Here’s a look at three of those monthly dividend stocks that investors can buy and hold forever. A diversified mix of monthly payers can help stabilize income and reduce dependence on a single sector.
Start with a diversified choice
The first of the monthly dividend stocks you should buy is Exchange Income Corporation (TSX:EIF), an acquisition-oriented company that owns more than a dozen subsidiaries.
These subsidiaries are spread across vertical manufacturing and aerospace sectors. This structure gives Exchange a sustainable, multi-stream cash engine that supports long-term income stability.
In both industries, the subsidiaries have some similarities.
First, they both serve a specific need because they operate in an area where there is little or no competition. Examples of this include the operation of passenger and freight services to the remote areas of northern Canada on the aviation side.
On the manufacturing side, Exchange offers unique, custom manufacturing solutions focused on the defense sector, as well as cell tower manufacturing services.
These subsidiaries also generate free money for the company. This allows Exchange to continue investing in new acquisitions and paying its generous monthly dividend.
This makes Exchange not only one of the monthly dividend stocks to consider, but also a diversified choice for any portfolio.
At the time of writing, Exchange offers a yield of 3.1%. The exchange continues to increase this dividend annually, including eighteen increases in the past twenty years.
Throw in some real estate (without the mortgage)
Owning a rental property is one of the best ways to build a passive income stream. Unfortunately, rising property prices and interest rates have priced many potential landlords out of the market.
That’s where owning it is RioCan real estate (TSX:REI.UN) as part of a monthly dividend stock portfolio can help. RioCan is one of the largest REITs in Canada, with a portfolio of approximately 200 properties.
These properties are located around Canada’s major metro markets, and the REIT has focused on mixed-use residential developments in recent years. These properties are located along transit corridors. This makes them popular options for people looking for shorter commute times.
For potential investors, investing in RioCan can provide a recurring monthly income. As a monthly payer, RioCan offers a hands-off alternative to traditional rental income without the operational headaches.
At the time of writing, RioCan offers a monthly payout of 5.9%.
Would you invest in a supermarket REIT?
REITs are great investments for generating a recurring income stream. They are also among the best monthly dividend stocks on the market, thanks to the lucrative business model they stick to.
But what about a REIT that is tied to a defensive business, and not just real estate? That’s where its unique appeal lies Slate Grocery REIT (TSX:SGR.UN) comes into view.
Slate is a supermarket-based REIT with a portfolio of more than 110 properties in the US market. These locations are in major metro markets where traffic and demand remain high.
The appeal of a supermarket REIT is enormous. Aside from traffic draw, Slate benefits from its diversified tenant roster, which includes some of the biggest names in grocery and retail.
Adding to the appeal, these properties often include secondary tenants such as doctor’s offices, restaurants, banks and pharmacies.
The result is a cash-generating business that provides investors with a stable source of monthly income.
And that monthly payment currently provides a tasty yield of 7.5%. This not only makes Slate one of the best payers on the market, but also a must-have for any investor looking for monthly dividend stocks.
Buy these monthly dividend stocks today and earn income tomorrow
Slate, RioCan, and Exchange all offer investors different ways to build a monthly income stream. That said, all three options boast growth and defensive appeal, adding to that juicy income.
In my opinion, any or all stocks should be part of a larger, well-diversified portfolio.
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