# 22 montley dividend payers under $9.00



## Fraser19 (Aug 23, 2013)

Hey guys,
I had some spare time yesterday so I made this. One of the things I am looking at is building a portfolio of stocks that pay monthly. I figured I would share with all of you 22 stocks I found that pay monthly. Now I am not saying any of these are good buy, truthfully I do not know. My next step is to investigate each one of them to see what what be good and what would not. 
My plans for retirement do involve a dividend income, right now my RRSP's through work are doing fine and should provide with with a minimum of 60,000.00 a year. Now I want to start building a dividend income. Right now I am 24 so I do have lots of time to do this. The long term plan is having most of this income coming for long term, well established companies that have a proven track record. But I also like the ideas of playing with these too. 

So anyway here are 22 that I have found that are all under $9.00 and pay a monthly dividend. I made this in excel which didn't really transfer onto the forum. the list goes stock name, the price, the monthly pay out, and lastly what that pay out would workout too per $100.00 dollars worth of shares. They are also ranked right now by highest monthly payout per $100.00 of shares. 

*I want to be very clear, I am not saying any of these are good picks.*

Stock Share, Price, Monthly Dividend,	monthly Earnings per 100.00,

Cirus Energy Trust	3.43	.07	2.03

Argent Energy Trust	4.64	.08	1.68

Parallel Energy Trust	4.26	.05	1.15

Eagle Energy	6.88	.08	1.02

FP Newspapers Inc	5.10	.05	.95

Atlantic Power 3.13	.03	.93

Noranda Income Fund	5.24	.04	.76

Partners REIT	5.45	.04	.72

Temple Hotels	5.88	.04	.68

Long view oil	5.77	.04	.68

Twin Butte Energy	2.23	.015	.66

Western One	7.43	.05	.65

Western One Income	7.43	.05	.65

Retrocom REIT	4.68	.03	.63

BTB REIT	4.62	.03	.63

Student Transportation	6.88	.04	.56

Extendicare Inc	6.85	.04	.56

Pengrowth	6.73	.04	.56

InnVest REIT	5.31	.03	.54

Zargon Oil	8.65	.04	.44

Coast Wholesale Appliances	4.75	.02	.42

Pure industrial RealEstate	4.77	.02	.40


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## atrp2biz (Sep 22, 2010)

Why under $9.00? There's a lot of other great monthly payers that are above this threshold. IPL and PPL immediately come to mind.


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## gibor365 (Apr 1, 2011)

Also had this question  why under $9 and not for example under $10?! I'd assume OP wants to DRIP with small amounts?
From this list I have small positions in NIF.UN and EGL.UN


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## Fraser19 (Aug 23, 2013)

I the reason why I picked under 9.00 was because it brought my list from 47 stocks to 22. It just made it a little more manageable. 
Unfortunately using a DRIP has challenges, can't effective use Questrade because the synthetic DRIP wont allow fractional shares no will it pass on the discount. So with monthly payouts it will be unrealistic to acquire full shares in the beginning. So with that in mind it would take me a long time to be able to DRIP something like TD stocks at 51.00 even with the quarterly payout.


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## gibor365 (Apr 1, 2011)

Why do you need those small REITs if you can buy a big one anf have also DRIP discount 3-5%?
btw, don't know why , but you didn't include my favorite stock in this place HWO


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## Fraser19 (Aug 23, 2013)

gibor said:


> Why do you need those small REITs if you can buy a big one anf have also DRIP discount 3-5%?


I don't need them, nor would I buy all of them. Its just a list. Also I must have missed that stock, there are so many to look at.


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## Mortgage u/w (Feb 6, 2014)

atrp2biz said:


> Why under $9.00? There's a lot of other great monthly payers that are above this threshold. IPL and PPL immediately come to mind.


I agree. There are many other stocks out there that pay good dividends and will probably perform better. Your idea is good, however, the stock choice is very important. If the stock goes down to zero, so will your dividend plan!

You will need to plan this very carefully. You will probably find out that you'll need some growth stocks as well in there to have a proper balance. Not only do you want monthly cash flow, but you also want to grow your investment while preserving capital.


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## liquidfinance (Jan 28, 2011)

Very poor method of selection. 

For sure it may give you and idea. But don't get throwing money into them without further research. 

A prime example here is ATP. 

There is also TNT.UN True North Commercial reit. $5.87 and currently a 10% Yield. Very risky play but you may want to add it to the list.


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## atrp2biz (Sep 22, 2010)

Fraser19 said:


> I the reason why I picked under 9.00 was because it brought my list from 47 stocks to 22. It just made it a little more manageable.
> Unfortunately using a DRIP has challenges, can't effective use Questrade because the synthetic DRIP wont allow fractional shares no will it pass on the discount. So with monthly payouts it will be unrealistic to acquire full shares in the beginning. So with that in mind it would take me a long time to be able to DRIP something like TD stocks at 51.00 even with the quarterly payout.


You could go the other way--picking stocks above $9 would bring your list to 25.


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## Fraser19 (Aug 23, 2013)

I 100% agree with you guys. What I have done here is started to research stocks, that is all. I started with what will be a small group and next I will look at the 9.00 to 15.00 dollar range just to get an idea. Once that is done I will look at 15.00 to 20.00 dollar stocks, and so on. Once I have done that they will all go into the same excel program. 

This is not a buying guide but just a starting point for my research. By making these charts in excel, once I have completed it up to the 60.00 dollar range, I can use the sorting tool to arrange my chart for me to look into more specific stocks. 

I hope to get my chart to a point where I can get it to arrange the stocks mathematically in order by factoring, stock price, dividend payout, assets, and liability. From that point I will look down my list and do the actual research on the stocks to see what looks like good potential buys. 

This is only a reference point and a long graph I am making. 

The unfortunate downside is it can never be accurate because of fluctuations. But when I have it ready and set it to compare debt to equity and price to dividend and rank them in best order it should give me a great starting point to do my research from.


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## My Own Advisor (Sep 24, 2012)

Have you seen this Fraser?

http://www.dripprimer.ca/canadiandriplist

Good list, just missing some filters...ie., under $9 for your example.


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## Fraser19 (Aug 23, 2013)

My Own Advisor said:


> Have you seen this Fraser?
> 
> http://www.dripprimer.ca/canadiandriplist
> 
> Good list, just missing some filters...ie., under $9 for your example.


Well that just made things a lot easier. Thanks!


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## andrewf (Mar 1, 2010)

Wow this is so totally arbitrary it is making my head spin. Why not filter it down to stocks with an odd number of characters in their name?

If you don't need income, why do you need stocks that pay dividends, much less monthly?


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## Fraser19 (Aug 23, 2013)

andrewf said:


> Wow this is so totally arbitrary it is making my head spin. Why not filter it down to stocks with an odd number of characters in their name?
> 
> If you don't need income, why do you need stocks that pay dividends, much less monthly?


Because one day I will be using that income.

I don't see what the issue is. I was making a spreadsheet of stocks until My Own Advisor provided that link. Then to sort them by price and dividend and assets to liability.


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## blin10 (Jun 27, 2011)

that's how you'll go broke with companies like that lol... Atp? and you did research?


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## Fraser19 (Aug 23, 2013)

blin10 said:


> that's how you'll go broke with companies like that lol... Atp? and you did research?


I did not say at any point I would be buying these.


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## doctrine (Sep 30, 2011)

Stock price is uncommon as a stock selection criteria but not unheard of, especially in deep value investing. You can't discount psychological and small cap factors from investing, and lower stock prices are a factor in both. As are being able to DRIP.

That being said, here are two more to add to your list:

High Arctic Energy (HWO.TO) (mentioned by gibor above)
Surge Energy (SGY.TO)


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## gibor365 (Apr 1, 2011)

My Own Advisor said:


> Have you seen this Fraser?
> 
> http://www.dripprimer.ca/canadiandriplist
> 
> Good list, just missing some filters...ie., under $9 for your example.


It missing some stocks either  like BPF.UN or PZA


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## andrewf (Mar 1, 2010)

Fraser, if you're buying companies at 25 for their income generating potential in 40 years, you may or may not be surprised to learn that most of them won't exist by then (acquired or gone out of business) and the dividend policies will almost certainly change.


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## Fraser19 (Aug 23, 2013)

andrewf said:


> Fraser, if you're buying companies at 25 for their income generating potential in 40 years, you may or may not be surprised to learn that most of them won't exist by then (acquired or gone out of business) and the dividend policies will almost certainly change.


Thought provoking, if you were in my shoes, what would you be looking at?


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## Synergy (Mar 18, 2013)

doctrine said:


> Stock price is uncommon as a stock selection criteria but not unheard of, especially in deep value investing. You can't discount psychological and small cap factors from investing, and lower stock prices are a factor in both. As are being able to DRIP.


I recall one of the Market Call Tonight shows with Benj Gallander (Contra The Heard Investing), mentioning something about he likes to buy stocks below $9 or $10. Don't quote me on it, but I think his reasoning was something like a $3 or $4 stock is a lot easier to double then a $50-$60 stock.

That was the first I've ever heard of anyone selecting / biasing stocks based on the stock price itself. I'm sure he uses a lot of other metrics but I was surprised that he paid that much attention to the actual price. My thought was, sure the stock may double a little easier but it could also go to zero pretty quick as well! I could see looking at capitalization to search out smaller companies that may have more room to grow then some large cap names, but using the stock price itself doesn't seem to make a whole lot of sense. It won't even help you sort by capitalization as some large cap names can have a really low stock price.

edit: low share price stocks do work well on a monthly DRIP.


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## andrewf (Mar 1, 2010)

I recommend building a portfolio without worrying too much about dividends. Index funds are good way to go, but if you want to hold individual stocks, try to hold a diverse and representative portfolio, not high yielding dividend stocks with share prices under $9.


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## Cal (Jun 17, 2009)

And personally, if you want to drip the stocks, and Questrade doesn't pass on the discounts, then I would switch brokers to one that passes on the discounts on dripped shares.


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## londoncalling (Sep 17, 2011)

I would not buy most of the stocks of those 22. There are a few I may investigate. I don't see the issue in the initial screen as a start. Be interesting to see your other screens for the other price ranges. I agree with Synergy and Benj that there is a greater chance of a double with a $5 stock than a $100 stock. However, a 1% increase on $5 stock is 5 cents where as the same increase of 1% on a $100 stock is $1. The reality is a 1% increase on $100 worth of both stocks is a $1 gain either way. The only place there is an advantage is for DRIPs. That being said I do follow Benj a lot more closely than most of the BNN talking heads. Also, may as strike one off your list as Longview is already nearing extinction with the Surge merger/buyout. At 25 you are off to a great start!

Cheers


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## donald (Apr 18, 2011)

I don't think single stock selection is a good idea without 100k(maybe 60/70....100k)but your best to build the fund and than switch(where you can hold a few meaty dividend payers if that is the method you want-the large cap variety)
If you have to do it(single stocks to drip)with a small amt,take one or 2 concentrated bets(like a big 5 bank and a big oil or utility ect)that is what I would do @least and ironically it is prob more ''safer'' than a basket of semi quality payers your looking at for reasons of diversification
whatever you do I would stay the hell away from the wpg free press stock lol


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## hboy43 (May 10, 2009)

andrewf said:


> Wow this is so totally arbitrary it is making my head spin. Why not filter it down to stocks with an odd number of characters in their name?
> 
> If you don't need income, why do you need stocks that pay dividends, much less monthly?


I agree. If you want a more or less even monthly income, and there really is no reason a 24 year old would need that, it would be far better to stick to the entire universe of stocks. The vast majority of which pay quarterly. One can then stagger the quarterly dividend payments throughout the year in order to even things out. For example BMO and RY pay one set of quarterly months, CM and BNS another.


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## My Own Advisor (Sep 24, 2012)

Although staggering the quarterly dividend payments is a good idea, I prefer owning stocks that pay consistent dividends regardless of when they are paid. Dividends shouldn't be doing my budgeting for me.


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## HaroldCrump (Jun 10, 2009)

I agree with the other posters.
Both the selection criteria are completely arbitrary.
Even if we assume for a second that you want to pick stocks based on yield, there is no magic in either $9 price, nor in monthly distributions.

All you need to do is run a stock screener based entirely on yield.
Ignore the unit price and ignore the frequency of payment.
Sort by yield and buy equal amounts of the top 10.

That's the way to build a true _Yield Chaser's_ portfolio.

A long time ago, Rachelle on this forum (Berubeland) set up a practice yield chaser's portfolio, which she tracked on her blog site.
She's probably not doing it anymore, but for a while, it was fun to watch.


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## hboy43 (May 10, 2009)

My Own Advisor said:


> Although staggering the quarterly dividend payments is a good idea, I prefer owning stocks that pay consistent dividends regardless of when they are paid. Dividends shouldn't be doing my budgeting for me.


I agree. I never tried to even things out. I think my highest month is about triple the lowest. I don't much care how the loonies roll in as long as they roll in and more loonies roll in next year than this year.


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## Toronto.gal (Jan 8, 2010)

Synergy said:


> 1. $3 or $4 stock is a lot easier to double then a $50-$60 stock/My thought was, sure the *stock may double a little easier but it could also go to zero pretty quick as well!*
> 2. low share price stocks do *work well on a monthly DRIP*.


*1. *Even if stocks don't disappear, you could find yourself in the so called 'recovery trap' quickly indeed, but not so fast to recover. For a stock that falls 50%, it would take 100% gain just to break even; and that drop is fairly normal these days when a div. is reduced/suspended in this type of stocks.

*2.* That is, until there is no more dividend to DRIP.

Even from just a reference point, that list is scary.

You want quality in your mix, not just diversification. You want inexpensive stocks for appreciation, not so much for dividends.

You should definitely consider some blue-chip dividend stocks.


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## andrewf (Mar 1, 2010)

I have never understood why people preferred monthly distributions over quarterly. It kind of implies they plan to live paycheque to paycheque and not have enough cash to cover a few months of living expenses. A retired person should have at least a year or so of expenses in fixed income securities (ie, a savings account).


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## gibor365 (Apr 1, 2011)

andrewf said:


> I have never understood why people preferred monthly distributions over quarterly..


because of Compounding  ... if for REIT I DRIP share monthly with 5% discount -> it's nice....
but for some stocks, like CPG, I would prefer Quaterly dividends and I don't have enough shares to DRIP monthly...


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## gibor365 (Apr 1, 2011)

Toronto.gal said:


> *1. *Even if stocks don't disappear, you could find yourself in the so called 'recovery trap' quickly indeed, but not so fast to recover. For a stock that falls 50%, it would take 100% gain just to break even; and that drop is fairly normal these days when a div. is reduced/suspended in this type of stocks.


It can happen to any stock... whem we just came to Canada (late 1999), my wife was working at INTC and she sign for program, something like 20% discount if she buys shares (or if she buy, INTC adding 20% shares on the top), so every month we were buying INTC shares for $65 , $70, $73 and so on.... and what INTC price 15 years later?!
Another example, in 2008-9, I worked for Citigroup and they contributed to DCPP with C shares ...  and I think in 100 years C won't cost what they were in 2008


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## Jon_Snow (May 20, 2009)

Only own one of those 22... Innvest REIT. Gained around 30% in the 8 months I've owned plus the juicy divy. :encouragement:


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## andrewf (Mar 1, 2010)

gibor said:


> because of Compounding  ... if for REIT I DRIP share monthly with 5% discount -> it's nice....
> but for some stocks, like CPG, I would prefer Quaterly dividends and I don't have enough shares to DRIP monthly...


Compounding is totally irrelevant. The best compounding is no dividend, right? The company automatically reinvests the dividend they would have paid you...


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## doctrine (Sep 30, 2011)

Assuming they're not reinvesting all their excess cash in new offices, private plans, executive salaries, and ridiculous acquisitions. They're just employees, and employees don't necessarily need all of the profits reinvested at their whims, which is why shareholders demand cash returns on capital.


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## andrewf (Mar 1, 2010)

If they demand cash returns, then sign up for a DRIP, what is the difference? The money stays in the corp. The only difference is that shares are diluted.


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## underemployedactor (Oct 22, 2011)

Jon_Snow said:


> Only own one of those 22... Innvest REIT. Gained around 30% in the 8 months I've owned plus the juicy divy. :encouragement:


"You know nothing Jon Snow!" 
Sorry couldn't resist given the season 4 premiere this weekend.:biggrin:


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## Toronto.gal (Jan 8, 2010)

gibor said:


> *1. *It can happen to any stock...
> *2.* (late 1999).....every month we were buying INTC shares for $65, $70, $73 and so on.... and what INTC price 15 years later?!/2008-9, I worked for Citigroup and they contributed to DCPP with C shares ...  and I think in 100 years C won't cost what they were in 2008


*1.* Well, of course! How many don't have losers in their portfolios at one time or another? Especially those who purchased prior to 2008/2009 crash, as per both your examples? Btw, I had thought you did not own individual shares until 3 years ago, but I guess you meant that you only became a DIY investor 3 years ago. 

*2.* And you could list many more examples from that period. After the crash & before the reverse split, I actually bought C below $4. Also purchased INTC in either late 09 or early 2010, so luckily did not buy for $200+ or $73+, ouch! 

In 1999, you would have been better off having bought RIM instead of INTC, and in just one year, you could have retired in sunny Crimea; and loooong b4 Pootin's historic grab of it [ofc out of *his* "firm conviction based on truth and justice" and legality].

Also, what was a new Canadian thinking of buying C inteas of CM? :rolleyes2:

But anyhow, how many of the OP's listed stocks would you personally own & be able to sleep well at night? You don't chase all your yield in just fixed income & riskier type stocks either, I know that! 

A long-term portfolio should have diversified & high quality investments in the mix, and the OP said he's looking for same for LT. 

I like battered stocks for ST and LT, especially those under $10 also, even better under $5, but what I look for in these = capital gains, not dividends. And while not needing income, I use the dividends for reinvestment purposes.


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## gibor365 (Apr 1, 2011)

Toronto.gal said:


> *1.* Well, of course! How many don't have losers in their portfolios at one time or another? Especially those who purchased prior to 2008/2009 crash, as per both your examples? Btw, I had thought you did not own individual shares until 3 years ago, but I guess you meant that you only became a DIY investor 3 years ago.


T.gal, you didn't undestand me  yes, I became DIY investor 3 years ago, but when we came in 1999, my wife was working at INTC, so company was giving her options and she could've buy INTC shares with 15% discount - and that what she did!

Similar with C , in 2008 or so, AGF sold out company to C, who was giving us some shares every month, I didn't pay anything...


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## Toronto.gal (Jan 8, 2010)

I did understand the explanations.

And I had just been teasing you with part of my response! :wink:


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## gibor365 (Apr 1, 2011)

Ohhhh....you are so tricky


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## avrex (Nov 14, 2010)

underemployedactor said:


> "You know nothing Jon Snow!"


I guess I shouldn't have googled that.

You Know Nothing Jon Snow


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