Investing in dividend stocks can be a solid strategy to generate a consistent monthly income stream. However, not all stocks pay dividends, and not all dividend-paying companies distribute dividends monthly. Thus, one needs to identify companies that offer monthly distribution. Furthermore, consider investing in stocks with a focus on enhancing shareholders’ value, solid dividend history, and sustainable yield.
With this backdrop, let’s delve into two Canadian stocks that can help you make money every month with just $10,000.
SmartCentres Real Estate Investment Trust
Speaking of monthly paying dividend stocks, investors can rely on SmartCentres Real Estate Investment Trust (TSX:SRU.UN). Notably, REITs (real estate investment trusts) are known for their higher payouts as they are obligated to distribute most of their earnings, which makes them attractive income stocks. Meanwhile, SmartCentres is Canada’s leading fully integrated REIT that owns 189 real estate properties (primarily retail properties) in the country’s prominent locations.
While its properties witness solid demand, SmartCentres also benefits from its high-quality tenant base, comprising top retailers and essential service providers. Thanks to its high-quality asset base and top-class retailers, SmartCentres boasts a high occupancy rate, which stood at approximately 98.2%. Moreover, it generates solid adjusted funds from operations (AFFO), which supports its payouts.
SmartCentres’s high occupancy rate, solid recurring retail income, focus on developing mixed-used properties, strong balance sheet, and fixed-rate debt position it well to generate solid AFFO and navigate the current high-interest rate environment well.
It’s worth highlighting that SmartCentres pays a monthly dividend of $0.154 per share. This translates into a lucrative yield of 8.04% (based on its closing price of $23.01 on November 22). Overall, its high yield, ability to consistently generate solid AFFO, and focus on enhancing its shareholders’ value makes it an attractive income stock.
Pizza Pizza Realty
Pizza Pizza Royalty (TSX:PZA) is an excellent sock for investors seeking monthly income. What stands out is the company’s policy is to distribute all available cash to enhance its shareholders’ returns. Further, the company maintains a reserve to stabilize dividends and fund other expenditures amid challenges, which makes it a solid income stock.
The company operates and franchises fast-food establishments under the Pizza Pizza and Pizza73 brands. Moreover, it predominantly derives its income from royalties. So far this year, the company has increased its dividend thrice, aggregating to 10.7% growth year over year.
Growth in traffic and its ability to increase menu pricing will drive its same-store sales. Furthermore, the expansion of its restaurant network will likely accelerate its growth. It pays a monthly dividend of $0.077 per share, reflecting a dividend yield of 6.48% near the current levels.
SmartCentres and Pizza Pizza Royalty have reliable payouts that make them solid investments to earn monthly passive income. However, investors must focus on diversifying their portfolios and must not invest all of their cash in one or two stocks.
Number of Shares
|SmartCentres Real Estate Investment Trust
|Pizza Pizza Royalty
Meanwhile, the table shows that $10,000 distributed equally in both these stocks can help you make approximately $60 monthly.