If you’re interested in generating monthly income by investing in stocks, but can’t figure out where to begin, then this article is for you. I’ve compiled a list of three stocks from different industries 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. Chorus Aviation Inc.
Chorus Aviation Inc. (TSX:CHR.B) is a dividend-paying holding company that owns Jazz Aviation LP, which operates under the brand name Air Canada Express and is a contract carrier for Air Canada. It currently pays a monthly dividend of $0.04 per share, or $0.48 per share annually, which gives its stock a yield of about 7.9% at today’s levels.
Investors must also make two notes.
First, Chorus Aviation has raised its annual dividend payment for two consecutive years, and its 6.7% hike in March 2015 has it on pace for 2016 to mark the third consecutive year with an increase.
Second, I think its ample cash provided by operating activities, including $183.7 million in fiscal 2015, could allow it to announce another small dividend hike in 2016.
2. Inter Pipeline Ltd.
Inter Pipeline Ltd. (TSX:IPL) is one of the leading providers of petroleum transportation, bulk liquid storage, and natural gas liquids extraction services in 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 yield of about 6.3% at today’s levels.
Investors must also make two notes.
First, Inter Pipeline has raised its annual dividend payment for seven consecutive years, and its 6.1% hike in November 2015 has it on pace for 2016 to mark the eighth consecutive year with an increase.
Second, I think its increased amount of funds from operations attributable to shareholders, including 34% year-over-year growth to $733.1 million in fiscal 2015, and its reduced payout ratio, including 67.8% in fiscal 2015 compared with 77.3% in fiscal 2014, will allow it to announce another dividend hike within the next few months.
3. Sienna Senior Living Inc.
Sienna Senior Living Inc. (TSX:SIA) is one of Canada’s largest owners of senior housing communities, and it is the largest licensed provider of long-term care in Ontario. It currently pays a monthly dividend of $0.075 per share, or $0.90 per share annually, which gives its stock a yield of about 5.4% at today’s levels.
Investors should also note that Sienna Senior Living has maintained its current annual rate since 2013. However, I think its increased amount of funds from operations, including 2.4% year-over-year growth to an adjusted $49.5 million in fiscal 2015, and its low payout ratio, including 66.2% in fiscal 2015 compared with 67.6% in fiscal 2014, could allow it to announce a slight dividend hike in 2016.
Should you buy one of these stocks to generate monthly income?
Chorus Aviation, Inter Pipeline, and Sienna Senior Living 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 one of them today.
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Fool contributor Joseph Solitro has no position in any stocks mentioned.