In the final quarter of 2019, I’d discussed ways investors could gobble up income on a monthly basis. The market is riding high as we enter 2020, but there are risks on the horizon, as growth is set to slow domestically and globally. This means that investors should be taking steps to secure their portfolios. Those who want to slant towards income should consider taking profits in January and reinvesting them in dividend stocks. Below are three of my favourites right now.
Inter Pipeline
Inter Pipeline (TSX:IPL) is a Calgary-based natural gas and NGL extraction business. Its shares rose 24% in 2019. However, the stock has posted average annual losses of 2.9% over the past five years. Turbulence in the energy sector has prevented shares from offering a double threat. However, its income is still stellar.
The company released its third-quarter 2019 results on November 7. Funds from operations fell to $204.4 million in Q3 2019 compared to $299.7 million in the prior year. Revenue is set to post steady growth, but Inter Pipeline needs to make strides with its earnings in order to keep up with its hefty dividend.
Right now, Inter Pipeline offers a monthly dividend payout of $0.1425 per share. This represents a tasty 7.6% yield.
TransAlta Renewables
The renewable energy sector is set to continue its pace of steady growth in the 2020s. TransAlta Renewables (TSX:RNW) was a big beneficiary of this push in the back half of the 2010s. Shares achieved average annual returns of 11% over the past five years as of close on January 2. This is one of my favourite dividend stocks to kick off this decade.
In the third quarter of 2019, TransAlta saw adjusted funds from operations rise 3% year over year to $69 million. Adjusted funds from operations per share has remained flat year over year in the year-to-date period. It is trading close to its 52-week high but still boasts a price-to-earnings ratio of 18 and a price-to-book value of 1.8.
TransAlta Renewables stock offers a monthly dividend of $0.07833 per share. This represents a strong 6% yield.
Alaris Royalty
Alaris Royalty (TSX:AD) is a Calgary-based company that is engaged in investment in private operating entities. It shares rose 40% in 2019. The stock has achieved average annual returns of 14% over the past 10 years.
The company released its third-quarter 2019 results back in early November. It generated record revenue of $30 million in Q3 2019, and normalized EBITDA climbed 29.1% to $74.8 million. In the first nine months of 2019, basic earnings per share rose 26.5% to $1.48, while net cash from operating activities fell 6% to $1.56 per share.
Alaris last declared a December dividend of $0.1375 per share. This represents a nice 7.4% yield. The stock last possessed a favourable P/E of 11.3 and a P/B value of 1.2. This is with shares trading close to its 52-week high.
