Establishing a stable and recurring dividend income stream is the dream of every single investor. Fortunately, the market gives us plenty of great options to make the dream of cashing in dividends every month come true.
Here’s a look at some of the great stocks to invest in, and how much to invest to get dividends every month.
You want a stable income earner that can offer growth
There’s no shortage of monthly dividend stocks on the market, but Exchange Income Corporation (TSX: EIF) is one option that stands apart from the rest.
Exchange is an acquisition-focused company that boasts a portfolio of subsidiaries that span two broad segments. Those segments include aviation and manufacturing companies.
The interesting thing about Exchange is that all of those subsidiaries (and there are over a dozen of them) have two unique elements in common.
First, they all generate cash for the company. This provides Exchange with a reliable (and growing) revenue stream that allows it to invest in additional growth opportunities and pay a handsome dividend.
The second point is that those subsidiaries operate in unique niche parts of the market – more specifically, where there is a strong demand for the subsidiary’s products and services, but limited, if any competition in that segment.
Examples of this include passenger and freight services to Canada’s remote north regions on the aviation side. On the manufacturing side, the list includes custom manufacturing solutions for the defence industry as well as window-wall systems used in buildings across the continent.
In terms of income, Exchange offers a juicy 5.7% yield. This means investors who drop $40,000 into the stock will generate dividends every month of almost $190.
This stock gives you a monthly income you can rely on.
Buying a rental property is one of the tried-and-tested ways to establish a monthly income stream. Unfortunately, rising rates and the high price of real estate has priced out many would-be investors.
Instead of owning a property, an alternative to generate juicy dividends every month is investing in RioCan Real Estate (TSX: REI.UN).
RioCan is one of the largest REITs in Canada, with a massive portfolio of sites located primarily in major metro markets across the country. In recent years, RioCan has added more mixed-use residential properties into its property mix.
And that is where the opportunity for investors looking for dividends every month lies.
The mixed-use residential properties are located in high-traffic metro markets, where demand is high. Additionally, they comprise both residential and commercial retail units, making RioCan a great option for long-term growth.
And perhaps best of all, RioCan provides investors with a monthly distribution, much like a landlord collecting rent. As of the time of writing, RioCan boasts a juicy 6.3% yield.
This means that a similar $40,000 investment will generate dividends every month of $210.
Power up your portfolio (and income)
One final pick to consider buying right now is Northland Power (TSX: NPI). Northland is a renewable energy company with assets not just in Canada, but also in Europe and Latin America.
Renewable energy companies like Northland generate a reliable revenue stream that is backed by long-term regulated contracts. That reliable revenue stream allows Northland to invest in growth and pay out a generous dividend. This also makes Northland a defensive addition to any well-diversified portfolio.
In terms of income, Northland offers a monthly dividend with a respectable 5.1% yield. This means that a $40,000 investment in Northland will generate $170 in dividends every month.
Generate a cool $500 in dividends every month
Investors looking to generate dividends every month of $500 (or more) can handily invest in the three companies mentioned above. Not only do they all offer a juicy yield, but also offer growth and some defensive appeal too.
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Exchange Income Corporation | $46.40 | 862 | $2.64 | $189.64 | Monthly |
| RioCan Real Estate | $17.53 | 2,281 | $1.11 | $210.99 | Monthly |
| Northland Power | $23.51 | 1,701 | $1.20 | $170.10 | Monthly |
