One of the absolute best aspects of investing is collecting dividends. These are like rewards or a holiday gift that keeps on delivering on a set schedule. Most stocks typically pay out every quarter, but there are some (my favourite Canadian stocks, you might say) that pay monthly dividends.
Here’s a look at those favourite Canadian stocks that do pay monthly dividends.
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Be a landlord, but skip the mortgage.
It’s hard not to think about owning a rental property when mentioning a monthly income. For many years, that was the go-to for investors.
Unfortunately, prices and interest rates have priced many would-be landlords out of the market.
That’s where RioCan Real Estate (TSX: REI.UN) can help. RioCan is one of Canada’s largest REITs, with a focus on retail and mixed-use residential. The company’s nearly 200 properties are scattered around the country, focused on major metro markets.
In short, investing in RioCan offers investors an opportunity to be a landlord but without the mortgage, hefty down payment, or tenant. It’s also considerably lower risk when compared with owning a single rental property.
And perhaps best of all, RioCan lets investors become landlords by collecting that monthly distribution. As of the time of writing, that juicy dividend pays out an impressive 6% yield.
This handily makes RioCan one of my favourite Canadian stocks paying monthly dividends.
Have you gone grocery shopping lately?
Grocers represent one of the best and often dismissed defensive options on the market. Picking the right grocery stock for your portfolio can provide defensive appeal, income generation, and growth.
Enter Slate Grocery REIT (TSX: SGR.UN).
As its name suggests, Slate is a grocery-anchored REIT. The company boasts an impressive portfolio of over 110 sites across the U.S., particularly in metro markets.
Not only does this check the box on defensive investment, but it also provides some growth appeal as well. In fact, prospective investors can look at Slate as the REIT version of a utility stock.
The REIT defensive base provides a necessity that generates a stable, recurring revenue stream. That revenue, in turn, allows Slate to pay out a juicy monthly distribution. As of the time of writing, the yield works out to an insane 8%.
That easily makes Slate one of my favourite Canadian stocks that pay monthly dividends (or in this case, distributions)
Here’s a well-diversified pick to consider
Exchange Income Corporation (TSX: EIF) rounds out the list of favourite Canadian stocks that pay monthly dividends. Exchange is an acquisition-focused company that owns over a dozen subsidiaries.
Those subsidiaries are grouped into manufacturing and aviation segments that are, in many ways, complementary to each other.
This includes flight schools, medevac and passenger service to remote northern regions on the aviation side, and custom services for different sectors on the manufacturing side.
Both segments have something in common. They generate cash for the company and also serve in segments of the market where there is limited, if any, competition. This niche factor helps fund Exchange’s dividend.
As of the time of writing, Exchange boasts an impressive 3.6% yield. Adding to that appeal is the fact that Exchange has provided annual bumps to that monthly dividend in 17 of the past 20 years.
This handily makes Exchange one of the favourite Canadian stocks for those seeking monthly dividends.
What are your favourite Canadian stocks?
The trio of investments listed above can provide investors with a tasty, growing income that can last for decades. They can also provide the needed growth to supercharge any portfolio over the long term by reinvesting those monthly dividends.
In my opinion, one or all of the above would be a great addition to any larger, well-diversified portfolio.
Buy them, hold them, and watch your future income grow.
