Dividend stocks are a great way to generate a consistent income. They can be handy for those seeking additional funds to meet their financial goals or planning to generate passive income.
While most companies offer quarterly payouts, a few Canadian stocks pay monthly dividend payments. This makes them a compelling investment for investors seeking regular monthly income.
Against this background, let’s look at fundamentally strong companies that offer monthly payouts. Further, let’s explore the investment required to earn $500 in dividends every month.
SmartCentres Real Estate Investment Trust
Investors seeking monthly dividend income could add SmartCentres Real Estate Investment Trust (TSX:SRU.UN) to their portfolio. This real estate investment trust (REIT) pays a monthly dividend of $0.154 per share, which reflects a high yield of over 8.3% based on its closing price of $22.63 on July 8.
SmartCentres is renowned not only for its monthly dividend and attractive yield but also for the reliability of its payouts. The REIT has a long history of paying and increasing dividends, underscoring its commitment to returning cash to shareholders. This is mainly due to its high-quality real estate portfolio and solid tenant base, which includes major retailers. These factors contribute to steady net operating income (NOI) and funds from operations (FFO), ensuring the sustainability of its dividend payments.
SmartCentres boasts ownership interests in 193 properties, including 155 retail properties. This significant concentration of retail properties provides a layer of stability to its earnings by driving high occupancy and retention rates. Furthermore, the REIT benefits from a high cash collection rate and long-term lease extensions, which contribute to its financial stability and consistent income.
In addition to its retail focus, SmartCentres is developing mixed-use properties to capitalize on new growth opportunities. This diversification is expected to enhance its revenue streams and support long-term growth.
In summary, SmartCentres’s solid retail-focused portfolio, pipeline of mixed-use projects, and extensive underutilized land bank provide a solid base for future earnings growth. This will enable the REIT to pay and even increase its monthly dividends regularly in the future.
Pizza Pizza Royalty
Investors seeking regular monthly income could find Pizza Pizza Royalty (TSX:PZA) appealing. The company provides monthly payouts and offers a compelling yield near the current levels. Operating quick-service restaurants under the Pizza Pizza and Pizza73 brands, Pizza Pizza Royalty primarily generates revenue through royalties. Pizza Pizza Royalty’s monthly dividend stands at $0.077 per share, translating to a robust 7.1% yield based on its closing price of $13.04 on July 8.
Pizza Pizza Royalty is dedicated to rewarding its shareholders with increasing dividends. In 2023, the company raised its monthly cash dividend three times, amounting to a cumulative increase of 10.7%. These payouts reflect the company’s commitment to distributing almost all of its cash to its shareholders and solid financial health.
Looking ahead, the firm’s focus on value-oriented menu offerings, expansion of stores in the domestic market, and enhancements in food and technology innovation will support Pizza Pizza Royalty’s financials. Additionally, its focus on improving the customer experience at its restaurants is expected to further boost its revenue and drive its payouts.
Earn $500 every month
SmartCentres and Pizza Pizza Royalty are dependable stocks to earn steady monthly dividend income. Further, both these stocks offer compelling yields near the current levels. The table shows that an investment of $45,260 in SmartCentres stock can help you earn $308 in monthly income. Moreover, $32,600 in Pizza Pizza Pizza Royalty stock can generate $192.5 in monthly dividends. Overall, an investment of $77,860 in these stocks near the current market price can help you earn over $500 every month.
| Company | Recent Price | Number of Shares | Total Investment | Dividend | Total Payouts | Frequency |
| SmartCentres Real Estate Investment Trust | $22.63 | 2,000 | $45,260 | $0.154 | $308 | Monthly |
| Pizza Pizza Royalty Corp | $13.04 | 2,500 | $32,600 | $0.077 | $192.5 | Monthly |
