Sit Back, Relax, and Collect Monthly Income From These 3 Stocks

Could you use some monthly income? If so, Canadian Apartment Properties REIT (TSX:CAR.UN), Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA), and Boston Pizza Royalties Income Fund (TSX:BPF.UN) can provide it.

The Motley Fool

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you’re interested in earning monthly dividend income, whether it’s to help pay your bills or to help you beat the market in today’s highly volatile times, then this article is for you. I’ve scoured the market and compiled a list of three stocks that pay dividends on a monthly basis, so let’s take a quick look at each to determine which would fit best in your portfolio.

1. Canadian Apartment Properties REIT

Canadian Apartment Properties REIT (TSX:CAR.UN) is one of Canada’s largest residential landlords with over 46,700 residential units located in and near major urban markets across the country. It pays a monthly distribution of $0.10166 per share, or $1.22 per share annually, which gives its stock a yield of about 4.2% at today’s levels.

Investors must also make two very important notes.

First, Canadian Apartment Properties has raised its annual distribution for four consecutive years, and its 3.4% hike in May 2015 puts it on pace for 2016 to mark the fifth consecutive year with an increase.

Second, the company has a long-term target payout ratio of 70-80% of its normalized funds from operations, so if it can continue to grow both organically and through acquisitions, then I think its streak of annual distribution increases could continue for the next several years.

2. Pembina Pipeline Corp.

Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) is one of the leading transportation and midstream service providers to North America’s oil and natural gas industries. It pays a monthly dividend of $0.1525 per share, or $1.83 per share annually, which gives its stock a yield of about 6.1% at today’s levels.

It is also important for investors to note that Pembina Pipeline has raised its annual dividend payment for four consecutive years, and its 5.2% hike in May 2015 puts it on pace for 2016 to mark the fifth consecutive year with an increase.

3. Boston Pizza Royalties Income Fund

Boston Pizza Royalties Income Fund (TSX:BPF.UN) is Canada’s largest casual-dining brand with 372 locations across the country, 369 of which are franchises. It pays a monthly distribution of $0.1083 per share, or $1.30 per share annually, which gives its stock a yield of about 7.95% at today’s levels.

Investors must also make two important notes.

First, Boston Pizza has raised its annual distribution for four consecutive years, and its 6.2% hike in April 2015 puts it on pace for 2016 to mark the fifth consecutive year with an increase.

Second, the company expects to maintain a payout ratio of close to 100% of its distributable cash, so I think its very strong growth, including 10% year-over-year growth to $1.103 per share in the first nine months of fiscal 2015, and its low payout ratio, including 94.5% in the same period, could allow it to raise its monthly rate in the very near future.

Should you put your money to work in one of these stocks?

Canadian Apartment Properties REIT, Pembina Pipeline, and Boston Pizza Royalties Income Fund are three of the most attractive monthly dividend-paying investment options in their respective industries. Foolish investors should take a closer look at each and strongly consider establishing positions in at least one of them today.

Should you invest $1,000 in Canadian National Railway right now?

Before you buy stock in Canadian National Railway, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian National Railway wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Super sized rock trucks take a load of platinum rich rock into the crusher.
Dividend Stocks

Invest $25,000 in This Dividend Stock for $536.90 in Annual Passive Income

This dividend stock is one of the best options for those looking to create income long term.

Read more »

A worker overlooks an oil refinery plant.
Dividend Stocks

Where I’d Put $10,000 in Top Canadian Energy Stocks This April for Dividend Income

These three energy stocks are ideal for income-seeking investors, given their solid cash flows and consistent dividend growth.

Read more »

An investor uses a tablet
Dividend Stocks

This Could Be the Top Canadian Dividend Stock to Buy Right Now

Here's why I think Enbridge (TSX:ENB) remains a top option for dividend investors in this current macroeconomic climate.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

How I’d Invest My $7,000 TFSA Across These 3 Canadian Stocks for Dividend Income

Investors looking for Canadian stocks for dividend income that can last decades should consider buying these three stocks today.

Read more »

A worker uses a double monitor computer screen in an office.
Dividend Stocks

National Bank vs. Bank of Montreal: How I’d Divide $12,000 Between Banking Stocks

Here's how I would think about splitting up a $12,000 prospective investment in National Bank of Canada (TSX:NA) and Bank…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

Canadian National Railway: How I’d Approach This Blue-Chip With $10,000 in 2025

Despite current macro headwinds, Canadian National Railway remains a rock solid, blue-chip pick for long-term investing.

Read more »

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

April Income Strategy: Where to Invest $10,000 in Big Dividend Stocks

These stocks offer attractive yields for income investors.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

How I’d Invest $50,000 in TFSA Cash for 2025

Looking to get started with a TFSA? Here's exactly how to get going with these top stocks.

Read more »