The ongoing war between Russia-Ukraine and the sanctions imposed by European countries and the United States on Russia have driven the prices of commodities higher. The increase in commodity prices could further worsen the current inflationary environment. So, I expect the Canadian equity markets to remain volatile in the near term.
Given the uncertain outlook, investors can invest in the following three monthly-paying dividend stocks that could boost their passive income while providing strength to their portfolios.
NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) could be an excellent stock to buy in this volatile environment. Its highly defensive healthcare portfolio, long-term contracts, and government-supported tenants provide stable cash flows, irrespective of the state of the economy. So, its dividend is safe. With a monthly dividend of $0.0667, NorthWest Healthcare’s forward yield currently stands at an attractive 5.83%.
Meanwhile, the company is expanding its portfolio in Australia, Europe, Brazil, and Canada through new project development and acquisitions. It has around $1 billion of projects under the developmental pipeline. These investments could drive its financials in the coming quarters. Meanwhile, the company had also strengthened its balance sheet by raising funds through divesting its non-core assets and issuing additional shares. So, I believe NorthWest Healthcare is well equipped to continue paying its dividend at a healthier rate.
Pembina Pipeline
Pembina Pipeline (TSX: PPL)(NYSE: PBA) has maintained or raised its dividend since 1997. The midstream energy company earns over 85% of its adjusted EBITDA from regulated assets, thus protecting its financials from price and volume fluctuations. So, these stable cash flows have allowed the company to pay its dividend at a healthier rate. Its forward dividend yield currently stands at an attractive 5.44%.
After making a capital investment of $658 million last year, the company expects to invest around $665 million this year. Along with these investments, the company’s solid underlying business could drive its financials in the coming quarters. Amid these growth initiatives, Pembina Pipeline’s management expects its adjusted EBITDA to come in the range of $3.35-$3.55 billion. So, given its healthy growth prospects, stable cash flows, and high dividend yield, Pembina Pipeline would be an excellent buy for income-seeking investors.
Pizza Pizza Royalty
Last week, Pizza Pizza Royalty (TSX: PZA) had reported a solid fourth-quarter performance, with its same-store sales growth coming at 13.9%. The increase in walk-in traffic and reopening of non-traditional locations drove its same-store sales. The growth in its same-store sales increased its royalty income and adjusted EPS by 10.8% and 10.3%, respectively.
With the easing of restrictions, Pizza Pizza Royalty has restarted the construction of new restaurants across Canada. The management hopes to increase restaurant count by 5% this year and continue its renovation program. Along with these initiatives, the company’s spending on digital and delivery channels could continue to drive its financials in the coming quarters. Meanwhile, the company had raised its monthly dividend by 8.3% last month to $0.065 per share. Its forward yield currently stands at 5.75%. So, given its improving financials and attractive dividend yield, I am bullish on Pizza Pizza Royalty.
