Retirees: 2 TSX Stocks That Pay You Each Month

Although dividend payment frequency is a relatively minor concern when choosing dividend stocks, it can ease the process of managing passive income.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are quite a few elements you have to look into when you are choosing the right dividend stocks for your portfolio, including its yield, payout ratio, certain financial metrics, and dividend history. Dividend frequency, i.e., quarterly or monthly, is usually not a significant enough factor that may dissuade you from an otherwise solid dividend stock or encourage you to buy a relatively risky dividend stock.

But if it is an essential factor for you and you are looking for dividend payers with a monthly frequency, two stocks should be on your radar.

An apartment REIT

When it comes to monthly payouts, Canadian real estate investment trusts (REITs) are among the top choices since they usually stick to this payout frequency. Killam Apartment REIT (TSX:KMP.UN) is a decent pick among Canadian REITs, not just for its dividends and monthly payouts but also for its long-term capital-appreciation potential.

Created with Highcharts 11.4.3Killam Apartment REIT PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The REIT is currently offering payouts at a yield of around 3.9% and the payouts are quite financially sustainable. Killam used to grow its dividends and even though it hasn’t since 2021, the practice may come back, which will make Killam’s monthly payouts even more of an asset for its investors.

Killam also has business model and fundamental strengths that you might consider before you decide to invest in this REIT. It has a solid portfolio of real estate assets and has been steadily expanding into new regions.

The portfolio is also diversified asset-wise, with MHCs (Mobile Home Communities) making up a decent proportion of its overall portfolio. The financials are pretty consistent, with minor fluctuations.

A mortgage company

If you are seeking exposure to the mortgage industry in Canada, one of the bank stocks might be a more realistic pick. But even though big Canadian banks dominate the national mortgage industry, that’s just one element of their business.

A company like First National Financial (TSX:FN) might be better, as mortgage is its only business. It is among the largest non-bank mortgage lenders in Canada.

Created with Highcharts 11.4.3First National Financial PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

First National is also a generous dividend stock offering its investors monthly payouts. It’s also an established Dividend Aristocrat that has grown its payouts for 11 consecutive years and is currently offering a much more generous yield (6.6%) than most other Aristocrats in the Canadian financial sector (with similar track records).

The stock is currently both discounted and undervalued, considering its price-to-earnings ratio of just 8.2, so you might also experience some capital appreciation when the stock turns bullish.

Foolish takeaway

A Tax-Free Savings Account is the best place to stash these two monthly dividend payers. You will establish or augment an existing tax-free revenue stream, which will enhance your income or serve as passive income without beefing up your tax bill. That’s a two-pronged financial benefit.  

Should you invest $1,000 in Olympia Financial Group Inc. right now?

Before you buy stock in Olympia Financial Group Inc., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Olympia Financial Group Inc. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Killam Apartment REIT. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

calculate and analyze stock
Dividend Stocks

Here’s How Many Shares of Brookfield Renewable You Should Own to Get $500 in Quarterly Dividends

If you want some dividends on deck, then consider this energy producer, which could provide that and more.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Here’s Exactly How $15,000 in a TFSA Could Grow Into $215,000

If you're looking to grow your $15,000 investment into $200,000, here's exactly how to get it done.

Read more »

A worker gives a business presentation.
Dividend Stocks

Navigating Economic Headwinds and Buying the Dip

If you're looking to get in on the markets, but fearful of the market dip, then here's how to navigate…

Read more »

Canadian Dollars bills
Dividend Stocks

A 10% Dividend Stock Paying Cash Every Month

This dividend stock doesn't only offer a massive income, but a variety of investments during this volatile period.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Income-generating Stocks That Could Accelerate Your TFSA Growth in 2025

Generate tax-free passive income in your TFSA with these two stocks and grow your wealth.

Read more »

woman looks out at horizon
Dividend Stocks

How I’d Invest $8,500 in Canadian Financial Services to Create a Wealth Legacy

Canada’s financial services sector can help you create a wealth legacy from a less than $10,000 investment.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

Is BCE Stock a Buy for its Dividend Yield?

BCE stock looks pretty appealing with a 12% dividend yield, but there's more to consider.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA: Invest $15,000 in This TSX Stock and Create $962.55 in Annual Passive Income

If there's one TSX stock to buy right now, it's this long-term hold that's been around for over 100 years!

Read more »