Whether you want to secure your financial future or supplement your current income, having a source of reliable passive income could be of great help. Out of all the possible ways, investing in quality dividend stocks could be one of the best methods to create a reliable source of monthly passive income.
In this article, I’ll talk about two top Canadian monthly dividend stocks you can buy now and hold for the long term. Interestingly, both these stocks have staged a recovery of late but still trade deep in the negative territory on a year-to-date basis, making them more attractive to buy on the dip.
Allied Properties REIT stock
Allied Properties REIT (TSX: AP.UN) is a Toronto-headquartered open-ended real estate Investment trust (REIT) with a strong portfolio of high-quality, distinctive urban workspace across Canada’s major cities. The REIT currently has a market cap of $2.2 billion, as its stock trades at $ 16.87 per share.
While this Canadian dividend stock has seen more than a 6% recovery in November so far, it still trades with about 34% year-to-date losses. Allied offers an attractive 10.7% annualized dividend yield at this market price and distributes its dividend payouts every month.
The recent recovery in Allied Properties REIT’s share prices started after the company announced its latest quarterly results in the final week of October. In the third quarter of 2023, its funds from operations per unit improved to 59.8% from 58.8% in the previous quarter, as it continued to increase focus on leasing activity. The REIT leased a total of 358,812 square feet of its total gross leasable area last quarter, including positive leasing activity in its rental as well as development portfolios.
In its third-quarter earnings report, Allied Properties REIT also highlighted firm demand for its workspace across the country, which could further boost its financial growth in the coming years as soon as the macroeconomic scenario starts to improve. Given these positive expectations, this monthly-paying dividend stock looks attractive to buy on the dip and hold for the long term.
Northland Power stock
Northland Power (TSX: NPI) is another attractive Canadian dividend stock you may want to consider on the dip right now to expect to earn monthly passive income for years. This Canada-based company focuses on producing power primarily using clean, renewable resources. NPI currently has a market cap of $5.7 billion as its stock trades at $22.53 per share with slightly less than 40% year-to-date losses. Nonetheless, this monthly dividend stock has seen a strong 15.6% recovery in November so far. Just like Allied, NPI also distributes its dividend payouts every quarter and has a decent annualized dividend yield of 5.3% at the current market price.
Earlier this month, on November 9, Northland Power announced its latest quarterly results. In the third quarter of 2023, total revenue fell 7.7% YoY (year over year) to $513.3 million but exceeded analysts’ estimates of $491.4 million. Despite temporary economic challenges, you can expect Northland’s financial growth trend to improve in the coming years, as it continues to focus on the new project pipeline, which is likely to increase the electricity production capacity of this monthly dividend-paying company.
