Earn $450/Month Through These 3 Monthly Paying Dividend Stocks

Given their high dividend yields and stable cash flows, these three Canadian stocks could boost your passive income.

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Investing in monthly paying dividend stocks would be a convenient and cost-effective means to earn passive income. With high food and energy prices eating into customers’ pockets, it is prudent to supplement yourself with secondary income. By investing around $100,000 in monthly paying dividend stocks with yields of over 5.5%, you can earn above $450 every month. Meanwhile, here are my three top picks with dividend yields above 5.5%.


Earlier this month, Keyera (TSX:KEY) reported a solid second-quarter performance, with its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) growing by 41.1% to $316 million. The strong performance from its marketing segment amid robust commodity prices and increasing demand for petroleum products drove its growth. Meanwhile, given its long-term regulated contracts and developmental pipeline, I expect the growth to continue.

Keyera is continuing with the construction of the Key Access Pipeline System (KAPS), with 70% of the project being complete. The management expects to complete the project by the first quarter of 2023. Besides, the company is constructing or evaluating five more projects, which the management expects to complete by 2025. Amid these growth initiatives, the management expects its adjusted EBITDA to grow at a CAGR (compounded annual growth rate) of 6-7% through 2025.

Meanwhile, Keyera has raised its dividend at a CAGR of 7% since 2008, while its yield for the next 12 months stands at 5.95%. With its payout ratio at 51% and liquidity of $1.7 billion, I believe the company’s dividend is safe.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) has raised its dividend twice this year. The easing of restrictions has allowed the company to reopen its dining spaces and non-traditional restaurants, thus driving foot traffic and same-store sales. In the recently reported second quarter, the company’s same-store sales grew by 20.3%. It also opened three new restaurants over the last six months. Amid solid sales, the company’s adjusted EPS (earnings per share) increased by 16%.

Meanwhile, the uptrend could continue, given Pizza Pizza Royalty’s creative marketing campaigns, menu innovation, and new restaurant openings. The company’s highly franchised business model delivers stable and reliable cash flows, allowing the company to pay its dividend at a healthy rate. With a monthly dividend of $0.0675/share, its yield for the next 12 months stands at 5.90%. It trades at an attractive NTM (next 12 months) price-to-earnings multiple of 15.3.

NorthWest Healthcare Properties REIT

With a dividend yield of 6.14% for the next 12 months, NorthWest Healthcare Properties REIT (TSX:NWH.UN) is my final pick. Its defensive healthcare portfolio, long-term contracts, government-backed tenants, and inflation-indexed rent provide stable and reliable cash flows. The company focuses on making strategic acquisitions to drive growth. It made $934 million worth of acquisitions in the second quarter, including $775 million in the United States. The entry into the lucrative U.S. market could drive its growth in the coming quarters. 

It is also working on expanding its presence in Germany, the United Kingdom, Australia, and Canada. It has strengthened its financial position by raising $135 million through convertible debentures. So, given its stable cash flows, high dividend yield, and attractive price-to-earnings multiple of 7.7, NorthWest Healthcare is an ideal buy for income-seeking investors.

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.  

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