How Much Do You Need to Invest to Get $1,500/Month From Dividend Stocks?

These three monthly-paying dividend stocks with high yields could boost your passive income.

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Retirees can earn a stable passive income by investing in monthly-paying dividend stocks. These stocks would also help others lower the impact of high inflation. One can earn around $1,500 monthly by investing $260,000 in stocks that offer over 7% of dividend yields. Here are three top TSX stocks that provide over 7% yield.


NorthWest Healthcare Properties REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) owns and operates 210 highly defensive healthcare properties with a gross leasable area of 17.4 million square feet. The healthcare real estate investment trust (REIT) has signed long-term lease agreements with highly reliable clients, with the weighted average lease expiry currently at 13.2 years. Thus, it enjoys high occupancy and collection rates.

The growing aging population could drive the demand for healthcare services, thus benefiting NWH. The company has also strengthened its balance sheet by repaying high-interest-bearing debt from the proceeds of 27 property sales over the last four quarters. Meanwhile, the company also has a solid developmental pipeline of the next generation of assets, which can grow its earnings in the long term.

Notably, around 84% of its rent is inflation-indexed, thus stabilizing its financials in this inflationary environment. So, NWH’s future dividend payouts will be safe. It currently offers a monthly dividend of $0.03/share, with its forward dividend yield at 7.38%.

Pizza Pizza Royalty

Second on my list is Pizza Pizza Royalty (TSX:PZA), which generates stable cash flows due to its asset-light business model. The owner of Pizza Pizza and Pizza 73 restaurants operates its 776 restaurants through franchises. It collects royalties based on their sales. So, its royalty income is less susceptible to rising commodity prices and wage inflation. Meanwhile, the increase in menu prices to compensate for the increased expenses could boost its royalty income.

PZA has posted positive same-store sales for 12 consecutive quarters amid its value offerings, menu and technology innovations, and operational excellence. Further, it is expanding its footprint and expects to add 3-4% new restaurants this year. So, along with healthy same-store sales, these expansions could boost its financials, thus allowing it to continue its dividend growth. The company, which intends to return all the available free cash to its shareholders, had raised its dividend three times last year. Currently, it pays $0.0775/share, with its forward yield at 7.13%.

Whitecap Resources

Oil prices rose last month due to the extension of production cuts by the Organization of the Petroleum Exporting Countries and its allies, the expectation of rising oil demand in summer, and geopolitical tension. Higher oil prices will benefit oil-producing companies like Whitecap Resources (TSX:WCP). Meanwhile, the company spud 96 wells in the first quarter while bringing 85 into operation. Its Musreau battery facility became operational in the first quarter.

The company has also planned to make a capital investment of $0.9-$1.1 billion this year, strengthening its asset base. Meanwhile, the company’s management raised its 2024 production guidance by 2,000 BOE/d (barrels of oil equivalent per day) in April to 167,000-172,000 BOE/d. The midpoint of the new guidance represents an 8.3% increase from the previous year. So, higher production and elevated oil prices could boost WCP’s financials, thus allowing it to continue rewarding its shareholders with healthy dividends.

It offers an attractive forward dividend yield of 7.19% and trades at a next-12-month price-to-sales multiple of 1.6, making it an excellent buy for income-seeking investors.

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust and Whitecap Resources. The Motley Fool has a disclosure policy.

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