Cash Kings: 3 TSX Stocks That Pay Monthly

These Canadian stocks reward their shareholders with regular monthly dividends and a high yield.

| More on:
Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline

Image source: Getty Images

Investing in top dividend stocks is a proven strategy for earning reliable passive income. Further, dividend stocks help diversify portfolio risk and add stability. Thankfully, the TSX has numerous fundamentally strong stocks that pay dependable dividends. However, I’ll restrict myself to Canadian stocks that pay monthly cash.

Against this backdrop, investors could consider shares of Pizza Pizza Royalty (TSX:PZA), SmartCentres Real Estate Investment Trust (TSX:SRU.UN), and NorthWest Healthcare Properties (TSX:NWH.UN). Let’s look at the factors that make these monthly dividend stocks attractive investment options.

Pizza Pizza Royalty

Pizza Pizza Royalty could be a compelling investment for earning monthly cash. Besides offering monthly payouts, the company offers a high yield, which supports my optimistic outlook. The company, which operates quick-service restaurants under the Pizza Pizza and Pizza73 brands, pays a monthly dividend of $0.077 a share. This translates into a high of 7.1% based on its closing price of $13.18 on June 14.

Pizza Pizza remains committed to rewarding its shareholders with higher monthly dividends. It distributes all of its available cash after maintaining reserves. It’s worth noting that it raised its monthly cash dividend three times in 2023, for a cumulative increase of 10.7%.

The company’s financials will likely benefit from its focus on value-oriented menu offerings. Moreover, strengthening its store presence across Canada, food and technology innovation, and continued improvement in customer experience at its restaurants will likely drive its top line, earnings, and dividends.

SmartCentres Real Estate Investment Trust

SmartCentres Real Estate Investment Trust is another monthly dividend stock that should be on your radar. It is one of Canada’s largest fully integrated REITs (real estate investment trusts) and has consistently returned cash to its shareholders. SmartCentres currently pays a monthly dividend of $0.154 per share. Based on its last closing price of $21.99, this translates into a lucrative yield of about 8.4%.

SmartCentres’ resilient portfolio of 193 properties generates strong same-property net operating income to cover its payouts. Further, the higher mix of retail properties drives its occupancy rate and cash flows and adds stability to its financials.

It’s worth highlighting that SmartCentres REIT has an industry-leading occupancy and rent collection rate. Further, the REIT benefits from its top-quality tenant base, including large retailers. In addition, its solid tenant retention rate, lease extensions, and robust leasing activity show solid demand for its retail locations.

In the future, SmartCentres’ solid developmental pipeline, comprising mixed-use properties and a large underutilized land reserve, provide a solid foundation for growth and support its payouts.

NorthWest Healthcare REIT

NorthWest Healthcare Properties is another REIT offering monthly income with a high yield. Northwest has a defensive real estate portfolio of healthcare-focused assets, which enables it to produce solid cash flow in all market conditions. The REIT has a high-quality tenant base backed by government funding, which adds stability to its financials.

It’s worth noting that the persistently high interest rates and elevated debt levels led management to slash its dividend in the recent past. Nonetheless, the company’s fundamentals remain strong, and the REIT is taking measures to deleverage its balance sheet and boost liquidity. Despite the dividend cut, NorthWest Healthcare stock currently offers a monthly payout of $0.03 per share, reflecting a high yield of 7.4%.

The REIT is focused on reducing debt and strengthening its balance sheet by exiting non-core businesses. Further, its high occupancy rate of over 96%, inflation-indexed leases, and long average lease expiry term of about 13.2 years add stability to its operations, positioning it well to enhance shareholder return through monthly dividend payments.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

person on phone leaning against outside wall with scenic view at airbnb rental property
Dividend Stocks

2 TSX Stocks Poised to Have a Big Summer

Restaurant Brands International (TSX:QSR) stock and another darling that could be too cheap to ignore this summer.

Read more »

HIGH VOLTAGE ELECRICITY TOWERS
Dividend Stocks

Forget Fortis Stock: Buy This Magnificent Utilities Stock Instead

Looking for high dividends and returns? Then I'm sorry, but Fortis (TSX:FTS) stock probably isn't for you.

Read more »

Increasing yield
Dividend Stocks

2 High-Yield (But Slightly Risky) Stocks to Keep Your Eye on

Have these top TSX dividend stocks finally bottomed?

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks I’d Buy if They Fall a Bit

Any near-term decline in these two top Canadian dividend stocks will make them look even more attractive.

Read more »