5 Monthly Dividend Stocks Yielding 5% or More

Looking for steady, monthly investment income? Here are five top TSX dividend stocks that pay 5% yields or more right now!

| More on:
Payday ringed on a calendar

Image source: Getty Images

If you are looking for reliable, monthly dividend income, certain TSX stocks are still a bargain today. Some of these stocks are in less-popular sectors. Consequently, their yields are elevated over the rest of the market. Yet, for the most part, they should provide monthly income and modest capital gains over time. Here are five dividend value stocks yielding 5% or more today.

Northwest Healthcare Properties REIT: A faithful monthly dividend stock

Northwest Healthcare Properties REIT (TSX:NWH.UN) is an interesting way to play real estate today. This stock pays a 6.14% dividend, which equals $0.06667 per unit every month.

It operates a high-quality portfolio of hospitals and medical office properties across Canada, Brazil, Europe, and Australia. Due to the essential nature of healthcare, these properties capture very reliable rents and have long (+14 year) lease terms.

Over the past few years, this REIT has pursued a joint-venture strategy that has helped improve its capital structure and increase cash flows. As the REIT expands geographically, investors should start to see cash flows per share finally start to expand as well.

SmartCentres REIT

As concerns about the COVID-19 Delta variant arise, retail real estate stocks have pulled back slightly. Like Northwest, SmartCentres REIT (TSX:SRU.UN) pays a 6.15% yield. This stock pays a $0.15417 distribution per unit every month. SmartCentres has over 97% occupancy and just over 70% of its properties are anchored by Walmart.

This supplies a really stable baseline of rents that many other retail REITs would envy. This REIT also has a huge excess amount of land. It is working to double the value and size of its portfolio by developing residential apartments and condos, self-storage, seniors housing, and hotels and offices. This is a long-term plan but, if successful, it could really pay off for patient investors.

Choice Properties REIT

Choice Properties REIT (TSX:CHP.UN) is another attractive dividend paying real estate stock. It pays a 5% dividend. That is a $0.061667 distribution per unit every month. It owns 66 million square feet of office, industrial, and retail space across Canada. This stock was spun out of Loblaw years ago.

55% of its revenues are derived from Loblaws stores or Shoppers Drug Marts. Choice has 97% occupancy and a weighted average lease length of six years. Consequently, its base business captures very consistent, bond-like returns. Like SmartCentres, Choice has some very well-located development locations that should fuel good growth going forward.

Superior Plus

An attractive dividend stock in a different sector is Superior Plus (TSX:SPB). It pays a $0.06 dividend per share, which equals a 4.9% yield annually. Superior is fast becoming one of North America’s leading distributors of propane. The stock recently pulled back by 6%, but that presents an attractive entry point.

Propane is affected by seasonality and weather. Consequently, Superior’s earnings can be lumpy. Yet, as a whole, the company has been doing a great job growing revenues and expanding adjusted EBITDA. It has a very large opportunity to consolidate smaller propane distributors across Canada and the United States. As a result, this stock could see strong long-term returns, as it captivates a very fragmented market.

Pembina Pipeline: A high-yielding monthly dividend stock

Another energy stock that pays an attractive dividend is Pembina Pipeline (TSX:PPL)(NYSE:PBA). It pays a $0.21 dividend every month. That equals to a 6.45% yield for the year. Energy stocks have recently pulled back, and it opens up a decent entry point.

Pembina has a broad array of energy infrastructure assets the stretch between pipelines, natural gas-processing plants, and export terminals. It is a one-stop shop for oil producers looking for energy egress.

This company has a solid balance sheet and a prudent management team. It never dropped its dividend, even when oil prices turned negative last year. Its cash flows are well supported by take-or-pay contracts. As a result, this a great way to play the recovery in oil, without having severe energy pricing exposure.

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.


More on Dividend Stocks

A worker uses a double monitor computer screen in an office.
Dividend Stocks

2 of the Best Canadian Stocks That Pay Out Monthly

These two Canadian dividend stocks are some of the best to buy, offering yields upwards of 5.4% and returning cash…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive-Income Seekers: 4 Safe Dividend Stocks to Own Beyond 2033

Dividend stocks are great, but only if they continue to perform after downturns as well. In the case of these…

Read more »

clock time
Dividend Stocks

How Investors Can Build a $1 Million Portfolio in 12 Years

If you can handle it, you can certainly create a million-dollar portfolio in just 12 years, especially considering this dividend…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

4 Big Dividend-Paying Stocks for 2023

These four stocks all earn strong cash flow and offer attractive dividend yields, making them some of the best to…

Read more »

grow dividends
Dividend Stocks

This 7.5 Percent Dividend Stock Pays Cash Every Month

If you need cash now, this dividend stock is certainly one I would consider that could double in share price…

Read more »

Path to retirement
Dividend Stocks

Need Passive Income? Turn $6,000 Into $106 Every Month

Find the right dividend stock for stable growth and you can turn $6,000 into $106 each month!

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

2 Top Stocks to Supercharge Your TFSA Into a Cash Cow

IA Financial and Brookfield Renewable Partners are great passive income generators for new TFSA investors.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

Invest in This 7.5% Dividend Stock for Passive Income

This dividend stock could provide you with double the amount of annual passive income by investing now instead of at…

Read more »