If you’re interested in earning monthly dividend income, then this article is for you. I’ve scoured the market and found three small caps with yields up to 10.6%, so let’s take a quick look at each to determine if you should buy one of them today.
1. Corus Entertainment Inc.
Corus Entertainment Inc. (TSX: CJR.B) is one of the largest integrated media and entertainment companies in Canada with 22 specialty and pay-television services, three conventional television stations, and 39 radio stations. It pays a monthly dividend of $0.095 per share, or $1.14 per share annually, giving its stock a 10.6% yield at today’s levels.
Investors must also make two important notes. First, Corus has raised its annual dividend payment for 12 consecutive years, and it is currently on pace for 2016 to mark the 13th consecutive year with an increase. Second, I think its increased amount of free cash flow, including 14.8% year-over-year growth to a record $201.2 million in fiscal 2015, could allow this streak to continue for the next several years.
2. Crombie Real Estate Investment Trust
Crombie Real Estate Investment Trust (TSX: CRR.UN) is one of the largest owners of commercial real estate in Canada with 260 retail and office properties across the country. It pays a monthly distribution of $0.07417 per share, or $0.89 per share annually, giving its stock a 6.95% yield at today’s levels.
It is also important to note that Crombie has maintained this rate since May 2008, and its consistent funds from operations, including an adjusted $118.2 million in fiscal 2014 and an adjusted $93.3 million in the first nine months of fiscal 2015, should allow it to continue to do so in the months and years ahead.
3. Ag Growth International Inc.
Ag Growth International Inc. (TSX: AFN) is one of the world’s leading manufacturers and distributors of portable and stationary grain handling, storage, and conditioning equipment. It pays a monthly dividend of $0.20 per share, or $2.40 per share annually, giving its stock a 7.2% yield at today’s levels.
Investors should also note that Ag Growth International has maintained this rate since November 2010, and its ample funds from operations, including $36.7 million in the first nine months of fiscal 2015, could allow it to continue doing so going forward.
Could your portfolio use a high-yielding small cap?
Corus Entertainment, Crombie REIT, and Ag Growth International are three of the most attractive monthly dividend-paying small caps in their respective industries. Foolish investors should take a closer look at each and consider initiating positions in one of them over the next couple of trading sessions.
