Forget Volatility: Buy These 4 TSX Stocks Now for Steady Monthly Income

It is prudent to add a few monthly paying dividend stocks to your portfolio for a steady cash inflow, even amid wild market swings.

| More on:
Payday ringed on a calendar

Image source: Getty Images

The volatility in the market remains elevated, with China’s Evergrande crisis adding more fuel. While it could lead to knee-jerk reactions, I believe short-term volatility shouldn’t worry you much, especially if you are a long-term investor. 

However, it is prudent to add a few monthly paying dividend stocks to your portfolio to generate a steady cash inflow, even amid wild market swings. Let’s take a look at four top monthly dividend-paying stocks that could be solid additions to your portfolio amid the heightened volatility in the market.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) stock could be a solid bet for investors to earn a steady income. Despite the challenging operating background, the company has consistently rewarded its shareholders with monthly dividends. Furthermore, it increased its monthly dividend by 9% in August 2021, reflecting the strength of its cash flows. Pizza Pizza is yielding about 6.4% at current price levels, making it an attractive income stock.

Notably, the quick-service restaurant company is currently witnessing lower traffic due to the pandemic. Nevertheless, I expect the demand to normalize soon. Meanwhile, acceleration in vaccination indicates that its financial and operating performance could improve significantly. Further, the success of its delivery promotions and network expansion bodes well for growth.

Pembina Pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another reliable stock for investors seeking monthly income amid volatility. Thanks to its highly contracted business that generates predictable and stable fee-based cash flows, the company has paid over $10.1 billion in dividends since 1997. Meanwhile, Pembina has increased its dividend at a mid-single-digit rate annually in the last decade. Currently, it offers a stellar dividend yield of 6.3%. 

I believe Pembina’s growing volumes, increased pricing, and operating efficiencies will continue to drive its earnings and future cash flows, which would continue to support higher dividend payments. Furthermore, improving operating environment, exposure to diverse commodities, and newly secured growth projects will likely support profitability.  

TransAlta Renewables

Amid high volatility, investors could add TransAlta Renewables (TSX:RNW) stock to their passive-income portfolios. Notably, TransAlta Renewables’s dividend has grown at a CAGR of 3% since 2013. Currently, it pays a monthly dividend of $0.078 per share and yields about 4.8%. 

I expect TransAlta’s low-risk business, diversified assets, and long-weighted average contract life to continue to drive high-quality earnings and cash flows, which, in turn, will likely support its dividend payouts. Further, its strategic acquisitions, strong balance sheet, and operating expertise will likely fuel its future growth.


Investors could also consider AltaGas (TSX:ALA) stock for a consistent income. The company has been paying steady monthly dividends on the back of predictable cash flows from its low-risk and regulated utility assets. Currently, AltaGas offers a dividend yield of over 3.9%.

I believe AltaGas’s contracted utility assets and growing rate base would drive its profits, support higher cash flows, and cover its payouts. Meanwhile, higher export volumes in the mid-stream business and cost-savings initiatives would continue to cushion its earnings. Notably, AltaGas projects double-digit growth in its EBITDA and earnings for 2021, which is encouraging. 

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.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends ALTAGAS LTD. and PEMBINA PIPELINE CORPORATION.

More on Dividend Stocks

Dividend Stocks

Enbridge Stock: This Dividend Aristocrat Looks Like a Steal in 2023

Here are some key factors that make ENB a great Canadian dividend stock to buy on the dip in 2023.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

U.S. Debt Ceiling: Is It Safe to Invest Right Now?

The U.S. debt ceiling is in the headlines again. You can play it safe by investing long term in wonderful…

Read more »

analyze data
Dividend Stocks

How to Invest $20,000 to Make Ultra-Safe Passive Income

Got $20,000 to invest for passive income? These three stocks are perfect for earning ultra-safe passive income for the long…

Read more »

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

For Passive Income: How to Turn $25,000 Into $158 Per Month

High-yield, monthly dividend stocks trading on the TSX such as Slate Grocery can help you earn a predictable stream of…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Canadian Dividend Stocks to Buy for Consistent Passive Income

These top dividend stocks have raised their distributions annually for more than two decades.

Read more »

Piggy bank next to a financial report
Dividend Stocks

Self-Directed RRSP: 2 Top Dividend Stocks to Buy in June 2023

These top TSX dividend stocks look cheap to buy today and offer attractive dividend yields.

Read more »

Dividend Stocks

Looking for Reliable Retirement Income? Consider These Dividend-paying Stocks

National Bank of Canada and another reliable income stock that could be a perfect fit for your retirement fund this…

Read more »

grow money, wealth build
Dividend Stocks

Are You Looking for High-Yield Investments? 3 TSX Stocks That Offer Excellent Payouts

These dividend stocks all offer solid payouts, as well as yields in the five to six percent range. So get…

Read more »