For long-time investors, there are few things as rewarding as receiving dividends from your hard-earned money. Even better is the fact that those dividends, if reinvested during the early years of your portfolio, can provide an exceptional source of growth and income during retirement.
Here are several diversified investment options to consider, each of which offers either a monthly or quarterly dividend as well as long-term growth prospects.
Be a landlord with a REIT investment
REITs have long been considered some of the most lucrative investment options for income-seeking investors, and RioCan Real Estate Investment Trust (TSX:REI.UN) not only holds true to that stereotype but offers something additional to investors.
RioCan’s portfolio of predominately large retail clients is slowly shifting towards mixed-use developments in the major metro areas of Canada. The new properties will offer commercial retail options as well as residential options, which addresses the need to provide housing in urban areas while diversifying away from the shopping mall retail segment that is seeing slower growth and declining margins thanks to the onslaught of online e-commerce behemoths.
RioCan is targeting 10,000 residential units to be constructed over the next few years, the first of which are set to be completed next year in Toronto.
As an income investment, RioCan offers a monthly distribution with a yield of 5.73%.
Buy a discounted energy company with potential
Following two deep cuts to its dividend in recent years, the current yield on the monthly dividend is still a very attractive 4.49%, thanks in part to the stock price plummeting over 50% in the past two years.
Despite those deep cuts (and additional cuts to its workforce and executive pay announced this week), Crescent Point poses an opportunity for those investors with long-term goals and a tolerance for risk. In particular, the company now trades below book value, and given the steady rise in oil prices, it’s only a matter of time before the stock price mounts a recovery.
This diversified company operates in a healthy niche market
Exchange Income (TSX:EIF) is quickly becoming one of my favourite picks in the market. The Winnipeg-based company owns a variety of subsidiary companies across the country that cater to the aviation and manufacturing segments of the economy. While this may sound like any other holding-type company arrangement, there is one thing that really puts Exchange Income far out in front of its peers — its unique market position.
Many of Exchange Income’s subsidiaries operate in a specific niche both in terms of product/service offering as well as geographical location. By way of example, there’s the medevac service company that serves Nunavut from Winnipeg, the regional airline serving both northern Ontario and northern Manitoba, and the B.C-based fabricator of steel and tubular parts. In all, Exchange Income has over one dozen well-diversified subsidiaries, which all operate independently and quite successfully in their respective niche markets.
In terms of a dividend, Exchange income offers a very lucrative monthly dividend that pays out a 6.90% yield.
Get stable, recurring income from a utility with renewable assets
Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is another interesting pick for the defensive-minded investor. As a utility, Algonquin has a stable, secure, and recurring source of revenue from which the company continues to reward its shareholders with a very healthy quarterly dividend with a 4.81% yield.
Another key advantage that Algonquin has over many of its peers is that the company’s power generation already stems from renewable sources which include solar, wind, hydro, and thermal elements. Algonquin’s two subsidiaries serve over 750,000 customers across 12 different states — a figure which has grown in recent years thanks to aggressive expansion by the company.
That stellar growth is set to continue for the foreseeable future, as last fall Algonquin expanded outside North America through a joint venture with Abengoa SA of Spain, whereby Algonquin will add to its already impressive portfolio of renewable energy assets.