Is your portfolio diversified? There are plenty of superb picks on the market for all investors. But for those seeking a reliable monthly income stream, there are several great picks every investor should note that pay out monthly.
Here’s a duo of options for those seeking a reliable monthly income stream, starting next month.
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Would you invest in a grocer?
Some of the best stocks on the market are those that we interact with daily. Often, these provide necessary services to us, such as utilities and telecoms. That’s part of the reason why I like calling them everyday stocks.
And it’s these everyday stocks which are often overlooked by investors who take them for granted. That’s a shame because they can provide a reliable monthly income.
Enter Slate Grocery REIT (TSX: SGR.UN), which is a perfect example of that appeal.
Slate is a U.S.-anchored grocery real estate investment trust (REIT) with a portfolio of over 110 properties. Groceries are incredibly defensive investments that generate a recurring, reliable revenue stream, not unlike the stable revenue generated by a utility stock.
Prospective investors should note that Slate’s portfolio includes many of the largest names in retail among its tenants. Adding to that, those properties often include smaller, secondary stores. This includes banks, pharmacies, restaurants, and doctors’ offices.
In short, Slate is a well-diversified option that generates a reliable and recurring revenue stream. And that revenue stream permits the REIT to pay out one of the best distributions on the market.
That reliable monthly income distribution currently works out to a standout 8.19%.
To put that into perspective, let’s consider a $7,000 investment. For that initial outlay, investors can expect to earn nearly $50 each month. Even better, investors who aren’t ready to draw on that income can opt to reinvest those distributions, allowing them to continue growing into a larger, reliable monthly income stream.
That fact alone should put Slate near the top of any income seeker’s list of stocks to buy.
Generate a reliable monthly income from over a dozen subsidiaries
Picking one reliable monthly dividend stock to provide income is great, but even better is the company that owns over a dozen profitable subsidiaries that contribute to that dividend.
Enter Exchange Income Corporation (TSX: EIF) as the must-have stock for reliable monthly income.
Winnipeg-based Exchange is an acquisition-focused company that owns subsidiary companies that are broadly classed into two categories: Aviation and Manufacturing.
Both segments offer a variety of different companies, all of which uniquely cater to specific niche segments of the market with high demand yet limited competition.
Key examples of this include providing passenger and cargo service to Canada’s remote northern regions on the aviation side. Turning to manufacturing, examples of the niche offerings include custom manufacturing serving the defence sector, as well as cell tower fabrication services.
In short, those subsidiaries strike the perfect balance between catering to a necessity and generating cash.
As a result, Exchange can offer investors a respectable monthly dividend. As of the time of writing, that reliable monthly income stream boasts a yield of 3.51%.
That means a $7,000 investment in Exchange will generate just under $250 each year. Also note that Exchange has provided annual upticks to that dividend for nearly two decades without fail.
This makes the stock a great buy-and-forget pick for any portfolio.
Reliable monthly income awaits!
Both Exchange and Slate offer investors an opportunity to invest in great stocks that can provide growth and income-earning capabilities that last for decades.
A small position in one or both should be part of any well-diversified portfolio.
