Want Monthly Passive Income in 2024? 2 Dividend Stocks to Buy Now

These two Canadian dividend stocks can help you earn monthly passive income in 2024, no matter what the market does.

| More on:

The Canadian stock market has remained highly volatile in the post-pandemic era. After declining by 8.7% in 2022, the TSX Composite benchmark staged a recovery of 8.1% in 2023 amid investors’ rising hopes that the central banks in the United States and Canada will soon start easing their monetary stance.

Although inflation in both countries has started easing of late, the possibility that central banks will keep interest rates elevated for some more time can’t be ruled out completely. But if central banks don’t start easing interest rates in the short term, we may see another temporary stock market pullback. This is one of the key reasons why you may want to consider incorporating some quality dividend stocks into your portfolio in 2024 that can help you earn monthly passive income irrespective of short-term market ups and downs. Let’s look at two top Canadian monthly dividend stocks you can buy in 2024.

Sienna Senior Living stock

Sienna Senior Living (TSX:SIA) provides various living options to seniors in Canada, including long-term care and independent and assisted living. The Markham-headquartered firm currently has a market cap of $841.5 million, as its stock trades at $11.56 per share after rallying by more than 12% in the last three months. At this market price, this monthly-paying dividend stock offers a very attractive annualized dividend yield of 8.1%.

After COVID-19-related operational challenges affected its operations in the previous three years, the company’s financial growth showcased significant improvements in 2023. Sienna’s same-property net operating income rose 7% YoY (year over year) to $37.5 million in the third quarter of 2023, with a 6.1% rise in the long-term-care and nearly 8% increase in the retirement segment. The company’s long-term-care occupancy also expanded to 19.4% during the quarter, reflecting a YoY improvement of 250 basis points.

In September last year, Sienna revealed its intentions to acquire the remaining 60% interest in Nicola Lodge, a 256-bed, British Columbia-based long-term-care community. Besides the ongoing improvement in Sienna’s organic growth, such quality acquisitions can enhance its future growth potential further, making this monthly dividend stock even more attractive to buy now.

Freehold Royalties stock

Freehold Royalties (TSX:FRU) could be another strong Canadian monthly dividend stock to consider in 2024. This Calgary-based firm primarily focuses on actively acquiring and managing energy sector-focused royalties in Canada and the United States. It currently has a market cap of $2.1 billion as FRU stock trades at $13.94 per share after witnessing a 7.6% value erosion in the last year. The company distributes its dividend payouts every month and currently offers an annualized dividend yield of 7.7%.

In the third quarter of 2023, Freehold’s U.S. production reached a record of 5,427 barrels of oil equivalent per day (boe/d), reflecting 12% sequential organic growth. The company’s overall production stood at 14,605 boe/d, with a notable 17% YoY jump in U.S. production. Despite a slight decrease in Canadian production due to wildfires, Freehold demonstrated robust financial performance with $65.3 million in funds from operations and returned $41 million in dividends to shareholders.

Moreover, Freehold’s expanding U.S. portfolio and strategic North American operations make it a trustworthy monthly dividend stock to hold for the long term.

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.

The Motley Fool recommends Freehold Royalties. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

data center server racks glow with light
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for Its 4.7% Yield?

Brookfield Infrastructure Partners offers a unique opportunity to invest in a diversified portfolio of high-quality infrastructure assets.

Read more »

Dividend Stocks

The Best Canadian Stocks to Buy With $5,000 Right Now

These top stocks have tremendous growth potential and are trading off their highs, making them some of the best Canadian…

Read more »

young people stare at smartphones
Dividend Stocks

Is Rogers Stock a Buy for its 3.8% Dividend Yield?

With a dividend yield that's much lower than two of its main peers, is Rogers stock still a good investment…

Read more »

money cash dividends
Dividend Stocks

This 7.5% Dividend Stock Pays Cash Every Month

Freehold Royalties is a TSX dividend stock that offers shareholders a tasty dividend yield of 7.5% in October 2024.

Read more »

The letters AI glowing on a circuit board processor.
Dividend Stocks

2 Stocks That Could Be Worth More Than Shopify by 2030

Two high-growth stocks could soon be worth more than the TSX’s former tech superstar.

Read more »

money goes up and down in balance
Dividend Stocks

Is Sun Life Financial Stock a Buy for Its 4% Dividend Yield?

Given its solid underlying business, healthy growth prospects, healthy dividend yield, and attractive valuation, I am bullish on SLF.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

A Dividend Giant I’d Buy Over TD Bank Stock Right Now

Investing in quality dividend stocks is a proven strategy to build long-term wealth. This strategy also offers the opportunity to…

Read more »

data analyze research
Dividend Stocks

2 Top TSX Stocks to Buy at a Deep Discount in October

Investing in quality undervalued TSX dividend stocks such as Whitecap and TD should help you deliver outsized gains right now.

Read more »