Dividend stocks may not provide you with the greatest opportunities for capital appreciation, but the investments could help you solidify some strong monthly cash flow. For retirees, growth stocks might present too much volatility and don’t offer the same consistency and stability that dividend stocks do.
It’s for this reason that I’m going to highlight four great dividend stocks with monthly payouts that you can use to generate reliable cash flow to add to your regular income.
Boston Pizza Royalties Income Fund (TSX:BPF.UN) currently pays its shareholders nearly 6.3% on annual basis. Although the stock does not offer opportunity for significant growth, at least in the short term, it does provide investors with some stability. Year to date, the share price has declined 4%, and in five years it has risen just 15%.
If you invested $10,000 in Boston Pizza’s stock, you would earn a little more than $52 a month by locking in today’s dividend. It may not be an exciting stock, but fast food generally does well when the economy is growing, and that can provide you with a great deal of stability.
Corus Entertainment Inc. (TSX:CJR.B) has had a disappointing year with its share price declining 8%. However, that has shot up its dividend to nearly 10% annually, which is an incredible payout. Despite the high payout, it is sustainable, and it’s in no imminent danger of being cut.
Corus also has a big shareholder in Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) that adds significant stability to the media company that owns high-profile channels like History, HGTV, and many others. A $10,000 investment in Corus would net you over $82 a month in recurring payouts.
RioCan Real Estate Investment Trust (TSX:REI.UN) pays its investors 5.7% on an annualized basis, as this stock too has seen its yield rise as the share price has dropped 7% year to date. Investing in REITs can offer investors a lot of stability since, by and large, the revenue will be recurring, and it is another investment that will only benefit as the economy continues to grow.
A $10,000 investment in RioCan would net you $47.50 every month in dividends.
Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) might be a bit of a risky dividend, because it is linked to a commodity, but that also could give it significant upside. With OPEC recently agreeing to extend supply cuts, we could see oil prices continue to rise, and that is a big opportunity for a company like Pembina.
Currently, the stock pays investors 4.8% annually, and that is after the share has risen 8% year to date. However, much of that increase came in just the past few months, as oil prices started to climb, which led to Pembina’s stock rising 11%.
Buying $10,000 worth of shares here would provide you with payouts of just under $40 a month.
The above investments will provide you with a diversified portfolio and sold monthly cash flow. By investing $40,000 into the above four stocks, you could secure monthly dividend payments of over $220 that you can use to pay your bills or other recurring expenses.
Although these are primarily dividend stocks, over the long term, you should see some modest growth and capital appreciation generated from these investments.
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Fool contributor David Jagielski owns shares of RioCan Real Estate Investment Trust.