High-Yield Monthly Dividend Stocks: Allied Properties REIT and Freehold Royalties

Allied Properties REIT and Freehold Royalties offer high annualized dividend yields, 10.5% and 7.7%, respectively, with strong business models and solid growth prospects. Both Canadian stocks provide attractive monthly dividend options for income-focused investors, with robust financials and exposure to stable real estate and energy sectors.

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Aqsa Younas Rana
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High-Yield Monthly Dividend Stocks: Allied Properties REIT and Freehold Royalties

High-Yield Monthly Dividend Stocks: Allied Properties REIT and Freehold Royalties

Investors seeking reliable sources of monthly passive income in Canada have two attractive options to consider: Allied Properties REIT (TSX:AP.UN) and Freehold Royalties (TSX:FRU). Both stocks offer high annualized dividend yields, strong business models, and solid long-term growth prospects.

Allied Properties REIT currently provides investors with an impressive 10.5% annualized dividend yield. The company, with a market cap of $2.4 billion, manages and develops urban office environments across Canada, specializing in converting light industrial structures into modern workspaces. Despite its share price being down 20% over the past year to $17.35, Allied reported solid Q1 2024 results. Operating income from continuing operations rose 2% year-over-year to $78 million, with funds from operations holding steady at $81 million. Adjusted funds from operations also saw a slight uptick to $75 million.

Why this matters: The performance of high-yield dividend stocks like Allied Properties REIT and Freehold Royalties can have a significant impact on the overall health of the Canadian stock market and economy. As investors seek stable sources of income, the success of these companies can influence market trends and investor sentiment.

The REIT's monthly dividend of $0.15 per share represents an attractive 1.80% annualized yield. Analysts have a moderate buy consensus on the stock, with an average rating of 2.63 based on 5 buy ratings and 3 holds. Insider activity has been positive, with company executives purchasing a total of C$12,682,000 in stock over the past three months, outpacing insider selling. Institutions also hold a significant 45.36% stake in Allied, indicating strong market confidence.

Freehold Royalties, while not covered in as much detail, offers investors a compelling 7.7% annualized dividend yield. The company, which has a market cap of $2.1 billion, focuses on oil-weighted assets across North America. Freehold's shares have risen 4.4% over the past three months to reach $14.14.

In Q1 2024, Freehold generated revenue of $74 million and funds from operations totaling $54 million, or $0.36 per share. The company's total production averaged 14,714 barrels of oil equivalent per day, with a production mix heavily geared towards oil and natural gas liquids at 63% of output.

For income-focused investors, both Allied Properties REIT and Freehold Royalties present compelling monthly dividend options. With their robust business models, healthy financials, and exposure to relatively stable real estate and energy sectors, these Canadian stocks offer an attractive combination of high yields and long-term total return potential.

Key Takeaways

  • Allied Properties REIT offers a 10.5% annualized dividend yield and a strong business model.
  • The company's Q1 2024 results showed a 2% increase in operating income and steady funds from operations.
  • Freehold Royalties provides a 7.7% annualized dividend yield and focuses on oil-weighted assets in North America.
  • Both stocks have healthy financials and operate in relatively stable sectors (real estate and energy).
  • Analysts and insiders have a positive outlook on both companies, with moderate buy ratings and significant institutional stakes.