Despite actions taken by central banks globally, analysts expect an inflationary environment to continue in the near term. Rising food and fuel prices have created holes in consumers’ pockets. However, a secondary or passive income could help you cushion the increased expenses. If you are seeking to generate income without the sweat, investing in monthly-paying dividend stocks would be an ideal way to boost your passive income. If you are ready, here are my three top picks.
Yesterday, KeyeraÂ (TSX:KEY) reported solid second-quarter performance, with its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) growing by 41% to $315.9 million. The strong performance from its marketing segment drove its financials. Meanwhile, the companyâs management expects oil prices to remain elevated for the rest of this year. So, it has raised its 2022 guidance for the marketing segment, increasing its realized margin guidance from $300-$340 million to $380-$410 million.
Further, Keyeraâs fee-for-service infrastructureÂ provides stable cash flow. Meanwhile, the midstream energy player is developing several new pipelines and natural gas processing plant projects, including the $1.6 billion KAPS NGL and condensates pipeline, and expects them to expand commercial activities over the next five years. These growth initiatives could boost the companyâs adjusted EBITDA at a CAGR of 6-7%. Given its dividend payout ratio of 51% and healthy liquidity of $1.7 billion, the companyâs dividends look sustainable. With a monthly dividend of $0.16/share, the dividend yield for the next 12 months stands at 6.09%.
NorthWest Healthcare Properties REIT
Another safe monthly-paying dividend stock is NorthWest Healthcare Properties REIT (TSX:NWH.UN), which operates a portfolio of healthcare properties across eight countries. The REITâs long-term agreements, government-backed tenants, and inflation-indexed rent provide long-term stability. These stable cash flows have allowed the company to pay dividends at a healthy rate. With a monthly dividend of $0.0667/share, the dividend yield for the next 12 months stands at 6.11%. Investors would earn $6.11 in dividends on an investment of $100 in the company.
Meanwhile, NorthWest has entered the highly-lucrative United States market by acquiring 27 properties for $765 million in April. Additionally, the company is looking to expand its portfolio in high-growth markets, such as the United Kindom, Australia, Germany, and Canada. It also strengthened its balance sheet by issuing secondary offerings and selling non-core assets. So, given its stable cash flows, growth initiatives, and strong financial position, NorthWest Healthcare is well-positioned to continue paying dividends at a healthier rate.
Third on my list would be TransAlta RenewablesÂ (TSX:RNW), which reported solid second-quarter performance yesterday. The green power utilityâs revenue and adjusted EBITDA grew by 43.5% and 30%, respectively. The incremental production from the recently commissioned Windrise wind facility, the acquisition of the North Carolina Solar facility, and higher wind resources in Canada and the United States drove the companyâs performance.
Meanwhile, TransAlta Renewableâs growth prospects look healthy as governments and businesses worldwide are slowly shifting towards clean or renewable energy amid rising pollution levels. Furthermore, the contract extension for the Kent Hills wind facilities and Sarnia cogeneration facility, and the expansion of the Mount Keith transmission systemÂ could drive its growth in the coming quarters. With its liquidity at $0.8 billion, TransAlta Renewablesâs financial position also looks healthy. So, the companyâs dividends are safe. It currently pays a monthly dividend of $0.07844, with a forward yield at 5.14%.
The post 3 Top Monthly-Paying Dividend Stocks for Income-Seeking Investors appeared first on The Motley Fool Canada.
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The Motley Fool recommends KEYERA CORP and NORTHWEST HEALTHCARE PPTYS REIT UNITS. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.Â Â