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.
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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.
