3 Dividend Stocks to Buy for $500 in Monthly Income

If you want cash now, these three dividend stocks can provide you with over $500 in monthly income starting today.

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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.

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.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENT
PEY$11.821,518$1.32$2,004monthly$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.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENT
NWH.UN$9.662,505$0.80$2,004monthly$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.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENT
SGR.UN$14.731,743$1.15$2,004monthly$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.

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 Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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