Buy These 4 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their stable cash flows, healthy growth prospects, and high dividend yields, these four dividend stocks could boost your passive income.

| More on:
edit Businessman using calculator next to laptop

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Amid the low interest rate environment, the returns on debt instruments have become unattractive. So, investors can buy monthly-paying dividend stocks to boost their passive income. Meanwhile, here are four stocks that are fundamentally strong and pay monthly dividends at healthier yields.

Pembina Pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) has been consistently paying a monthly dividend since 1997, thanks to its fee-based or take-or-pay contracts that generate stable cash flows. Since its inception, the company has distributed around $9.8 billion in dividends. Currently, the company pays a monthly dividend of $0.21 per share, with its forward dividend yield standing at an impressive 6.28%.

Meanwhile, the recovery in oil demand and higher prices could boost Pembina Pipeline’s financials in the coming quarters. The company is focusing on acquiring Inter Pipeline. The acquisition provides significant expansion opportunities along with savings due to the synergies between the two companies. Meanwhile, the company’s management expects the acquisition could increase its monthly dividend by $0.01 per share. So, Pembina Pipeline would be an excellent stock to have in your portfolio.

NorthWest Healthcare

NorthWest Healthcare Properties REIT (TSX:NWH.UN) is my second pick. The company operates diverse healthcare properties across seven countries. Given its high-defensive portfolio and long-term agreements with its tenants, the company enjoys high occupancy and collection rate. Its inflation-indexed rent and government-backed tenants provide stability to its financials.

Meanwhile, the company looks to expand its footprint and has recently raised around $200 million through a new equity offering. The company hopes to utilize the proceeds to acquire the Australian Unity Healthcare Property Trust, which owns a portfolio of 62 healthcare facilities and has a pipeline of $500 million projects. So, these initiatives could boost its cash flows, thus allowing the company to pay its dividend at a healthier yield. Currently, the company pays a monthly dividend, with its forward dividend yield standing at 6.15%.


Keyera (TSX:KEY) could be an excellent choice for income-seeking investors given its strong track record, healthier liquidity position, higher dividend yield, and favourable industry trends. Supported by its fee-for-service and take-or-pay contracts, the company has raised its dividend at a CAGR of 7% since 2008, with its forward dividend yield standing an attractive 5.78%.

Meanwhile, oil demand is rising amid the reopening of economies worldwide, which could benefit Keyera. The company plans to make a capital investment of $400 million this year, expanding its asset base. These investments and favourable industry trends could boost its financials in the coming quarters. Its liquidity position and payout ratio stood at $1.5 billion and 67%, respectively. So, I believe Keyera’s dividend is safe.

TransAlta Renewables

Amid the accelerated transition towards clean energy, I have selected TransAlta Renewables (TSX:RNW), which has significant exposure to renewable energy, as my final pick. The company operates diverse energy-producing facilities with a total capacity of 2.5 gigawatts. Its long-term contracts shield its financials from price and volume fluctuations, thus delivering stable cash flows.

These stable cash flows have allowed the company to raise its dividend at a CAGR of 3% since 2013. Meanwhile, the company currently pays a monthly dividend of $0.0783, with its forward dividend yield standing at 4.38%. Further, the company’s pipeline of projects looks healthy, with 2.9 gigawatts of power-generating facilities in the evaluation stages. So, given its healthy growth prospects, TransAlta Renewables is well equipped to continue paying dividends at a healthier rate.

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.

The Motley Fool recommends KEYERA CORP, NORTHWEST HEALTHCARE PPTYS REIT UNITS, and PEMBINA PIPELINE CORPORATION. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Dividend Stocks

energy oil gas
Dividend Stocks

2 High-Yield Energy Stocks to Buy as Recession Approaches

Energy stocks such as TC Energy and Canadian Natural Resources allow investors to generate income even in recessionary times.

Read more »

green power renewable energy
Dividend Stocks

3 Top Dividend Stocks to Drive Your Passive Income

These three high-yielding, safe dividend stocks could boost your passive income.

Read more »

protect, safe, trust
Dividend Stocks

TFSA Wealth: How to Earn $363 in Monthly Passive Income for Life

Canadian investors can harness the power of the TFSA to generate steady tax-free passive income for decades.

Read more »

Canadian Dollars
Dividend Stocks

TFSA Millionaire: How to Turn $40,000 Into $1.2 Million for Retirement

Here's how TFSA investors are using the power of compounding to buy top Canadian dividend stocks to build retirement wealth.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

My 3 Favourite TSX Stocks Right Now

These three TSX stocks are my favourite performers. All have strong dividends, future growth, and historic performance behind them.

Read more »

Dividend Stocks

Passive Income Generator: 1 Dividend Stock Yielding 6.16%

A high-yield energy stock that pays monthly dividends is a reliable passive income generator for investors.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Cheap Canadian Dividend Stocks to Buy Now for Passive Income

Investors seeking quality passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

While these high-quality dividend stocks are oversold, they are some of the best stocks to buy for passive-income seekers.

Read more »