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.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| BSR REIT | 19.13 | 522 | $0.059 | $30.89 | Monthly |
| Dream Industrial REIT | 13.5 | 740 | $0.0583 | $43.17 | Monthly |
| Richards Packaging | 41 | 243 | $0.11 | $26.73 | Monthly |
| A&W Royalty Income Fund | 36.19 | 276 | $0.16 | $44.16 | Monthly |
