4 Dividend Stocks to Generate Immediate Passive Income

These dividend stocks are great long-term options but provide passive income right now for investors who seriously need some cash.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 17, 2023 9:30 am EDT

Long-term investing is the name of the game when it comes to creating enough savings to reach your financial goals. Yet some of us might need that cash pretty much right away. It might be to pay off debts. It might be to hit some short-term goals, such as car payments, student loans, or even making an emergency fund.

With that in mind, there are a few dividend stocks I would look to first and foremost these days. While returns may be lower in the short term, passive income will be a superb deal to lock up today.

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NorthWest REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a top choice for those seeking passive income pretty much immediately. It’s a monthly dividend provider with a yield currently at 10.27% as of writing.

Shares remain down these days, as higher inflation and interest rates continue to weigh on the stock. Even so, it offers investors long-term rewards for those willing to wait it out. It operates around the world, as one of the dividend stocks holding an international portfolio.

It also offers safety and security, with NorthWest stock investing in healthcare properties. It now holds an average lease agreement of about 14 years, as of writing. So, you can look forward to that dividend coming out month after month, as it continues to expand.

Slate REIT

Another solid business is groceries. That’s why investors continue to find interest in Slate Grocery REIT (TSX: SGR.UN) as well as analysts. Yet again, shares are down thanks to higher interest rates and inflation weighing on the real estate industry as a whole.

Yet Slate stock remains quite stable, with long-term lease agreements for shareholders to look forward to. Furthermore, it operates mainly out of the United States. This is good news, as it operates with a focus on grocery-anchored chains, of which there are many options in the U.S. compared to Canada.

It now holds a 9.05% dividend yield, trading at just 6.72 times earnings. So, it’s certainly a dividend stock to consider right now.

SmartCentres REIT

For more diversification, SmartCentres REIT (TSX: SRU.UN) is another of the monthly dividend stocks for investors to consider. Sure, it’s mainly known for retail locations across Canada, partnering with major brands as well. However, it’s also expanding for more offerings as well.

SmartCentres stock now invests in creating retirement living as well as industrial properties. This will provide investors with multiple revenue sources and residents with places to live, work, and shop. It’s why the company remains of such value, with a dividend yield at 7.34% as of writing.

Yet again, it’s a dividend stock trading in value territory at just 13.96 times earnings as of writing. So, with monthly income and value to consider, I would certainly look at this real estate investment trust right now.

Northland Power

Finally, for something out of the real estate sector, consider Northland Power (TSX: NPI) as well. Northland stock is an excellent option for those wanting to get into the renewable energy sector, while still gaining monthly passive income.

Again, this is a solid long-term option as the world shifts to renewable energy. Right now, however, shares are down as higher interest rates, inflation, and rebuilding of infrastructure weigh on its bottom line. It still trades in value territory at 10.36 times earnings, providing a dividend yield at 4.2%.

If you’re looking for a strong option for a rebound and long-term income, I would certainly consider Northland stock — especially as you can bring in incredible dividends month after month as of writing.