4 Great Investments That Will Provide You With Monthly Income in 2023

Explore four TSX stocks to secure monthly income in 2023. Discover financial opportunities for stable and consistent returns.

| More on:

Quality dividend stocks with a monthly payout can help investors generate a stable recurring income stream. Ideally, you would want these companies to increase dividends yearly while benefitting from long-term capital gains.

Here are four top TSX stocks that will provide you with a monthly income in 2023.

Exchange Income stock

Valued at a market cap of $2.3 billion, Exchange Income (TSX:EIF) has already created massive wealth for long-term investors. The TSX stock is up close to 300% in the last 10 years. Despite these outsized returns, it currently offers shareholders a dividend yield of 4.8%.

Exchange Income’s operating segments are strategic business units that include Aviation Services and Aerospace & Manufacturing. Due to its diversified cash flows, Exchange Income has raised dividends 16 times, distributing over $750 million to shareholders.

Priced at 14.4 times forward earnings, EIF stock is trading at a cheap valuation as adjusted earnings are forecast to grow by 11.5% annually in the next five years.

Killam Apartment REIT

One of Canada’s largest residential real estate investment trusts (REITs), Killam Apartment (TSX:KMP.UN) also provides investors exposure to a different asset class, lowering overall portfolio risk.

In the first quarter (Q1) of 2023, Killam Apartment stated its funds flow from operations, or FFO, grew by 4.2% on a per unit basis. It also initiated a capital-recycling program completing $42.8 million of dispositions, generating over $27 million in net cash proceeds.

Killam Apartment has a capital-recycling goal of $100 million in 2023, which should allow it to pursue growth opportunities and lower balance sheet debt.

Killam pays unitholders a monthly dividend of $0.058 per share, translating to a yield of almost 4%. The TSX stock is currently priced at a discount of 20%, given consensus price target estimates.

Freehold Royalties stock

A company that acquires and manages royalty interest in crude oil, potash, natural gas liquids, and natural gas, Freehold Royalties (TSX:FRU) offers you a tasty dividend yield of 7.6%. Despite lower commodity prices in 2023, strong drilling activity in the U.S. and Canada should benefit Freehold Royalties. In fact, Freehold’s Clearwater assets averaged 450 boe/d, an increase of 25% year over year.

The company claimed that despite modest investment levels in Canada, substantial production numbers have been achieved in the country in the last three years. In addition, Freehold continues to experience robust leasing activity across royalty properties, allowing it to pay shareholders a monthly dividend of $0.09 per share.

In Q1 of 2023, its fund flow and production volumes were in line with estimates. It also expects funds flow to range between $250 million and $280 million in 2023, indicating a payout ratio of 60%, which is sustainable if the prices of West Texas Intermediate range around US$80/bbl.

Pizza Pizza Royalty stock

The final monthly dividend stock on my list is Pizza Pizza Royalty (TSX:PZA), which currently offers a dividend yield of 6%. A small-cap stock valued at $455 million, Pizza Pizza Royalty increased same-store sales by 13.6% and royalty pool sales by 16% in Q1 of 2023.

Its adjusted earnings also surged by 16%, as it opened seven new restaurants in the quarter, while the royalty pool of restaurants was up 16 in 2023.

Down 21% from all-time highs, PZA stock is priced at a discount of 10% to consensus price target estimates.

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 Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Killam Apartment REIT. The Motley Fool recommends Freehold Royalties. The Motley Fool has a disclosure policy.

More on Dividend Stocks

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »

Senior uses a laptop computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

TD Bank (TSX:TD) shares are way too cheap with way too swollen a yield for retirees to pass up right…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for its 4.75% Yield?

Brookfield Infrastructure Partners (BIP) has a 4.75% dividend yield. Is it worth it?

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »