Ever wanted to earn solid dividend income without having to wait three months for the payments to roll in?
While most companies pay their dividends quarterly, there are some out there that offer monthly distributions. Common among REITs and certain energy stocks, monthly distributions let you watch your account balance grow without having to wait.
Although the net effect is the same, monthly payouts can be convenient for people who actively use their investment proceeds for spending money. Not only that, but monthly payers are often pretty high yielders, so those payouts can be worth more than you think.
With that in mind, here are three high-yield dividend stocks that pay their distribution monthly.
Shaw Communications (TSX:SJR.B)(NYSE:SJR) is a Canadian telecommunication company that offers phone, internet and mobile service. The company operates mainly in B.C., Alberta and Southern Ontario, a limited reach that places it among the smaller Canadian telcos–but also among those with the most room to grow.
In its most recent quarter, Shaw increased operating income by 13.7%, subscriber billings by 7.5% and wireline operating margin by 46%. These growth figures are above average for Canadian telecommunication companies, and help explain why the company has been gradually raising its dividend. Shaw’s dividend yields around 4.3% and is paid each and every month.
RioCan Real Estate Investment Trust
RioCan Real Estate Investment Trust (TSX:REI.UN) is one of Canada’s largest REITs. With $14 billion in total enterprise value, it owns approximately 230 properties–some of them valuable “trophy” projects in high-income cities. With a tenant base consisting of some of Canada’s top retailers, RioCan has a highly dependable income stream and strong diversification.
Because of its focus on retail, RioCan’s growth is tied to the growth of the broader Canadian economy. Assuming the Canadian economy (especially the retail segment) prospers and grows into the future, RioCan will grow along with it. The stock pays a dividend that’s paid monthly and yields over 5%.
Inter Pipeline Ltd
Last but not least, we have Inter Pipeline Ltd (TSX:IPL).
Inter Pipeline is an energy company specializing in pipelines and natural gas processing. The company’s pipeline system spans 7,800 kilometres and ships 1.4 million barrels of oil a day. In Europe, it has the capacity to store 37 million barrels of oil. Finally, the company’s natural gas processing business has the capacity to produce 240,000 barrels of LNG a day.
What all this means is that Inter Pipeline has a highly diversified petrochemicals business and can withstand a decline in the price of crude oil. This is crucial for an oil stock, as many of them are overly dependent on the price of Canadian crude. On the strength of its diversified and lucrative businesses, Inter Pipeline is able to pay a dividend that’s paid monthly and yields a whopping 8%.
It should be noted, however, that Inter Pipeline’s stock is in the midst of a five year downtrend, so you might want to weigh the yield against the potential for future losses.
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Fool contributor Andrew Button has no position in any of the stocks mentioned.