Monthly Dividend Stock in Focus: Richards Group Inc.

Updated on May 8th, 2026 by Nathan Parsh

Investors seeking stable and dependable cash flow may find it advantageous to invest in companies that offer regular dividend payments on a monthly basis. These companies provide a more frequent and consistent source of income as opposed to those that distribute dividends quarterly or annually.

Opting for such companies allows investors to maintain a steady stream of income that meets their financial requirements on a regular basis.

We have identified a total of 119 companies that currently offer a monthly dividend payment. While the number may be modest, it is significant enough to allow you to peruse and select the ones that align with your investment preferences.

You can see all 119 monthly dividend-paying names here.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

Richards Group (RPKIF) , formerly know as Richards Packaging Income Fund, is a Canadian trust that specializes in packaging containers and associated components.

The stock is currently offering a dividend yield of ~4.6%, which, although not tremendous, is still more than four times the 1.1% yield of the S&P 500 Index.

Given that Richards Group’s distributions are paid on a monthly basis and the trust has maintained or increased its distributions for the past 15 years, the stock appears rather appealing to distribution growth investors seeking a regular stream of dependable payments.

Business Overview

Richards Group, established on February 26, 2004, as a limited-purpose, open-ended trust, is committed to investing in distribution enterprises across North America.

Through its subsidiaries, each of which specializes in a distinct area, the trust serves a vast clientele of over 18,500 regional businesses, including those in the food, beverage, cosmetics, and healthcare industries.

Its primary revenue stream comes from the distribution of over 8,000 diverse types of packaging containers and healthcare supplies and products sourced from a network of more than 900 suppliers, as well as its three specialized manufacturing facilities.

Source: Annual Report

Amidst the COVID-19 pandemic, the trust experienced a significant boost, as the surge in e-commerce orders due to lockdowns and other restrictions resulted in a spike in demand for containers and healthcare supplies. Thus, revenues in fiscal 2020 soared by 46% to C$489.2 million, compared to C$334.2 million in fiscal 2019.

Since then, the trust’s subsidiaries have managed to strengthen their market position, maintaining a robust revenue base. Nevertheless, there are indications of a reversal in the pandemic’s impact, as evidenced in the trust’s results.

Richards Group reported full year results on march 14th, 2026. Revenue increased 5.5% to $307.9 million. Much of this growth was driven by acquisitions, which added $20.7 million to results. This was partially offset by weaker demand in healthcare and packaging.

Management cited softness in U.S. rigid packaging, especially food & beverage, and continued weakness in aesthetics and the absence of certain prior-year pharmacy sales.

Gross margin expanded 190 basis points to 41.6%, which was due to a much stronger healthcare mix. Still, earnings were pressured by higher operating costs tied to acquisitions and integration activity. Adjusted free cash flow was $25.0 million for the period while EPU of $1.04 was exactly half of what the trust had produced in the 2024.

We project that Richards Group will generate EPU of of $2.00 in 2026.

Growth Prospects

Richards Group’s growth is being powered by the trust’s underlying businesses, as well as accretive acquisitions or dispositions of its assets.

In 2020, for instance, the trust acquired Clarion Medical Technologies, a leading Canadian provider of medical, aesthetic, vision care, and surgical equipment and consumables. In late 2022, Richards Canada sold the Rexplas manufacturing facility to a strategic supplier, who will continue to produce bottles to meet the trust’s needs.

Over the years, the trust has grown steadily under this strategy. More precisely, over the last decade, the trust’s revenues have grown at a compound annual growth rate (CAGR) of ~4.0% while EPU has a CAGR of 7.6%.

The dividend per unit (DPU) has grown at a slower pace, partly due to the depreciation of the exchange rate between CAD and USD. DPU has grown at a compound annual growth rate (CAGR) of 1.9% over the past 10 years.

Helping to drive this growth is that Richards Group has diversified away from just being a packaging company and has added to its healtcare business over the years.

Source: Investor Presentation

Even within its segments and regions of operations, the trust is fairly diversified.

Management has affirmed that acquisitions would continue to play a significant role in the trust’s strategic direction. However, organic growth is expected to slow down compared to past levels due to the likelihood of reduced demand for the trust’s packaged products during an economic downturn.

Keeping in mind the impact of currency translation on this trust, we expect that EPU and DPU will grow at a rate of 3% per year over the next five years.

Dividend & Valuation Analysis

Richards Group has paid monthly distributions since its inception. Payouts were temporarily suspended during the Great Financial Crisis and were then resumed at a lower rate.

On the bright side, since then, the trust has either maintained the monthly distribution at a stable level or increased it.

As a result, the trust’s payout ratio has generally been on the lower side. Though it ballooned to 92% last year, the payout ratio had been in the low 40% range the three previous years. For 2026, the payout ratio is projected to be a reasonable 49%.

Therefore, we believe the trust is to turn more favorable toward resuming distribution growth moving forward. This is also signaled by the fact that the trust has begun paying special distributions to distribute its earnings surplus.

In March 2022, March 2023, and March 2024, special distributions of US$0.539, US$0.275, and US$0.266 were paid, respectively. Note that no special dividends were distributed in 2025.

At its current annualized rate of approximately US$0.97, the trust yields 4.6%. It used to yield up to 11% in previous years, but the yield has declined gradually following the stock’s steady gains against a relatively stagnant distribution.

Share are trading at 10.6x expected EPU for the year, which is above our target of 7x EPU. Multiple contraction could reduce annual returns by 7.9% through 2031.

In total, we forecast annual returns of just 0.3% over the next five years. This stems from our expected EPU growth rate of 3% and the current yield, offset by a high single-digit headwind from multiple compression. Given this estimate and the lack of dividend increases over the years, shares of Richards Group earn a sell recommendation.

Final Thoughts

Richards Group has demonstrated decent growth over the years, with accretive acquisitions, strategic dispositions, and the organic expansion of its underlying businesses contributing to decent DCFU growth.

The trust’s current yield may not be sufficient to meet the needs of some investors seeking substantial income. That said, its prospects for significant distribution hikes and special distributions are promising, given the consistent improvement in the stock’s payout ratio.

In any case, we believe that the trust’s base monthly distribution is very safe, and the stock is likely to cater to investors who seek regular distributions with growth potential. However, those looking for outsized total returns could be disappointed.

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