How to Build a Canadian Portfolio That Pays You Monthly

If you like monthly income, this mix of five real estate, industrials, and energy stocks can pay you attractive monthly dividends.

Key Points
  • Top Picks for Monthly Dividend Portfolios: Consider diverse industries like real estate, energy, and industrials for monthly dividend-paying stocks to build a steady income portfolio.
  • Strong Monthly Dividend Stocks in Real Estate and Industry: Granite REIT and Chartwell Retirement offer attractive yields with strong occupancy and growth potential, while Exchange Income Corporation diversifies with robust aviation and industrial operations.
  • Transportation and Energy Dividend Opportunities: Mullen Group is set to benefit from a stabilizing freight market, and Surge Energy capitalizes on high oil prices for strong cash flow, providing appealing yields for investors.

Canada has several stocks that pay dividends monthly. Monthly dividends tend to come from sectors like real estate, energy, industrials, and royalties. If you are trying to build a portfolio of stocks that pay you monthly dividends, these five diverse stocks are some of the best you will find.

Colored pins on calendar showing a month

Source: Getty Images

A top industrial REIT for monthly distributions

Granite Real Estate Investment Trust (TSX: GRT.UN) is one of the best quality REITs in Canada. It has logistics and manufacturing properties across Canada, the U.S., and Europe. These are ideal properties for modern commerce applications.

Consequently, the REIT has very high occupancy (over 98%) and long-term leases (average term over five years). Granite has a strong balance sheet and a very attractive capital structure. It has behaved in a very shareholder-friendly manner with 15 years of consecutive dividend increases.

GRT.UN pays a $0.30 per unit monthly distribution. After a recent pullback, it yields 4.2%.

A top retirement housing company

Chartwell Retirement Residences (TSX: CSH.UN) is one of the next most interesting real estate stocks in Canada. With over 30,000 units, it is the largest retirement community provider in Canada.

Canada is aging. A tidal wave of baby boomers are entering retirement and looking to downsize their homes. They are also looking for community, care, and lifestyle optionality. Chartwell caters perfectly to this demographic.

It should win from organic growth, strong leasing fundamentals, and a steady stream of acquisitions and developments entering its portfolio.

Chartwell pays a $0.05 per unit monthly distribution. It yields 3.1% today.

A top Canadian industrial stock

If you want to look outside of real estate, Exchange Income Corporation (TSX: EIF) is a great Canadian stock. This is a very diverse company. It operates aviation, aerospace, manufacturing, and industrial businesses.

It is very well positioned to benefit from Canada’s infrastructure and defence investment boom. Exchange has been delivering solid double-digit growth in the past couple of years.

This Canadian stock pays a $0.24 per share monthly dividend. EIF stock yields 2.3%. It has a great history of increasing its dividend annually.

A top Canadian transport stock

Mullen Group (TSX: MTL) is a major transportation and logistics provider across Canada and the U.S. Its diversified operating strategy has proved resilient through a tough freight environment over the past few years. It has used the recession to opportunistically acquire several quality businesses.

There are signs that the freight environment is starting to right-size. Mullen could be primed to see a nice increase in earnings as its operations normalize.

This Canadian dividend stock pays a $0.07 per share monthly dividend. That equals a 3.1% dividend yield today.

A top energy stock for monthly income

The last Canadian stock I’d look at for monthly dividends is Surge Energy (TSX: SGY). This company produces around 24,000 barrels of oil per day in western Canada.

With 89% of its production oil, it is generating very strong free cash flows while oil prices trade over $80 per barrel. With 16 years of proved reserves, it still has a long runway to keep generating solid returns. The oil producer has a solid balance sheet and a low payout ratio supporting its attractive dividend.

It pays a $0.04 per share monthly dividend. This oil stock yields 4.7% today.

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mullen Group. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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