3 Monthly Dividend Stocks I’d Buy With an Extra $15,000

Want monthly income? If so, Morguard Real Estate Inv. (TSX:MRT.UN), Pizza Pizza Royalty Corp. (TSX:PZA), and Keyera Corp. (TSX:KEY) should be on your buy list.

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If you’re interested in adding a monthly dividend stock to your portfolio, or are looking to build a portfolio full of them, then this article is for you. I’ve scoured the market and selected three stocks from different industries that have high and safe yields up to 6.6%, so let’s take a quick look at each to determine if you should buy one or all of them today.

1. Morguard Real Estate Investment Trust

Morguard Real Estate Inv. (TSX:MRT.UN) is a diversified REIT with a portfolio of 50 retail, office, residential, industrial, and hotel properties in Canada and the United States. It pays a monthly distribution of $0.08 per share, or $0.96 per share annually, which gives its stock a yield of about 6.6% at today’s levels.

Investors should also note that Morguard has maintained its current annual distribution rate since 2013, and I think its consistent funds from operations, including an adjusted $1.28 per share in fiscal 2015, and its modest payout ratio, including 75% in fiscal 2015, could allow it to continue to do so for the next several years.

2. Pizza Pizza Royalty Corp.

Pizza Pizza Royalty Corp. (TSX:PZA) is the largest pizza restaurant chain in Canada with 730 locations across the country under its Pizza Pizza and Pizza 73 banners. It pays a monthly dividend of $0.0697 per share, or $0.8364 per share annually, which gives its stock a yield of about 6% at today’s levels.

It is also important to make two notes.

First, Pizza Pizza has raised its annual dividend payment for four consecutive years, and its recent increases, including its 2.5% hike in November 2015, has it on pace for 2016 to mark the fifth consecutive year with an increase.

Second, the company has a target dividend payout of 100% of its adjusted earnings available for shareholder dividends, so I think its very strong growth, including its 17.7% year-over-year increase to an adjusted $20.8 million in fiscal 2015, will allow its streak of annual dividend increases to continue going forward.

3. Keyera Corp.

Keyera Corp. (TSX:KEY) is one of the largest midstream energy companies in Canada. It pays a monthly dividend of $0.125 per share, or $1.50 per share annually, which gives its stock a yield of about 3.8% at today’s levels.

It is also important to make two notes.

First, Keyera has raised its annual dividend payment for five consecutive years, and its recent increases, including its 8.7% hike in August 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.

Second, I think the company’s increased amount of distributable cash flow, including its 19.8% year-over-year increase to $2.84 per share in fiscal 2015, and its reduced payout ratio, including 49.9% in fiscal 2015 compared with 53.3% in fiscal 2014, could allow it to announce another dividend hike within the next few months.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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

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