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5 Canadian Dividend Stocks That Pay You Every Month

For most people, the main goal when investing in stocks is to build a portfolio that will eventually grow to the point that it generates adequate income to supplement government and corporate pension payments.

Different strategies can be used to get to that point, but when the time comes to start enjoying the fruits of all the hard work, stocks that pay attractive dividends become increasingly appealing, and ones that pay every month can make life a lot easier when sorting out the annual budget.

Let’s take a look at five Canadian companies that might be interesting picks right now.

AltaGas (TSX:ALA)

AltaGas company recently closed its $9 billion acquisition of Washington, D.C.-based WGL Holdings. The combined company has a strong portfolio of development opportunities that should drive revenue and cash flow higher in the coming years.

The market, however, remains a bit concerned that AltaGas bit off more than it can chew, and investors are waiting to see how the company will pay back a large bridge loan. The sudden resignation of the CEO last month hasn’t helped, either. However, these are likely short-term distractions. The interim management team is staying the course and working on options to monetize non-core assets.

AltaGas is a bit of a contrarian pick, but once the dust settles, investors should start to move back into the stock. In the meantime, the existing monthly dividend should be safe, and investor who buy today can pick up a yield of 8.8%.

Northland Power (TSX:NPI)

Northland Power is a renewable energy player with wind, solar, and thermal assets and development projects located in Canada, North Sea Germany, and Taiwan.

The company raised the monthly dividend from $0.09 to $0.10 for 2018, and more gains should be on the way in the coming years, as new assets come online. At the time of writing, the stock provides a 5.4% yield.

Shaw Communications (TSX:SJR.B)(NYSE:SJR)

Shaw finally decided it needed to have a mobile business to compete on an equal playing field with its communications peers. The company is investing heavily in the build-out of its mobile network and the brand, known as Freedom Mobile, is enjoying some early success.

Once Shaw gets through the heaviest part of the capital program, investors should see the return of dividend increases. The stock looks attractively priced, and investors can pick up an annualized yield of 4.45% on the monthly distribution.

Keyera (TSX:KEY)

Keyera is a Calgary-based midstream energy infrastructure business primarily focused on natural gas and natural gas liquids gathering, processing, transportation, storage, and marketing.

The company has a solid track record of growth that includes strategic acquisitions and organic developments. Given the strong balance sheet, Keyera is positioned well to extend its capital program and make additional purchases.

The board just raised the monthly dividend from $0.14 to $0.15 per share. That’s good for a yield of 4.9%.

A and W Revenue Royalties Income Fund (TSX:AW.UN)

Canadians continue to gobble up A&W’s tasty burgers and famous root beer. The company is expanding the number of restaurants across the country and reported Q2 2018 same-store sales growth of 6.6% compared to Q2 last year.

The company raised the monthly distribution when the Q2 results came out. The new payout provides a yield of 4.6%.

The bottom line

All five companies pay attractive monthly distributions that should be safe. An equal investment in each one would provide an average yield of better than 5.5%.

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 Andrew Walker owns shares of AltaGas. AltaGas is a recommendation of Stock Advisor Canada. A&W Revenue Royalties Fund is a recommendation of Dividend Investor Canada.

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