4 Dividend Stocks Dishing Out Monthly Passive Income

Value, income, returns – it’s all offered from these four dividend stocks promising high monthly income, and huge returns in the future.


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There are a lot of dividend stocks out there on the TSX today, with some dishing out high yields. And many are handing out those dividends on a monthly basis! However, it can be quite hard to find both.

Today, I’m going to give you four dividend stocks that will hand you high-yield passive income. But more than that, these are solid long-term investments I would consider buying and reinvesting in again and again.

Slate Grocery REIT

First up, we have Slate Grocery REIT (TSX:SGR.UN). This company hands out dividends monthly with a yield at 8.21% as of writing. It’s supported through lease agreements anchored to grocery chains across the United States. And Slate has been doing quite well!

The pandemic proved that essential businesses such as this one would continue to thrive no matter what the world throws at it. Now, it’s using its wealth to expand even further into the essential service industry of groceries. Yet the company still remains a steal, trading at just 5 times earnings!

Shares of Slate stock were actually up by 11% in the last year before the recent drop in the market. Now those shares are down about 4% as of writing. That means you can get a deal with an extra-high dividend yield to add to your other dividend stocks.

NorthWest REIT

Another top choice among dividend stocks in the essentials industry is NorthWest Healthcare Properties REIT (TSX:NWH.UN). The reason, of course, is in the name itself. Healthcare will remain necessary no matter what’s happening, market downturn or not.

That’s not to say the company won’t be effected, given the rise in interest rates and inflation could hurt its expansion in the short term. Yet even so, it has long-term lease agreements on hand averaging 14 years! That’s while holding a 97% occupancy rate as of writing.

Yet, it too trades in value territory at 8.1 times earnings, with a monthly dividend yielding 8.53%. With shares down 29% in the last year, the company is sure to recover and then some in the near future and beyond.

Freehold Royalties

Royalty stocks are great options if you’re looking for less risk and volatility. And of them, Freehold Royalties (TSX:FRU) is a solid choice offering monthly passive income. It’s another high yielding dividend stocks at 7.09%, creating huge returns through dividends.

The company also has solid income coming in from the management of royalties from mining, oil, gas and potash companies. And again, it offers huge value trading at just 10.9 times earnings. So, it’s certainly one to consider if you’re looking for a less volatile option.

In fact, even during this downturn shares are up 6.8% in the last year as of writing. So you get value, protection, and returns all in one, while still receiving a monthly dividend.

Northland Power

Finally, if you’re looking for a long-term hold among monthly dividend stocks that will produce major returns, I’d consider Northland Power (TSX:NPI). NPI stock is a strong choice as it invests in renewable energy projects. It holds a wide range of assets, in a wide range of areas. So you get diversification in a strong and emerging industry.

NPI stock, however, has also seen its fair share of struggles recently. Rising inflation and interest rates were one, but lower power production was another. Now it trades at just 9.8 times earnings, providing a major deal to investors.

Dividends aren’t as high as the others, with a yield at 3.53%. However, I would still consider this a huge win with shares down 16%, offering you more dividends than normal. And certainly more future returns.

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 Freehold Royalties and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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