The Canadian economy remains under pressure due to ongoing weakness in the energy and mining sector. The Bank of Canada cut its benchmark interest rates twice last year and has held interest rates at 0.50%. However, the Bank of Canada could go further and adopt negative interest rates like its counterparts in the euro area, Japan and Switzerland.
According to Citigroup economists, Canada could introduce negative interest rates in the next two years. Citigroup economist Ebrahim Rahbari said that the risk of a negative policy rate is material in Canada.
Given this outlook, there is a strong case for considering dividend stocks with high yields. Here are two companies that recently declared monthly dividend and offer high yield.
Morneau Shepell Inc. (TSX: MSI)
Morneau Shepell provides health and productivity, administrative and retirement solutions to assist employers in managing the financial security, health and productivity of their employees.
Morneau Shepell declared a cash dividend of $0.065 per share for the month of March 2016 to be paid on April 15, 2016. MSI currently offers a dividend yield of 4.66%.
Chemtrade Logistics Income Fund (TSX: CHE.UN)
Chemtrade Logistics is a provider of industrial chemicals and services.
Chemtrade Logistics announced that it has declared a cash distribution of $0.10 per unit for the month of March 2016 payable on April 29, 2016. Chemtrade Logistics currently offers a dividend yield of 6.71%.
