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 Income Stocks
Before we jump into the best Canadian companies that pay a monthly dividend income, let’s review the full list. The best options available do not always mean they fit your portfolio.
When you look across the TSX, there aren’t many companies outside REITs that pay a monthly dividend. However, I did some of the leg work and below is a list of all the monthly dividend stocks tracked with the Dividend Snapshot Screener.
Best Monthly Dividend Stocks
Considering the limited options, I picked the top 3 stocks outside of REITs that can provide both stock appreciation and 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.
Investment Data- Opportunity Score: 55
- Ticker: TSE:NPI
- Sector: Utilities
- Industry: Utilities - Renewable
- Market Cap: 8.55B
- P/E: 24.18
- Dividend Yield: 2.84%
- Payout Ratio (Earnings): 68.57%
- Canadian Dividend Aristocrat: NO
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
- Dividend Growth Fit: 3/10
- Dividend Income Fit: 5/10
Pembina Pipeline
Pembina 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- Opportunity Score: 61
- Ticker: TSE:PPL
- Sector: Energy
- Industry: Oil & Gas Midstream
- Market Cap: 17.92B
- P/E: 20.13
- Dividend Yield: 7.79%
- Payout Ratio (Earnings): 156.52%
- Canadian Dividend Aristocrat: YES
- Chowder Score: Members Only
- Revenue Growth: Members Only
- Dividend Growth: Members Only
- Dividend Growth Fit: 6/10
- Dividend Income Fit: 6/10
Shaw Communications
Shaw 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- Opportunity Score: 50
- Ticker: TSE:SJR.B
- Sector: Communication Services
- Industry: Telecommunication Services
- Market Cap: 8.94B
- P/E: 16.73
- Dividend Yield: 5.35%
- Payout Ratio (Earnings): 89.77%
- Canadian Dividend Aristocrat: NO
- Chowder Score: Members Only
- Dividend Growth: Members Only
- Dividend Growth Fit: 2/10
- Dividend Income Fit: 5/10