Monthly Dividend Stock in Focus: Richards Packaging Income Fund

Updated on April 19th, 2025 by Felix Martinez

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 76 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 76 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 Packaging Income Fund (RPKIF) is a Canadian trust that specializes in packaging containers and associated components.

The stock is currently offering a dividend yield of ~5%, which, although not tremendous, is still more than three times the 1.5% yield of the S&P 500 Index.

Given that Richards Packaging’s distributions are paid on a monthly basis and the trust has maintained or increased its distributions for the past 14 years, the stock appears rather appealing to distribution growth investors seeking a regular stream of dependable payments.

Business Overview

Richards Packaging Income Fund, 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 17,000 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 Packaging reported a 4.3% decline in full-year revenue, totaling $104.8 million, driven by weaker demand for food and beverages and slower sales of healthcare capital. Adjusted EBITDA fell by $1.1 million to $15.3 million (14.6% of sales), and net income dropped $3 million to $8.6 million, or $0.79 per unit. Despite the revenue decline, the company maintained a strong free cash flow of $7.3 million and paid off all remaining debt.

In Q4, revenue declined 3.7%, primarily due to a $3 million decrease in healthcare sales and $1.9 million in food and beverage sales. Adjusted EBITDA reflected this revenue drop but was partially offset by a $1 million gain on lease adjustments. Net income declined by $0.27 per unit, primarily due to lower earnings, the revaluation of contingent liabilities, and exceptional items.

Looking forward, Richards is focused on returning to growth through tuck-in acquisitions and expects 2%–5% organic revenue growth in 2025. With healthcare now over 52% of its product mix and no outstanding debt, the company is well-positioned to navigate macroeconomic uncertainty and continue creating long-term value.

Growth Prospects

Richards Packaging Income Fund’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 nine years, the trust’s revenues have grown at a compound annual growth rate (CAGR) of 8.3%.

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 4.6% over the past nine years.

Management outlined its focus for 2025, stating that the primary goal is to sustain core revenue growth within the range of 2% to 5%, provided the economy does not face a recession.

Management also 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.

Dividend Analysis

Richards Packaging Income Fund 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 improved notably during this period. It was 62% in 2012 and 59% in 2024. 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.

At its current annualized rate of C$1.23 (approximately $0.95), the trust yields approximately 5%. 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.

Final Thoughts

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

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.