Is your portfolio diversified? Finding that perfect mix of investments is not only something that can diversify your portfolio across a broad section of the market, but it’s also something that can generate a recurring income stream. And there are plenty of dividend stocks that pay out.
Here’s a handful of stocks that can help you generate an extra $300 each month.
Option #1: The bank
Bank of Nova Scotia (TSX:BNS) is known as Canada’s most international bank, but there’s something else this bank stock is known for. It currently offers investors a very appetizing 6.04% yield.
This means that investors who can drop $30,000 into Scotiabank will earn just over $1,800 annually, or $150 each month. Even better, Scotiabank not only pays out a handsome yield but has also provided generous annual upticks to that dividend for years without fail.
But why consider Scotiabank? As one of Canada’s big banks, Scotiabank generates reliable revenue from its domestic operations. That recurring revenue allows the bank to invest in growth markets and pay out that handsome dividend.
Turning to growth, Scotiabank is focused on several markets in Latin America that offer significantly higher growth potential.
Collectively, these points make Scotiabank one of the great dividend stocks that pay, which should be on every investor’s radar.
Option #2: Energy
Enbridge (TSX:ENB) is yet another of the great dividend stocks that pay investors handsomely. Enbridge is an energy infrastructure giant operating the largest and most complex pipeline network on the planet.
That pipeline business generates a reliable revenue stream that allows the company to invest in growth and pay one of the best dividends on the market. As of the time of writing, that dividend pays an insane 6.70% yield.
Using that same $30,000 example above, investors will earn an attractive first-year income of $2,000. The reason I say first-year is because Enbridge has an established tradition of providing investors with generous annual upticks to that dividend going back for three decades without fail.
Turning to growth, most investors may not realize this, but Enbridge is much more than pipelines. The company also operates one of the largest renewable energy portfolios in Canada. Additionally, Enbridge operates the largest natural gas utility on the continent.
It is worth noting that in addition to the pipeline business, both renewable energy and natural gas utility are equally defensive segments.
In short, Enbridge is a dividend stock that pays handsomely and should be in every portfolio.
Option #3: The rental property alternative
Most Canadian investors are aware of the lucrative opportunity that is owning a rental property. Unfortunately, rising home prices, property taxes and insurance rates have priced out many would-be landlords.
Fortunately, there is another option. RioCan Real Estate (TSX:REI.UN) represents a unique option for investors to become landlords but without the need for a mortgage or tenants.
RioCan is one of the largest real estate investment trusts (REITs) in Canada. While historically, RioCan has opted for commercial retail properties, in recent years, the company has changed that mix to include mixed-use residential properties.
And that’s where investors can reap significant rewards.
RioCan’s growing mixed-use residential portfolio comprises residential towers that sit atop several floors of retail. Even better, those properties are located in major metro areas along transit corridors. This makes them in-demand options with easy commute times and access to entertainment and shopping.
For prospective investors, there are a few key advantages. First, the risk of investing is spread across multiple properties rather than just one rental unit. That also means that the income generated is at a lower risk and is not managed by a single landlord.
And speaking of that income, RioCan is one of the dividend stocks that pay a tasty monthly distribution. As of the time of writing, that works out to a 5.59% yield.
Final thoughts
No stock is without some risk, including the trio noted above. Fortunately, these three stocks can help investors reap a very juicy income stream. Here’s how:
| Company | Recent Price | No. of Shares | Dividend | Total Payout | Frequency |
| Bank of Nova Scotia | $70.21 | 427 | $4.24 | $452.62 | Quarterly |
| Enbridge | $54.84 | 547 | $3.66 | $500.51 | Quarterly |
| RioCan Real Estate | $19.89 | 1005 | $1.11 | $92.96 | Monthly |
