Can You Earn $250 a Month With Dividend Stocks?

Yesterday, Statistics Canada announced that April’s annual inflation slowed to 2.7% compared to 2.9% in March. Despite the signs of easing inflation, prices remain higher, eating into consumers’ pockets. Meanwhile, one can lower the impact by earning a stable passive income by investing in quality dividend stocks. Investors can earn over $250 monthly by investing $15,000 in each of the following three monthly-paying dividend stocks.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) reported a solid first-quarter performance earlier this month, with its royalty pool income growing by 4.6%. Same-store sales growth of 1.7%, increased restaurant counts, and one additional day of sales due to the leap year drove its royalty pool income. Growth in check size amid favourable pricing and sales mix, as well as higher footfalls due to strong value messaging and promotional activities, drove its same-store sales. Amid its solid financials, the company has continued to reward its shareholders with healthy dividends. Its monthly dividend of $0.0775/share translated to a forward yield of 6.94%.

Further, Pizza Pizza Royalty is expanding its restaurant network and hopes to increase its restaurant count by 3-4% this year. Its restaurant renovation program and several marketing initiatives could continue to drive sales, making its future dividends safer.

NorthWest Healthcare Properties REIT

Another monthly-paying dividend stock that looks like an excellent buy is NorthWest Healthcare Properties REIT (TSX:NWH.UN). After a challenging couple of years, the company has witnessed healthy buying over the last few weeks, with its stock price rising by 30% from its March lows. Strengthening of its balance sheet amid divestment of non-core assets and improving operating metrics have increased investors’ confidence, driving its stock price higher. Over the last four quarters, the company has raised $696 million by divesting 27 properties. The company has utilized most of the net proceeds from these assets to pay off debt with higher interest rates.

NorthWest also enjoys higher occupancy and collection rates of 96.5% and 98%, respectively. Also, its long-term lease contracts with reliable tenants and inflation-indexed rents stabilize its financials, making its future payouts safer. It currently pays a monthly dividend of $0.03/share, translating into a forward yield of 7%. Also, despite the recent recovery, it trades at 17.7 times its earnings for the next four quarters, making it an excellent buy.

Whitecap Resources

Third on my list is Whitecap Resources (TSX:WCP), which could benefit from elevated oil prices. The oil and natural gas production company reported a record average production of 169,660 barrels of oil equivalent per day (boe/d) in the first quarter of 2024, representing a 9.4% increase from the previous year. Despite higher production, its top line declined by 1.7% amid lower price realization. Also, its fund flows declined by 14.3% to $384 million.

Meanwhile, WCP continues to strengthen its production capabilities by spudding 96 wells in the first quarter while putting 85 wells into production. Amid solid production, the company raised its 2024 average production guidance by 2,000 boe/d to 167,000-172,000 boe/d. In the long run, the company’s management hopes to increase its average production to 210,000 boe/d by 2028, representing an annualized growth of 5%. These initiatives could boost WCP’s financials, thus making its future payouts safer. Meanwhile, with a monthly dividend of $0.0608/share, its annualized dividend stands at $0.73/share and a forward dividend yield of 7%.