If you’re interested in earning monthly dividend income, whether it’s to help pay your bills or to help you beat the market in today’s highly volatile times, then this article is for you. I’ve scoured the market and compiled a list of three stocks that pay dividends on a monthly basis, so let’s take a quick look at each to determine which would fit best in your portfolio.
1. Canadian Apartment Properties REIT
Canadian Apartment Properties REIT (TSX:CAR.UN) is one of Canada’s largest residential landlords with over 46,700 residential units located in and near major urban markets across the country. It pays a monthly distribution of $0.10166 per share, or $1.22 per share annually, which gives its stock a yield of about 4.2% at today’s levels.
Investors must also make two very important notes.
First, Canadian Apartment Properties has raised its annual distribution for four consecutive years, and its 3.4% hike in May 2015 puts it on pace for 2016 to mark the fifth consecutive year with an increase.
Second, the company has a long-term target payout ratio of 70-80% of its normalized funds from operations, so if it can continue to grow both organically and through acquisitions, then I think its streak of annual distribution increases could continue for the next several years.
2. Pembina Pipeline Corp.
Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) is one of the leading transportation and midstream service providers to North America’s oil and natural gas industries. It pays a monthly dividend of $0.1525 per share, or $1.83 per share annually, which gives its stock a yield of about 6.1% at today’s levels.
It is also important for investors to note that Pembina Pipeline has raised its annual dividend payment for four consecutive years, and its 5.2% hike in May 2015 puts it on pace for 2016 to mark the fifth consecutive year with an increase.
3. Boston Pizza Royalties Income Fund
Boston Pizza Royalties Income Fund (TSX:BPF.UN) is Canada’s largest casual-dining brand with 372 locations across the country, 369 of which are franchises. It pays a monthly distribution of $0.1083 per share, or $1.30 per share annually, which gives its stock a yield of about 7.95% at today’s levels.
Investors must also make two important notes.
First, Boston Pizza has raised its annual distribution for four consecutive years, and its 6.2% hike in April 2015 puts it on pace for 2016 to mark the fifth consecutive year with an increase.
Second, the company expects to maintain a payout ratio of close to 100% of its distributable cash, so I think its very strong growth, including 10% year-over-year growth to $1.103 per share in the first nine months of fiscal 2015, and its low payout ratio, including 94.5% in the same period, could allow it to raise its monthly rate in the very near future.
Should you put your money to work in one of these stocks?
Canadian Apartment Properties REIT, Pembina Pipeline, and Boston Pizza Royalties Income Fund are three of the most attractive monthly dividend-paying investment options in their respective industries. Foolish investors should take a closer look at each and strongly consider establishing positions in at least one of them today.
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Fool contributor Joseph Solitro has no position in any stocks mentioned.