4 Monthly-Paying Canadian Dividend Stocks to Buy Right Now

Given their stable cash flows and high dividend yields, these four Canadian stocks are excellent buys for income-seeking investors.

| More on:
Payday ringed on a calendar

Image source: Getty Images

The pandemic has taught us the importance of having a secondary or passive income. The pandemic-infused shutdown led many Canadians to lose their jobs. Although the government provided much-needed relief through CERB, secondary income helped people tackle the crisis better. Investing in monthly-paying dividend stock would be the cheapest and convenient means to earn passive income. Here are the four Canadian monthly-paying dividend stocks that you can buy right now.

Pembina pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is a midstream energy company that earns 95% of its adjusted EBITDA from its regulated assets or long-term contracts with credit-worthy counterparties, thus delivering stable cash flows. These stable cash flows have allowed the company to maintain or raise its dividends since 1998.

Further, the company’s management expects to post adjusted EBITDA in the range of $3.2 billion to $3.4 billion in fiscal 2021. Its financial position also looks healthy, with its liquidity standing at $2.54 billion at the end of the third quarter. So, given its stable cash flows and healthy liquidity, I believe its dividends are safe. The company currently pays monthly dividends of $0.21 per share, representing a forward dividend yield of 7.3%.


Keyera (TSX:KEY), which services oil and gas producers in Western Canada, has raised its dividends 16 times at an annualized rate of 8% since going public in 2003. It pays monthly dividends of $0.16 per share, representing an annualized payout of $1.92 and a forward dividend yield of 7.5%.

Amid the energy sector weakness, the company had lost 33.5% of its stock value last year. However, with the improvement in oil demand, its stock price has increased by 12.6% this year. With the expansion of vaccination programs, life could soon return to pre-pandemic ways, boosting oil demand and driving Keyera’s financials. It also had access to $1.4 billion of credit as of September 30. So, I believe Keyera is an excellent buy for income-seeking investors.

Shaw Communications

Despite the pandemic, Shaw Communications (TSX:SJR.B)(NYSE:SJR) added 101,000 wireless users in its first quarter of fiscal 2021 that ended on November 30. Although its top line declined 0.9%, its net income increased marginally, thanks to its expansion in adjusted EBITDA margin and lower interest rate partially offset by restructuring costs and higher income taxes. Its free cash flow increased by 23% to $225 million.

Further, the company’s management expects to deliver free cash flows of $800 million in fiscal 2021. As of November 30, the company had $571 million of cash and had access to a $1.5 billion credit facility. So, given its stable cash flows and healthy liquidity position, Shaw Communications’s dividends are safe. The company currently pays monthly dividends of $0.099 per share, which represents monthly dividends of 5.3%.

Pizza Pizza

Pizza Pizza Royalty (TSX:PZA) operates restaurants under Pizza Pizza and Pizza 73 brands through its franchisees. During the pandemic, the company fared better than its peers due to its highly franchised business model. It also invested in expanding its digital sales to mitigate the impact of falling traffic amid the pandemic.

As of September 30, Pizza Pizza had opened all its traditional restaurants but with a limited capacity. The widespread distribution of vaccine could allow the company to operate at full capacity, boosting its financials. So, I expect the company’s numbers to improve in the coming quarters. Meanwhile, the company’s board had raised its monthly dividends by 10% in November to $0.055 per share. Its forward dividend yield currently looks attractive at 6.8%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool owns shares of PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends KEYERA CORP and PEMBINA PIPELINE CORPORATION. Fool contributor Rajiv Nanjapla has no position in the companies mentioned.

More on Dividend Stocks