Are you trying to smooth out monthly dividend income? While many high dividend stocks pay in certain quarterly cycles, (most notably – February, May, August, and November), unfortunately, those monthly bills keep coming don’t they? It would certainly help to have dependable high-yield dividends hitting your account every month.
We’ve added quite a few monthly high dividend stocks to various sections of our High Dividend Stocks By Sector Tables over the past few months. Interestingly, a lot of these stocks are based in Canada, where they were founded as royalty trusts a few years ago.
Since they are foreign-based, these stocks will give your portfolio some diversification vs. your US-based holdings, but they will also give you currency exposure. The Canadian Loonie is up 4.9% vs. the USD so far in 2016.
One of the other common factors in the monthly payers that we follow is that they are often Consumer Service-related, whether it be in real estate sales, financial services, or even in a more basic industry, such as restaurants.
Another common factor is that many of these monthly dividend paying stocks have maintained steady monthly dividends with the same monthly payouts over the past few years. These aren’t big dividend growth stories, but they have been very reliable sources of income for their shareholders.
However, while their monthly payouts may be steady in Canadian dollars, you’ll see some monthly variances in the payouts you receive in your US-based account each month, due to currency exchange fluctuations. The Loonie has had its ups and downs in 2016, due to western Canada’s exposure to the Energy industry. In addition, this summer’s wildfires in Alberta also put pressure on some stocks with operations in western Canada.
DirectCash Payments, (TO:DCI, OTC:DCTFF), provides switch and transaction processing services on automated banking machines (ATMs) and for debit and credit cards and related services. The Company operates in Canada, Australia, New Zealand, United Kingdom and Mexico.
SIR Royalty Income Fund, (TO:SRV_u, OTC:SIRZF), earns a 6% royalty income stream from a pool of restaurants owned by SIR Corp. The restaurants are primarily located in Ontario. SIRZF has been paying monthly dividends since 2004.
Brookfield Real Estate Services, (TO:BRE, OTC:BREUF), provides services to residential real estate franchisees and over 17,000 agents in Canada. Its brands include Royal LePage, Via Capitale and Johnston & Daniel. Approximately 72% of Company revenue is based on fees that are fixed in nature, with a recurring fixed revenue structure that generates stable, long-term cash flows and paying growing dividends to shareholders.
Current Prices and Dividend Yields:
You can track the current dividend yields, in addition to seeing how these stocks’ current prices relate to their 52-week highs and lows, here.
Ex-Dividend and Payout Dates: DCTFF and BREUF tend to go ex-dividend near the end of the month, with payouts at the end of the following month; whereas SIRZF usually goes ex in mid-month and pays at the end of the same month.
Disclosure: Author owned shares of SIRZF, DCTFF, and BREUF at the time of this writing.
Disclaimer: This article is intended for informational purposes only, and is not intended as personal investment advice. Please practice due diligence before investing any of the stocks listed in this article.