Best Monthly Dividend Stocks

Monthly Dividend StocksLooking for monthly dividend stocks? To start with, don’t be fooled by all the monthly income products such as BMO Monthly Income Fund or TD Monthly Income Funds. A lot of your money is spent on the MER (Management Expense Ratio) when you buy these products. You are already behind before you invest…

Monthly dividend stocks are your best bet for a solid and dependable monthly income with REITs as an alternative option. Even then, not all monthly income stocks are equal. Many of those stocks were income trusts and have switched to corporations and continued with monthly dividend payments.

Best Monthly Dividend Stocks

There are not many options to start with but I picked the top 3 stocks outside of REITs that can provide stock appreciation and dividend growth.

Enbridge Income Fund – TSE:ENF

Investing in Enbridge Income Fund (TSE:ENF) is a side play on Enbridge (TSE:ENB) considering it owns 90% of ENF. The fund started trading publicly in 2003 and is designed to hold a diverse portfolio of long-lived, highly reliable energy infrastructure assets yielding predictable cash flows for its investors.

Fact Sheet

  • Opportunity Score: 61%
  • Stock Price: $32.08
  • 52 Week Ratio: 70.87% ($24.32 – $35.27)
  • Market Capitalization: $3.91B
  • P/E: 15.80
  • Dividend Yield: 5.82%
  • 10 Year CAGR Dividend Growth: 5.76%
  • Sector: Energy

Stock Appreciation

ENF - Monthly Income Stock

EPS vs Dividend Growth

ENF - EPS vs Dividend Growth

Shaw Communications – TSE:SJR.B, NYSE:SJR

Shaw Communications (TSE:SJR.B, NYSE:SJR) operates mostly on the west coast of Canada and has recently purchased Wind Mobile to expend in the mobile business to compete with the other 3 big three (TSE:BCE, TSE:RCI.B and TSE:T). Shaw’s main competitor is currently Telus but they are about to embark and compete in the mobile space. See earning growth on the horizon?

Fact Sheet

  • Opportunity Score: 57%
  • Stock Price: $26.17
  • 52 Week Ratio: 64.41% ($22.55 – $28.17)
  • Market Capitalization: $12.93B
  • P/E: 22.56
  • Dividend Yield: 4.53%
  • 10 Year CAGR Dividend Growth: 22.54%
  • Sector: Communication Services

Stock Appreciation

SJR.B - Monthly Income Stock

EPS vs Dividend Growth

SJR.B - EPS vs Dividend Growth

Pembina Pipelines – TSE:PPL, NYSE:PBA

Not many companies that converted from an income trust structure went on to not only maintain their dividend rate per month but also grow it. Since 2010, Pembina Pipelines managed to increased their dividends every year. Unfortunately, it has a high dividend payout ratio and is probably not priced right.

Pembina Pipelines (TSE:PPL, NYSE:PBA) has strategically positioned infrastructure in active and emerging oil- and NGL-rich plays connected to refineries and export pipelines. Their pipeline network covers 9,100 km across western Canada.

PPL Pipeline

Fact Sheet

  • Opportunity Score: 33%
  • Stock Price: $39.68
  • 52 Week Ratio: 91.17% ($26.05 – $41.00)
  • Market Capitalization: $14.91B
  • P/E: 35.75
  • Dividend Yield: 4.84%
  • 10 Year CAGR Dividend Growth: 5.54%
  • Sector: Energy

PPL - Monthly Income Stock

EPS vs Dividend Growth

PPL - EPS vs Dividend Growth

Other Monthly Income Stocks

When you look across the TSX (Toronto Stock Exchange), there aren’t many companies that actually pay monthly dividend once you exclude all of the REITs. Below is a list of all the monthly dividend stocks I track.

Before you jump on a monthly stock, I recommend you find out if they converted from an income trust and establish whether or not the dividend can be maintained. Hopefully by now, the dividends probably reflect the earnings as opposed to the funds from operations otherwise it makes your research a little harder. The list below includes many of the new corporations that were previously income trusts and continued to pay monthly dividends.

The best options available do not always mean they fit your portfolio. Make sure you do your research.

Disclaimer: I do own ENF at the time of writing. See my holdings for a full list. Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your decision at your own risk – see my full disclaimer for more details.

Image courtesy of ddpavumba – FreeDigitalPhotos.net

3 Responses to "Best Monthly Dividend Stocks"

  1. Would you know what’s up with Shaw Communications (SJR.B)? They last raised their dividend with their Mar 30, 2015 paydate and have declared the same dividend through at least the Nov 29, 2016 paydate. That’s 21 months and counting since the last increase.

    Reply
    1. @Bernie
      Sorry, not sure what’s up with the Shaw dividend. The purchase of Wind Mobile may have an impact on their cash flow. I suspect they will do the small increase to stay in the Dividend Aristocrats or keep it flat since it’s allowed for 1 year.

      Reply
  2. I appreciate all the information, it was well knowledgeable. I’m a forex trader and I want to move to options now. I’ve been reading, and learning more about options everyday. Can you please help me where I can get better information about equities and Canadian equities that are new to the market or in business. I’m trying to invest with companies that have potential growth and have great track even when the market suffers. Any links or places where I can learn more? Thank you.

    Sincerely,

    Kevin Manrrique

    Reply

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