Best Monthly Canadian Dividend Stocks

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.

Complete List of Monthly Dividend Stocks

Before we jump into the best monthly dividend companies, let’s review the complete list. The best options available do not always mean they fit your portfolio. Make sure you do your research.

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. Note that the tax treatment between income trusts and corporation is different as one pays a distribution and the other pays a dividend.

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 some possible dividend growth.

Northland Power

Northland Power is a power producer that develops, builds, owns, and operates clean and green power infrastructure assets in Canada, Europe, and other global markets. As one of Canada's first independent power producers, Northland Power has global operating facilities generating over 2.6 GW of electricity, with an additional 130 MW of generating capacity under construction and 1,100+ MW in the project pipeline.

Northland has in-house development, plant design, financing, and operations capabilities. The company has a long track record of more than three decades in the business of producing electricity from natural gas and renewable energy sources. The company is highly diversified by assets and technologies i.e. thermal (40%), wind (55%), and solar (5%). It has over $10 billion of high-quality power generating assets in operation. Northland has operations in North America, Europe, Latin America, and Asia. Its large geographical footprint provides ample opportunities in leading markets. Northland’s operating segments are offshore wind (accounting for 60% of 2019 revenues), thermal (25%), on-shore renewable (13%), and other (2%).

Investment Data

Pembina Pipeline

PPL - Pembina PipelinePembina Pipeline is a leading midstream and transportation service provider in North America. The company is known for providing safe and cost-effective transportation solutions since the last six decades. The company offers a wide range of midstream and marketing services to the energy sector. It owns an extensive network of pipelines that transport crude oil, natural gas and natural gas liquids produced primarily in western Canada. It also runs gathering and processing facilities and an oil and natural gas liquids infrastructure business.

Pembina owns a large asset base consisting of pipelines and facilities, which is difficult for newcomers to replicate. As a leading energy infrastructure company, Pembina serves multiple basins and markets throughout Canada and the US. The company has 19 gas processing facilities and 6 billion cubic feet per day of net gas processing capacity. Pembina owns and operates an 18,000 km pipelines with a total capacity of 3 million barrels of oil equivalent per day.

Investment Data

Shaw Communications

SJR.B - Shaw CommunicationsShaw Communications is a leading network company and one of the largest providers of residential communication services in Canada. The company serves 3.2 million subscribers, including 1.9 million internet and more than one million Shaw home phone customers. It owns an extensive network of 860,000 kilometers long fiber network providing data networking, video, voice, and Internet services to companies of all sizes. Shaw Communications has a presence in both wireline (80% of revenue) and wireless (20%) segments. The wireline division consists of consumer and business services. The wireless division provides wireless voice and data services through its mobile wireless network infrastructure. Shaw Communications operates through a large hybrid fiber-coax networks and an expanding wireless retail distribution infrastructure in collaboration with retail partners like Walmart and Loblaws. Its strategic partnership with industry leaders like Comcast, Nokia and Cisco and seamless connectivity experience are its strong competitive advantages.

Investment Data

Build Your OWN Top List

My portfolio is generating over 12% annual returns since 2009. It's not from the beginning of the year or from 2019, it's from 2009 !!! That's a consistent return which means using the rule of 72, I double my portfolio every 6 years. My approach is simple but you need key data that I have cultivated with the Dividend Snapshot Screeners. No other investment services provide you with easy to understand data but also actionable data. No hidden magic. In fact, I have tried all of the investment services for dividend investors like a crash test dummy of investment services. Just ask me, and you'll learn why there was nothing I could use out there and build the Dividend Snapshot Screeners.

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.
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