Monthly Money-Makers: 3 Dividend Stocks Paying Cash Regularly

Most TSX stocks pay quarterly dividends but three are money-makers for their regular monthly cash dividends.

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Investors turn to dividend stocks for passive income or to augment active income. Most publicly listed companies pay quarterly dividends, although some disburse the payouts regularly every month.  

TSX stocks like Savaria (TSX:SIS), Northland Power (TSX:NPI), and Slate Grocery (TSX:SGR.UN) are considered money-makers because of their monthly cash dividends.

Captured market

Savaria is a strong buy following its strongest year ever. The $1.2 billion company provides accessibility solutions or addresses accessibility needs through two core business segments (Accessibility and Patient Care). Its captured market is the aging population or elderly and physically challenged individuals.

In fiscal 2023, revenue and net earnings increased 6.1% and 7.2% respectively to $837 million and $37.8 million versus fiscal 2022. “2023 was a great year for Savaria and has set the stage for 2024 and beyond,” said Marcel Bourassa, Executive Chairman of Savaria. He adds that the record revenue was a remarkable feat.

Bourassa believes the best is yet to come. He said the goal to hit approximately $1 billion of revenue by year-end 2025 is within sight. Besides the strong foundation built through the years, Savaria expects strong demand from the growing aging population. If you invest today ($16.83 per share), the industrial stock pays a 3.08% dividend.   

Renewable energy

Northland Power develops, builds, owns, and operates clean and green projects. The $5.8 billion independent power producer (IPP) has assets in Canada, Colombia, Germany, Spain, the Netherlands, and other international locations. In 2023, sales declined 8.8% year over year to $2.2 billion, while net loss reached $96.1 million compared to the $955.5 net income in 2022.

Its President and CEO, Mike Crawley, said the IPP performed well because adjusted EBITDA, adjusted free cash flow, and free cash flow exceeded guidance. Management looks forward to improved financial results once it completes two major offshore projects (Hai Long and Baltic) and an energy storage project (Oneida).

NPI also sealed partnership agreements within its offshore wind projects in Scotland and Taiwan. According to Crawley, the accomplishments reinforce NPI’s capability and expertise to develop, secure strong partnerships, and finance and execute complex, large-scale projects.

Furthermore, the weighted average contracted revenue life of NPI’s assets and infrastructure is 16 years. At $22.56 per share (-5.46% year to date), you can partake in the renewable energy firm’s lucrative 5.45% dividend. It hasn’t missed a monthly payment since 2018.

Resilient grocery-anchored REIT

Slate Grocery is a pure-play, 100% grocery-anchored, and $668.6 million real estate investment trust (REIT). Its property portfolio is well-positioned in major U.S. markets, and tenants are leading grocers. At $11.28 per share, investors enjoy a 10.54% dividend.

In Q4 2023, rental revenue increased 1.7% year over year to US$51.5 million, while net operating income (NOI) dropped 1.1% to US$40.1 million versus Q4 2023. Its CEO, Blair Welch, said the broader real estate industry experienced massive headwinds last year. However, Slate’s grocery-anchored real estate held ground and demonstrated exceptional resilience and operational performance, noted the CEO of Slate Grocery REIT.  

Also, during the quarter, Slate completed 637,439 square feet of leasing and forged new deals. Notably, the new leasing spread is 23.1%, and total leasing spread is 10.4%. The REIT expects to unlock higher rents and grow NOI over time.

Financial stability

Companies pay dividends for various reasons, primarily to demonstrate financial stability. Savaria, Northland Power, and Slate Grocery can attract more investors because of the payout frequency: 12 in a year, not 4.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Slate Grocery REIT. The Motley Fool has a disclosure policy.

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