Are you looking for easy ways to generate passive income from your investments? If so, you might want to consider monthly dividend stocks. If you pick your dividend stocks for your portfolio carefully enough, you can expect to earn a steady stream of income every month without much effort.
Another big advantage of investing in monthly dividend stocks is that they could help you reinvest your dividends more frequently and efficiently. By receiving dividends every month, you may buy more shares of the same or different stocks at lower prices, taking advantage of the power of long-term compounding. Doing so could significantly boost your portfolio’s value over time and create more wealth for you.
In this article, I’ll highlight two of the best monthly dividend stocks you can consider buying in Canada today and holding for years to come.
Whitecap Resources
Whitecap Resources (TSX: WCP) is the first monthly dividend stock that you might want to consider for steady, monthly passive income. It currently has a market cap of $5.9 billion as its stock trades at $9.87 per share with 11.3% year-to-date gains. WCP stock offers an attractive 7.4% annualized dividend yield at the current market price.
As an energy company primarily involved in the acquisition and development of petroleum and natural gas-related assets, Whitecap Resources has robust operations that focus on high-demand resources. In the quarter ended in June 2024, the company’s petroleum and natural gas revenues soared by around 23% YoY (year over year) to $980.4 million as it achieved record average daily production of 177,314 barrels of oil equivalent per day (boe/d).
In recent quarters, Whitecap’s strategic focus on its Montney and Duvernay assets has shown strong results, as its production from these assets has grown by 27% YoY in the past 18 months, reaching approximately 61,000 boe/d. In addition, the company’s conventional assets are also performing well. Given this, I expect Whitecap’s financial growth trends to improve further in the years to come, which could encourage it to reward its investors with higher dividends.
CT REIT stock
CT REIT (TSX: CRT.UN) could be another strong Canadian stock for your monthly dividend portfolio. After rallying by 9.1% over the last month, its stock currently trades at $14.41 per share with a market cap of $1.6 billion. At the current market price, the Toronto-headquartered real estate investment trust (REIT) offers a 6.3% annualized dividend yield.
As a real estate investment trust, CT REIT primarily focuses on commercial properties across Canada, many of which are occupied by Canadian Tire. This relationship provides the trust with a stable base of rental income, supporting its consistent monthly dividend payments.
In the second quarter of 2024, CT REIT’s property revenue rose 4.8% YoY to $144.4 million. At the same time, the recently completed intensification and development of its income-producing properties helped it post a 4.4% YoY increase in its net operating income to $114.9 million.
Moreover, the trust continues to focus on new investments and acquisitions to boost its long-term growth prospects. These factors make CT REIT an attractive Canadian monthly dividend stock for long-term investors.
