If you’re buying stocks to boost your passive income, you’ll likely want to receive income as quickly and often as possible. So it makes sense to see if any monthly dividend stocks are worth an investment.
Most dividend stocks return cash to investors every quarter. However, some dividend stocks, especially those that are made specifically for dividend investors, pay cash back to investors more often.
So if you’re looking to grow your passive income stream, here are two of the best monthly dividend stocks to buy today.
A top restaurant royalty stock
The restaurant business is notoriously competitive. However, not every restaurant stock on the market offers exposure to its operations and net income.
A stock like Pizza Pizza Royalty (TSX:PZA), for example, is one of the top monthly dividend stocks to boost your passive income, because rather than having to rely on hundreds of Pizza Pizza locations to make a profit, the corporation simply collects a royalty on all the sales each restaurant in its royalty pool does.
For Pizza Pizza branded restaurants, that’s a 6% royalty on sales. For Pizza 73 branded restaurants, that’s a 9% royalty on sales.
Receiving a top-line royalty is crucial for a few reasons. As I mentioned, you don’t have to worry about each store’s ability to make a profit in the short run. All you’re really interested in is the level of sales the royalty pool is doing. This makes the income that the fund receives not only a lot more stable but a lot more predictable, which is why Pizza Pizza is one of the best monthly dividend stocks to boost your passive income.
While the company wasn’t totally immune to the pandemic and initial lockdowns, it’s performed much better than its restaurant stock peers. Initially, the company only trimmed the dividend by 30%, and even that was excessive as management wanted to be conservative.
Since that initial trimming of the dividend, Pizza Pizza has increased it three separate times, with the most recent coming earlier this month.
Therefore, with the stock now offering an attractive 6.3% dividend yield, it’s certainly one of the top monthly dividend stocks to buy if you’re looking to boost your passive income.
An energy stock paying an attractive monthly dividend
In addition to Pizza Pizza, another high-quality stock to boost your passive income is Freehold Royalties (TSX:FRU). Freehold is an excellent stock, but as the conflict in Ukraine escalates and energy prices are already at sky-high prices, Freehold may be one of the best monthly dividend stocks to buy today.
In addition to the fact that it’s seeing growth in its revenue and earnings due to rapidly rising energy prices, Freehold has also been eying high-potential acquisitions. It’s specifically looking to expand its portfolio south of the border and diversify its land holdings even more than they are now.
So not only is Freehold a top monthly dividend stock to buy for its short-term potential, it’s a lower-risk energy stock that you can be confident owning for years.
Therefore, with the stock offering an annual yield of 5.3% today, it’s one of the top monthly dividend stocks for Canadian investors to consider today.