The 2 Best Monthly Dividend Stocks to Buy for Superior Income

Right now is one of the best times to lock up a high dividend yield as well as set yourself up before a recession. Yes, it seems a recession is coming. That means we could see shares fall even further. And if that happens, you’ll want monthly paying dividend stocks giving you cash every month.

And right now, these are the two I’d go for on the TSX today.

NorthWest stock

One of the best investments you can make during a downturn is healthcare stocks, but not companies that are trying to push the next big drug. No, invest in healthcare that’s essential and necessary every single day.

And you know what’s necessary? Healthcare properties. That’s why I’ve been investing in NorthWest Healthcare Properties REIT (TSX:NWH.UN) for years now. While it’s still relatively new and has yet to increase its dividend, I would still recommend it. Mainly because NorthWest stock continues to expand. It’s now one of the dividend stocks that offers global assets and continues to find new opportunities.

What’s more, its properties have an occupancy rate at 97% as of writing, with lease agreements at an average of 14 years. So, that’s solid income you can all but guarantee will continue to come in.

The best part, however, is that NorthWest stock is valuable with a super-high dividend yield. It’s one of the dividend stocks offering a yield at a whopping 9.56% and trading at just 7.35 times earnings. So, I would certainly consider this stock for monthly income on the TSX today.

TransAlta Renewables

If you want monthly income and to set yourself up for future growth, I would then consider a company like TransAlta Renewables (TSX:RNW). TransAlta stock is a solid choice, as we transition away from oil and gas and towards renewable energy.

Right now, it operates natural gas facilities in Canada, the United States and Australia, pushing out renewable natural gas, but also investing in other areas of renewable energy. This allows investors to grab on to the high price of oil, while also setting themselves up for future growth.

And, again, we have an ultra-high dividend yield among dividend stocks at 7.97% as of writing. Furthermore, shares are down 34% in the last year, and it trades at just 1.8 times book value. So, this is certainly a steal right for long-term investors on the TSX today.

TransAlta stock also has a longer history to look back on. The stock has been under pressure in this environment but will likely rise once more. In the last decade, shares are up 19%. But again, that’s after a huge fall. They first climbed 120% before starting to dip.

Meanwhile, the stock offers a dividend yield at $0.94 per share annually. That comes out monthly, as mentioned, so it’s certainly a reason to pick up this stock now at a much lower price than usual on the TSX today.