Canadians will be forced to stomach high inflation combined with tightening interest rates in the months ahead. Moreover, the odds of a recession have increased across the developed world. Investors may want to snatch up dividend stocks that provide monthly income in this environment. Today, I want to look at two undervalued equities that provide monthly income.
Bird Construction (TSX:BDT) is a Mississauga-based company that operates as a general contractor. Shares of this dividend stock have dropped 27% in 2022 as of mid-afternoon trading on July 19. That has pushed the stock into negative territory in the year-over-year period.
In Q1 2022, Bird posted construction revenue growth of 6.9% to $475 million. Meanwhile, adjusted EBITDA dropped to $17.8 million compared to $21.0 million in the previous year. Shares of Bird possess a very favourable price-to-earnings ratio of 9. Better yet, it offers a monthly distribution of $0.033 per share. That represents a strong 5.4% yield.
Freehold Royalties (TSX:FRU) is a Calgary-based oil and gas royalty company that seeks to consistently reward its shareholders. It is focused on generating positive cash flows to support its dividend payouts. This dividend stock has climbed 12% so far this year.
The company released its first quarter 2022 results on May 10. Funds from operations increased 22% year-over-year to $71.9 million. Meanwhile, it delivered total production growth of 25%. Freehold currently offers a monthly dividend of $0.08 per share. That represents a monster 7.1% yield.
