Monthly Passive Income: 2 Dividend Machines to Invest in Now

These two Canadian monthly dividend machines can help you create a reliable source of passive income if you act now.

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Whether you want to save money for retirement, pay off debt faster, or fund your lifestyle, having a reliable source of monthly passive income can always help. If you are looking for a steady source of monthly income that does not depend on market conditions, Canadian dividend stocks could be a great way to achieve that goal.

While most TSX-listed companies that have been rewarding their investors with attractive dividends for years have strong business models, not all of them distribute their payouts on a monthly basis. Moreover, it’s very important to look for dividend machines that can reliably and consistently pay monthly dividends over the long term, regardless of the economic environment.

In this article, I’ll highlight two of the best monthly-paying Canadian dividend stocks you can invest in right now.

Mullen Group stock

The first monthly dividend stock you can consider buying right now is Mullen Group (TSX:MTL). It’s an Okotoks-headquartered transportation and logistics company with a market cap of $1.3 billion. Its stock currently trades at $15.02 per share after surging by 7% year to date. At this market price, the stock offers an annualized dividend yield of 4.8% and distributes these payouts every month.

While Mullen mainly focuses on the competitive logistics business, it still has stable and diversified revenue streams with exposure to various sectors, including e-commerce, mining, and energy. Despite lower fuel surcharge revenue and the timing of the holiday schedule, the company’s total revenue in 2023 remained unchanged at $2 billion. Nonetheless, its adjusted gross profits for the year grew positively by 4.8% YoY (year over year) to $630.4 million, with an improved margin of 31.6% compared to 30.1% in the previous year.

In the future, you can expect Mullen’s financial growth trends to improve further as it remains focused on acquiring more efficient operating assets, prioritizing margin over market share, and maintaining balance sheet flexibility, making it an attractive monthly dividend stock to buy in Canada right now.

Sienna Senior Living stock

For investors looking for quality monthly dividend stocks on the Toronto Stock Exchange, Sienna Senior Living (TSX:SIA) could prove to be another gem. The shares of this Markham-headquartered company have surged 17.2% in 2024 so far to currently trade at $13.47 per share with a market cap of $982.6 million. SIA stock offers an impressive 7.1% annualized dividend yield.

Sienna is one of Canada’s largest owners and operators of senior living and long-term care facilities, with a solid portfolio of 93 properties across Ontario and British Columbia. With the help of a large, dedicated team of 12,000 members, the company provides a variety of services to seniors, such as independent and assisted living, memory care, residential care, and home care.

It also has a history of growing its funds from operations per share, which supports its dividend-growth potential. Despite continued macroeconomic challenges, Sienna’s adjusted funds from operations jumped 9.2% YoY to $1.03 per share due mainly to strong growth in its long-term care and retirement segments.

As the company continues to make efforts to reduce costs further in 2024, its financial growth is likely to improve, which should help its share prices keep soaring.

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 has positions in and recommends Mullen Group. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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