If you’re looking for fixed income these days, then of course you’re looking at dividend stocks as some strong options. But there is a sea of dividend stocks, and it can be quite difficult to swim through.
So today, I’m going to offer up the three best dividend stocks I would consider right now. Each trades at a cheap price, and offers substantially high yields. All together, you can create $500 in monthly income starting right now.
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Peyto
A great option to include among your dividend stocks today is Peyto Exploration & Development (TSX: PEY). Peyto stock trades well within value territory at just 5.9 times earnings as of writing. Shares are quite cheap in every respect, trading at just $11.82 right now.
Shares of Peyto stock are also up by about 17% in the last year alone, and climbing. So it could be a good time to pick up the stock on the rebound. Finally, you can pick up an insanely high 11.47% dividend yield on the TSX today – which is, no doubt, why it’s such a strong option among dividend stocks right now.
If you’re going to make $167 each month from Peyto stock to contribute to your $500 per month, here’s how much you would need to invest on the TSX today.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL ANNUAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
| PEY | $11.82 | 1,518 | $1.32 | $2,004 | monthly | $17,945 |
NorthWest REIT
If you’re looking at dividend stocks, then you’ve also probably come across real estate investment trusts (REIT). Yet of them all, NorthWest Healthcare Properties LP (TSX:NWH.UN) is one of the best options out there. Healthcare properties don’t depend on a recession or consumption. And the company has an average lease agreement of 14 years, with a 97% occupancy rate as well.
Shares trade at just 8.3 times earnings on the TSX today, at $9.66 per share. Yet, those shares are down 24% in the last year alone, so it’s due for a recovery in the near future. Finally, you can pick up a dividend yield at 8.28% as of writing.
If you’re going to make $167 each month from NorthWest stock, here’s how that would add up on the TSX today.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL ANNUAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
| NWH.UN | $9.66 | 2,505 | $0.80 | $2,004 | monthly | $24,198.30 |
Slate Grocery
Finally, another area of the real estate market that’s solid is grocery stores. Slate Grocery REIT (TSX: SGR.UN) is an excellent option then, proving it can handle a pandemic, a downturn, and anything else the world throws at it.
Yet, it still trades in value territory, with shares trading at just 5.2 times earnings as of writing! It offers up a 7.80% dividend yield as well for investors to consider. Shares are up 2% in the last year, so there is definitely some room to grow for this stock as well.
Here’s how to make that final $167 per month from Slate stock on the TSX today.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL ANNUAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
| SGR.UN | $14.73 | 1,743 | $1.15 | $2,004 | monthly | $25,674.39 |
So, for a total investment of $67,817.69, these three dividend stocks can produce over $500 in monthly passive income starting today.
