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

Investing in Enbridge Income Fund TSE:ENF is a side play on TSE:ENBNYSE:ENB Enbridge 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

Shaw Communications TSE:SJR.BNYSE: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

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:PPLNYSE: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.

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: 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 investment decisions at your own risk – see my full disclaimer for more details.

Image courtesy of ddpavumba /