Most dividend payers on the Toronto Stock Exchange pay quarterly, but some companies entice investors with high yields and monthly payouts. These cash cows include Chemtrade Logistics Income Fund (TSX: CHE.UN), A&W Royalties Income Fund (TSX: AW.UN), and Automotive Properties (TSX: APR.UN).
Industrial products and services
Chemtrade is a top name in the chemicals industry and well-known as a generous income provider. At $7.84 per share, the dividend offer is a lucrative 8.46%. Given the low 39.5% payout ratio, the monthly payouts should be safe. A $7,000 investment will generate $49.35 monthly.
The $918.6 million company provides chemical products used in major industries. Its two strategic business segments, Sulphur & Water Chemicals and Electrochemicals, bring in the revenues. Chemtrade is one of North America’s largest suppliers of Industrial Sulphuric Acid.
Chemtrade is a strong buy following its record full-year 2023 results. In the 12 months ending December 31, 2023, revenues and cash flow from operating activities rose 1.8% and 8.7% to $1.9 billion and $401.5 million, respectively, compared to 2022. But the main highlight was the $249.3 million net earnings, representing a 123.5% year-over-year increase.
Its President and CEO, Scott Rook, anticipates another successful year in 2024. He also looks forward to completing and commissioning the expansion and upgrade of Chemtrade’s ultrapure sulphuric acid facility in Cairo, Ohio.
Restaurants
A&W is an iconic brand in the restaurant industry. The $455.2 million royalties income fund owns the A&W Marks and franchises A&W hamburger quick service restaurants in Canada. If you invest today ($31.21 per share), you can partake in the lucrative 6.2% dividend.
The business is steady, as evidenced by the 2023 financial results. A&W’s full-year royalty income climbed 5.3% to $55 million versus 2022, while net income declined 1.8% year over year to $40.7 million. Notably, restaurants in the royalty pool increased to 1,037 from 1,015 a year ago.
A&W Food Services’ President and CEO Susan Senecal notes the 2.7% Royalty Pool Same Store Sales Growth in Q4. She intimated that the continued patronage of customers will help A&W restaurants to grow and be in a better position to withstand the risks in the current economic conditions.
Real estate
Automotive Properties is a niche player in the real estate sector. The real estate investment trust (REIT) owns automotive dealership properties in Canada. The property portfolio consists of 77 income-producing properties. As of this writing, the share price is $10.27, while the dividend yield is 7.81%.
This growth-oriented REIT benefits from the solid underlying fundamentals of the Canadian automotive retail industry. Its CEO, Milton Lamb, said Automotive Properties maintains resiliency because of the triple-net lease structure with fixed and consumer price index-linked annual increases.
In the first three quarters of 2023, rental revenue and net operating income (NOI) increased 11.7% and 10.8% year over year respectively to $69.2 million and $58.7 million. Lamb adds that the leases with CPI-linked adjustments will generate same property NOI growth.
Diversified portfolio
Dividend investing is an excellent strategy if the objective is to create passive income streams or augment active income. Since Chemtrade, A&W, and Automotive Properties belong to different sectors, you can build a diversified investment portfolio around them and spread the risks.
