Need a Last-Minute Valentine’s Day Gift? This Dividend Stock Will Make You Fall in Love

This dividend stock could be the perfect gift that literally keeps on giving this Valentine’s Day.

| More on:
edit Balloon shaped as a heart

Image source: Getty Images.

Valentine’s Day is practically here, and I’m sure there are many (and I mean many) people out there who have forgotten about a gift. However, there are also likely many of us out there who just really cannot afford it this year.

We’re no longer living in the times of plenty of cash on hand, with little cash to spare. Inflation and interest rates have seen to that. Yet if you truly want to show your true love you care, I would nix the flowers and chocolates that will be gone within a week.

Instead, consider a dividend stock as the gift that keeps on giving — literally.

Get started

To get started, it’s time to set up a Tax-Free Savings Account (TFSA). And what’s more, go to the bank and help your loved one set up a TFSA! This is the best and easiest way to create cash flow for the long term. However, it also allows you to create cash flow that you can take out at any time — tax free!

So, let’s say that you can’t afford that $200 dinner (who can?). Instead, if you’re in a long-term committed relationship, you could offer to make monthly contributions. These could be automated contributions each month you don’t even have to think about.

And let’s be honest, if you’re offering say $20 per month, that’s easier on your wallet, sure. But guess what? They get more in the long run. At $20 per month, you’re offering $240 for them to start investing! And if you choose the right investment, that could turn into even more almost immediately.

Consider a monthly dividend stock

If you really want to show your loved one you care, consider a dividend stock that provides monthly dividend payments. But this won’t mean your list of dividend stocks will be short. What’s more, it also doesn’t mean it will be less risky.

This is why you’ll want to consider a few things. First, invest in something that you understand. Don’t just buy a popular dividend stock just because everyone is talking about it. Instead, look at sectors that make sense to you.

From there, look at management! You should be able to see who the chief executive officer has been over the last few years. If there’s a lot of turnover, that could be a red flag. But if you see a stock that’s been showing incredible growth in the last few years, all while under the same leadership, this could be an easy win.

A solid choice

So, if you’re looking for a solid monthly-paying dividend stock, then I would consider a company such as Secure Energy Services (TSX:SES). SES stock is a waste management company that’s gained an incredible 29% in the last year alone. However, on top of that, the stock has gained 1,018% since the fall of 2020!

At just $10.51 per share as of writing, the dividend stock offers a 3.81% yield right now. That also, as mentioned, comes out monthly. While that may be near its fair-value estimate, it remains a solid business that is only likely to grow stronger in the years to come.

As for management, the company has had the same chief executive officer for almost two decades under Rene Amirault. He’s seen the company through difficult times and seems to be able to manage the most difficult. Further, the company’s president, Allen Gransch, could be the key behind recent growth coming on in 2022. So, if you’re looking for the right gift, SES stock could be the one for you.

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 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

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

REITs with modest amounts of debt, like Killam Apartment REIT (TSX:KMP.UN), can be good investments.

Read more »

Technology
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

Some of the smartest buys investors can make with $500 today are stocks that have upside potential and pay you…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Dividend Stocks to Buy in April for Safe Passive Income

These TSX Dividend stocks offer more than 5% yield and are reliable bets to generate worry-free passive income.

Read more »

protect, safe, trust
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $1,000

If you've only got $1,000 on hand, that's fine! Here is how to make a top-notch, passive-income portfolio that could…

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

CPP Insights: The Average Benefit at Age 60 in 2024

The average CPP benefit at age 60 in average is low, but claiming early has many advantages with the right…

Read more »

thinking
Dividend Stocks

Why Did goeasy Stock Jump 6% This Week?

The spring budget came in from our federal government, and goeasy stock (TSX:GSY) investors were incredibly pleased by the results.

Read more »

woman analyze data
Dividend Stocks

My Top 5 Dividend Stocks for Passive-Income Investors to Buy in April 2024

These five TSX dividend stocks can help you create a passive stream of dividend income for life. Let's see why.

Read more »

investment research
Dividend Stocks

5 Easy Ways to Make Extra Money in Canada

These easy methods can help Canadians make money in 2024, and keep it growing throughout the years to come.

Read more »