I have updated the Dividend paying stock lists for February.  The lists are on the Resources page. There is one for those that pay out monthly and one for the stocks that pay out Quarterly.  I prefer the stocks that pay out monthly.  The monthly paying stocks usually have a much smaller dividend than the Quarterly ones, but you get paid more often.  If you use the DRIP (Dividend Re Investment Program), you get shares instead of just money.  If the stock pays out monthly, then each month you get a few extra shares or dollars 12 times a year rather than every 3 months.

It is difficult to compare the value between Monthly and Quarterly shares.  That is why there is the Div/Price ranking column.  It generates a number that is based on the value of the dividend compared to the stock price, versus the return over a year.  It is similar to the Yield.  If a monthly and quarterly stock have the same number they have the same return over a year.  If one is higher than the other, then the one with the higher number is the better return.

I publish the list so that people have a way to invest, that makes way more money than putting the money into a GIC, or a Savings account.  Most of the stocks listed are reasonably safe investments.  Just remember there are no guarantees!!  A good GIC today pays in the range of 1.75% to 2.75%.  The lowest paying Quarterly stock pays just short of 6%.  The lowest monthly stock pays over 8%.  All of these stocks are very liquid, (Sell easily) so getting the money out is as easy as a GIC.  Also any dividend you have received is yours, no matter when you take the money out.  Many GICs will not give the interest earned on partial years.  So taking money out before the deadline, can cost you the little interest GIC’s earn.  There is a post on Dividends for more information.

All of these stocks can be held in either a TFSA or an RRSP.  So before you hand over money to a Mutual Fund company, check and see what the actual return on the fund is, every year.  Not just the value that the fund when up, but also if they pay out dollars (or more units).