Almost every dividend stock in the market pays out on a quarterly basis. Some, however, choose to do so on a monthly basis. This often has to do with various rules surrounding the structure of a given company, but others just want to attract more attention from investors by having this little perk.
The trick, as always, is to make sure the company is a good business with a good history of paying out those dividends. Today I’ve got three interesting plays that you probably haven’t heard of. These dividend stocks offer comparatively high yields in industries that has strong histories of providing cash flow.
Realty Income (NYSE: O) takes the notion of monthly dividends to new heights, because the company not only have been doing so for 46 years, but even trademarked its tagline, “The Monthly Dividend Company.” The company has paid 534 dividends, including 79 dividend increases alone since 1994.
This is a terrific REIT with over 4,200 properties under long-term leases. It is the properties that the REIT manages that are of particular interest. The company strategy has been to lease to tenants that are giant corporations with strong consumer branding. These include Walgreens (NYSE: WBA), FedEx (NYSE: FDX), Family Dollar (NYSE: FDO), Regal Cinemas (NYSE: RGC), and others representing 35 different retail industries. The top 20 tenants represent about 53% of revenue.
The solid financials and long-term successful track record makes Reality Income a stock to consider, with its 4.5% yield.
Canadian company Corus Entertainment Inc. (OTCBB: CJREF) is a very unusual play, but one that I really like compared to most American entertainment companies.
It operates in TV and radio. The TV segment operates specialty television networks and conventional television stations, and provides pay television services. It also produces and distributes films and television programs, and collects fees from merchandise licensing and animation software sale activities.
Its primary brands include YTV, TELETOON, ABC Spark, W Network, OWN, Oprah Winfrey Network (Canada), HBO Canada, Historia, Séries+, Nelvana, Kids Can Press, and Toon Boom. The Radio segment operates 39 radio stations.
The Canadian production model differs from the U.S. model, in that the company tends not to bother with expensive pilots and development. Corus commissions something, and immediately order a series from it. Corus produces and distributes, so cash flow is generated much sooner.
Its monthly dividend results in a 6% annualized yield.
There’s a similar broadcasting play here in America with Shaw Communications, Inc. (NYSE: SJR). It provides broadcast infrastructure, as I like to call it. That includes broadband cable TV, Internet, digital phone, telecommunication, direct-to-home satellite, satellite distribution, and programming content services.
Shaw is the actual operator of 19 specialty networks. So when a show is beamed to your satellite dish or through your cable lines, it is coming from a broadcaster, who is sending that content to you.
The services are provided through a fiber optic and co-axial cable distribution network; and managed and hosted private branch exchanges and a primary rate interface service for medium and larger businesses. It’s a bit like a natural gas storage and pipeline facility.
In addition, Shaw offers managed Wi-Fi solutions to hotels, resorts, casinos, and conference centers; and collocation, cloud, and managed services.
I love infrastructure plays like this because there is a high barrier to entry, and networks tend to stay with their broadcaster for a long time. Shaw’s monthly dividend works out to an annualized yield of 4%.
Dividends for Every Month of the Year
If you’re looking for just one dividend stock to round out your income stream, consider a little-known company that pays out dividends 12 months of the year. Click here to see the full details of this company in my Dividend Calendar…