4 Income Stocks to Buy Now and Hold for Decades

Ready to buy an income stock? If so, Medical Facilities Corp. (TSX:DR), Secure Energy Services Inc. (TSX:SES), Killam Apartment REIT (TSX:KMP.UN), and Inter Pipeline Ltd. (TSX:IPL) deserve your consideration.

The Motley Fool

If you’re an income investor with cash on hand that you’re ready to put to work, then I’ve got four stocks I think you will love. Let’s take a closer look at each, so you can determine which would be the best fit for your portfolio.

Medical Facilities

Medical Facilities Corp. (TSX: DR) owns controlling interests in five specialty surgical hospitals, an ambulatory surgery centre, and a diversified healthcare services company in the United States.

Medical Facilities pays a monthly dividend of $0.09375 per share, representing $1.125 per share on an annualized basis, giving it an 8.4% yield at the time of this writing.

Foolish investors should note that the company has paid monthly dividends uninterrupted and without reduction since June 2011, including one hike to the tune of 2.2% in August 2012, and I think its strong growth of cash available for distribution, including its 6.6% year-over-year increase to $1.13 per share in the first nine months of 2017, will allow it to continue to do so for the foreseeable future.

Secure Energy

Secure Energy Services Inc. (TSX: SES) is an infrastructure and services company that provides “safe, innovative, efficient, and environmentally responsible management of fluids and solids solutions” to the oil, gas, and rail industries in western Canada and select regions of the United States.

Secure Energy Services currently pays a monthly dividend of $0.0225 per share, representing $0.27 per share annually, which gives it a 3.5% yield at the time of this writing.

Investors should also note that the company’s 5.9% dividend hike, which is effective for its next dividend payment, has it on track for 2018 to mark the second consecutive year in which it has raised its annual dividend payments. Its very strong growth of funds from operations, including its 86.5% year-over-year increase to $0.69 per share in the first nine months of 2017, will allow this streak to continue into 2020 and beyond.

Killam

Killam Apartment REIT (TSX: KMP.UN) is one of Canada’s largest residential landlords with a portfolio of 184 apartment properties and 35 manufactured home communities located across six provinces. The company also owns five commercial properties in Halifax that total about 254,000 square feet.

Killam currently pays a monthly distribution of $0.05167 per unit, representing $0.62 per unit on an annualized basis, giving it a yield of about 4.25% at the time of this writing.

It’s also important to note that the REIT’s 3.3% distribution hike, which was effective for its March payment, has it positioned for 2018 to mark the second consecutive year in which it has raised its annual distribution. Its strong financial performance, including its 26.3% year-over-year increase in adjusted cash flow from operations to $42.21 million in the first nine months of 2017, will allow this streak to continue into 2019 and beyond.

Inter Pipeline

Inter Pipeline Ltd. (TSX:IPL) is one of the largest owners and operators of energy infrastructure in Western Canada and Europe, including pipelines, offgas extraction facilities, fractionation plants, and petroleum and petrochemical storage terminals.

Inter Pipeline currently pays a monthly dividend of $0.14 per share, representing $1.68 per share annually, which gives it a 6.05% yield at the time of this writing.

Foolish investors should note that the energy infrastructure giant’s 3.7% dividend hike last month has it on track for 2018 to mark the 10th consecutive year in which it has raised its annual dividend payment. Its consistently strong financial performance, including its 27.8% year-over-year increase in funds from operations attributable to shareholders to $722.8 million in the first nine months of 2017, will allow this streak to continue for another decade.

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

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