While the TSX Composite Index is currently hovering close to its all-time highs, the market uncertainties might not be over yet. As investors continue to speculate about the timing of upcoming interest rate cuts, the market may remain volatile. But if you are looking for a steady stream of income that does not depend on market fluctuations, you might want to consider investing in TSX dividend stocks.
In this article, I’ll introduce two monthly-paying TSX stocks that offer attractive dividend yields and have a history of growing their payouts over time. These could prove to be ideal stocks for building a passive-income portfolio that can help you achieve your financial goals in the long run.
Mullen stock
Mullen Group (TSX: MTL) is one of my favourite monthly dividend stocks on the Toronto Stock Exchange that operates in the transportation and logistics industry. This Okotoks-based firm has a diversified portfolio of logistics businesses that serve various sectors, including e-commerce, energy, construction, and mining. It currently has a market cap of $1.1 billion as its stock trades at $12.74 per share with around 9% year-to-date losses. At this market price, MTL stock offers a 5.7% annualized dividend yield and pays these dividend payouts on a monthly basis.
The company’s total revenue surged 58% in five years from 2018 to 2023 with the help of quality new acquisitions despite the challenging macroeconomic environment. To add optimism, Mullen’s adjusted annual earnings grew even at a higher rate of 184% in these five years, from $0.51 per share in 2018 to $1.45 per share in 2023. During these five years, the company’s dividends per share rose 20%.
Although a decline in consumer demand due mainly to slowing economic growth affected its March 2024 quarterly financial results, Mullen’s long-term growth outlook remains strong as it continues to focus on driving incremental growth from new acquisitions.
Whitecap Resources stock
Whitecap Resources (TSX: WCP) could be another top Canadian dividend stock that can help you generate monthly income and build a strong passive-income portfolio. This Calgary-headquartered energy firm mainly focuses on acquiring and operating oil and gas-producing assets. It currently has a market cap of $6.1 billion as its stock trades at $10.23 per share after advancing by 15.3% so far in 2024. This monthly-paying dividend stock has an impressive 7.1% annualized yield at the current market price and has more than doubled its annual dividends over the last five years.
The energy firm’s long-term financial growth trends look strong as Whitecap registered a solid 145.5% increase in its total revenue from 2018 to 2023. Stronger revenues, better commodity prices, and new acquisitions drove its adjusted annual earnings up more than 800% in these five years.
Although lower realized commodity prices affected its bottom line in the first quarter of 2024, Whitecap posted an exceptional increase in production, reaching an average daily output of 169,660 barrels of oil equivalent per day (boe/d). These strong first-quarter production results encouraged the company to raise its annual production guidance by 2,000 boe/d, now expecting to produce between 167,000 and 172,000 boe/d for the year.
Several factors, including the expected completion of the TMX pipeline expansion and the ongoing strength in its natural gas production, brighten the long-term growth outlook of this monthly dividend stock, making it worth considering right now.
