Get Unbelievable Monthly Income With High-Yield Dividend Stocks

Dividend stocks like Exchange Income Fund (TSX:EIF) pay out every month.

| More on:
Payday ringed on a calendar

Image source: Getty Images

The only thing better than a dividend stock is a stock that pays dividends every month. For people who live off their investments, a monthly stream of cash flows is essential. Unfortunately, most stocks don’t offer frequent payouts and even the ones that do offer a low yield. 

With that in mind, here are the top three high-yield dividend stocks that can offer monthly payments. 

Dividend stock #1

Winnipeg-based Exchange Income Fund (TSX:EIF) is a unique dividend opportunity. The company acquires and manages niche service providers in the airline sector. Now, the airline sector has uttered over the past year, but companies under the EIF umbrella haven’t been impacted much. That’s because these subsidiaries focus on essential cargo transport such as base metals, medical equipment, water cleaning systems, and fire evacuation. 

In other words, the stock is immune to the pandemic and detached from the rest of the economy. It’s an uncorrelated income opportunity. 

EIF stock currently trades at a price-to-earnings (P/E) ratio of 26 and offers a 5.5% dividend yield. That dividend is paid out every month. The dividend is also expanding. Since 2004, the company has boosted the annual dividend payout 14 times. 

This monthly dividend stock should certainly be on your radar now that the stock market is more volatile. 

Dividend stock #2

Atrium Mortgage Investment (TSX:AI) is another unique dividend stock. Unlike real estate investment trusts that acquire properties, Atrium acquires mortgages. That means the company generates steady income from mortgage payments without the operational expenses of managing real estate. 

Atrium stock is up 64% since early 2020. Despite that rally, the stock is still undervalued. It trades at a P/E ratio of 14.5 and offers a dividend yield of 6.45%. This dividend is paid out on the 12th day of every month. Because of the company’s corporate structure, it needs to pay 100% of its net cash flow to shareholders in the form of dividends. That’s why the yield is so high. 

However, a mortgage investment company is exposed to some interest rate and real estate risks. Investors should keep these risks in mind if Atrium’s remarkable dividend is on their radar. 

Dividend stock #3

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another robust dividend stock that should be on your radar. The company operates one of the country’s largest energy supply networks. Its oil and gas infrastructure was built over multiple years and is now a crucial part of the supply chain. 

This year, demand for natural gas and oil is expected to hit historic levels. That’s good for Pembina’s bottom line. It also puts a floor on the company’s monthly dividend payouts. Pembina currently offers a 6.4% dividend yield. Shareholders can expect this dividend to be paid out on the 15th of every month. 

The dividend rate has surged 61% over the past 11 years. That’s a compounded annual growth rate of 4.4%. In other words, this dividend stock is growing faster than the country’s economy. It’s an ideal target for a long-term investor seeking a safe bet. 

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 Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.

More on Dividend Stocks

Hands holding trophy cup on sky background
Dividend Stocks

The 3 Best Dividend Stocks to Buy Before June 2022

The recent market correction has created some great opportunities to pick up top-quality dividend stocks. Here are three to buy…

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

Retirees: 3 Stocks to Stash for Your Retirement

Canadian can ensure financial stability in the sunset years by forming a formidable portfolio of retirement wealth builders.

Read more »

calculate and analyze stock
Dividend Stocks

Down by 27%: Should You Buy Magna International (TSX:MG) Stock Today?

This top auto parts maker stock is down by a considerable margin, and it could make for a good value…

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Top Canadian Dividend Stocks to Buy and Hold for the Long Term

These Canadian companies have been paying dividends for more than four decades and have been consistently growing the same.

Read more »

edit Safety First illustration
Dividend Stocks

How to Generate Inflation-Proof Passive Income

Inflation-resistant, passive-income stocks like Enbridge (TSX:ENB)(NYSE:ENB) should be on your list.

Read more »

Increasing yield
Dividend Stocks

Dividend Chasers: 3 Stocks With Yields of 8% or More

Three TSX stocks are appetizing for investors whose strategy is to chase after dividend beasts.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

Become a Laidback Landlord Easily With Canadian REITs

Do you want to continue earning rental income but reduce your workload? You should dig deeper into REIT investing!

Read more »

data analyze research
Dividend Stocks

Stocks for Beginners: 3 Reliable Dividend Stocks to Buy Now

The best time to start investing is in a market correction. If you are a new investor, here are three…

Read more »