3 Monthly Dividend Stocks With Yields of 4% or More

Want monthly income? If so, consider buying Ag Growth International Inc. (TSX:AFN), Chartwell Retirement Residences (TSX:CSH.UN), and Inter Pipeline Ltd. (TSX:IPL).

| More on:

If you’re interested in earning monthly dividend income, whether it’s to help pay your bills or to help you beat the market, then you’ve come to the right place. I’ve scoured the market and selected three monthly dividend stocks with high and safe yields of 4% or more, so let’s take a quick look at each to determine which would be the best fit for your portfolio.

1. Ag Growth International Inc.

Ag Growth International Inc. (TSX:AFN) is one of the world’s largest manufacturers 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, which gives its stock a yield of about 6.2% at today’s levels.

It is also important for investors to make two notes.

First, the company has maintained its current annual dividend rate since 2011.

Second, I think AGI’s ample funds from operations, including the $40.2 million it generated in fiscal 2015, and its positive outlook on fiscal 2016 will allow it to continue to maintain its current annual dividend rate going forward.

2. Chartwell Retirement Residences

Chartwell Retirement Residences (TSX:CSH.UN) is the largest owner and operator of senior housing communities in Canada with 178 company-owned and seven managed locations across four provinces. It pays a monthly distribution of $0.046818 per share, or $0.561816 per share annually, which gives its stock a yield of about 4% at today’s levels.

It is also important for investors to make two notes.

First, the company’s 2% distribution hike in February has it on pace for 2016 to mark the second consecutive year in which it has raised its annual distribution.

Second, I think Chartwell’s consistent growth of funds from operations, including its 4.2% year-over-year increase to an adjusted $0.75 per share in fiscal 2015, and its modest payout ratio, including 72.6% in fiscal 2015, will allow its streak of annual distribution increases to continue for the next several years.

3. 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 pays a monthly dividend of $0.13 per share, or $1.56 per share annually, which gives its stock a yield of about 5.9% at today’s levels.

It is also important for investors to make two notes.

First, the company’s 6.1% dividend hike in November 2015 has it on pace for 2016 to mark the eighth consecutive year in which it has raised its annual dividend payment.

Second, I think Inter Pipeline’s very strong growth of funds from operations attributable to shareholders, including its 34% year-over-year increase to $733.1 million in fiscal 2015, and its modest payout ratio, including 67.8% in fiscal 2015, will allow its streak of annual dividend increases to continue for the foreseeable future.

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.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »