2 Stocks That Cut You a Cheque Each Month

Plenty of stocks pay juicy dividends, but few can cut you a cheque each month. Here are two that do that and offer plenty of growth.

| More on:
Payday ringed on a calendar

Image source: Getty Images

Adding dividend-paying stocks to your portfolio can be a source of income that can span years. There’s no shortage of dividend-paying stocks on the market, but only a few can attest to being able to cut you a cheque each month.

Here’s a look at two superb dividend stocks that cut you a cheque each month.

Generate an income and get some diversification

Exchange Income Corporation (TSX:EIF) is a great monthly dividend stock that should be on the radar of all investors. Exchange is acquisition-focused. The company currently owns over a dozen subsidiary companies that broadly fall under the aviation and manufacturing segments.

A unique aspect of those subsidiary companies is that they generate free cash for Exchange. They also cater to unique segments of the market. More specifically, they are segments of the market where there is a necessity and demand but limited, if any, competition.

Prime examples of these include providing passenger and cargo air service to Canada’s remote north. On the manufacturing side, an example would be constructing cell tower infrastructure.

The cash generated by those companies helps Exchange offer investors a very juicy monthly dividend. As of the time of writing, the yield works out to an impressive 5.5%.

To put that income into perspective, let’s consider an investor with $25,000 to drop in Exchange. That investor can look to generate a monthly income of just over $115. It’s also worth noting that Exchange has provided an annual uptick to that dividend 16 times across the past 19 years.

And that’s not all. The company has seen impressive growth over the years, fuelled by that aggressive stance on expansion. In the preceding decade, the stock has nearly doubled, but it’s a more recent snapshot that investors should take note of.

Year to date, Exchange is down over 14%. This makes it a great discounted investment if you’re looking for a stock that can cut you a cheque each month.

All the income, less of the risk

One of the most tried-and-tested ways to establish a monthly income stream is through a rental property. Unfortunately, sky-high interest rates are making that a harder option for many investors.

Fortunately, there is another option available thanks to RioCan Real Estate (TSX:REI.UN). RioCan is one of the largest REITs in Canada, with a sprawling portfolio of nearly 200 sites. Most of those sites are situated in and around Canada’s major metro areas.

The opportunity for would-be landlord investors comes in the form of RioCans mixed-use portfolio. Those properties comprise of residential towers sitting atop several floors of retail. The properties are also situated in high-traffic areas along transit lines, making them in-demand options to consider.

And more importantly, those units generate a revenue stream for RioCan, which in turn allows it to provide investors with a very tasty monthly distribution. As of the time of writing, the monthly payout carries a yield of 6%, making it one of the better-paying options on the market.

It also means that investors with $25,000 to invest in RioCan can expect a monthly income of just shy of $125. Would-be landlords should note that investment is considerably less than a downpayment, and doesn’t require tenants or property taxes.

If that’s not reason enough to consider letting RioCan cut you a cheque each month, then there’s something else to note.

Like much of the market in 2023, RioCan is currently trading at a 14% discount. This makes it an ideal time to buy a superb stock for long-term gains.

Will you let these stocks cut you a cheque each month?

All stocks, even the most diversified carry some risk. Fortunately, Exchange and RioCan offer some defensive appeal. Exchange operates a well-diversified network of subsidiaries that generate cash. And RioCan operates a growing portfolio of increasingly mixed-use properties.

Both offer monthly payouts and both have significant long-term appeal. In my opinion, one or both would do well as part of a larger, well-diversified portfolio.

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 Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

grow dividends
Dividend Stocks

2 Unloved TSX Dividend Stocks That Could Soar in 2024

These top TSX dividend stocks look cheap right now.

Read more »

TFSA and coins
Dividend Stocks

3 TFSA Stocks I’m Eyeing for My 2024 Contribution

In 2024, I'll be adding dividend stocks like Brookfield to my account.

Read more »

TFSA and coins
Dividend Stocks

Canada Revenue Agency: 1 Crucial TFSA Change You Need to Be Aware Of

The TFSA contribution limit is out for 2024 and has increased to $7,000, raising the cumulative contribution room to $95,000.

Read more »

money cash dividends
Dividend Stocks

3 Passive-Income Streams That Will Take You to the Next Level

These passive-income streams do not take a second more of your time. Focus on your day job and look forward…

Read more »

retirees and finances
Dividend Stocks

Retirees: How to Earn $5,500 Per Year in Passive Income Without Putting OAS at Risk

Retirees can use this strategy to boost tax-free income while lowering portfolio risk.

Read more »

edit Women wearing red sweater shopping online and using credit card at home office
Dividend Stocks

How to Create Enough Passive Income to Fund Your Holiday Shopping

Passive income isn't hard work when you find the right methods, and you can create so much cash holiday shopping…

Read more »

green power renewable energy
Dividend Stocks

The Smartest Canadian Stocks for Steady Passive Income

Trying to find reliable passive income and capital upside? Check out these 3 smart stocks for steady long-term returns.

Read more »

Volatile market, stock volatility
Dividend Stocks

My Top No-Brainer, High-Yield Dividend Stock to Buy in 2023

Pizza Pizza Royalty would be an excellent buy, given its stable cash flows and high dividend yield.

Read more »