PEY:CC - 3 Dividend Stocks to Buy for $500 in Monthly Income
If you’re looking for fixed income these days, then of course you’re looking at dividend stocks as some strong options. But there is a sea of dividend stocks, and it can be quite difficult to swim through.
So today, I’m going to offer up the three best dividend stocks I would consider right now. Each trades at a cheap price, and offers substantially high yields. All together, you can create $500 in monthly income starting right now.
Peyto
A great option to include among your dividend stocks today is Peyto Exploration & Development ( TSX:PEY ). Peyto stock trades well within value territory at just 5.9 times earnings as of writing. Shares are quite cheap in every respect, trading at just $11.82 right now.
Shares of Peyto stock are also up by about 17% in the last year alone, and climbing. So it could be a good time to pick up the stock on the rebound. Finally, you can pick up an insanely high 11.47% dividend yield on the TSX today – which is, no doubt, why it’s such a strong option among dividend stocks right now.
If you’re going to make $167 each month from Peyto stock to contribute to your $500 per month, here’s how much you would need to invest on the TSX today.
| COMPANY |
| RECENT PRICE |
| NUMBER OF SHARES |
| DIVIDEND |
| TOTAL ANNUAL PAYOUT |
| FREQUENCY |
| TOTAL INVESTMENT |
| PEY |
| $11.82 |
| 1,518 |
| $1.32 |
| $2,004 |
| monthly |
| $17,945 |
NorthWest REIT
If you’re looking at dividend stocks, then you’ve also probably come across real estate investment trusts (REIT) . Yet of them all, NorthWest Healthcare Properties LP ( TSX:NWH.UN ) is one of the best options out there. Healthcare properties don’t depend on a recession or consumption. And the company has an average lease agreement of 14 years, with a 97% occupancy rate as well.
Shares trade at just 8.3 times earnings on the TSX today, at $9.66 per share. Yet, those shares are down 24% in the last year alone, so it’s due for a recovery in the near future. Finally, you can pick up a dividend yield at 8.28% as of writing.
If you’re going to make $167 each month from NorthWest stock, here’s how that would add up on the TSX today.
| COMPANY |
| RECENT PRICE |
| NUMBER OF SHARES |
| DIVIDEND |
| TOTAL ANNUAL PAYOUT |
| FREQUENCY |
| TOTAL INVESTMENT |
| NWH.UN |
| $9.66 |
| 2,505 |
| $0.80 |
| $2,004 |
| monthly |
| $24,198.30 |
Slate Grocery
Finally, another area of the real estate market that’s solid is grocery stores. Slate Grocery REIT ( TSX:SGR.UN ) is an excellent option then, proving it can handle a pandemic, a downturn, and anything else the world throws at it.
Yet, it still trades in value territory, with shares trading at just 5.2 times earnings as of writing! It offers up a 7.80% dividend yield as well for investors to consider. Shares are up 2% in the last year, so there is definitely some room to grow for this stock as well.
Here’s how to make that final $167 per month from Slate stock on the TSX today.
| COMPANY |
| RECENT PRICE |
| NUMBER OF SHARES |
| DIVIDEND |
| TOTAL ANNUAL PAYOUT |
| FREQUENCY |
| TOTAL INVESTMENT |
| SGR.UN |
| $14.73 |
| 1,743 |
| $1.15 |
| $2,004 |
| monthly |
| $25,674.39 |
So, for a total investment of $67,817.69, these three dividend stocks can produce over $500 in monthly passive income starting today.
The post 3 Dividend Stocks to Buy for $500 in Monthly Income appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy .
2023