If you want to earn reliable monthly passive income in Canada, you can consider investing in some fundamentally strong stocks that pay their dividends on a monthly basis. While you may find the ongoing market selloff horrifying, the falling share prices of high-dividend-paying companies are making them look more attractive to buy at a bargain. In fact, some well-established Canadian companies have a great track record of consistently rewarding their investors with healthy dividends each month, irrespective of market conditions, which could become a great source of reliable monthly passive income for you.
In this article, I’ll highlight two such amazing Canadian dividend stocks that I find worth buying right now.
Freehold Royalties stock
Freehold Royalties (TSX:FRU) is a Canadian energy firm with a market cap of $2.2 billion that primarily focuses on acquiring and managing crude oil and natural gas-focused royalties in Canada and the United States. Its stock currently trades at $13.59 per share with about 25.2% year-to-date gains against a 9.6% drop in the TSX Composite Index in 2022.
In the second quarter of this year, Freehold Royalties reported a 21% YoY (year-over-year) increase in its total production to 13,453 barrels of oil equivalent per day. Higher production, along with stronger commodity prices, took its June quarter revenue up by 142% YoY to around $108.5 million. With this, its adjusted quarterly earnings jumped by 340% from a year ago to $0.44 per share. In the coming years, you could expect Freehold’s financial growth trend to strengthen further, as it remains focused on making new quality acquisitions in the energy sector.
At the current market price, FRU stock offers an impressive annual dividend yield of around 7.4%. Freehold Royalties distributes its dividend payout on a monthly basis, and its strong financial growth trends make it one of the best Canadian passive-income stocks to buy now.
Keyera (TSX:KEY) could be another great Canadian dividend stock to consider right now if you want to invest in stocks to earn stable monthly passive income. This Calgary-based energy transportation firm currently has a market cap of $6.8 billion, as its stock trades at $30.34 per share with 6.3% year-to-date gains. Keyera stock also rewards its investors with monthly dividends and has an annual yield of around 6.3% at the current market price.
After COVID-19 pandemic-related concerns drove the demand and prices of energy products sharply down, its revenue-growth rate stood at 19% YoY in 2020. Nonetheless, the company registered an outstanding financial recovery the next year. In 2021, its revenue jumped by about 65% from a year ago to $5 billion. Stronger revenue combined with stronger energy demand drove its adjusted earnings for 2021 up by 400% YoY.
While Keyera continued to maintain a strong earnings growth trend in the first half of 2022, rising inflationary pressures might hurt its financial growth in the second half. Nonetheless, its medium- to long-term growth outlook remains solid with the company’s continued efforts to follow strict financial discipline while continuing to pursue strategic growth opportunities. Given its positive long-term growth outlook and robust balance sheet, it could be one of the most reliable monthly passive-income stocks to buy in Canada today.