Life is short, so why wait three months for your dividend-paying stocks to spit out some money? You can invest in a company that issues a monthly dividend rather than a quarterly one.
Unfortunately for those who like frequent payouts, the monthlies are few and far between. Generally they tend to be concentrated in the real estate investment trust (REIT) sector. But a handful outside that asset class present intriguing investment opportunities, such as these two.
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Pembina Pipeline
The oil-and-gas business can be thrilling, but not every company profiting from it operates in an exciting segment. Exhibit A, Pembina Pipeline (PBA 0.65%), which -- you guessed it -- manages an oil-and-gas pipeline network in addition to associated facilities and services. It is headquartered and does much of its business in Western Canada.
The world continues to need oil, and it's happy to buy the black gold that flows through Pembina's assets. That demand, plus heavy investment activity over the past two years, has led to jumps on the top line -- in fiscal 2018 the company took in over CA$7.3 billion ($5.4 billion) in revenue, an impressive 36% improvement over the previous year. Net income also saw a nice leap, rising 45% to almost CA$1.3 billion ($967 million).
Pembina is a fine play on the continuing popularity of oil and gas. Compounding this, the company's recent activity has been aimed at diversifying its slate of offerings. It is going forward with a CA$2.5 billion investment in a facility that will produce polypropylene, a crucial petrochemical used in a variety of industrial processes.
Pembina's monthly dividend is generous. At a current level of CA$0.19 ($0.14), it yields 4.6% on the most recent closing stock price -- more than double the 2% average yield of dividend-paying stocks on the S&P 500. The company tends to raise its payout at least once every year.
Check out the latest earnings call transcript for Pembina Pipeline and other companies we cover.
Shaw Communications
Pembina isn't the only Canadian company pumping out monthly dividends. Shaw Communications (SJR +0.00%) is also a member of that club, and like Pembina it doesn't skimp on sharing its wealth with stockholders.
Shaw is a modern telecom conglomerate, owning assets in the traditional telephony, mobile, and internet segments, plus cable and satellite TV broadcasting. Most of its customer base is in the western Canadian provinces, although it's active throughout the country. It's particularly active in the mobile segment with its Freedom Mobile brand, a recent acquisition that competes aggressively on price.
The company has done a good job boosting its revenue over the past few years, although costs related to boosting its mobile and internet offerings have hit the bottom line. Cord-cutting has taken a toll on its broadcast TV operations as well. Nevertheless, Shaw remains profitable, and the looming rollout of 5G services gives its mobile segment in particular good potential for the future.
The company's upcoming monthly dividend for its U.S.-listed stock is just under $0.08 per share. This yields 4.4%.
