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 5.5% yield at today’s levels.

Investors should also note that Morneau Shepell has maintained this rate since January 2011, but I think its increased amount of free cash flow, including 17% year-over-year growth to $43.41 million in the first nine months of fiscal 2015, could allow for a significant bump in 2016.

3. Shaw Communications Inc.

Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is one of the largest telecommunications and media companies in Canada. It pays a monthly dividend of $0.09875, or $1.185 per share annually, giving its stock a 5% yield at today’s levels.

Investors must also note that Shaw has raised its annual dividend payment for 12 consecutive years, and its ample free cash flow, including $653 million in fiscal 2015, could allow this streak to continue for the next several years.

Which of these dividend stocks should you buy?

Dream Office REIT, Morneau Shepell, and Shaw Communications are three of the most attractive monthly dividend-paying stocks in their respective industries. All Foolish investors looking to generate monthly income should take a closer look and strongly consider initiating positions in at least one of them today.

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Fool contributor Joseph Solitro has no position in any stocks mentioned.

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