Have you ever been left sitting around waiting for your dividend stocks to cough up their quarterly payments? While some utilities stocks and real estate investment trusts are known for paying their dividends month by month, they’re not the only sectors to do so. In other words, with just a few tweaks to your stock portfolio, you could be putting regular spending money in your wallet every four weeks.
Take Shaw Communications (TSX:SJR.B)(NYSE:SJR), for instance. Sure, some investors may turn their noses up at a telecom stock, what with the industry’s reputation for market saturation and low growth. However, Shaw Communications has a smaller regional focus than the majority of its peers; as such, it can offer income investors a monthly dividend that has the market width to grow as well as upside potential.
An all-weather dividend stock with plenty of space to expand
Operating largely in British Columbia and Alberta at the moment, with smaller operations in Saskatchewan, Manitoba, and northern Ontario, Shaw Communications doesn’t have the reach of a company like BCE, for instance. However, Shaw Communications is more established than some investors may realize. Anyone who has used Freedom Mobile, for instance, has used a Shaw Communications company.
Already paying a beefy dividend yield of 4.29%, Shaw Communications could be in a position fairly soon to reward its shareholders with even more. With a new generation of communications technology on the way, Shaw Communications is in the right place at the right time to become a leader in 5G infrastructure, given its takeover of the former Wind Mobile network.
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Could Shaw Communications take a place alongside its competitors?
Whether it takes the initiative or not in this arena remains to be seen, but the potential is there to use this new era in communications tech to square up to the big-name market leaders. Indeed, it’s going to be a necessity, thanks to the ever-increasing amounts of data the public is starting to consume. Between content streaming and e-sports, data is going to be the next big commodity.
Indeed, investors are also in the right place at the right time, because this sector in particular may have what it takes to weather the trade tension storm that threatens to engulf the rest of 2019. As a stock that pays monthly dividends, Shaw Communications should slide nicely into a defensive investor’s tax-free savings account right about now.
Will Shaw Communications deliver the goods in the long run? At the moment, it is definitely a lesser company compared with the likes of BCE, TELUS, and Rogers Communications. However, what makes Shaw Communications such a compelling play is its status as a stock with room left to grow. For investors looking for a growing dividend or capital gains down the road, if that’s your style, this one looks like a winner.
The bottom line
An outperforming telecom stock, Shaw Communications offers investors a moderate, if not overly substantial dividend, plus the opportunity for potentially exponential growth. As a recession-ready stock, Shaw Communications looks like it has what it takes to go the distance.
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 Victoria Hetherington has no position in any of the stocks mentioned.