3 Top Canadian Dividend Stocks That Pay Cash Monthly

These dividend stocks may be down, but don’t count them out — especially in terms of monthly dividends!

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.

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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 October 8, 2023 9:00 am EDT

Dividend stocks continue to be some of the best investments for Canadians these days. The market is still underperforming, with shares down 7% since a climb back in September. This is why when it comes to finding dividend stocks, monthly ones are sorely wanted at the moment.

Today, we’re going to look at three monthly dividend stocks that investors should consider right now.

NorthWest REIT

Granted, NorthWest Healthcare Properties REIT (TSX:NWH.UN) isn’t exactly a great performer these days. Shares have plummeted in the last year, as the company saw a joint venture in the United Kingdom fall through. What’s more, earnings fell below analyst estimates.

That being said, the company is still a great long-term hold. That comes down to its long-term lease agreements. The company currently has an average lease agreement of about 14 years at the time of writing. That’s with an occupancy rate of 98%! Therefore, investors can look forward to steady cash flow coming in. Even if the company’s share prices don’t reflect it.

NorthWest REIT holds a dividend yield at an insane 15.75% as of writing. Of course, that’s with shares down 53% in the last year. It also trades at a valuable 7.45 times earnings at the time of writing.

TransAlta Renewables

Renewable energy companies are another solid long-term hold among dividend stocks that pay monthly. In this case, TransAlta Renewables (TSX: RNW) is a strong option. RNW stock offers investors exposure to renewable energy of the future, while still focusing on renewable natural gas to bring in cash right now.

However, after several earnings that missed estimates, shares have dropped as well. It currently offers a 7.65% dividend yield because of this, with shares down 18% in the last year. It also looks a little pricey in terms of trading at 40 times earnings right now.

That being said, this stock provides monthly passive income among dividend stocks and is a long-term hold today. Therefore, buying it at higher prices should still pay off in the years to come! That’s in terms of returns. Dividends will come your way month after month in the meantime.

Slate Grocery REIT

Finally, a strong performer today has been Slate Grocery REIT (TSX: SGR.UN) among monthly paying dividend stocks. Slate stock focuses solely on grocery-anchored chains across the United States. Over there, there’s a lot more room for competition and, therefore, more room for opportunities.

In fact, Slate stock has been acquiring more businesses throughout the last few years. Yet shares are still down by 16% in the last year alone. Today, you can pick it up with a whopping 10.5% dividend yield, trading at 11.05 times earnings.

This one to me looks like a steal among the others here today. You can get in on solid performance, with shares down merely because of the turning of the tides.