Looking 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 Canadian 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.
Shaw CommunicationsTSE: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?Investment Data
- Opportunity Score: 46%
- Ticker: TSE:SJR.B
- Sector: Communication Services
- Industry: Communication Services
- Market Cap: 14.00B
- P/E: 31.37
- Dividend Yield: 4.34%
- Dividend Payout Ratio: 136.21%
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 Pipeline 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.
- Opportunity Score: 72%
- Ticker: TSE:PPL
- Sector: Energy
- Industry: Oil & Gas - Midstream
- Market Cap: 24.29B
- P/E: 21.26
- Dividend Yield: 5.04%
- Dividend Payout Ratio: 107.14%
- FFO Payout Ratio: Dividend Snapshot Members Only
- FCF Payout Ratio: Dividend Snapshot Members Only
- Chowder Score: Dividend Snapshot Members Only
Other Monthly Income Stocks
When you look across the TSX (Toronto Stock Exchange), there aren’t many companies that actually pay a 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.
- Pembina Pipeline TSE:PPL
- Inter Pipeline Ltd TSE:IPL
- Keyera Corp TSE:KEY
- AltaGas TSE:ALA
- Arc Resources TSE:ARX
- Vermillion Energy TSE:VET
- Enerplus Corporation TSE:ERF
- Boyd Group Income Fund TSE:BYD.UN
- Enercare Inc. TSE:ECI
- Cineplex TSE:CGX
- First National Financial Corporation TSE:FN
- Mullen Group Ltd TSE:MTL
- Freehold Royalties Ltd TSE:FRU
- Chemtrade Logistics TSE:CHE.UN
- CES Energy Solutions TSE:CEU
- Badger Daylighting Ltd TSE:BAD
- Chorus Aviation Inc. TSE:CHR
- Exchange Income Fund TSE:EIF
- Ag Growth International TSE:AFN
- Alaris Royalty Corp TSE:AD
- Extendicare TSE:EXE
- Bonterra Energy Corp. TSE:BNE
- Bird Construction Inc. TSE:BDT
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.