2 of the Best Canadian Stocks That Pay Out Regularly

If you’re in need of cash flow this year, I would totally understand that. The market has been horrid for the last year, and is poised to get worse. A recession is in the books by the summer, according to economists. So investors would certainly be wise to pick up dividend-paying Canadian stocks on the TSX today.

Yet, here’s the thing. Don’t just think about the current situation. Think far ahead. Like, far, far ahead to when you could use this cash in retirement, for example.

That’s why today I’m going to focus on two Canadian stocks that pay out monthly dividends. Ones that are perfect to buy now for some quick cash, then use to reinvest and save for the future.

NorthWest REIT

NorthWest Healthcare Properties (TSX:NWH.UN) is the perfect option for investors who need income right now. It’s cheap, trading at about $8.25 at the time of writing this article, with shares down about 40% in the last year alone.

While shares may be down, the company actually had a stellar year. During its last earnings report, NorthWest stated it achieved revenue up 24% year over year. Further, it maintained an average lease agreement of 14 years, with a 97% occupancy rate.

The strong performance all adds up to stable income, especially as the company continues to expand around the world into new markets. This includes expansion very soon into the United Kingdom through a joint venture. What’s more, its income is all derived from the field of healthcare properties, underpinned by hospitals and healthcare facilities that simply aren’t going anywhere.

NorthWest is a great opportunity among Canadian stocks at this rate. It currently offers a dividend yield at 9.48%, which is dished out on a monthly basis. Should you invest $10,000, here is what you could gain in passive income.

All said and done, you’ll be looking at $80.80 per month in passive income. Income that you can go on to reinvest in this stock as it continues to grow in the years to come.

TD stock

Another option to consider are the bank stocks, but in particular Toronto Dominion (TSX:TD) is one to consider. It’s one of the two largest banks in Canada by assets, and second largest by market capitalization. Yet, shares continue to drop as recession fears lead to banks and other financial institutions losing their higher share prices.

TD stock is an example, however, of how long-term investors should ignore this downturn. In fact, they should get in on it! It’s one of the Canadian stocks in the banking industry that has provisions for loan losses. While those losses are going on right now, they won’t be forever. In fact, TD stock has a history of coming back to pre-fall prices within a year of hitting recession lows.

So while these shares are down, it’s a great time to lock up a higher dividend yield. Especially as TD stock also has a history of dividend increases year after year. Granted, TD stock is likely to be hit hard by a recession both in Canada, as well as the United States, where it has major exposure. But this will again help it when it comes out of this recession on the other side.

Meanwhile, TD stock offers a dividend yield at 4.64% as of writing, with shares down 19% in the last year, and 7% year to date. Should you invest $10,000 here, this is what you could gain in passive income.

For TD stock, this comes out on a quarterly basis. So you can therefore look forward to $120.96 every quarter. And again, that’s quite a bit to put towards reinvesting in the future.