TSX Stocks: Mighty Monthly Dividends to Survive the Harsh Times

It’s indeed delightful to receive a passive income from stock investments. Wouldn’t it be even more pleasing if all our monthly expenses are taken care of by the investment portfolio? Let’s take a look at TSX stocks that offer attractive dividend profiles and pay dividends monthly.

Extendicare

Extendicare (TSX:EXE) is a Markham-based healthcare company that offers senior care across the country. It operates through 118 owned and managed homes and serves a growing senior population in Canada.

Extendicare stock offers a dividend yield of 8%, much higher than the TSX stocks at large. In 2020, the company plans to pay a dividend of $0.48 per share. Thus, if an investor puts $50,000 in EXE stock, he will receive approximately $330 per month in dividends.

Extendicare’s non-cyclical nature of business could act as a hedge against a potential market crash. It is a slow-growing industry and one can expect it to generate a stable cash flow stream for the future. However, the growth potential looks promising given the increasing population of seniors in the country.

Extendicare stock has fallen almost 30% in the last 12 months. Despite its rally since last month, the stock still trades 60% lower to its 52-week high levels.

Northland Power

Northland Power (TSX:NPI) is a $6 billion renewables power company. The stock offers a dividend yield of 4.1% which makes up $0.1 per share dividend a month.

Northland Power has been paying consistent dividends since going public in 1997. Its long dividend payment history indicates reliability and stability. It has a diversified renewables generation portfolio and operates 2.6 gigawatts of power assets across the globe.

The stock has surged almost 50% after an immense weakness during the COVID-19 crash. However, despite such a steep surge, Northland Power stock seems fairly valued.

Northland Power’s cash flows will mostly remain constant even in case of an economic downturn, given its long-term contracts. This will ultimately facilitate steady dividends for the future. In the last five years, its dividends increased by more than 2% compounded annually.

Pizza Pizza

Pizza Pizza Royalty (TSX:PZA) is a $209-million company and operates through owned and franchise-oriented restaurants.

It is currently trading at a forward dividend yield of 7.2%. The company is expected to pay a dividend of $0.60 per share in the current year. The company cut its monthly dividend by 30% starting in April in order to strengthen the balance sheet.

The hospitality industry is one of the worst-hit sectors amid this pandemic-driven lockdown. Pizza Pizza has also seen a negative impact on its walk-in sales during the lockdowns.

However, it is relatively well placed compared to peer eat-in restaurants at the moment. Even if lockdowns are released in the near future, it might take time for people to come out and business activities normalize.

Pizza Pizza stock, not a constituent of the TSX Index, has been noticeably weak during the COVID-19 pandemic. However, it has bounced back sharply in the last few weeks. Notably, it is still trading 25% lower than its 52-week high earlier this year.