4 Best Monthly Dividend Stocks To Buy Right Now


In a low interest rate environment, investing in high yielding monthly dividend stocks would be a great way to earn stable passive income. This article will take a look at four Canadian stocks that pay monthly dividends, with their returns currently above 5%.

Pembina pipeline

With its solid fundamentals, Pembina pipeline (TSX: PPL) (NYSE: PBA) has paid approximately $ 9.8 billion in dividends since 1997. Over the past 10 years, the company has increased its dividend at a CAGR of 4.9%, while its yield in term dividends currently stands at 6.56%.

It operates a highly contractual business, with over 90% of its Adjusted EBITDA generated through fee-for-service or outright purchase contracts, ensuring stable cash flow. Rising oil prices, improving asset utilization rates and a large backlog of growth projects could boost its finances in the coming quarters.

In addition, the Pembina pipeline is work on the closing of the acquisition of Inter-pipeline, which could create one of the largest infrastructure companies in Canada while achieving annual synergies of $ 150-200 million. The acquisition could increase its monthly dividends to $ 0.23 per share. So I think Pembina Pipeline would be a great buy right now.

Northwestern Health

Northwestern Health (TSX: NWH.UN) owns and operates 186 highly diverse healthcare facilities in seven countries. Despite the pandemic, the business has benefited from high occupancy and recovery rates, generating stable and predictable cash flows. This stable cash flow enabled the company to pay a monthly dividend at a healthy yield of 6.14%.

Its inflation-indexed rent, long-term contracts and government-backed tenants continue to boost its finances. Meanwhile, the company is looking to expand its presence in Australia and has signed a definitive agreement to acquire Australian Unity Healthcare Property Trust (AUHPT) for $ 2.6 billion. With a portfolio of 62 healthcare facilities and buildings, a high occupancy rate of 98% and a weighted average lease term of 16 years, AUHPT could significantly improve the finances of NorthWest Healthcare.

Pizza Pizza Royalty

The pandemic has hit the restaurant industry hard. however, Pizza Pizza Royalty (TSX: PZA) fared better than its peers due to its highly franchised business model and investment in improving digital channels. Its stock price is trading more than 16% higher for this year, outperforming the broader stock markets.

Meanwhile, the uptrend in the company’s stock price may continue. Amid widespread vaccination and a decline in active cases, Canadian provincial governments may ease some restrictions in the coming months, allowing catering companies to operate their catering facilities. Investing in digital channels could also continue to drive sales in the post-pandemic world. Thus, the outlook for Pizza Pizza looks healthy. The company also pays a monthly dividend, with its forward yield currently standing at 6.18%.

Keyera

My final choice would be Keyera (TSX: KEY), an integrated energy infrastructure company, which derives approximately 70% of its free cash flow from long-term contracts. This stable cash flow has enabled the company to increase its dividend at a 7% CAGR since 2008. Currently, it pays monthly dividends of $ 0.16 per share, which represents a forward dividend yield of 5. , 72%.

Meanwhile, the recovery in demand and economic expansion are pushing the demand for oil and, in turn, its prices upwards, which benefits Keyera. The company plans to invest between $ 400 million and $ 450 million in growth initiatives this year, helping its financial growth. Considering its stable cash flow, a sustainable payout ratio of 67% and a healthy liquidity position of $ 1.5 billion, I think Keyera’s dividend is secure.

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This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

Motley Fool owns stock and recommends PIZZA PIZZA ROYALTY CORP. Motley Fool recommends KEYERA CORP, NORTHWEST HEALTHCARE PPTYS REIT UNITS and PEMBINA PIPELINE CORPORATION. Foolish contributor Rajiv Nanjapla has no position in any of the stocks mentioned.


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