Valentine’s Day is practically here, and I’m sure there are many (and I mean many) people out there who have forgotten about a gift. However, there are also likely many of us out there who just really cannot afford it this year.
We’re no longer living in the times of plenty of cash on hand, with little cash to spare. Inflation and interest rates have seen to that. Yet if you truly want to show your true love you care, I would nix the flowers and chocolates that will be gone within a week.
Instead, consider a dividend stock as the gift that keeps on giving — literally.
Get started
To get started, it’s time to set up a Tax-Free Savings Account (TFSA). And what’s more, go to the bank and help your loved one set up a TFSA! This is the best and easiest way to create cash flow for the long term. However, it also allows you to create cash flow that you can take out at any time — tax free!
So, let’s say that you can’t afford that $200 dinner (who can?). Instead, if you’re in a long-term committed relationship, you could offer to make monthly contributions. These could be automated contributions each month you don’t even have to think about.
And let’s be honest, if you’re offering say $20 per month, that’s easier on your wallet, sure. But guess what? They get more in the long run. At $20 per month, you’re offering $240 for them to start investing! And if you choose the right investment, that could turn into even more almost immediately.
Consider a monthly dividend stock
If you really want to show your loved one you care, consider a dividend stock that provides monthly dividend payments. But this won’t mean your list of dividend stocks will be short. What’s more, it also doesn’t mean it will be less risky.
This is why you’ll want to consider a few things. First, invest in something that you understand. Don’t just buy a popular dividend stock just because everyone is talking about it. Instead, look at sectors that make sense to you.
From there, look at management! You should be able to see who the chief executive officer has been over the last few years. If there’s a lot of turnover, that could be a red flag. But if you see a stock that’s been showing incredible growth in the last few years, all while under the same leadership, this could be an easy win.
A solid choice
So, if you’re looking for a solid monthly-paying dividend stock, then I would consider a company such as Secure Energy Services (TSX:SES). SES stock is a waste management company that’s gained an incredible 29% in the last year alone. However, on top of that, the stock has gained 1,018% since the fall of 2020!
At just $10.51 per share as of writing, the dividend stock offers a 3.81% yield right now. That also, as mentioned, comes out monthly. While that may be near its fair-value estimate, it remains a solid business that is only likely to grow stronger in the years to come.
As for management, the company has had the same chief executive officer for almost two decades under Rene Amirault. He’s seen the company through difficult times and seems to be able to manage the most difficult. Further, the company’s president, Allen Gransch, could be the key behind recent growth coming on in 2022. So, if you’re looking for the right gift, SES stock could be the one for you.
