Monthly Income Mastery: How to Build a $37,300 Portfolio for Endless Cash Flow

Two dividend stocks with impressive dividend track records can provide endless monthly cash flows.

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Dividends are rewards offered by publicly listed companies to people who own their stocks. Some people invest in dividend stocks to augment their regular income. For retirees with stock investments, dividends are their regular income in addition to pensions. The good thing with the stock market is that there’s no discrimination on income opportunities.

Anyone can master the art of dividend investing, build a portfolio, and receive cash flows for years. However, not all dividend stocks are created equal, mainly in yield and payout frequency. While most TSX dividend stocks pay quarterly, Chartwell Retirement Residences (TSX:CSH.UN) and Chemtrade Logistics Income Fund (TSX:CHE.UN) pay monthly dividends.

Both companies are reliable monthly cash flow providers, as evidenced by their dividend payment histories. Chartwell has been paying monthly dividends since December 2003, while Chemtrade Logistics never missed one since August 2001.

Build a portfolio for endless cash flow

If you combine the two stocks in your portfolio today, the average dividend yield is 6.365%. Given their share prices, you can accumulate 1,470 shares ($17,698.80) of Chartwell and 2,275 (19,610.50) of Chemtrade. The total investment of $37,309.30 will produce $200.13 in monthly cash flows. Moreover, the principal remains intact if you continue to hold the stocks.

Back to normal operations

Chartwell is renowned in Canada’s retirement residence industry. The $2.9 billion indirectly owns and operates seniors housing communities, from independent living to assisted living and long-term care (LTC). The global pandemic badly hurt its business, resulting in significant declines in income in 2020 and 2021.

However, Chartwell slowly recovered financially in 2022, and the business returned to normalcy in 2023. In the 12 months ending December 31, 2023, resident revenue increased 4% to $687.3 million, while net income soared 159% year over year to $128.3 million.

Chartwell’s chief executive officer (CEO), Vlad Volodarski, expects continuing occupancy and cash flow growth in 2024 and beyond. At $12.04 per share (+4.04% year to date), this real estate stock pays an attractive 4.96% dividend.   

Cash cow

Chemtrade is a cash cow on the TSX. At $8.62 per share (+3.15% year to date), the industrial stock pays a generous 7.77% dividend. The $1.01 billion company provides industrial chemicals and services globally. In North America, Chemtrade is the largest producer of high-purity sulphuric acid for the semiconductor industry and one of the largest suppliers of sulphuric acid.

Two core business segments, Sulphur & Water Chemicals (SWC) and Electrochemicals (EC), contribute to revenues. In 2023, revenue increased by only 1.8% to $1.85 billion versus 2022 due to a weaker Canadian dollar. However, net earnings jumped 128.5% year over year to $249.3 million.

Another business highlight was the improved balance sheet at year-end. Chemtrade’s total debt declined 24.3% from the start of the year to $672 million. Its president and CEO, Scott Rook, said it was a record year and that management anticipates another solid year financially in 2024.

The expansion and upgrade of Chemtrade’s ultrapure sulphuric acid facility in Cairo, Ohio, should be complete this year. This plant will be the first in North America to meet the quality requirements for next-gen semiconductor nodes.

Sound prospects

Chartwell and Chemtrade are sound prospects for investors building a solid stock portfolio paying monthly dividends.

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 Christopher Liew 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.

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