Want $100 in Monthly Dividend Income? Invest $15,516 in These 3 Stocks

Here are three of the best Canadian stocks you can buy right now to start earning $100 in monthly dividend income.

| More on:
money cash dividends

Image source: Getty Images

If you’re looking to earn passive income in Canada, you may want to invest in monthly dividend stocks. This is because dividend investing provides a great deal of flexibility for those seeking passive income.

In this article, I’ll talk about three of the best Canadian stocks that can help you earn $100 in dividend income each month or $1,200 a year with an investment of $15,516.

NorthWest Healthcare Properties stock

Northwest Healthcare Properties REIT (TSX:NWH.UN) is among the most attractive Canadian monthly dividend stocks right now. This Toronto-headquartered real estate Investment trust (REIT) has a strong portfolio of over 230 healthcare sector-focused properties across key markets globally. The REIT currently has a market cap of $2.4 billion, as its stock trades at $9.82 per share after climbing 3.4% in 2023 so far.

Most of NorthWest’s properties are leased to hospitals and other healthcare facilities. At the end of the September 2022 quarter, the occupancy rate of its properties stood strong at 22%, while its weighted average lease to expiry was around 14 years, reflecting the strength of its underlying business model. Currently, NorthWest Healthcare offers an attractive yearly dividend yield of 8.1%.

TransAlta Renewables stock

If you’re willing to invest in monthly dividend stocks with huge future growth potential, you should consider TransAlta Renewables (TSX:RNW). Besides natural gas, as its name suggests, this Calgary-headquartered company mainly focuses on producing power using renewable resources like wind, hydro, and solar. Currently, RNW stock trades at $12.06 per share with a market cap of $3.2 billion after adding 7.2% value this year.

In the five years between 2016 and 2021, TransAlta’s total revenue rose about 82%, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped by 163%. Although its continued focus on expanding its business further has increased its costs in recent years, these investments are likely to pay off well in the long term and help its stock soar. At the time of writing, TransAlta Renewables has an annual dividend yield of about 7.8%.

Sienna Senior Living stock

Just like the other two stocks that I’ve mentioned above, Sienna Senior Living (TSX:SIA) could be another fundamentally solid Canadian monthly dividend stock to consider right now. Its share prices have risen 15.6% this year to $12.60 per share, taking its market cap to $919 million.

The Canadian company provides a variety of independent and assisted living options to seniors across Canada, with most of its assets located in British Columbia, Ontario, and Saskatchewan provinces. In five years between 2016 and 2021, Sienna’s total revenue and adjusted earnings grew positively by 34% and 15%, respectively. While its recent financial growth trend might not look very impressive, I expect this trend to improve significantly, as the demand for seniors’ living options is expected to rise massively in the long run. SIA stock’s annual dividend yield currently stands close to 7.4%.

NorthWest Healthcare Properties REIT$9.82450$4,419$0.06667$30Monthly
TransAlta Renewables$12.06450$5,427$0.07833$35Monthly
Sienna Senior Living$12.60450$5,670$0.078$35Monthly
Prices as of Feb. 17, 2023

Bottom line

To generate a $100 monthly dividend income (equivalent to 1,200 a year), you can buy 450 shares of NorthWest, TransAlta Renewables, and Sienna Senior Living each. To buy these many shares at their current market prices, you need a total investment of $15,516. As I said at the start of this article, dividend investing is flexible, as you can increase or decrease your total investment in these stocks to adjust the amount you wish to receive in monthly passive income. But never forget to diversify your portfolio to keep your risks low.

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 NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

A worker uses a double monitor computer screen in an office.
Dividend Stocks

2 of the Best Canadian Stocks That Pay Out Monthly

These two Canadian dividend stocks are some of the best to buy, offering yields upwards of 5.4% and returning cash…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive-Income Seekers: 4 Safe Dividend Stocks to Own Beyond 2033

Dividend stocks are great, but only if they continue to perform after downturns as well. In the case of these…

Read more »

clock time
Dividend Stocks

How Investors Can Build a $1 Million Portfolio in 12 Years

If you can handle it, you can certainly create a million-dollar portfolio in just 12 years, especially considering this dividend…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

4 Big Dividend-Paying Stocks for 2023

These four stocks all earn strong cash flow and offer attractive dividend yields, making them some of the best to…

Read more »

grow dividends
Dividend Stocks

This 7.5 Percent Dividend Stock Pays Cash Every Month

If you need cash now, this dividend stock is certainly one I would consider that could double in share price…

Read more »

Path to retirement
Dividend Stocks

Need Passive Income? Turn $6,000 Into $106 Every Month

Find the right dividend stock for stable growth and you can turn $6,000 into $106 each month!

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

2 Top Stocks to Supercharge Your TFSA Into a Cash Cow

IA Financial and Brookfield Renewable Partners are great passive income generators for new TFSA investors.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

Invest in This 7.5% Dividend Stock for Passive Income

This dividend stock could provide you with double the amount of annual passive income by investing now instead of at…

Read more »