2 Dividend Stocks With Over 8.5% Yields That Pay Cash Every Month

There are many dividend stocks out there offering value, even with monthly payouts! But these two are the best, in my opinion.

| More on:
Payday ringed on a calendar

Image source: Getty Images

Imagine you had a second job where you didn’t have to do anything. You can just laze around as you watch cash come in each and every month. This is what it’s like when you invest in passive-income dividend stocks that offer monthly dividends.

Right now, there are so many of these companies offering great deals. In fact, some of them trade so low that they offer dividends nearing double digits!

That’s why today, I’m going to recommend two dividend stocks with yields above 8.5%. These companies are strong and in essential services, providing investors with long-term growth. Not to mention growth coming out of this current downturn. Meanwhile, you can look forward to passive income every single month.

Slate Grocery REIT

Slate Grocery REIT (TSX:SGR.UN) is involved with the acquisition, ownership and leasing of its grocery-anchored retail properties. These are located around the United States, offering diversified revenue from these revenue-producing commercial real estate properties.

It continues to be a strong buy recommendation by analysts, mainly because of this range of properties all anchored to essential services. These proved valuable during the pandemic and continue to prove valuable today.

Yet Slate stock currently trades at just 4.75 times earnings! Shares are down 19% in the last year, as of writing as well as 13% year to date. So, you can therefore get a huge deal on this stock that’s bound to bounce back, while it currently offers a dividend yield at 8.79%. This comes out at $1.17 annually, or $0.0975 per share each month.

NorthWest REIT

We need to eat, and that’s why Slate stock is a great option. But we will also always need healthcare. Although the types of treatments may change, the properties where our health is treated won’t. That is why NorthWest Healthcare Properties REIT (TSX:NWH.UN) is another solid option for long-term holders.

Despite being a strong buy recommendation from its diversified portfolio, it’s of huge value today. The company maintained strength during the pandemic and continues to expand as well. Over the last few years, it’s made billions in acquiring healthcare properties around the world. This also included a healthcare real estate investment trust in Australia.

But NorthWest stock continues to trade in value territory at 0.821 times book value. Shares are 41% in the last year and 15% year to date, as of writing. So, again, you can bring in a huge bargain with this stock that continues to average lease agreements at 14 years! That’s over a decade of guaranteed income that can be passed on to investors.

NorthWest stock currently holds a dividend yield at 9.88%, coming out as $0.80 per year. That comes to $0.0667 per share on a monthly basis.

Bottom line

There are a lot of stocks trading in value territory, even some other monthly dividend stocks. But given that we will need to eat and have our health looked after, these two dividend stocks certainly look like strong long-term options for investors to consider today — especially while dividend yields remain above 8.5% for shareholders, passing out dividends each and every month!

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.

More on Dividend Stocks

Dividend Stocks

Is BCE Stock Still a Top Telecom Investment in Canada?

Canada’s telecoms can provide growth and income in a defensive shell. Let’s see if BCE is still a top telecom…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

2 Canadian Dividend Stocks I’ll Be Buying Hand Over Fist in June 2023

These two beaten-down Canadian dividend stocks could help you earn handsome returns on your investment in the long term if…

Read more »

edit Close-up Of A Piggybank With Eyeglasses And Calculator On Desk
Dividend Stocks

If You’d Invested $10,000 in Loblaw Stock in 2012, Here’s How Much You’d Have Today

Loblaw stock had a crazy decade, with many huge moves. This could have created wealth from a $10,000 investment, but…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive Income: How to Make $90 Per Month Tax Free

You can add this amazing Canadian monthly dividend stock to your TFSA now to generate $90 in tax-free monthly passive…

Read more »

A golden egg in a nest
Dividend Stocks

Investing for Retirement? Check Out These Dividend-Paying Stocks in Canada

Dividend-paying stocks like First National Financial are on sale in June 2023.

Read more »

The sun sets behind a high voltage telecom tower.
Dividend Stocks

Fortis Stock Is a Steady Dividend Player for Your Energy Portfolio

You can rely on Fortis stock for growing dividend income. Aim to buy the stock on market corrections to boost…

Read more »

Path to retirement
Dividend Stocks

Investing for Retirement? These Dividend Stocks Can Help You Get There

TD Bank and Brookfield Renewable Partners are two solid dividend-growth stocks to hold for decent total returns through retirement.

Read more »

Happy family father of mother and child daughter launch a kite on nature at sunset
Dividend Stocks

Parents: Here’s How to Boost Your Monthly Income

Parents, you have enough to worry about. But if you can put aside even $40 per month, that can create…

Read more »