Retirees: 3 Great Dividend Stocks to Provide You With Monthly Income

Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) and these two other stocks will provide you with stable and consistent monthly income.

| More on:

The ideal stocks for retirement are stable and low-risk shares that also pay a dividend — ideally, every month. I have a list of three stocks that meet these criteria, and all pay monthly dividends at an annual rate of over 4%. All of the companies listed here also have the potential to grow sales and dividends, allowing you to collect a good monthly dividend and potentially cash in on increasing stock prices.

Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is a telecom giant with a very stable future. It currently pays a monthly dividend of over 4% per year. Although it has been over two years since its last dividend increase, there is a potential for payouts to grow, and it may even be overdue for a hike. The stock also provides investors with opportunities for growth with the share price appreciating 38% over the past five years.

With Shaw’s recent acquisition of WIND Mobile, the company is showing it wants to be a competitor in the wireless industry as well, where it can grow and diversify its revenue. Shaw has not had any problems with posting profits, and its most recent quarter also saw a year-over-year revenue growth of just under 3%.

Shaw presents a good long-term investment that you can buy and forget.

Smart REIT (TSX:SRU.UN) is a great real estate investment trust that you can invest in because, along with its high occupancy rate of 98%, it also has a big tenant like Wal-Mart anchoring most locations, which provides a lot of stability. Smart also offers a very attractive dividend of over 5% per year that is paid out in monthly installments. The stock has not seen a dividend increase this year, but it has increased the dividend in each of the past three years, and the payout has grown by almost 10% during that time.

Smart REIT had over $725 million in revenue in its last fiscal year, which was up 27% from three years ago. The company has seen good growth over the years, and it should be able to continue to build on that. Although the share price is down over 5% year to date, it may present a good opportunity to buy the stock at a low.

Pure Industrial Real Estate Trust (TSX:AAR.UN) is another REIT stock, but this one has more of a focus on industrial properties. This stock also provides a good dividend yield of about 4.7% which is paid out on a monthly basis. The dividend has not seen an increase in recent years and may not see an increase for some time, but at a reasonably high yield, Pure Industrial can still provide an attractive source of monthly income.

In addition, Pure Industrial offers good growth prospects with revenues of $108 million in 2013 growing to almost $187 million this past fiscal year for an increase of over 70% in just three years. In its most recent quarter, the company continued to see strong sales growth as revenues reached $55 million, which are up 21% from a year ago. The stock has also seen strong growth with share price increasing by 30% in the past five years and over 22% in just the last 12 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 David Jagielski has no position in any stocks mentioned.

More on Dividend Stocks

Canadian dollars are printed
Dividend Stocks

How to Use $10,000 to Transform a TFSA Into a Cash Machine

Do you want growth and income? Consider these top investments that offer up monthly income in spades!

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Building a $28,000 TFSA Portfolio One Contribution at a Time

Let’s take a look at how you can turn a $28,000 investment in a TFSA into a life-changing fund for…

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

Making Your $25,000 TFSA Investment Work Harder for the Long Term

This strategy reduces risk while still providing a solid return.

Read more »

Asset Management
Dividend Stocks

TFSA: 3 Canadian Stocks to Buy and Hold for a Lifetime

Want to build wealth in your TFSA? Then these three Canadian stocks are some of the best options out there.

Read more »

Canadian Dollars bills
Dividend Stocks

Invest $20,000 in a TSX Stock, Create $1,278.98 in Passive Income

Are you worried about the future? Then consider a reliable dividend stock like this top choice.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

The $10,000 Investment Strategy That Balances Risk and Opportunity

A $10,000 investment portfolio must have a balance of risk and opportunity to maximize and deliver long-term returns.

Read more »

Hourglass projecting a dollar sign as shadow
Dividend Stocks

Is Restaurant Brands International Stock a Buy Now?

Restaurant Brands International stock is a reasonable buy at current levels, although it would probably provide a better margin of…

Read more »

shoppers in an indoor mall
Dividend Stocks

Turn Your $7,000 TFSA Contribution Into a Lasting Income Stream

Discover how a TFSA can help you build an emergency fund and create income streams, tax-free and accessible.

Read more »