Making an extra $1,000 a month in dividends can make a huge difference to a budget. For those who are looking for that amount to cover daily expenses, that $1,000 could help cover groceries or a few monthly bills.
For investors who aren’t ready to begin drawing on that income, $1,000 a month in dividends represents a way to reinvest those dividends for huge long-term gains.
Fortunately, there are more than a few investments on the market that can help reach that monthly dividend goal. Here’s a look at three that can reach that goal.
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Enbridge offers stable, growing dividends
Enbridge (TSX: ENB) is a familiar name for most income investors. The company is one of the largest energy infrastructure companies on the planet.
Enbridge generates the bulk of its revenue from its large oil and natural gas pipeline network. The company also operates a regulated natural gas utility and a growing renewable energy portfolio.
Those businesses operate under regulated frameworks or long-term contracts, giving Enbridge a reliable and recurring source of revenue. That stability allows the company to invest in growth initiatives from its backlog and pay a quarterly dividend.
That quarterly dividend is the real reason why investors continue to turn to the stock. As of the time of writing, Enbridge offers a yield of 5.9%. The company also boasts three decades of consecutive annual increases to that payout.
RioCan offers monthly payments
The second option for investors looking to generate $1,000 a month in dividends is RioCan (TSX: REI.UN). The company is one of the largest REITs in Canada, offering a portfolio of retail properties located across Canada.
Those properties include some of the largest and most recognized businesses in Canada. That also includes essential retail properties that draw in recurring foot traffic and provide the REIT with a stable rental income stream.
Speaking of building a rental income stream, RioCan also has an impressive portfolio of mixed-use residential properties. Those properties, which include residential towers sitting atop several floors of retail, are situated along transit corridors in major metro markets.
The main draw of RioCan is the monthly distribution. As of the time of writing, RioCan offers a 5.7% yield, making it one of the more attractive options to build a portfolio generating $1,000 a month in dividends.
HDIV adds higher monthly income
Rounding out the three investments to help bring in those monthly dividends is the Hamilton Enhanced Canadian Covered Call ETF (TSX: HDIV). This ETF holds Canadian covered call ETFs that include many of the largest sectors in Canada, such as the financial and energy sectors.
The fund also applies a 25% cash leverage to increase investment exposure.
Covered calls can generate option premiums while limiting some upside on the investments covered by those contracts. Borrowing enhances gains and potentially losses.
In other words, this ETF can generate a higher income than the other investments mentioned above, but that comes with a higher risk. As of the time of writing, HDIV offers a yield of 9.4%.
Building $1,000 a month in dividends
The three investments mentioned above all play a part in generating $1,000 a month in dividends. And more importantly, each investment offers some growth appeal to complement the income they generate.
Here’s how to hit that $1,000 monthly milestone on average across all three investments.
| Investment | Recent Price | Amount Invested | No. of Shares | Annual Payout | Annual Income | Frequency |
| Enbridge | $65.43 | $60,000 | 917 | $3.88 | $3,557.96 | Quarterly |
| RioCan | $20.39 | $60,000 | 2942 | $1.16 | $3,412.72 | Monthly |
| Hamilton Enhanced Canadian Covered Call ETF | $22.97 | $60,000 | 2612 | $2.15 | $5,615.80 | Monthly |
| Total | $12,586.48 | Monthly | $1,048.87 |
Prospective investors should note that you don’t need to start with a $180,000 investment. Smaller amounts can compound over time to eventually generate $1,000 a month in dividends.
