Need $100? The Best Dividend Stocks for Monthly Income

Here are two of the best monthly dividend stocks you can buy in Canada right now for passive income.

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Are you looking to earn a little extra income on the side in Canada? If yes, you must try investing a part of your hard-earned savings in some quality monthly dividend stocks. This way, you can create a reliable source of passive income, irrespective of market ups and downs. In addition, you can also expect to enjoy handsome capital gains in the long run with share price appreciation of the dividend stocks you pick.

Let’s look at two of the best Canadian dividend stocks that can help you earn $100 in monthly passive income.

Superior Plus stock

Superior Plus (TSX:SPB) is a Toronto-headquartered utility company with a key focus on the distribution and marketing of propane and distillates across North America. It currently has a market cap of $2.2 billion, as its stock trades at $10.97 per share with about 2.3% year-to-date losses. SPB stock offers an attractive 6.6% annual dividend yield at this market price and distributes these dividend payouts every month.

In the December quarter, Superior Plus posted a 30% YoY (year-over-year) increase in its total revenue to $1.1 billion. With this, the company reported a record fourth-quarter adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $182.6 million, reflecting a 28% improvement from a year ago. In the last couple of years, Superior Plus has made multiple acquisitions, which are expected to strengthen its propane distribution business and contribute positively to its financial growth in 2023 and beyond.

If you want to earn $100 in monthly passive income from its dividends, you can buy 1,667 shares of SPB at the current market price with an investment of about $18,287.

Mullen Group stock

Mullen Group (TSX:MTL) could be another attractive monthly dividend stock to buy in Canada right now. This Okotoks-based logistics services provider currently has a market cap of $1.3 billion, as its stock trades at $14.50 per share without any notable change on a year-to-date basis. At this market price, it offers a 5% annual dividend yield and distributes dividend payouts on a monthly basis.

Interestingly, MTL stock has risen 207% in the last three years due to its consistently improving financial growth trends. In 2022, its total revenue rose 35% from a year ago to $2 billion with the help of strong demand growth in its less-than-truckload and logistics and warehousing segments. In addition, higher pricing for nearly all its services helped Mullen Group post an outstanding 116% YoY growth in its adjusted earnings for the year to $1.62 per share.

COMPANYRECENT PRICENUMBER OF SHARESINVESTMENTDIVIDEND PER SHARETOTAL PAYOUT (Monthly)DIVIDEND FREQUENCY
Superior Plus$10.971,667$18,287$0.06$100Monthly
Mullen Group$14.501,667$24,172$0.06$100Monthly
Prices as of Mar. 17, 2023

As Mullen’s primary focus remains on acquiring small companies and maximizing their operational performance, you can expect its financial growth trends to improve further in the long term. Moreover, its strong balance sheet and great track record of increasing dividends make MTL stock worth considering to generate monthly passive income.

To earn $100 a month from its dividends, you can buy 1,667 shares of Mullen Group at the current market price with an investment of nearly $24,172.

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 has positions in and recommends Mullen Group. The Motley Fool recommends Superior Plus. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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