Cash Kings: 3 TSX Stocks That Pay Monthly

These stocks are rewarding shareholders with regular monthly dividends and high yields, making them compelling investments for monthly cash.

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Dividend-paying stocks are a viable investment option for earning passive income. Additionally, stocks that offer monthly cash appear attractive as they supplement your income while helping to meet expenses. Thankfully, the TSX has several fundamentally strong companies that offer monthly payouts, providing investors an opportunity to diversify their investments and earn a steady passive income.

With that background, let’s look at three Canadian stocks that pay monthly cash. 

SmartCentres Real Estate Investment Trust

Investors seeking monthly income with a high yield could consider adding SmartCentres Real Estate Investment Trust (TSX:SRU.UN) to their portfolio. This REIT (real estate investment trust) has a resilient portfolio that generates strong same-property net operating income to cover its payouts. Further, it has a solid track record of consistently returning cash to its shareholders. 

SmartCentres currently pays a monthly dividend of $0.154 per share. Based on its closing price of $22.68 on April 23, this translates into a lucrative yield of about 8.16%.

SmartCentres’ higher mix of retail properties drives its occupancy rate and cash flows and adds stability to its financials. Further, the REIT boasts strong tenant retention and renewal rates, which shows solid demand for its retail locations. It’s worth highlighting that SmartCentres REIT has a top-quality tenant base, including large retailers, and a high occupancy rate of 98.5%. Adding to the positives, SmartCentres predominantly holds fixed-rate debt, which offers insulation against high interest rates.

SmartCentres’ solid developmental pipeline, comprising mixed-use properties and a large underutilized land reserve, provides a solid foundation for future growth. Further, the high occupancy rate and management’s commitment to return cash to its shareholders support my optimistic outlook. 

NorthWest Healthcare REIT

NorthWest Healthcare Properties (TSX:NWH.UN) is another stock to keep an eye on in the REIT space. Northwest has a defensive real estate portfolio of healthcare-focused assets, which produces solid cash across all market cycles. Further, its high occupancy rate of over 96%, inflation-indexed leases and long average lease expiry term of about 13.2 years add stability to its operations and drive its cash flows. 

While NorthWest’s fundamentals remain strong, elevated debt levels and consistently high interest rates took a toll on its financials last year, leading the management to slash its dividend. Nonetheless, the firm has taken remedial measures to deleverage its balance sheet and is exiting non-core businesses to support its growth and boost its shareholders’ value. Despite the dividend cut, NorthWest Healthcare stock currently offers a monthly payout of $0.03 per share, reflecting a high yield of 7.36%.

Overall, NorthWest’s defensive real estate, high-quality tenant base backed by government funding, long-term leases, high yield, and discounted share price make it an attractive investment option. 

Pizza Pizza Royalty

Investors could consider Pizza Pizza Royalty (TSX:PZA) stock for monthly cash. The stock pays a monthly dividend of $0.077 a share, translating into a yield of 6.97% based on its closing price of $13.35 on April 23.

The company operates quick-service restaurants under the Pizza Pizza and Pizza73 brands through franchising. Further, royalties are its primary source of income. What stands out is that Pizza Pizza Royalty distributes all of its available cash after maintaining reserves, emphasizing its dedication to providing higher returns to shareholders. 

Notably, it raised its monthly cash dividend three times in 2023, resulting in total growth of 10.7%. Further, the company is strengthening its store presence across Canada and adjusting its price and sales mix to drive income and dividend payments. 

In summary, Pizza Pizza Royalty’s commitment to expanding its geographical footprint and consistently rewarding shareholders with higher dividends make it a top choice for generating monthly cash. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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