3 High-Yielding Dividend Stocks to Earn $175 Monthly

These three high-yielding monthly-paying dividend stocks could boost your passive income.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

COMPANYRECENT PRICENUMBER OF SHARESINVESTMENTDIVIDENDTOTAL PAYOUTFREQUENCY
PZA$14.42693$9,993$0.0775$53.71Monthly
EXE$6.71492$9,996$0.04$59.68Monthly
WCP$9.581043$9,992$0.0608$63.41Monthly
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.

Should you invest $1,000 in Canopy Growth right now?

Before you buy stock in Canopy Growth, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canopy Growth wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Whitecap Resources. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

A worker overlooks an oil refinery plant.
Dividend Stocks

3 High-Yield Canadian Stocks I’d Consider for a $5,000 Investment

These three dividend stocks are excellent additions to your portfolio, given their healthy cash flows and high yields.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Use My TFSA to Invest in Canadian Value Stocks for Long-Term Wealth

TFSA investors can mitigate bearish trends by shifting to value stocks that can deliver long-term wealth.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA ‘Forever Holdings’: 4 Canadian Stocks for Sustained Tax-Free Growth

Add these four TSX dividend stocks to your self-directed TFSA portfolio to generate tax-free passive income for decades.

Read more »

Beware of bad investing advice.
Dividend Stocks

Where I’D Invest $1,000 in 3 No-Brainer Canadian Stocks Under $150

Want to invest $1,000 in some great stocks? Here's a trio that investors can buy at a discount right now…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

The 1 Canadian Stock I’d Buy and Hold Forever in a TFSA

This Canadian stock is a strong option for any TFSA, and here's why.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,267 in Annual Passive Income

Dividend stocks are strong options, but these two could be some of the best long-term options.

Read more »

investor looks at volatility chart
Dividend Stocks

I’m Adding This 12% Dividend Stock for a Recession-Resistant Portfolio

Despite boasting such a high dividend yield, this 12% dividend yield stock might be an excellent pick to build your…

Read more »

Make a choice, path to success, sign
Dividend Stocks

1 Undervalued TSX Stock Down 51% to Buy and Hold

This TSX stock plunged, but don't count it out, especially at these prices.

Read more »