The Motley Fool

Retirees: 2 Canadian Income Stocks Yielding 6-7% That Pay You Monthly

Canadian retirees are searching for ways to add a bit of monthly income to complement their pension cheques.

One popular strategy involves owning dividend stocks and REITs that pay their distributions monthly.

Let’s take a look at RioCan Real Estate Investment Trust (TSX:REI.UN) and Inter Pipeline Ltd. (TSX:IPL) to see if they are worthy picks.


RioCan owns and operates retail properties across Canada.

The demise of a number of big-name department stores has some investors wondering if the days of the shopping mall are numbered.

Companies operating in certain segments are definitely facing challenges from online competition, but RioCan’s customer base is very diversified, and demand remains strong for its retail space.

In fact, RioCan gets no more than 5% of its revenue from any single tenant, and committed occupancy was 96.8% at the end of Q3 2017.

Regarding growth, RioCan is in the early stages of a plan to build up to 10,000 residential units over the next decade at its top urban locations.

Management recently raised the monthly payout. At the time of writing, investors can pick up an annualized yield of 6%.


IPL owns natural gas liquids (NGL) extraction assets, conventional oil pipelines, oil sands pipelines, and a liquids storage business in Europe.

The company has raised its dividend annually right through the oil rout, and management took advantage of the downturn to add strategic assets at attractive prices.

As the market recovers, IPL could see strong returns on the investments.

In addition, the company recently announced plans to go ahead with its $3.5 billion Heartland Petrochemical Complex. Construction will commence this year and IPL hopes to have the facilities completed by the end of 2021.

The company recently increased the monthly dividend to $0.14 per share. At the time of writing, investors can buy the stock for $23 and get an annualized yield of 7.3%.

The bottom line

Both companies offer attractive monthly payments that should be safe. The recent pullback in dividend stocks might be a bit overdone, so there could be an opportunity to pick up some nice upside down the road in addition to the above-average yields.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Fool contributor Andrew Walker has no position in any stock mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.