Need Cash? 3 Monthly Passive-Income Stocks to Buy Today

If you want passive-income stocks that’ll set you up for life, these are the stocks to buy now.

| More on:
edit Woman calculating figures next to a laptop

Image source: Getty Images.

Passive-income stocks are all the rage right now. Whether it’s dividend stocks or bonds, Canadians are seeking out fixed income that they can be sure will continue coming time and again. However, when it comes to the best monthly passive-income stocks to buy, which ones lead the charge?

Northland Power

There are a few reasons I would consider Northland Power (TSX:NPI). The company has been on the market since 1997, growing and producing a dividend again and again in that time. While the compound annual growth rate (CAGR) is low at 1% in the last decade, it’s stable. So, you can look forward to monthly income coming from this passive-income stock month after month.

Plus, you may see even more in the future both in dividends and returns. That comes from the company focusing in on the clean energy sector, which it has since its fruition. Whether it’s wind, solar, or natural gas, Northland is involved in all areas of clean energy. Offshore wind farms may turn out to be its best investment, given they don’t take up arable land.

Investors can look back on 1,131% returns from this passive-income stock in the last 20 years. That’s a CAGR of 13.36% that’s likely to happen again. Add on the dividend yield of 3.24% while it trades at 13.24 times earnings and it’s one of the best stocks to buy right now.

NorthWest REIT

Now, energy is certainly a stable investment when it comes to passive-income stocks, as are real estate companies. But if you want a stable industry in real estate, I would look to health care. Healthcare companies continue to do well no matter what happens, as we saw during the pandemic. These essential services simply don’t disappear just because the market is doing poorly.

Take NorthWest Healthcare Properties REIT (TSX:NWH.UN) for example. While it may not have the history behind it as some of the other passive-income stocks, it likely will. NorthWest stock has been producing a stable monthly income since coming on the market. While it hasn’t increased, that’s because it continues to expand its portfolio of healthcare properties in locations around the world.

You can pick it up for a major deal. NorthWest stock trades at just 8.66 times earnings with a dividend yield at 7.93% as of writing. Shares have doubled since coming on the market for a CAGR of 9.36% yet are down 18.56% in the last year, as of writing. All this makes it one of the best stocks to buy now.

Slate Grocery REIT

Finally, if you want another essential real estate company, I would look to Slate Grocery REIT (TSX:SGR.UN). Slate also proved its worth during the pandemic, continuing to post strong revenue as it provided an essential service. Since then, it’s expanded through acquisitions and organic growth.

Given that the company is anchored to grocery chains across the United States, this pattern is likely to continue. Further, you might actually get protection during a recession! Shares are actually up by a whopping 20.37% in the last year as of writing. Since coming on the market shares are up 155%, a CAGR at 11.29%.

Yet again, it’s still a deal, even with this strong performance. Trading at just six times earnings, it’s certainly in value territory, and with a dividend yield at 7.14% it’s certainly one of the passive-income stocks to buy now.

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 Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dividend Stocks

3 Canadian REITs That Pay Out Every Month

$10 can buy you a stake in a REIT that pays monthly distributions yielding 8.2% annually. CT REIT and another…

Read more »

A meter measures energy use.
Dividend Stocks

3 Reasons to Buy Utility Stocks in 2023

Here's why adding utility stocks to your portfolio is a smart idea, as we face significant uncertainty in 2023.

Read more »

Modern buildings in business district
Dividend Stocks

2 Top Residential REITs to Buy in February 2023

These two top residential REITs to buy offer attractive passive income as well as long-term growth potential.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

TFSA Investors: Make $102/Month Without Lifting a Finger

Here’s an amazing monthly Canadian dividend stock that can help TFSA investors earn reliable passive income for years.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Passive Income: Earn $129/Month Tax Free

Do you seek passive income? Leverage your TFSA to earn tax-free passive income via these Dividend Aristocrats.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Invest $23,000 in 2023 to Create Passive Income

Here's how income-generating cash cows such as Canadian Utilities and TC Energy can help you earn over $1,000 in annual…

Read more »

Early retirement handwritten in a note
Dividend Stocks

2 High-Dividend Stocks to Buy Today for Early Retirement

You can buy these two high-dividend Canadian stocks right now to help you plan an early retirement from work.

Read more »

worry concern
Dividend Stocks

Worried About Market Downturn? Buy This High-Yielding (6.3%) Dividend Stock

The stock market has been pretty volatile lately. It’s better to have a balanced portfolio that can perform in every…

Read more »