Are you looking to earn extra monthly cash in Canada besides your regular income? If yes, you must try disciplined dividend investing, as it doesn’t require you to make heavy investments upfront.
A reliable source of passive income will add to your monthly savings, which can eventually help you get rich in the long run, especially when those savings are reinvested in some quality dividend stocks.
In this article, I’ll talk about one of the best Canadian dividend stocks you can buy now and hold as long as you want without worries.
A top Canadian stock with monthly dividends
Whether you are planning to invest your hard-earned money in a growth stock or a dividend stock, you should never ignore the underlying fundamental factors that can impact its business in the long run. While temporary economic scenarios might make a stock’s financial growth look very impressive in the short term, it can maintain this financial growth in the long term only if it can execute growth plans well and has a strong financial position to support such plans.
Based on this guideline, I find Mullen Group (TSX: MTL) to be a really attractive Canadian stock with monthly dividends to hold for years to come. Mullen, if you don’t know about it already, is a logistics company based in Okotoks, Alberta. The company primarily has four operating segments: less-than-truckload, logistics & warehousing, specialized & industrial services, and U.S. & international logistics. Out of these four segments, it generates most of its revenue from the less-than-truckload business segment.
After rallying by 57% in the previous three years combined, the shares of this Canadian logistics firm have declined by 6.6% in 2023 so far (as of September 19) to $13.59 per share. With this, it now has a $1.2 billion market cap and offers an annualized dividend yield of roughly 5.3%. Mullen Group distributes its dividend payouts every month, with its latest dividend of six cents per share paid to investors on September 15.
Now, let’s quickly look at other fundamental factors that make this monthly dividend stock worth holding for at least a decade.
Is this dividend stock worth holding for the long term?
Mullen Group primarily focuses on acquiring smaller logistics and warehousing companies and tries to improve their operating performance, eventually contributing positively to its financial growth. Interestingly, it has made more than 77 acquisitions since going public about three decades ago in 1993.
Most recently, it acquired the Bonnyville-based B&R Eckel’s Transport in May 2023. B&R Eckel’s Transport, which mainly operates in northeastern Alberta, has an annual revenue of $85 million and owns 400 power units along with 950 trailers.
Moreover, Mullen’s financial growth trends also look impressive. Despite the slowing global economy and inflationary pressures, the company reported a solid 116% year-over-year increase in its adjusted annual earnings in 2022 with the help of a strong double-digit rise in revenue. Given its consistent focus on more acquisitions, you can expect the financial growth of this Canadian monthly dividend-paying company to keep improving in the long term, making it worth considering buying now and holding forever.
