Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

3 Obscure Stocks to Buy for Extra Monthly Income

Stock MarketsJul 22, 2021 08:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3 Obscure Stocks to Buy for Extra Monthly Income

One great thing about dividend investing is that you have extra cash on top of your active or regular income. You can keep the principal intact and collect only the dividends. The typical payout of most companies is quarterly. Thus, your disposable income is higher every three months.

However, if you need to increase the frequency of dividend payments, three obscure stocks pay dividends 12 times in a year, not four. First National Financial (TSX:FN), Mullen Group (TSX:MTL), and AltaGas (TSX:ALA) are among TSX’s monthly income stocks.

Specialty lender First National is a non-bank mortgage lender with a market cap of $2.97 billion. The company dominates in single-family residential mortgages and multi-unit residential & commercial mortgages). Moreover, most of its mortgages under administration (MUA), or 90%, are prime mortgages.

Business is doing well amid the pandemic, as evidenced by the financial results in Q1 2021 (three months ended March 31. 2021). Management reported a 22.52% revenue growth versus Q1 2020. The net income was $52.7 million compared to the $2.25 million net loss in the same period a year ago.

Canada’s red-hot real estate market contributed to the 58% increase in single-family origination. However, the commercial segment originations fell 31% due to competitive conditions. At $49.53 per share, First Financial pays a 4.74% dividend.

Essential services Mullen is a $1.22 billion logistics company with three distinct business units, a dozen service centres, and over 75 terminals. Besides trucking and logistics services, the company boast of real estate holdings leased to its business units. Its core strengths are a fully integrated transport management system, customized inventory management, and warehouse systems.

Furthermore, Mullen has a diverse set of specialized services that businesses in the construction, energy, forestry, and mining industries need. It can also do environmental reclamation, fluid hauling, and water management. Mullen’s pitch to investors is a proven business strategy of entrepreneurship, strong capital management, and growth through diversified operations and markets.

Despite the 8.7% revenue slide in Q1 2021 versus Q1 2020, Mullen’s adjusted net income grew 24.2%. As of March 31, 2021, the company had a working capital of $247.1 million and an unused credit facility of $150 million. The industrial stock trades at $12.60 per share and yields 3.76%.

Regulated assets AltaGas is a $7.35 billion diversified energy infrastructure company. The beautiful thing about this utility stock is that its natural gas distribution utilities in the U.S. are regulated. Furthermore, the infrastructure assets are in North America’s fastest-growing energy markets. The current share price is $26.31, while the dividend yield is a decent 3.8%.

The most recent quarterly results should give you the confidence to invest in AltaGas. Its normalized EBITDA for Q1 2021 (quarter ended March 31, 2021) increased by 35% to $674 million. Management cites the larger-than-expected profitability from the U.S. transportation and storage business and robust performance across its midstream platform for the strong business performance.

For the rest of 2021, AltaGas’s capital expenditure plan of $910 million will weigh more towards the low-risk utility business. Also, management targets to end the year with a higher normalized EBITDA of between $1.475 billion and $1.525 billion.

Outperformers The monthly income stocks in focus here outperform the TSX (+14.64%) year to date. First National is up +22.13%, Mullen is ahead +17.97%, and AltaGas investors are content with the 43.8% gain thus far.

The post 3 Obscure Stocks to Buy for Extra Monthly Income appeared first on The Motley Fool Canada.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends ALTAGAS LTD. and MULLEN GROUP LTD.

This Article Was First Published on The Motley Fool

3 Obscure Stocks to Buy for Extra Monthly Income
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email