Boost Your Passive Income With These 3 Monthly Dividend Stocks


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Written by Rajiv Nanjapla at The Motley Fool Canada

The ongoing war between Russia and Ukraine has disrupted supply chains, driving up fuel and food prices. Despite the quantitative easing measures, the Bank of Canada expects inflation to remain around 8% for the second and third quarters. Meanwhile, rising prices are eating away at consumers’ pockets. It is therefore prudent to supplement yourself with secondary income.

Invest in monthly payment dividend stocks would be one of the cheapest and most convenient ways to earn passive income. In the meantime, here are my top three picks.

Pembina pipeline

Pembina pipeline (TSX:PPL)(NYSE: PBA) is a midstream energy company that operates a variety of regulated assets underpinned by fee-for-service, take-or-pay, and cost-of-service contracts. These long-term contracts stabilize its finances, thereby generating stable and predictable cash flows. Supported by these strong cash flows, the company has increased its dividend at a CAGR of 5% over the past 10 years. With a monthly dividend of $0.21/share, the company’s forward yield currently sits at a hefty 5.55%.

Meanwhile, Pembina Pipeline and KKR have announced that they will consolidate their natural gas processing operations in Western Canada into a joint venture, which could provide the company with substantial cost savings. The company expects to commission about $900 million worth of projects this year, bolstering its finances for years to come. Meanwhile, the company’s valuation looks attractive, with its NTM price/earnings ratio multiple of 17.1. So, considering all of these factors, I’m optimistic about Pembina Pipeline.

TransAlta Renewables

With a good forward dividend yield of 5.55%, TransAlta Renewables (TSX: RNW) would be my second choice. The energy company has an economic interest in 49 diverse power generation facilities with a combined generating capacity of 2,968 megawatts. Its long-term power purchase agreements with its customers protect its finances from price and volume fluctuations, ensuring the stability of its profits.

TransAlta Renewables is expanding its Mount Keith transmission system, which will be completed by the second half of 2023. Once operational, it would contribute A$6-7 million annually to its adjusted EBITDA. The company has a strong pipeline of projects that are in the assessment or development phase. The company also focuses on strategic acquisitions and has completed approximately $3.4 billion in acquisitions since its IPO in 2013.

Despite its good growth prospects, TransAlta Renewable is trading at an attractive NTM price-earnings ratio of 20.7, making it a great buy.


Keyera (TSX:KEY) is an energy infrastructure company that provides fee-based services to exploration and production companies. It also offers value-added services to its customers throughout North America. Supported by its strong underlying business, the company has grown its DCF per share at a CAGR of 8% since 2008. Additionally, it has increased its dividend at an annualized growth rate of 7% over the past 14 years. With a monthly dividend of $0.16/share, its forward yield currently stands at 6.5%.

Meanwhile, I expect the company’s asset utilization rate to increase amid growing energy demand. The company plans to deliver the KAPS liquids pipeline system, South Cheecham sulfur facilities and KFS 18 storage caverns over the next 12 months, which could boost its finances. Given these growth initiatives, Keyera management expects its adjusted EBITDA to grow at a CAGR of 6-7% through 2025. So I believe the company is well-equipped to sustain growth in its dividend.

The post office Boost Your Passive Income With These 3 Monthly Dividend Stocks appeared first on Motley Fool Canada.

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The Motley Fool recommends KEYERA CORP and PEMBINA PIPELINE CORPORATION. Foolish contributor Rajiv Nanjapla has no position in any of the stocks mentioned.



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