If you seek regular cash flows that could supplement your passive income in 2021, consider these four stocks that pay you monthly. These companies have businesses that generate resilient cash flows, suggesting the payouts are safe and sustainable in the long run.
Thanks to its highly contracted and low-risk business, Pembina Pipeline (TSX:PPL)(NYSE:PBA) is a top dividend stock offering monthly payouts. The energy infrastructure company’s dividends are backed by fee-based cash flows that are resilient to the short-term volatility in commodity prices and volumes. Notably, Pembina continued to pay its dividends in 2020, despite the massive erosion in demand for the commodities it transports, which is encouraging.
Over the past five years, Pembina Pipeline has increased its dividends by about 6.5% annually. Meanwhile, it has paid dividends worth over $9 billion since 1997. With the recovery in economic activities, Pembina is likely to deliver robust cash flows that are likely to support its dividend payments in 2021 and beyond.
Pembina pays a monthly dividend of $0.21 per share, reflecting a yield of over 8%.
NorthWest Healthcare Properties
NorthWest Healthcare (TSX:NWH.UN) owns and operates a diversified healthcare real estate portfolio that generates robust cash flows irrespective of economic cycles. The company pays a monthly dividend of $0.067 per share, translating into a yield of 6.4%. Meanwhile, its defensive portfolio suggests that its payouts are safe.
NorthWest Healthcare’s occupancy and lease expiry term remain high. Moreover, most of its tenants are backed by government support and its rents are inflation indexed.
NorthWest Healthcare’s strong balance sheet, accretive acquisitions, geographic expansion, and robust healthcare real estate portfolio positions it well to continue to boost investors’ returns through consistent dividend payments.
AltaGas (TSX:ALA) is another stock that pays a monthly dividend and offers a high yield at the current price levels. Its low-risk and high-growth utility and midstream business generates robust cash flows and drives its dividends.
AltaGas is likely to benefit from continued rate base growth in its utility business. Meanwhile, momentum in its midstream operations and contractual arrangements should further support its growth and dividend payments in the coming years.
For 2021, AltaGas is projecting 20% growth in its earnings. Meanwhile, it has recently raised its dividends by 4%. It pays a monthly dividend worth $0.083, reflecting a yield of 5.3%.
Shaw Communications (TSX:SJR.B)(NYSE:SJR) pays a monthly dividend of $0.099 per share, translating into a yield of 5.3%. The telecom giant generates robust cash flows, thanks to its resilient business and continued growth in its wireless business.
Notably, the company has uninterruptedly paid its monthly dividends, despite significant investments in infrastructure and network capacity.
The company added about 160,000 wireless customers in FY20, driving its subscriber base to 1.8 million. Meanwhile, its ABPU and ARPU continued to improve. Shaw Communications expects its adjusted EBITDA to improve in FY21 and projects to deliver approximately $800 million in free cash flows.
Shaw Communications’s strong fundamentals, investment in infrastructure, smart pricing and packaging, and lower net debt leverage ratio positions it well to deliver healthy growth in 2021 and boost its shareholders’ returns.
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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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends ALTAGAS LTD., NORTHWEST HEALTHCARE PPTYS REIT UNITS, and PEMBINA PIPELINE CORPORATION.