What’s better than collecting a juicy dividend? Collecting that dividend every month. Prospective investors seeking monthly dividend stocks are in luck. There’s plenty of options on the market to choose from.
Here’s a look at three of those monthly dividend stocks for investors to buy and hold forever. A diversified mix of monthly payers can help stabilize income and reduce reliance on any single sector.
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Start with a diversified pick
The first of the monthly dividend stocks to buy is Exchange Income Corporation (TSX:EIF), an acquisition-focused company that owns over a dozen subsidiary companies.
Those subsidiaries are divided between manufacturing and aviation verticals. This structure gives Exchange a durable, multi-stream cash engine that supports long-term income stability.
Across both of those verticals, the subsidiaries have some commonalities.
First, they both cater to a specific necessity, operating in an area where there is limited, if any, competition. Examples of this include operating passenger and cargo services to the remote regions of Canada’s north on the aviation side.
On the manufacturing side, Exchange offers unique custom manufacturing solutions that cater to the defense sector, as well as cell tower fabrication services.
Those subsidiaries also generate free cash for the company. This allows Exchange to continue investing in new acquisitions and paying out its generous monthly dividend.
This not only makes Exchange one of the monthly dividend stocks to consider owning, but also a diversified pick for any portfolio.
As of the time of writing, Exchange offers a yield of 3.1%. Exchange continues to provide annual bumps to that dividend, including 18 hikes in the past two decades.
Throw in some real estate (without the mortgage)
Owning a rental property is one of the best ways to establish a passive income stream. Unfortunately, the rising price of real estate and interest rates have priced many would-be landlords out of the market.
That’s where owning RioCan Real Estate (TSX:REI.UN) as part of a portfolio of monthly dividend stocks can help. RioCan is one of the largest REITs in Canada, with a portfolio of approximately 200 properties.
Those properties are located around Canada’s major metro markets, and the REIT has, in recent years, focused on mixed-use residential developments. Those properties are located along transit corridors. This makes them in-demand options for those seeking shorter commute times.
For prospective investors, investing in RioCan can provide a recurring monthly income. As a monthly payer, RioCan offers a hands-off alternative to traditional rental income without the operational headaches.
As of the time of writing, RioCan offers a monthly distribution of 5.9%.
Would you invest in a grocery REIT?
REITs are great investments for generating a recurring income stream. They are also some of the best monthly dividend stocks on the market, owing to the lucrative business model that they adhere to.
But what about a REIT tied to a defensive business, and not just the real estate? That’s where the unique appeal of Slate Grocery REIT (TSX:SGR.UN) comes into focus.
Slate is a grocery-anchored REIT that boasts a portfolio of over 110 properties located in the U.S. market. Those sites are situated in major metro markets where traffic and demand remain high.
The appeal of a grocery REIT is huge. Apart from the traffic draw, Slate benefits from its diversified tenant list, which includes some of the largest names in grocery and retail.
Adding to that appeal is that those properties often contain secondary tenants, such as doctors’ offices, restaurants, banks, and pharmacies.
The result is a cash-generating business that provides a stable source of monthly income for investors.
And that monthly distribution currently offers a tasty 7.5% yield. This not only makes Slate one of the best payers on the market, but a must-have for any investor seeking monthly dividend stocks.
Buy these monthly dividend stocks today, earn income tomorrow
Slate, RioCan, and Exchange all offer investors different ways to establish a monthly income stream. That being said, all three options boast growth and defensive appeal to add to that juicy income.
In my opinion, one or all should be part of any larger, well-diversified portfolio.
