Passive Income: 4 Dividend Stocks for a Monthly Cash Inflow

Earning monthly passive income shouldn’t be difficult. Here are four TSX stocks paying big monthly dividends.

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Who doesn’t like earning passive income from dividends on a monthly basis? Somehow earning a monthly dividend can be a comfort when the stock market is volatile.

At the very least, you know you will collect a stream of dividend income that can supplement your paycheque or help pay for retirement.

If you are looking for a monthly inflow of cash, here are four solid stocks for regular passive income.

A top residential real estate stock

BSR Real Estate Investment Trust (TSX:HOM.U) operates a portfolio of multifamily properties in Texas, Oklahoma, and Arkansas. These are jurisdictions experiencing strong population and economic growth. As a result, BSR has been benefitting from high 96% occupancy and single-digit rental rate growth.

This business has recession-resilient characteristics. With interest rates rising, many people have become priced out of the housing market, so BSR’s amenity-rich properties are an attractive housing alternative.

Right now, BSR trades at a near 40% discount to its private market value. Today, you can lock in an attractive 3.7% dividend yield. Put $10,000 into this stock and you would earn $30.89 every month in passive income.

An industrial real estate stock for passive income

Another real estate stock that is great for monthly passive income is Dream Industrial REIT (TSX:DIR.UN). For the past several years, industrial properties have been some of the best-performing real estate assets. Factors like near-shoring, e-commerce, and just-in-case inventory are creating high demand for industrial properties.

Dream operates a large portfolio of multi-tenanted properties across Canada and Europe. The REIT expects to grow earnings by the mid-to-high single digits in 2022 and 2023. A significant portion of its leases are below market rents, so it has considerable upside as those leases renew or turnover.

Like BSR, Dream trades at a big 15% discount to its private market value. Currently, this passive income stock earns a 5.2% dividend yield. Put $10,000 into Dream stock and you would earn around $43.17 of passive income monthly.

An industrial stock for monthly dividends

If you want an industrial stock that pays a monthly dividend, Richards Packaging (TSX:RPI.UN) should be on your radar. The company provides specialized packaging for the healthcare, cosmetic, and beverage industries. Additionally, it has a medical device business that has been supplementing growth.

The company saw a sales explosion during the pandemic. Since then, the stock has pulled back on tough comparable results. Notwithstanding the market slump, the company has a very long-term track record of delivering solid shareholder returns to instill investor confidence.

If you can look past the recent share price weakness, Richards’ stock is cheap, and it pays a nice 3.2% dividend. Consider that, $10,000 invested in this stock would earn $26.73 of monthly passive income.

A top restaurant chain that pays monthly passive income

A&W Royalty Income Fund (TSX:AW.UN) is another interesting stock for monthly passive income. It collects a 3% royalty fee from the revenues earned by A&W restaurants around Canada.

A&W restaurants are a Canadian fast-food favourite growing by the single digits annually. As a result, the Royalty Fund earns a predictable stream of income that it distributes back to shareholders.

Today, this stock yields 5.3%. All tallied, $10,000 invested in A&W Royalty would earn $44.16 of monthly passive income.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
BSR REIT19.13522$0.059$30.89Monthly
Dream Industrial REIT13.5740$0.0583$43.17Monthly
Richards Packaging41243$0.11$26.73Monthly
A&W Royalty Income Fund36.19276$0.16$44.16Monthly
Prices as of Jan. 17, 2023

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 Dream Industrial Real Estate Investment Trust and Richards Packaging Income Fund. The Motley Fool recommends A&w Revenue Royalties Income Fund, BSR Real Estate Investment Trust, Dream Industrial Real Estate Investment Trust, and Richards Packaging Income Fund. The Motley Fool has a disclosure policy.

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