Inflation rose to its highest level in a decade in the month of July, rising to 3.7%. This trend has put a tremendous strain on Canadian consumers. The topic has made its way into the federal election, but no party appears to have concrete answers to ease up pressure on consumers. Instead of waiting for political action, Canadian investors should look to stash monthly dividend stocks that can help make up ground in this regard. Today, I want to look at two of my favourite income-yielding equities that pay out monthly distributions and offer yields of at least 6%. Let’s dive in.
Here is a real estate-focused dividend stock that boasts a mouth-watering yield
Inflation is not the only political football that has been bandied about during the federal election. Canada’s housing market has become an area of concern for policy makers. Earlier this month, I’d discussed why no party has offered solutions that will lead to a significant change.
Bridgemarq Real Estate (TSX:BRE) is an Ontario-based company that provides services to residential real estate brokers and realtors across the country. Shares of this housing-focused dividend stock have climbed 12% in 2021 as of close on September 13. The stock is up 30% from the prior year.
The company released its second-quarter 2021 results on August 10. Revenue rose 22% from the prior year to $14 million. Distributable cash flow was reported at $6.4 million — up from $3.7 million in the second quarter of 2020. This dividend stock offers a monthly distribution of $0.1125 per share. That represents a monster 8.1% yield.
Stash this healthcare REIT that offers big monthly income
The COVID-19 pandemic has illustrated the importance of healthcare facilities since the beginning of 2020. Healthcare real estate is a fantastic defensive play right now. Last November, I’d discussed why Northwest Health REIT (TSX:NWH.UN) was one of my favourite REITs. This REIT provides investors access to a global portfolio of high-quality healthcare real estate.
Shares of Northwest Health REIT have climbed 7.4% in the year-to-date period. The stock is up 17% from the prior year. In Q2 2021, revenue was largely flat at $90.1 million. Meanwhile, it improved its cash collection to 98.8% — up 20 basis points from the previous quarter. Moreover, it delivered strong portfolio occupancy of 96.7%. Total assets under management climbed 20.9% from the second quarter of 2020 to $8.3 billion. Adjusted funds from operations was reported at $43.2 million — up from $35.5 million in Q2 2020.
This dividend stock still possesses an attractive P/E ratio of 9.2. Northwest REIT last paid out a monthly distribution of $0.067 per share. That represents a tasty 6% yield.
Both monthly dividend stocks can provide some relief, as Canadian consumers find themselves under pressure. These conditions will likely persist, as the federal government presses forward with loose monetary policy to combat the impacts of the COVID-19 pandemic. Investors need to prepare accordingly.
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 Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.