Establishing a recurring income stream each month is something that every investor hopes to achieve. And surprisingly, it’s not as hard as it may seem to reach a goal of $500 in dividends every month, provided you invest in the right stocks.
To help get you to that goal, here are some investments to consider today that can get you $500 in dividends every month. Okay, so then what are the investments to buy that can get you $500 in dividends every month?
Generate a monthly income stream, just like a landlord
Let’s start with RioCan Real Estate (TSX: REI.UN).
One of the most established means of getting a monthly income stream is through owning a rental property. Unfortunately, that appeal has dimmed in the past few years thanks to rising home costs, increasing mortgage requirements, and massive interest rate hikes.
In other words, the entry cost and then the risk of owning a rental property make ownership out of reach for many. But that’s where RioCan can help.
RioCan is one of the largest REITs in Canada. The company operates a portfolio of retail, commercial, and mixed-use residential properties focused on Canada’s metro markets. That latter group, mixed-use residential, is where investors looking for $500 in dividends every month will want to look.
For investors, it represents a lower-risk investment that can still offer a monthly payout. Also, that risk is spread out over dozens if not hundreds of units. As of the time of writing, RioCan offers investors a juicy 5.6% yield that is paid out monthly. For investors with $40,000 to invest, that works out to a monthly income of just over $180 each month.
A well-diversified investment
Most investors may not know Exchange Income Corporation (TSX: EIF), but it’s a name that is hard to forget. Exchange operates a dozen subsidiaries that can be classed into one of two categories, aviation or manufacturing.
In short, those subsidiaries generate cash for the parent company, which in turn comes back in the form of a juicy dividend (more on that in a moment). But what makes Exchange an appealing option that can provide $500 in dividends each month? That comes down to the unique advantage shared by those subsidiary companies.
Specifically, they all provide a necessary service or serve communities in a capacity whereby there is little, if any competition. This makes them in-demand operations that can focus on growth and income generation.
In terms of income, Exchange offers investors a tasty 5.43% yield. This means a $40,000 investment will generate a monthly income of nearly $180.
Power up your portfolio
Another intriguing option to consider is Northland Power (TSX: NPI). Northland operates a growing portfolio of renewable infrastructure facilities across Asia, Europe, North America, and Latin America.
Renewable energy is a fast-growing segment of the market, and Northland’s facilities currently include natural gas, wind, and solar elements. That’s not all. The push by governments around the world to cut emissions and steer away from fossil fuels presents a once-in-a-generation opportunity for investors.
In terms of income, Northland offers a monthly dividend with a yield of 4.98%, which is distributed on a monthly cadence.
You can get $500 in dividends every month
All investors, whether seasoned pros or new to investing, should know that establishing a healthy income stream, like the $500 in dividends noted above, takes time and investment capital. It’s also worth noting that all investments, even the most defensive pick on the market, carry some risk.
That’s why an important hallmark of every portfolio is to diversify your investments across a broad section of the market. This allows your portfolio to weather market volatility, which is to be expected throughout any investment lifetime.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| RioCan Real Estate | $19.91 | 2009 | $1.08 | $180.81 | monthly |
| Exchange Income Corporation | $46.74 | 855 | $2.52 | $179.55 | monthly |
| Northland Power | $24.82 | 1611 | $1.20 | $161.10 | monthly |
In my opinion, one or all of the above stocks would do well as part of a larger, well-diversified portfolio, and, yes, you can get $500 in dividends each month.
