A high dividend stock is like the golden goose of your investment portfolio. It keeps laying golden eggs! The key ingredients? Consistency, growth, and a solid financial foundation. You want a company that has been paying dividends like clockwork for years – even better if it has been increasing those dividends regularly. This shows that the stock is not only reliable but growing as well. Look for companies with low payout ratios (the percentage of earnings they hand out as dividends), as this means the stock isn’t overextended and can sustain payouts even in tougher times.
Now, to get that nice monthly passive income, it's all about the frequency of payment. Some stocks pay quarterly, but pairing them with those juicy monthly dividend payers can smooth out the cash flow. REITs (real estate investment trusts) and certain income-focused funds often lead the way in this regard. They're designed to funnel a portion of their profits to shareholders each month. This makes them ideal for those looking to cover regular expenses or just want to see their account balance grow steadily. Now, let's look at a stock that looks primed to boost your passive income.
REIT Choice Properties
REIT Choice Properties (TSX:CHP.UN) has been a consistent performer in the Canadian dividend landscape. Since its inception, CHP.UN has consistently rewarded its shareholders with regular dividend payments. While it may not be the flashiest stock on the TSX, it is certainly one of the most reliable. The company has managed to keep its dividend payments stable, even during tough economic times. This speaks volumes about its underlying financial health and management’s commitment to returning value to investors.
Over the years, CHP.UN has maintained a respectable performance, making it a solid choice for those looking for stable, long-term income. While you may not see massive dividend increases, you can count on those payments hitting your account like clockwork. This provides a reliable stream of passive income that dividend investors love. So if you're looking for a stock that focuses more on consistency than wild excitement, CHP.UN is the perfect choice!
Momentum on the way
When it comes to considering CHP.UN as a dividend stock, it’s clear that the stock is stable and reliable. With a forward annual dividend yield hovering around 5.35%, CHP.UN offers an attractive payout for income-focused investors. The REIT has a strong track record of consistent dividend payments and its recent performance shows that it remains committed to rewarding its shareholders. While it may not be the highest yield out there, the stability that CHP.UN offers makes it a solid contender for those looking to generate a reliable passive income stream.
However, it is worth noting that CHP.UN’s payout ratio is quite high at 84.42%. This means that it is returning a significant portion of its earnings to shareholders. While this is great for current earnings, it could limit the REIT’s ability to increase its dividends in the future. Furthermore, with a high debt-to-equity ratio of 249.71%, the company is quite leveraged. This could pose some risks if interest rates rise or the real estate market faces headwinds. Still, if you are looking for a reliable dividend payer in the real estate sector, CHP.UN is definitely worth a look, especially if you value consistency over high-risk, high-reward investments.
In summary
Now, let’s say you want to generate $500 from this dividend stock each month. That would mean investing a lot in CHP.UN. However, the stock is trading at a good price for investors looking for monthly income at these levels. So, let’s see how much you would have to invest to generate $500 each month or $6000 per year.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYMENT | FREQUENCY | TOTAL PORTFOLIO |
| CHP.UN | $14 | 7,895 | $0.76 | $6,000.20 | Monthly | $110,530 |
As you can see, this is not a small figure. And I would never recommend investors put all their eggs in one basket in this way. However, it does show that investors can generate significant income by investing in stocks like CHP.UN. As always, check these types of moves with your financial advisor before making any decisions.