We recommend long-term investing a lot here at the Motley Fool. And I’m definitely not going to change my tune now. However, if you’re seeking out dividend stocks wanting monthly income, now is a great time to consider it to get on top of your finances.
Today, I’m going to cover three dividend stocks that pay out passive income each month. What’s more, each is a solid long-term buy as well.
A&W Income Fund
First among dividend stocks we have A&W Revenue Royalties Income Fund (TSX: AW.UN), with a dividend yield currently at 5.34% as of writing. Shares are down about 11% in the last year and up 63% in the last decade.
The company receives its income in a far less risky way compared to other restaurant companies. It’s a royalty stock, meaning it takes the same amount of cash from those using its products and logo month after month. That stable income stream allows your passive income to flow easily as well.
This also makes it a stable stock in terms of returns, allowing shares to rise steadily over time as well — especially as more A&W locations are added on to the company’s roster. Here’s how much you would need to invest to generate $30 in passive income each month.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (ANNUAL) | TOTAL PAYOUT (ANNUAL) | FREQUENCY | TOTAL INVESTMENT |
| AW.UN | $35.74 | 186 | $1.92 | $357.12 | Monthly | $6,647.64 |
NorthWest REIT
Next among these dividend stocks is NorthWest Healthcare Properties REIT (TSX:NWH.UN) — another great option for long-term income and growth. Shares have been a bit all over the place, down 41% in the last year, and remain lower than when it came on the market a few years ago.
However, it now offers a dividend yield at 10.74%, and the dividend has remained steady for the entire time. Any extra cash goes towards the company’s acquisition strategy, where it now holds healthcare properties all around the world.
This means some lower returns for investors. Though long term, you can look forward to lease agreements averaging 14 years that bring with them stable income and revenue growth. Here’s how much you would need to invest for another $30 per month.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (ANNUAL) | TOTAL PAYOUT (ANNUAL) | FREQUENCY | TOTAL INVESTMENT |
| NWH.UN | $7.82 | 450 | $0.80 | $360 | Monthly | $3,519 |
SmartCentres REIT
Finally, we have SmartCentres REIT (TSX: SRU.UN), with its many properties across Canada that see revenue come in from multiple sources. This includes industrial properties, retirement properties, and, of course, the retail properties with major brand names.
Yet again, shares are down about 12% in the last year among dividend stocks and are still recovering from the drop during the pandemic — especially as retail locations suffer from the ongoing effects of inflation and interest rates.
Even so, this company is a strong long-term option, especially for those wanting exposure to retirement stocks that are backed up by other revenue streams. Here’s how much you would need to invest for a further $30 per month.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (ANNUAL) | TOTAL PAYOUT (ANNUAL) | FREQUENCY | TOTAL INVESTMENT |
| SRU.UN | $25.27 | 195 | $1.85 | $360.75 | Monthly | $4,927.65 |
Bottom line
In total, you’ll invest $11,575.29 as of writing, creating a passive income stream of $90 per month, or $1,080 per year!
