Monthly Dividend Stocks With High Yields

Many Canadian dividend stocks pay quarterly dividends and you may find their payment dates in the Canadian dividend calendar. This can lead to some months with bigger dividend payments and some months with smaller or very little dividend payments. By coincidence, we’d an extremely stable monthly dividend income from 2016 to 2018. But this stable monthly dividend income went away as we added increasingly more quarterly payers. As a result, our monthly dividends within the last year or two have been lumpier. Depending on your position, some investors may prefer a more regular monthly dividend income rather than lumpy dividend payments. These investors often look for Canadian dividend stocks that pay monthly dividends rather than quarterly dividends. Fortunately, there are numerous Canadian dividend stocks that pay monthly dividends, including lots of the Canadian REITs. What exactly are among the better Canadian monthly dividend stocks? Let’s find out.

Canadian monthly dividend stocks

Most Canadian dividend stocks pay quarterly dividends. So Canadian monthly dividend stocks are slightly rare, but that doesn’t mean they don’t exist. Below are a few of the Canadian monthly dividend stocks, including REITs and income trusts.

Please note, this isn’t a special list since it’s very difficult to undergo the complete TSX and TSX Venture to choose all the stocks that pay monthly dividends.

Best Canadian monthly dividend stocks

Out of the 65 Canadian monthly dividend stocks in the above list, what exactly are my top 10 picks of the greatest Canadian monthly dividend stocks? For my picks, I used the following selection criteria – dividend yield, dividend safety, dividend growth, dividend streak, and future growth.

  1. Pembina Pipeline (PPL.TO)

Pembina Pipeline is a respected UNITED STATES energy infrastructure company with diverse and integrated assets, situated near commercial establishments to serve world-class geology. The business is highly integrated with midstream services and transportation of crude oil, condensate, NGL’s and gas across North America. Visit this website to get more insight, Canadian monthly dividend stocks

Many investors are drawn to Pembina as a result of high dividend yield and the monthly dividends. One thing to keep in mind is that PPL currently has negative earnings per share. If we go through the company’s free cashflow per share payout ratio, the free cashflow does cover the dividends during writing. I also want to notice that Pembina kept their dividends over the last year and didn’t cut their dividends, unlike some Canadian energy stocks such as Suncor and Inter Pipeline.

With a higher initial yield and a single-digit dividend growth, Pembina falls under the high yield low growth dividend stocks. Whether Pembina is a good choice for you will be based upon your investment timeline.

  1. SmartCentre REIT (SRU.UN)

SmartCentres REIT is one of Canada’s major fully integrated REITs, with a portfolio featuring 168 situated near commercial establishments properties in communities in the united states. The company has $10 billion in assets and owns 34.2 million square feet of income producing value-oriented retail space with an industry-leading occupancy rate of 97.3%, on 3,500 acres of owned land across Canada.

Unlike its competitors like RioCan REIT, SmartCentre REIT had kept its dividend payout throughout the pandemic and didn’t cut its distributions. This shows SmartCentre has good tenants that continue to pay rent despite the hard time.

Walmart is a major tenant for SmartCentre REIT with 73% of its properties anchored by Walmart and even more than 25% of revenue from Walmart. Why did I mention Walmart? Stability. As you might have noticed, once a Walmart location is opened, it typically stays there for a long time. It is rather unusual for Walmart locations to close.

While the dividend growth rate is suprisingly low, it is compensated by the bigger than normal initial yield. I think SmartCentre REIT is a great pick if you want to get into the retail REIT space.

  1. First National Financial Corp (FN.TO)

When you think about mortgages, you typically first think of Canadian banks as lenders. You may be surprised to discover that there are other lenders out there apart from the banks.

First National Financial Corp is one of Canada’s major non-bank mortgage lenders, offering both commercial mortgages and residential mortgage solutions. Launched in 1988, First National is continuing to grow into more than 1500 associates with five regional offices in Vancouver, Toronto, Calgary, Montreal, and Halifax.

In 2020, First National served over 342,000 Canadians in either commercial or residential mortgages, a rise of 10% from 2019. Mortgage under administration (MUA), the foundation of almost all of FN’s earnings, was over $118 billion in 2020.

Potential investors will be delighted to hear that over 75% of the MUA are insured with 19% of single-family residential and 6% of multi-residential and commercial are uninsured.

  1. Savaria Corporation (SIS.TO)

Savaria Corporation is a worldwide leader in accessibility. The business manufactures products and modifications such as stairlifts and wheelchair conversion kits that help people maintain their personal mobility, whether it’s in the house, in a public space, or in a car. As the common Canadian population ages, Savaria is in a great position to take advantage of the ageing population.

What makes Savaria very interesting from a monthly dividend income viewpoint is the high dividend growth rate. The business comes with an eight-year dividend increase streak with a 15-year dividend growth rate of 21.5% and a 10-year dividend growth rate of 18.7%. The dividend growth rate has “slowed” right down to a still impressive 17.8% within the last three years. However the one-year dividend growth rate is only 7.7%, I believe this was a result of the global pandemic. With a free of charge cashflow payout ratio of 52%, the business can continue to raise its dividends at an extraordinary rate after the pandemic economic uncertainties are over.

Quite simply, if you need to categorize Savaria, it could fall under the reduced yield but high growth dividend stock category. I really believe long-term investors will be rewarded holding Savaria.

  1. Chartwell Retirement (CSH.UN)

Chartwell Retirement Residences is an unincorporated, open-ended real estate trust which indirectly owns and operates an entire selection of senior housing communities, from independent supportive coping with assisted living to long-term care. It is the major operator in the Canadian senior living sector with over 200 retirement communities in BC, Alberta, Quebec, and Ontario.

The COVID-19 pandemic has put a strain on Chartwell however the company has emphasized keeping the residents and their own families safe. Actually, 96% of the residents and 95% of the members of the family that responded to Chartwell’s “Listening to Last Better” survey explained that they felt Chartwell took important steps to keep them safe throughout the pandemic. 94% of the family have stated that themselves were safe living at a Chartwell residence.

Exactly like Savaria, I really believe Chartwell will benefit from the ageing Canadian population and continue to grow its dividends.

  1. Northland Power (NPI.TO)

Northland Power is a power producer focused on developing, building, owning, and operating clean and green global power infrastructure assets in Asia, Europe, Latin America, THE UNITED STATES, and other selected global jurisdictions.

The company’s facilities procure electricity from clean-burning gas and renewable resources such as wind, solar, and efficient gas. Unlike many renewable companies, Northland Power is mostly of the Canadian utility companies that pay a monthly dividend.

Founded in 1987, the company currently has a well-diversified portfolio with over 3 GW of operating capacity. The company has a target of reaching 4 – 5 GW of renewable energy capacity by 2030. However the dividend payout increase has not been great, the stock price has been on an extraordinary tear with a 5-year return of 77.9%.

Being truly a Taiwanese-Canadian, I was interested to note that Northland has an integral wind project, Hai Long, in Taiwan. This project is situated 40-50 km off the western coast of Taiwan and can generate 1,044 MW of electricity.