If your employer doesn’t offer a pension plan, you don’t need to worry; you just need to take action by creating your own. You can do this by investing in stocks that pay dividends on a monthly basis, so let’s take a look at three with yields of 6-9% that you could buy right now.
1. Chemtrade Logistics Income Fund
Chemtrade Logistics Income Fund (TSX: CHE.UN) is one of the world’s leading providers of industrial chemicals and related services. Its chemical offerings include sulfuric acid, sodium nitrate, and liquid sulfur dioxide, and its service offerings include spent acid processing services, by-product processing, and waste streams.
It pays a monthly distribution of $0.10 per share, or $1.20 per share annually, which gives its stock a yield of about 6.6% at today’s levels.
Investors should also make the following two notes.
First, Chemtrade has maintained its current annual distribution rate since 2007.
Second, I think the company’s ample amount of distributable cash after maintenance capital expenditures, including $1.97 per share in fiscal 2015 and $0.54 per share in the first quarter of fiscal 2016, will allow it to continue to maintain its current annual distribution rate for the foreseeable future.
2. Inter Pipeline Ltd.
Inter Pipeline Ltd. (TSX:IPL) is one of the largest owners of energy infrastructure assets in western Canada and Europe. Its assets include pipelines, petroleum and petrochemical storage terminals, and natural gas liquids extraction plants.
It pays a monthly dividend of $0.13 per share, or $1.56 per share annually, which gives its stock a yield of about 6% at today’s levels.
Investors should also make the following two notes.
First, Inter Pipeline’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 the company’s consistent growth of funds from operations attributable to shareholders, including its 5.8% year-over-year increase to $175.9 million in the first quarter of fiscal 2016, and its modest payout ratio, including 74.6% in the first quarter, will allow its streak of annual dividend increases to continue for many years to come.
3. Corus Entertainment Inc.
Corus Entertainment Inc. (TSX: CJR.B) is one of Canada’s largest media and entertainment companies. Its assets include 45 specialty television services, 39 radio stations, 15 conventional television stations, and a global content business.
It pays a monthly dividend of $0.095 per share, or $1.14 per share annually, which gives its stock a yield of about 8.9% at today’s levels.
Investors should also make the following two notes.
First, Corus’s 4.6% dividend hike in February 2015 has it on pace for fiscal 2016 to mark the 13th consecutive year in which it has raised its annual dividend payment.
Second, I think the company’s ample free cash flow generation, including $58.82 million in the first half of fiscal 2016, and its acquisition of Shaw Media Inc., which closed last month and is expected to immediately be accretive to its free cash flow, will allow its streak of annual dividend increases to continue going forward.
