Stock market investing can offer you several ways to get returns on your investment and watch your money grow. In this economy, relying on one income stream is no longer enough to achieve your financial goals. Fortunately, the Canadian stock market offers plenty of reliable dividend stocks that can help you get good returns on your investment every month.
Choosing the right dividend stocks is necessary to build a good passive-income portfolio. You must identify and invest in stocks with strong underlying businesses that can continue delivering shareholder dividends for years to come.
Today, I will highlight two strong picks you can consider adding to your self-directed investment portfolio to generate extra cash every month.
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Mullen Group
Mullen Group (TSX: MTL) is a $1.15 billion market capitalization logistics company headquartered in Okotoks. The company has several segments, including Less-Than-Truckload Logistics, Logistics & Warehousing, Specialized & Industrial Services, and U.S. & International Logistics. The company focuses on providing logistics services to clients across various industries.
As one of the largest trucking and logistics services providers in Canada, MTL has a forward-looking management team that has completed more than 77 acquisitions since the company went public three decades ago. It recently completed the acquisition of ContainerWorld Forwarding Services and its subsidiaries, unlocking more opportunities for MTL stock.
After four years of consistent profitability, the company is now focusing on reducing costs and restructuring underperforming business units. Combined with the rate cuts, share prices might rise soon. As of this writing, MTL stock trades for $13.01 per share, paying its investors an annualized 5.53% dividend yield.
Sienna Senior Living
Sienna Senior Living (TSX: SIA) is a $1.05 billion market capitalization senior housing company headquartered in Markham. The company offers a wide range of senior care operations throughout the country, including assisted living, memory care, long-term care, and independent care facilities. It is the largest licensed long-term-care operator in Canada.
Operating solely in Canada, Sienna Senior Living has a considerable demand for its services. The aging population makes its services increasingly essential. The company’s business model is defensive, making it fairly recession-proof. Its diversified portfolio of government-funded long-term-care communities and private-pay retirement residencies gives it a strong balance sheet.
In its first quarter of fiscal 2024, Sienna reported a fifth consecutive quarter of same-property net operating income (NOI) growth, and its funds from operations were up 94.8% year over year. As of this writing, it trades for $14.38 per share and pays its shareholders their monthly distributions at an annualized 6.51% dividend yield.
Foolish takeaway
Whether you want to boost your monthly income to help with expenses through passive income or use it to accelerate the growth of your savings, monthly dividend stocks can be a great way to invest in the stock market.
With business models that support the monthly payouts comfortably, these two TSX dividend stocks can be excellent foundations for a monthly income portfolio. While you should never put all your eggs in the same basket, here’s an example of how, hypothetically, purchasing 834 shares of MTL stock and 642 shares of SIA stock can generate a little over $100 per month in dividends alone.
| Company | Recent Price | Number of Shares | Dividend | Total Payout |
| Mullen Group Ltd. | $13.01 | 834 | $0.06 | $50.04 |
| Sienna Senior Living | $14.38 | 642 | $0.078 | $50.07 |
| Prices as of June 12, 2024 | Combined Monthly Payout | $100.11 |
