Canada’s Consumer Price Index rose 3.1% in October compared to the previous year. Although it declined from 3.8% in the previous month, it is still higher than the Bank of Canada’s guidance of 2%. So, with higher prices eating into your income, it is prudent to look for a secondary or passive income. Meanwhile, investing in monthly paying dividend stocks would be one of the convenient ways to earn a secondary income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| PZA | $14.42 | 693 | $9,993 | $0.0775 | $53.71 | Monthly |
| EXE | $6.7 | 1492 | $9,996 | $0.04 | $59.68 | Monthly |
| WCP | $9.58 | 1043 | $9,992 | $0.0608 | $63.41 | Monthly |
| Total | $176.8 |
An investor can earn over $175 monthly by investing approximately $10,000 in each of the following three stocks.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX: PZA) operates a highly franchised restaurant business, collecting royalty from its franchisees based on their sales. So, rising expenses will not impact its financials, thus generating stable and predictable cash flows. Also, the company has grown its same-store sales by 9.8% and has added 21 new restaurants in the first three quarters, which drove its royalty pool income. Amid the increase in its royalty pool income, the company has raised its monthly dividend three times to $0.0775/share. An investor could earn $53.70 monthly from his 693 shares (an investment of around $10,000).
With its payout ratio at 93%, PZA has a cushion against seasonal variations that are inherent to the restaurant industry. Besides, the company’s menu innovations, promotional activities, new restaurant additions, and old restaurant renovation activities could continue to drive sales, thus making its future payouts safe.
Whitecap Resources
Oil prices have declined this month amid softening demand in major economies. Meanwhile, the OPEC (Organization of the Petroleum Exporting Countries) could deepen its production cuts to support oil prices next year. So, Whitecap Resources (TSX: WCP), with an oil-weighted and liquids-rich asset base, would be an excellent buy.
Meanwhile, the company has committed to invest around $1 billion to $1.2 billion, strengthening its asset base. Amid these investments, the company’s management expects its 2024 production to be between 162,000 and 168,000 barrels of oil equivalent per day. The midpoint of the guidance represents a 5% increase from the 2023 projections. Besides, management hopes it will maintain this growth rate to reach 200,000 barrels of oil equivalent per day in 2027. So, I believe WCP’s future payouts will be safe.
Notably, the company currently pays a monthly dividend of $0.0608/share, with its forward yield at 7.65%. So, an investor could earn $63.40 from its 1043 shares (an investment of around 10,000).
Extendicare
Extendicare (TSX: EXE) offers care and services to Canadian seniors under various brands. Earlier this month, the company reported solid third-quarter performance, with its revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) growing by 4.4% and 107%, respectively. The average daily volume of its home healthcare increased by 1% during the quarter, while long-term care occupancy rose 60 basis points to 97.8%.
Meanwhile, through Revera transactions, the company added 56 LTC (long-term care) homes and around 7,000 beds to its managed services portfolio. Besides, it sold four redevelopment projects to a joint venture led by Axium Infrastructure for $147.3 million. Meanwhile, Extendicare has retained a 15% stake in the joint venture. So, given its solid third-quarter performance, healthy growth prospects, and strong balance sheet, I believe the company is well-positioned to continue rewarding its shareholders by paying dividends at a healthier rate.
Extendicare currently pays a monthly dividend of $0.04/share, with its forward yield at 7.16%. An investor would earn $59.70 from his 1492 shares (an investment of around 10,000) through dividends.
