Yahoo Finance Monthly Dividend Stocks: How to Create a Consistent Income Stream Worth $436.79
Written by Amy Legate-Wolfe at The Motley Fool Canada
If ever there was a time to get into monthly dividend stocks, it’s now. Not only are investors likely to be interested in the monthly payouts – I mean, that part is obvious. But there are some real deals when it comes to these stocks on the TSX today.
Today, we’re going to cover two of those stocks. Ones that offer a substantial chance at superior income. What’s more, we’ll look at how investing regularly can create an insanely high passive income stream.
1. SmartCentres REIT
First, we have SmartCentres REIT (TSX:SRU.UN). This monthly dividend stock currently offers a 7.6% dividend yield, trading at just 13.5 times earnings as of writing. Shares are down by 2% in the last year, and it continues to offer a dividend higher than its five-year average of 7.1%.
SRU real estate investment trust (REIT) offers a strong future for today’s investor. The company has a diverse portfolio that includes retail, office, and residential properties. This diversity helps mitigate risks associated with any single property type. Furthermore, its properties are anchored by strong tenants, including Walmart, which provides stable and predictable rental income.
As inflation and interest rates continue to drop, consumers will go out and spend once more. This offers the chance at some strong wins in the near term. Long term, the company’s diverse range of assets, including expansion into retirement living, should drive the share price even higher.
2. Pizza Pizza
Then we have Pizza Pizza Royalty (TSX:PZA), Canada’s leading pizza company. The stock currently offers a 6.9% dividend yield, trading at just 13.7 times earnings as of writing. Shares are down 9% in the last year, with its five-year dividend average on par at 6.9%.
For those interested in Pizza Pizza stock, there are numerous reasons to get in right now. As a leader in the Canadian quick-service pizza segment, Pizza Pizza has a competitive edge over many smaller players. PZA earns income through royalties on sales from franchised Pizza Pizza and Pizza 73 locations, providing a stable and predictable revenue stream.
The company has embraced digital ordering platforms, delivery apps, and other technological innovations to meet changing consumer preferences. What’s more, quick-service restaurants like Pizza Pizza often perform well during economic downturns as consumers seek affordable dining options. So again, shares may be down, but are due to expand further.
Making income
So let’s say you’re the average Canadian making around $60,000 per year. Typically, if you’ve paid off your debts besides a mortgage, this would mean you should be able to put aside between 5% and 10% of each paycheque towards investments.
So let’s say, for the case of this example, you put that income equally between these two passive income stocks. We’ll say you go on the higher end, opting to put aside $6,000 per year, and $3,000 on each stock. That would come down to $500 per month.
Now let’s see how much investors could earn in dividend passive income alone from investing $3,000 in these two stocks today.
COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
SRU.UN | $24.17 | 124 | $1.85 | $229.40 | monthly | $3,000 |
PZA | $13.43 | 223 | $0.93 | $207.39 | monthly | $3,000 |
In total, you could make $436.79 in dividend passive income alone each year. That would come to monthly income at $36.40! So don’t wait around for a better share price. Get in now, and drink in returns as well.
The post Monthly Dividend Stocks: How to Create a Consistent Income Stream Worth $436.79 appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.
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