3 Monthly Dividend Stocks With Yields Above 6%

Given their stable cash flows and high dividend yields, these three monthly-paying dividend stocks could boost your passive income.

| More on:
Increasing yield

Image source: Getty Images

Yesterday, the S&P/TSX Composite Index fell around 1.2%, as investors are skeptical about the health of the regional banks in the United States. On Monday, First Republic Bank stated that its customers had withdrawn around US$100 billion in March amid the banking crisis. Several economists are projecting a recession this year. So, given the uncertain outlook, investors could invest in the following monthly paying dividend stocks to earn a stable passive income, irrespective of the market movements.

NorthWest Healthcare Properties REIT

REITs (real estate investment trusts) are some of the top picks for income-seeking investors, as these companies should distribute around 90% of their cash flows to their investors. However, the rising interest rates and uncertain economic outlook have led to a selloff in these stocks, including NorthWest Healthcare Properties REIT (TSX:NWH.UN). Amid the weakness, the company has lost close to 40% of its stock value compared to its 52-week high.

Meanwhile, I believe the steep pullback has created an excellent buying opportunity, given its defensive healthcare portfolio, long-term lease agreement, inflation-indexed rent, and government-backed tenants. The company has planned to sell around $220 million worth of non-core assets and lower its stake in its United Kingdom and United States joint ventures.

Meanwhile, the company’s management expects these initiatives to deliver net proceeds of $425-$500 million, thus strengthening its balance sheet. So, I believe NorthWest Healthcare’s monthly payouts are safe.

Amid the steep correction, the company’s forward yield has increased to an attractive 9.8 while its price-to-book multiple stands at 0.8. So, considering all these initiatives, I believe NorthWest Healthcare would be an ideal buy to boost your passive income.

TransAlta Renewables

TransAlta Renewables (TSX:RNW) is another excellent monthly paying dividend stock that you should add to your portfolio to boost your passive income. The company, which operates 48 power-producing facilities with a total capacity of three gigawatts, sells most of the power through long-term PPAs (power-purchase agreements). These long-term agreements shield its financials from price and volume fluctuations, thus delivering stability to its financials.

Meanwhile, TransAlta Renewables has received contract extensions for its Sarnia cogeneration and Kent Hills facilities. Also, the company added that its rehabilitation efforts at Kent Hills were progressing well and expects to put the facility into service later this year. Also, the company expects to put several assets into service in Australia this year. These growth initiatives could boost its cash flows, thus allowing the company to pay dividends at a healthier rate. Meanwhile, its forward yield currently stands at a healthy 7.5%.


With a forward yield of 7.4%, Extendicare (TSX:EXE) is my final pick. The company, which operates 103 long-term-care (LTC) homes and retirement communities, reported a mixed fourth-quarter performance last month. Its average LTC occupancy rate improved by 100% basis points, while home healthcare average average daily volume increased by 2%. The revenue from its managed services segment also increased by 24%.

Supported by these factors, the company’s overall revenue grew by 1.4%. However, its net operating income declined by 44% amid an increase in unfunded COVID-19 expenses and higher operating costs across all its segments.

Meanwhile, the sale of retirement operations has allowed Extendicare to focus on advancing its LTC redevelopment program. It is also working on completing its transaction with Revera and Axium, which could strengthen its position in LTC. Given its improving operating metrics and healthy growth prospects, I expect the company to continue paying dividends at a healthy rate.

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

How Much Can You Really Earn in Passive TFSA Income?

With a diversified portfolio of high yield stocks like Enbridge (TSX:ENB) you could potentially get up to $4,400 per year…

Read more »

data analyze research
Dividend Stocks

2 Stocks to Invest in a Sideways Economy

Not all stocks are equally vulnerable to the weak economy and market, and the right stable investments can help you…

Read more »

Value for money
Dividend Stocks

Why Canadian Investors Should Add This Value Stock to Their Portfolios

This value stock is down now, but this comes all from outside impacts. A year from now, you'll likely wish…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

This 7.1% Dividend Stock Pays Serious Cash

After the pullback, Enbridge stock offers a compelling dividend yield of almost 7.1% It's a good consideration for passive income.

Read more »

stock research, analyze data
Dividend Stocks

3 TSX Stocks With Unbeatable Passive Income and Bargain Prices

Three TSX stocks trading at bargain prices are buying opportunities for their relatively safe and sustainable dividend payments.

Read more »

value for money
Dividend Stocks

3 Cheap Dividend Stocks Paying up to 10%

Income-seeking investors can consider buying shares of high-dividend stocks with monthly payouts, such as Slate Grocery REIT.

Read more »

Senior couple at the lake having a picnic
Dividend Stocks

Retirees: Here’s How to Boost Your CPP Pension

The CPP can only cover a portion of your daily expenses. Take control of your pension, and boost the $811…

Read more »

grow dividends
Dividend Stocks

Boost Your Passive Income With These 3 Cheap Dividend Stocks

Given their high yields and discounted stock prices, these three cheap dividend stocks could be an ideal buy to boost…

Read more »