Believe it or Not, These TSX Stocks Cut You a Monthly Paycheck

Believe it or not, many TSX stocks pay hefty monthly dividends. Here are some ideas to boost your monthly passive income stream!

| More on:
Various Canadian dollars in gray pants pocket

Image source: Getty Images

Several sectors on the Toronto Stock Exchange (TSX) are well-known for paying dividends. These include utilities, renewables, infrastructure, banking/financials, industrials, and real estate stocks. Their dividends are either supported by reliable, essential service business models (like the Canadian banks) or long-term contracted/regulated cash flows (like a pipeline stock).

Inside these sectors, there are a few select TSX stocks that pay dividends on a monthly basis. Given the recent market downturn, you can earn an elevated dividend yield (cash return on your stock cost basis) today. If you are looking for an attractive monthly investment paycheck, here are several ideas.

TSX utilities and renewable stocks

TSX utilities and renewable power stocks earn reliable streams of cash that are either regulated or contracted on power purchase agreements. These TSX stocks can afford to pay attractive monthly dividends.

Northland Power (TSX:NPI) pays a $0.10 per share dividend every month. That equals to a 3.05% dividend yield today. If you put $10,000 into this stock, you would earn $25.41 every single month. Chances are good that you could earn an attractive capital return as well.

Northland is becoming a leader in developing and operating offshore wind power projects around the world. It just signed a large, long-term power agreement in Taiwan.

Northland also has several large renewable development projects in New York, Mexico, Poland, Germany, Scotland, and Japan. It will take time, but all these opportunities will help meaningfully boost earnings and potentially dividends over the long term.

If you are looking for a more elevated dividend today, you may want to consider TransAlta Renewables. It has a 5.57% dividend yield right now. That is equal to a $0.7833 per share dividend monthly.

Oil, gas, and pipeline stocks

Several TSX oil, gas, and pipeline stocks pay monthly dividends as well. Pembina Pipeline (TSX:PPL)(NYSE:PBA) operates an array of pipelines, midstream processing facilities, export terminals, and storage facilities. It is a one-stop provider for Western Canadian energy producers’ egress and transportation needs.

Over 90% of its assets are contracted, so it can very safely maintain its attractive $0.21 per share monthly dividend. After a recent pullback in its share price, it trades with an attractive 5.5% dividend yield.

If you put $10,000 into this stock, you would earn $45.83 per share monthly. For a combination of steady growth and reliable income, Pembina is a solid TSX stock.

Other TSX energy stock ideas for monthly dividends are Whitecap Resources (5.25% yield) or Superior Plus (6.4% yield).

TSX real estate stocks

Commercial real estate stocks often pay reliable monthly distributions that are supported by contracted leases with their tenants. Some reliable monthly dividend payers include Granite REIT (a top industrial REIT that earns a 4% yield), NorthWest Healthcare Properties REIT (a medical property REIT that earns a 6.44% yield), or Choice Properties REIT (a grocery-anchored REIT that yields 5.36%).

One TSX real estate stock I really like for value, income, and growth is European Residential REIT (TSX:ERE.UN). It pays a $0.0133 distribution monthly. At $3.30 per share that equates to a 4.4% dividend yield.

It has an incredibly stable tenant base in the Netherlands. Most costs are covered by the tenant and rental rate growth is indexed to inflation. Likewise, the REIT has recently made several smart acquisitions that were financed at incredibly low rates.

Today, it is one of the cheapest residential real estate stocks on the TSX. It may be down today, but this is a bargain for Canadian income-lovers with a long-term horizon.

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 Robin Brown has positions in European Residential REIT, GRANITE REAL ESTATE INVESTMENT TRUST, and NORTHLAND POWER INC. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST, NORTHWEST HEALTHCARE PPTYS REIT UNITS, PEMBINA PIPELINE CORPORATION, and SUPERIOR PLUS CORP.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »