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3 Stocks that Cut You a Monthly Check

Dividend checks are nice, but most companies only pay four times a year. That means you need to either create a three-month budget or find stocks with staggered pay dates if you want to replace your monthly paycheck.

A few companies, however, cut you a check each month, like Vermilion Energy Inc (NYSE: VET), Pembina Pipeline Corp (NYSE: PBA), and Gladstone Land Corp. Here's a quick look at each.

1. Canadian oil

Vermilion Energy is a $3.6 billion market cap oil and natural gas driller based out of Canada. It pays monthly and currently yields around 6.5%. Despite the deep oil downturn, it's held its dividend steady at $0.215 per share a month since 2014. Debt is a little on the high side at around 45% of the capital structure, but interest expenses only ate up about 6% of revenues in the first quarter, and the company had a solid current ratio of around 1.7.

Image source: Getty Images

The interesting thing about Vermilion is that it's relatively small, but it has a global footprint. That includes operations in its home market of Canada and drilling businesses in the United States, Australia, Germany, France, the Netherlands, and Ireland. And it's been growing its production right through the downturn, with another 10% boost expected in 2017. One other interesting thing about Vermillion: it believes it can cover its dividend and sustain capital expenditures with oil priced as low as $40 a barrel.

Vermilion Energy has a low breakeven point. Image source: Vermilion Energy

If you've been looking at oil companies, you might want to do a deep dive on Vermillion and its monthly dividend check.

2. Canadian pipes

If you don't like the idea of dealing with often volatile energy prices, then Pembina's midstream business may be more your speed. The current yield is around 4.8%, and the company's dividend has increased each year since it converted from a Canadian trust to a corporation in late 2010.

While you may not have heard the name Pembina before, it's a $13 billion market cap company, so it has a sizable business. Debt, meanwhile, is relatively modest at around a third of the capital structure. And it's still growing, with roughly $4 billion worth of capital projects scheduled for 2017 alone. It's also on track to complete the purchase of midstream competitor Veresen late in the year. That continues a long history of growth at the company.

Pembina's history of growth. Image source: Pembina Pipeline Company

Pembina has an enviable position in the Canadian Oil Sands region, but don't think that this is just a play on Canadian pipes. The company has extended its business across the entire midstream space, from pipes to processing, terminals, and logistics. Roughly 80% of its business is fee-based, with the Veresen acquisition set to take that up over 85%. If you want a steady monthly paycheck, Pembina is worth a closer look.

3. On the farm

The next company is switching gears in a big way. Gladstone Land is a real estate investment trust (REIT) that own farmland. Unlike the two monthly dividend payers above, Gladstone Land is a relatively young company that went public in early 2013. It's also really small, with a market cap of just $130 million or so. The yield is around 4.5%.

But for more aggressive investors it's worth taking a closer look. After all, we may switch away from oil to more renewable energy sources over time...but it's unlikely we'll stop needing food. Today Gladstone Land owns around 60 farms leased to roughly 40 tenants. It focuses on produce aisle products like vegetables and fruit, where the associated farmland tends to be more valuable and serves more-local needs.

Gladstone Land has growth via acquisition at a rapid pace. Image source: Gladstone Land

One of the things to like about Gladstone is that it's been expanding at a rapid clip, increasing its acreage tenfold since it went public. And that's allowed it to increase its dividend for three consecutive years (including 2017). It's a riskier play than Vermilion and Pembina in many ways, but that doesn't mean you shouldn't consider this REIT and its growing monthly dividend.

Collecting the check

Monthly dividends solve a problem that faces many retirees, namely creating a budget around just four dividend checks a year. With Vermilion and Pembina you can collect those monthly payments from old hands in the energy and midstream industries. And both handily managed the oil downturn that started in mid-2014, continuing to grow their businesses despite commodity headwinds. Gladstone Land is a lot younger and a bit riskier, but it's a direct play on food that's worth a deep dive. After all, we'll always need to eat... why not collect monthly dividend checks while you're doing it?

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Reuben Brewer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.