Dividend stocks have been a hot topic as of late, with Canadian investors seeking income from other sources besides returns. Because when the TSX today remains down by about 7% as of writing, there really aren’t that many returns to be had.
That is why passive income has been the focus, and rightly so. But only for dividend stocks that remain a deal. And if you need the cash, then you certainly should be considering monthly dividend producers. Today, let’s look at three monthly dividend stocks that remain a steal on the TSX today.
Choice Properties REIT
Of course, we’re going to look at real estate investment trusts (REITs) if considering monthly dividend stocks. And right up there is Choice Properties Real Estate Investment Trust (TSX:CHP.UN), with a dividend yield at 5.1% as of writing and shares trading at 14.3 times earnings.
The reason this one is a solid choice is that Choice REIT’s principal tenant is Loblaw, which contributes a significant amount to its rent. Beyond that, however, the company has managed to create mixed-use properties, with commercial retail on the bottom and residential properties on the top. Furthermore, it’s expanded into industrial use as well, which remains low cost with high rewards.
Yet shares are down 3.6% in the last year, still offering value, though those shares have climbed 25% since 52-week lows. So, I would lock up the dividend yield while you can.
Dream Industrial REIT
Speaking of industrial real estate, I would also consider Dream Industrial REIT (TSX:DIR.UN) a solid choice as well when considering dividend stocks with monthly income. It currently holds a dividend yield at 4.66% as of writing and trades at just 5.67 times earnings as of writing.
Again, this is a solid choice, mainly because of the focus on industrial properties. These warehouses and assembly properties usually only hold one renter for one location. So, there is stable income coming in, rather than needing to fill an entire building with separate lease agreements. Furthermore, industrial properties are in desperate demand, with more being purchased and built on a regular basis.
Shares remain down 5% in the last year, though have already bounced back by 27% year to date. So, again, bring in that dividend yield while it’s still a steal.
Finally, a royalty company is another strong choice if you’re looking for solid monthly passive income from dividend stocks. One I would recommend at this point is Diversified Royalty (TSX:DIV), which has a dividend yield at 8.03% and is trading at 1.83 times book value.
Here you have the stability of being a royalty company, which, in its own right, brings in solid income. But Diversified Royalty is just that: a multi-royalty company, acquiring royalties from many businesses and franchisors. It simply sits back and collects cash as the owner of trademarks and businesses. Plus, it’s super cheap, trading at just $3 per share.
The stock is now up 4% in the last year but has come back to be on par with where it was at the beginning of 2023. So, you can still grab it for a deal while it lasts.