The Motley Fool

3 Monthly Dividend Stocks With Yields Over 7% to Buy Now

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 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. Inter Pipeline Ltd.

Inter Pipeline Ltd. (TSX:IPL) is one of the leading providers of petroleum transportation and bulk liquid storage in western Canada and Europe. It currently pays a monthly dividend of $0.13 per share, or $1.56 per share annually, which gives its stock a 7.7% yield at today’s levels.

Investors must also note that Inter Pipeline has raised its annual dividend payment for seven consecutive years, and its 6.1% increase in November 2015 puts it on pace for 2016 to mark the eighth consecutive year with an increase.

2. Alaris Royalty Corp.

Alaris Royalty Corp. (TSX:AD) is one of the largest providers of alternative financing solutions to companies in North America. It currently pays a monthly dividend of $0.135 per share, or $1.62 per share annually, which gives its stock a 7.2% yield at today’s levels.

Investors must also note that Alaris has raised its annual dividend payment for five consecutive years, and its recent increases, including its 3.8% increase in July 2015, puts it on pace for 2016 to mark the sixth consecutive year with an increase.

3. H&R Real Estate Investment Trust

H&R Real Estate Investment Trust (TSX:HR.UN) is one of Canada’s largest diversified REITs with ownership interests in 512 office, retail, industrial, and residential properties that total over 46 million square feet. It currently pays a monthly distribution of $0.1125 per share, or $1.35 per share annually, which gives its stock a 7.1% yield at today’s levels.

Investors must also note that H&R REIT has maintained this monthly rate since January 2013, but I think its increased amount of funds from operations, including 5.6% year-over-year growth to $427.1 million in the first nine months of fiscal 2015, and its low payout ratio, including 69.2% in that same period, could allow it to raise its distribution in the very near future.

Could your portfolio use monthly income?

Inter Pipeline, Alaris Royalty, and H&R REIT are three highly attractive investment options for monthly dividend income. All Foolish investors should take a closer look at each and strongly consider initiating positions in at least one of them today.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.