A stable passive income would lower the impact of higher commodity prices on investors. Investors can earn a stable passive income by investing in monthly paying dividend stocks. The following three stocks pay monthly dividends at a healthier rate. An investment of $28,000 in each of them would allow you to earn over $500 monthly.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| PZA | $13.18 | 2,124 | $27,994.32 | $0.0775 | $164.61 | Monthly |
| WCP | $9.75 | 2,871 | $27,992.25 | $0.0608 | $174.56 | Monthly |
| NWH.UN | $4.86 | 5,761 | $27,998.46 | $0.03 | $172.83 | Monthly |
| TOTAL | $512 |
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX:PZA) has adopted an asset-light business model, franchising all its Pizza Pizza and Pizza 73 brand restaurants. It collects royalties from its franchisees based on their sales. So, rising commodity prices and wages do not impact its royalty income. Instead, higher menu prices to accommodate rising expenses could boost it. Besides, the company continues to witness healthy same-store sales amid its strong value messaging and promotional brand activities.
Further, PZA is constructing new restaurants and expects to increase its traditional restaurant network by 3 to 4% this year. The company is continuing to renovate its old restaurants. These growth initiatives could continue to drive its financials, thus making its future dividend payouts safer. Meanwhile, the company currently pays a monthly dividend of $0.0775/share, translating into an annualized payout of $0.93/share while its forward yield is at 7.1%.
NorthWest Healthcare Properties REIT
After a challenging 18 months, NorthWest Healthcare Properties REIT (TSX:NWH.UN) has witnessed healthy buying over the last three months. The solid operating metrics and an improvement in its financial position while selling non-core assets to lower its debt levels have raised investors’ confidence, driving its stock price higher. Over the last four quarters, it has raised around $696 million by selling 27 assets. Amid renewed interest, its stock price has increased by 23% compared to its March lows.
Given its defensive healthcare portfolio, long-term lease agreements, and healthy occupancy and collection rate, NorthWest Healthcare could continue to deliver stable cash flows. So, I believe the company is well-positioned to continue rewarding its shareholders with healthy dividends. With a monthly dividend of $0.03/share, it currently offers a forward yield of 7.4%. Besides, the company’s valuation looks attractive, with its NTM (next 12 months) price-to-earnings multiple at 17.5.
Whitecap Resources
Oil prices have strengthened this year driven by geopolitical tensions and the announcement of production cuts by OPEC (Organization of the Petroleum Exporting Countries) and its allies. Higher oil prices could benefit energy companies like Whitecap Resources (TSX:WCP), trading around 13% higher this year. With OPEC and its allies extending their production cuts, analysts expect the increased fuel demand in summer could keep oil prices higher in the coming months.
Meanwhile, Whitecap Resources spud 96 wells during the first quarter while putting 85 into production, thus strengthening its production capabilities. The company’s management expects its average production in 2024 to be 167,000-172,000 boe/d (barrels of oil equivalent per day), with the midpoint representing 8.3% growth from the previous year. Further, they hope to grow production at an annualized rate of 5% to reach 215,000 boe/d by 2029.
Amid these growth initiatives, management is confident of raising $4 billion of free cash flow over the next five years, thus making its future dividend payouts safer. Whitecap Resources currently pays a monthly dividend of $0.0608/share, while its forward yield is at 7.5%.
