One can have a stress-free retired life by planning early in their career, adopting the right strategies, and sticking to them. Although there are multiple ways to earn $1,000 per month in your retirement, one of the convenient ways is by investing in monthly-paying stocks. The following three monthly-paying dividend stocks could help you achieve your goal of earning $1,000 monthly.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX: PZA) is one of the top monthly-paying dividend stocks to have in your portfolios due to its reliable cash flows and high dividend yield. The company earns royalties from its franchisees based on sales. So, the inflationary environment will not hurt its financials. Meanwhile, the company is witnessing healthy same-store sales of 13.6% in the March-ending quarter amid growing footfalls and rising average customer check size.
The reopening of non-tradition restaurants, promotional activities, and value messaging boosted traffic, while higher menu prices and a favourable sales mix drove its average check size. Meanwhile, I believe the uptrend in the company’s financials to continue, given its restaurant expansion plans and positive same-store sales growth. Supported by its healthy growth and stable cash flows, the company has raised its monthly dividend seven times since April 2020. It currently pays a monthly dividend of $0.075/share, with its yield at 6.1%.
TransAlta Renewables
TransAlta Renewables (TSX: RNW) owns or has an economic interest in 50 clean energy facilities with a total production capacity of 2,965 megawatts. Meanwhile, the company sells most of its power through long-term contracts. The weighted average life of these contracts stands at 11 years. These contracts shield the company’s financials from volatile demand and price fluctuations, thus delivering stable and reliable cash flows. So, the company has been able to raise or maintain its dividend for the previous nine years. It pays a monthly dividend of $0.07833/share, translating its forward yield to 8.55%.
Meanwhile, the company is working on rehabilitating its Kent Hill facilities, which could become operational in the second half of this year. Further, the company could put Northern Goldfields into commercial operations this year while completing its 132-kilovolt Mount Keith expansion plans. These growth initiatives could boost the company’s cash flows, thus allowing it to continue paying a dividend at a healthy rate.
NorthWest Healthcare Properties REIT
My final pick is NorthWest Healthcare Properties REIT (TSX:NWH.UN), which has been under pressure over the last few months amid rising interest rates and weak quarterly earnings. The company has lost around 55% of its stock value compared to its previous year’s highs. The steep selloff has raised its yield to an attractive 12.52%.
Meanwhile, I believe the selloff is overdone, as the company has taken several deleveraging initiatives, such as selling off non-core assets and lowering its stake in the United States and the United Kingdom joint ventures. Its defensive healthcare portfolio, long-term lease agreements, and government-backed tenants could deliver stable and predictable cash flows, thus making its payout safer.
Bottom line
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| PZA | $14.81 | 3,038 | $44,993 | $0.075 | $227.9 | Monthly |
| RNW | $11 | 4,090 | $44,990 | $0.07833 | $320.4 | Monthly |
| NWH | $6.39 | 7,042 | $44,998 | $0.0667 | $469.5 | Monthly |
| Total | $134,981 | $1,017.71 |
If an investor invests around $45,000 in each of the above stocks, they can earn above $1,000 monthly through dividends alone. The investor could also benefit from capital appreciation.
The above investment strategy provides a fair idea for retirees to earn a stable monthly passive income of $1,000. However, investing a significant amount in just three stocks is not advisable. Investors could diversify their investments to lower their risks.
