Shares of companies paying regular monthly dividend distributions to shareholders can be a great option for investors relying on yield from their portfolios to support their daily living costs, such as retirees.
The brilliant news is, therefore, that these two shares not only pay their shareholders a monthly distribution but additionally offer 8.62% and 12.92% on an annual basis, meaning that these monthly distributions are the meaning of the dollar amount based on the initial investment $ 10,000 or more.
Chemtrade Fund for Logistics Revenue (TSX: CHE.UN) is an investment I have been really interested for these days for several reasons.
Obviously, we can look at the current stock dividend yield – just under 13% a year is a major reason for excitement – but it is important to note that sometimes high dividend yields can mislead if they are not well supported by the company's core cash flows and earnings.
However, here in the case of CHE shares, this scenario does not seem so risky.
In the first reporting quarter, the management has updated its 2019 guidelines, which, if it can fulfill its promises, seems to have the current annual $ 1.20 ($ 0.10 per month) distribution for now safe.
CHE is also a stock that is deeply overrated by the market – a factor that can often lead to over-yields.
Alaris Royalty Corp. (TSX: AD) in the meantime is another stock with high yield it has been a mystery to me lately.
But apart from the attractiveness of the ADD yield of 8.62% of dividends with a relatively conservative payout ratio of less than 80%, I think Alaris's unique business model is truly fascinating.
This is because instead of producing a product or providing service to our clients, what AD is basically doing is finding the companies they invest, taking ownership in these companies, and then distributing part of their earnings in these companies as dividends to their own shareholders.
In essence, it is similar to "Funds of Funds", so to speak, but without unbelievable performance fees and lock-up periods often used by highly paid alternative asset managers.
In addition, Alaris currently trades with a profit-generating income less than 10 times the previous year's earnings, which means that the current dividend does not look attractive at current levels, but the whole company as a whole looks like "currently on sale".
Not only does these two shares pay consistent monthly dividends that can help with monthly household spending planning, but they now offer offers that are far above the market average.
Investors, especially retirees and those who live with fixed income, might want to give the two companies a hard look at their individual savings accounts.
Forget about Apple! Buy this TSX share instead …
Something you must know about Apple's shares today, especially if you already own it, you know someone who does it or you even think about buying.
This revolutionary new technology that is included in the "Titan" project should make every investor heard.
But you may want to consider investing in a company that is trading in TSX and which will have a drastically greater role in this new technology, yet less than 1% of Apple's size.
Discover why we are particularly excited about this technological opportunity for Canadian investors as you are.
Click here to find out more!
Ghostly associate Jason Phillips has no position in either of these shares. Alaris Royalty Corp. is the company's recommendation Dividend Investor Canada.