The 3 Best Canadian Dividend Stocks That Pay Cash Monthly

These monthly dividend stocks offer not just passive income from dividends but also returns, as these sectors continue to recover.

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If you’re one of many Canadians who continue to look for passive income through dividends stocks, you’ve come to the right place. That’s especially true if you’re looking for dividend stocks that pay cash every single month. However, while there is still a long list of these stocks to consider, these are the three that I would pick first and foremost.

Exchange Income

The aerospace sector is already on the rebound. Levels in 2023 continue to rise, however passenger bookings are still down for business jet airlines compared to 2019 levels. That being said, companies such as Exchange Income (TSX:EIF) have already seen share prices increase, and are due to rise even further.

Management now expects 2023 full-year levels to reach between $600 million and $630 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). This comes from a few sources. The company services airlines, providing the equipment needed to build new aircraft. And as aircraft continue to rise in demand through 2024, the need to provide such equipment is likely to rise even higher.

The company also provides windows to new homes, and this will certainly help the rise in share price as the housing sector recovers in 2024. The stock currently offers a 5.67% dividend yield, making it a strong dividend stock to consider.

Dream Industrial REIT

Another sector that’s due for a rise is the industrial sector. This sector saw an immense rise during the pandemic when e-commerce stocks were climbing. However, companies that were invested in e-commerce then saw a drop as inflation rose. However, industrial properties continued to do well, no matter what the market brought their way. And that’s been the case for companies such as Dream Industrial REIT (TSX:DIR.UN).

Dream stock continues to have an outperform rating by analysts. The company has shown strength even during this environment of economic uncertainty. Higher interest rates certainly don’t help. But as these lower, along with inflation, more consumers will return. From there, more investment should be made into the industrial space.

Add in a joint venture that should also improve its earnings and net asset value, and this company certainly has a strong mix of risk versus reward at its current share levels. Investors can currently grab a 5% dividend yield while they wait for shares to rise higher.

Minto Apartment REIT

Finally, we have Minto Apartment Real Estate Investment Trust (TSX:MI.UN) for investors to consider. It’s no secret that apartment properties have been increasing in popularity, especially in urban centres across Canada. However, there is a lot more growth to come.

Even so, higher interest rates have certainly weighed on Minto stock for now. Therefore, investors weren’t exactly thrilled when the company announced it would be selling two of its properties in Ottawa for $86 million. The deal, which consists of 311 suites, fell in line with the valuation of the assets, making it a solid sale to strengthen the company.

The proceeds will be used to repay a portion of the company’s variable rate revolving credit facility. That puts it in a stronger position on its balance sheet. For now, it’s providing investors with a stronger 3.05% dividend yield among their other dividend stocks.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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