Are you looking for high-income investments that pay you every single month?
In most cases, you’re better off looking somewhere other than the stock market. While many stocks pay dividends, the majority of them only pay quarterly, and in most cases the yield is fairly low. On top of that, stocks can have their dividends cut at any minute, which makes their payments less reliable than other income-producing investments like real estate.
But before you resign yourself to a second job managing rental property, remember that monthly paying securities do exist.
As you’re about to see, there are plenty of high-yield TSX stocks and REITs that pay every single month. Not only do these securities have generous, high frequency payouts, but they also offer the potential for capital appreciation. Some of these stocks are among the best performing on the TSX and offer not just high but growing yields. The following are three that have particularly high payouts for income-hungry investors to chew on.
RioCan Real Estate Investment Trust
RioCan Real Estate Investment Trust (TSX: REI.UN) is Canada’s largest REIT, with about $14 billion in total assets. The company invests primarily in retail buildings but has recently been diversifying into residential and office space. Many of the firm’s buildings have retail space on the bottom and residential space on the upper floors.
Retail is considered by many to be vulnerable right now, as e-commerce is eating into its revenue. However, RioCan owns a lot of “trophy”/”magnet” properties that enjoy high traffic due to their prime locations. Additionally, the company is diversifying more and more into residential space, so it will establish income streams that don’t depend on retail industry profits.
RioCan units pay a distribution that yields 5.46% and is paid monthly.
Vermilion Energy
Vermilion Energy (TSX: VET)(NYSE: VET) is a beaten-down oil producer that got hit hard in the 2014/2015 oil collapse. Through the 2000s, the stock was a huge market beater, rising 1,500% from 2000 to 2012. Unfortunately, when 2014 hit, the company was faced with a low crude price and struggled to turn a profit for several years. However, unlike many other producers, the company did not over-leverage, and as a result, it now has a very healthy balance sheet. This means that, if oil prices strengthen, the company has a shot at growing its profits.
The stock pays a dividend that yields 14.71% at current prices; the monthly payout of $0.23 has held steady throughout the year.
Inter Pipeline
Inter Pipeline (TSX:IPL) is a pipeline company that owns oil pipelines, LNG processing, and storage businesses. The company’s pipeline system spans 3,300 kilometres and ships about 1.3 million barrels of oil a day.
Inter Pipeline is currently working on a $3.5 billion project called the Heartland Petrochemical Complex. The project has added considerable leverage to the company’s balance sheet but is expected to deliver a $400-$500 million boost in EBITDA.
Inter Pipeline shares pay a dividend of $14 per month. At current prices, that provides a yield of 7.1%, which is one of the highest you’ll find among TSX energy stocks.
