Looking for passive income?
If you are, then monthly pay dividend stocks are among the best options out there.
If you have a bit of money saved, you can get a recurring monthly income stream going just by investing in dividend stocks.
The majority of dividend stocks pay by the quarter, but you can find plenty that have a monthly payment schedule. This doesn’t affect the ultimate return or make the yield any higher, but it does provide cash on a more regular basis. If you have a few hundred thousands of dollars to invest, you can get a truly passive-income stream going by investing in monthly pay dividend stocks. In this article, I’ll explore three monthly pay TSX dividend stocks with high yields and good prospects.
AltaGas AltaGas (TSX:ALA) is a Canadian energy stock involved in natural gas pipelines and utilities. Its business activities include the following:
- NGL extraction
- NGL storage
- Transportation
- Exporting propane
- Delivering natural gas utility services to customers mainly in the United States
Northwest Healthcare Properties REIT Northwest Healthcare Properties REIT (TSX:NWH.UN) is a Canadian healthcare REIT that leases healthcare office space to health clinics and hospitals. It has a 6.1% yield at today’s prices, and the dividend is paid out monthly.
Northwest Healthcare performed pretty well in 2020, despite the COVID-19 pandemic affecting its results at the time. Some highlight metrics for the 2020 fiscal year included the following:
- Total unitholder return: 13.5%
- Revenue: $374 million, up 2%
- Fee income: $40.4 million
- AFFO per unit: $0.85 — up 1%
- Portfolio occupancy: 97% overall; 98.1% on the European portfolio
TransAlta Renewables TransAlta Renewables (TSX:RNW) is a renewable energy company that generates electricity from wind, hydro, solar, and gas. It operates in both Canada and Australia. The stock pays out $0.078 per month, which provides a 4.4% yield at today’s prices. In the most recent quarter, the company produced $126 million in revenue (up 14.5%), $52 million in net income (up 1,633%), and $123 million in adjusted EBITDA (up 4.6%). Overall, it was a pretty solid quarter, and RNW’s dividend looks safe.
Foolish takeaway If you’re looking for monthly passive income, dividend stocks are the way to go. Few sources of income are truly as passive as investments, and stocks are among the best investments out there. Of course, you need a substantial amount of money invested to pull really life-changing money out of dividend stocks. But if you build up your positions over a lifetime, it can be done. And best of all, you don’t need to spend months working on marketing and sales beforehand to get started — as is the case with most other “passive”-income sources.
The post Want Passive Income? These 3 TSX Stocks Pay Monthly appeared first on The Motley Fool Canada.
Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool recommends ALTAGAS LTD. and NORTHWEST HEALTHCARE PPTYS REIT UNITS.
This Article Was First Published on The Motley Fool
