Monthly Dividend Payers: Top 3 Picks in the TSX

Canadian investors can supplement their regular paycheques with three monthly dividend payers.

| More on:
Retirees sip their morning coffee outside.

Source: Getty Images

Most dividend stocks pay quarterly dividends, although Canadians seeking to augment their monthly paycheques can go for monthly dividend payers. The top picks on the TSX are Savaria Corporation (TSX:SIS), Atrium Mortgage Investment Corporation (TSX:AI), and Boston Pizza Royalties Income Fund (TSX:BPF.UN).

Accessibility and mobility champion

Savaria is the champion in accessibility and personal mobility. The $1.1 billion company manufactures home elevators, commercial lifts, stairlifts, ceiling lifts, and adapted vehicles to improve people’s mobility and make life more accessible. It has been operating for 34 years with more room to grow because of the aging population.

The manufacturing facilities in North America, Europe and China enable the company to reach global markets. In Q1 2023, all business segments – Accessibility (14.4%), Patient Care (13.2%), and Adapted Vehicles (3.7%) – reported meaningful organic growth versus Q1 2022.

In the three months that ended March 31, 2023, consolidated revenue and net earnings rose 15.3% and 12.9% year over year to $211.6 million and $6.03 million, respectively. Savaria’s President and CEO, Marcel Bourassa, said it was a beautiful start this year considering the perennial weather constraints every first quarter.  

Bourassa adds that management targets $1 billion in revenue by 2025 and expects more growth after that. At $16.90 per share (+22.45%), the dividend yield is 3.1%. 

Conservative lending program

Atrium reported record quarterly net income despite concerns about rising mortgage costs. In Q1 2023, net income climbed 34.1% to $14.2 million versus Q1 2022. This $488.8 million non-bank lender provides residential and commercial mortgages in Canadian urban centres where the real estate sectors are stable and have high liquidity.

The conservative risk parameters of its lending program are why Atrium can provide stable and secure dividends to investors and preserve shareholders’ equity. About 95.4% of the high-quality portfolio are first mortgages, while the average loan-to-value ratio is 60.8%.

Its CEO, Robert Goodali, said, “We continue to lend defensively given soft real estate market conditions and uncertainties in the broader economy.” He is confident that Atrium can manage through the current real estate cycle. At $11.16 per share (+7.41% year to date), the dividend yield is a mouth-watering 8.07%.

Resilient restaurant operations

Boston Pizza’s restaurant operations have been resilient, notwithstanding the current macroeconomic conditions and strong headwinds in the restaurant industry. The $351.9 million income fund collects royalties from the sales of 377 restaurants in its royalty pool.

In Q1 2023, net and comprehensive income declined 48.3% year over year to $6.7 million. Management attributes the drop to the $9.3 million increase in fair value loss. Nonetheless, the significant increases in Franchise Sales (25.5% to $224.2 million) and cash flows generated from operating activities (38.6% to $9.2 million) versus Q1 2022 indicate positive sales momentum.

Its President, Jordan Holm, also said the sales level has returned to more normal levels when compared to the pre-pandemic level. At $16.35 per share, current investors enjoy an 11.3% year-to-date gain on top of the juicy 7.45% dividend.  

Re-investing and power of compounding

Besides more frequent monthly payouts, Savaria, Atrium, and Boston Pizza trade at less than $20 per share and pay attractive dividends. Prospective investors can generate generous monthly passive income and not touch the principal. Moreover, you can reinvest dividend earnings 12 times a year instead of four for faster compounding of capital.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Cheap Dividend Stocks to Boost Your Passive Income

Bank of Nova Scotia and TC Energy pay attractive dividends that should continue to grow.

Read more »

Hands holding trophy cup on sky background
Dividend Stocks

3 Dividend Yield Champions to Buy Today

Manulife Financial (TSX:MFC) and two other Dividend Yield Champions look ripe for buying this fall and winter.

Read more »

A golden egg in a nest
Dividend Stocks

RRSP Investors: 2 Dividend Stocks to Build Your Retirement Nest Egg

These industry-leading stocks can be an excellent part of your portfolio to align with your retirement plan for a sizeable…

Read more »

edit Balloon shaped as a heart
Dividend Stocks

If You Like Dividends, You Should Love These 3 Stocks

Canadian investors can consider buying high dividend TSX stocks such as Enbridge to create a passive-income stream for life.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Pensioners: 3 Cheap TSX Dividend Stocks to Buy Today for TFSA Passive Income

When dividend stocks are cheap, it is time for long-term investors to scoop up shares in their TFSAs and enjoy…

Read more »

Retirement plan
Dividend Stocks

TFSA: How to Invest for $250 in Monthly Retirement

Investors looking to establish monthly retirement income will want to invest in these two stellar stocks now.

Read more »

Dividend Stocks

Buy 92 Shares in This Stock for $1,699 in Passive Income in 2024

The market is changing, and that could mean big things for this discretionary stock as we enter the new year.

Read more »

TFSA and coins
Dividend Stocks

TFSA Investors: How to Prepare for Investing in 2024

2024 will be here before you know it, so make sure you're prepared with a TFSA, have the funds for…

Read more »