2 Must-Have Canadian Monthly Dividend Stocks for Starting Out

These two top Canadian monthly dividend stocks could help new investors create a reliable source of passive income.

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Starting out in the world of stock market investing can be both exciting and scary, especially if you don’t have a lot of capital to invest. But fortunately, many Canadian dividend stocks are known for their reliability, and some even pay dividends every month, making them perfect for beginners. This way you can expect to receive a little extra cash each month just for holding onto your investments – sounds great, right?

In this article, I’ll highlight two must-have Canadian monthly dividend stocks that are perfect for new investors to hold for the long term.

Sienna Senior Living stock

Sienna Senior Living (TSX:SIA) is the first Canadian monthly dividend stock known for yielding stable and reliable income for its shareholders. This Markham-headquartered firm offers a wide range of senior care options across Canada, including independent and assisted living, memory care, and long-term care. It currently has a market cap of $1 billion as its stock trades at $14.30 per share after surging by nearly 25% so far in 2024.

At this market price, SIA stock offers an impressive 6.5% annualized dividend yield and distributes these payouts every month. This means if you buy around 500 shares of Sienna with an investment of $7,150 right now, you can expect to receive around $39 in monthly passive income, which is equivalent to $468 a year.

Sienna has started 2024 on a strong note, as its first-quarter results reflected significant YoY (year-over-year) operational improvement and financial growth. During the quarter, adjusted revenue grew by 19.9% YoY to $239.4 million. Besides one-time government funding, increasing rental rates, and higher occupancy in retirement residences have helped the company post strong results.

To accelerate its long-term growth prospects, Sienna recently announced the advancement of several key redevelopment projects. For example, it plans to start building a new 160-bed long-term care home in Keswick, Ontario by the final quarter of 2024. Considering these initiatives, its long-term financial growth prospects remain strong, which can help its share price continue appreciating in value.

Mullen Group stock

Mullen Group (TSX:MTL) could be another top Canadian monthly dividend stock, especially if you can hold it for the long term. It’s an Okotoks-based company that primarily focuses on providing logistics services to businesses from various industries. It currently has a market cap of $1.1 billion as its stock trades close to $13 per share with around 7.3% year-to-date losses.

MTL stock offers a decent 5.5% annualized dividend yield at the current market price. So, if you buy 500 shares of this company at the current market price with an investment of roughly $6,505, you can expect to receive about $30 in income every month from its dividends, equivalent to $360 per year.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
Sienna Senior Living$14.30500$0.078$39Monthly
Mullen Group$13.01500$0.06$30Monthly
Prices as of May 28, 2024

In two years, between 2020 and 2022, Mullen’s total revenue jumped 72%, which helped the company more than double its adjusted annual earnings with growth of around 153%. Although recent macroeconomic challenges on business and inflationary pressures affected the demand for its services in 2023 and earnings growth, Mullen’s long-term growth outlook still looks very strong as the demand outlook for the logistics sector remains solid. That’s why the recent declines in this Canadian monthly dividend stock could be an opportunity for long-term investors to buy it at a bargain.

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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