Earn $370 Every Month with These 3 Dividend Stocks

These three Canadian dividend stocks could boost your passive income.

| More on:
Silver coins fall into a piggy bank.

Source: Getty Images

Amid measures taken by the central banks globally, the U.S. consumer price index rose 8.5% in July compared to 9.1% in June. However, it’s still higher than the Federal Reserves’ acceptable rate of around 2%. Given the inflationary environment, it’s prudent to supplement yourself with secondary income, which can provide a cushion against rising prices.

Investing in monthly-paying dividend stocks is an excellent means to earn passive income. By investing the TFSA’s (tax-free savings account) cumulative contribution room of $81,500 in monthly-paying dividend stocks with yields above 5.5%, an investor can earn over $370 monthly. On that note, here are three Canadian stocks with dividend yields above 5.5%.

NorthWest Healthcare Properties REIT

REITs (real estate investment trusts) are one of the best methods to earn passive income because these entities are bound to pay over 90% of their cash flows to investors. So, I have selected NorthWest Healthcare Properties REIT (TSX:NWH.UN), which owns and operates healthcare properties across eight countries. Given its defensive portfolio, long-term lease agreements, and tenants with government backing, the company’s occupancy rate remains high.

In the June-ending quarter, the company completed acquisitions worth $934 million, including acquisitions in the United States of $775 million. Besides, the company continues to acquire and construct healthcare properties across high-growth markets, such as the United Kindom, Germany, Australia, and Canada. So, these growth initiatives could drive its cash flows, thus allowing it to pay dividends at a healthier rate. With a monthly dividend of $0.0667/share, its yield for the next 12 months stands at a juicy 6%, making it an excellent buy for income-seeking investors.


Keyera (TSX:KEY), which posted impressive second-quarter results last week, is my second pick. Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased by 41% to $316 million amid solid performance from its marketing segment. Higher commodity prices and rising demand for iso-octane drove the financials of this segment.

After posting a solid second-quarter performance, Keyera’s management raised its guidance for this year. Management expects the realized margin from its marketing segment to come in between $380-$410 million compared to its previous guidance of $300-$340 million. Further, the company is developing several pipeline and natural gas processing plant projects, including the KAPS natural gas liquids (NGL) and condensates pipeline. These growth initiatives could drive its adjusted EBITDA at a CAGR (compound annual growth rate) of 6-7% through 2025, allowing the company to maintain its dividend growth.

Keyera has raised its dividends at a CAGR of 7% since 2008. Its yield for the next 12 months stands at 5.98%.

Pizza Pizza Royalty

My final pick is Pizza Pizza Royalty (TSX:PZA), which posted a solid second-quarter performance on Wednesday. Increased customer visits and the reopening of non-traditional restaurants amid the easing of pandemic-related restrictions drove the company’s same-store sales, which grew by 20.3%. Besides, the company opened three new restaurants over the last six months, driving its royalty pool sales. Supported by its sales growth, the company’s adjusted EPS (earnings per share) increased by 16%.

Amid improving cash flows, Pizza Pizza Royalty increased its monthly dividend by 3.8% to $0.0675/share in June, with its forward yield at 5.9%. Given its marketing campaigns, menu innovation, and restaurant expansion, I expect the growth to continue. So, Pizza Pizza Royalty is well-positioned to continue paying dividends at a healthy yield.

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.

The Motley Fool recommends KEYERA CORP and NORTHWEST HEALTHCARE PPTYS REIT UNITS. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.  

More on Dividend Stocks

Dividend Stocks

10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks

The TSX is lucrative to buy these magnificent dividend stocks in bulk and be proud of this decision 10 years…

Read more »

calculate and analyze stock
Dividend Stocks

4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

We’re Only Getting Older: A Top TSX Stock That Benefits From an Aging Population

For a bet on the aging population, consider this small-cap stock with growth potential.

Read more »

Growing plant shoots on coins
Dividend Stocks

Yield Today, Growth Tomorrow: 3 Stocks to Keep Building Your Wealth

For investors seeking yield today and growth tomorrow, these top Canadian dividend stocks are certainly worth considering right now.

Read more »

Payday ringed on a calendar
Dividend Stocks

This 10.72% Dividend Stock Pays Cash Every Month

This dividend stock remains a consistent, defensive dividend producer that will give up over 10% in income each and every…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA Investors: 2 Standout Domestic Stocks With 7% Yields

These top dividend-growth stocks look oversold.

Read more »

Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Despite their recent declines, the long-term growth outlook of these two top dividend stocks remains strong, which could help their…

Read more »