The Bank of Canada has slashed interest rates three times this year and could continue with its monetary easing initiatives. Amid falling interest rates, monthly paying dividend stocks with high yields are an excellent means for retirees to earn a stable passive income. With an investment of $175,000 in stocks that offer over 7% in dividend yields, one can earn over $1,000 monthly. Against this backdrop, let’s look at three top monthly paying dividend stocks offering over 7% yields.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENTS | DIVIDEND | TOTAL PAYOUTS | FREQUENCY |
| NWH.UN | $5.02 | 11,620 | $58,332.4 | $0.03 | $348.60 | Monthly |
| PZA | $12.43 | 4,692 | $58,321.56 | $0.0775 | $363.63 | Monthly |
| WCP | $9.72 | 6,001 | $58,329.72 | $0.0608 | $364.86 | Monthly |
| Total | $1,077.09 |
NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) would be an excellent monthly paying dividend stock to buy due to its stable cash flows and high yields. The company enjoys a healthy occupancy and collection rate due to its highly defensive healthcare properties, long-term lease agreements, and high-quality tenant base. Besides, its inflation-indexed rent shields its financials against rising prices.
Meanwhile, NorthWest Healthcare has adopted a non-core assets sales program to lower its debt levels and strengthen its financial position. Under this program, the company sold around 46 assets to raise $1.4 billion. It utilized the net proceeds to pay off high-yield debts. Besides, the company is developing next-gen properties that can deliver long-term earnings growth for its shareholders. Given its solid operating performance, improved financial position, and healthy growth prospects, its future dividend payouts will be safe. NWH.UN pays a monthly dividend of $0.03/share, translating its forward yield to 7.2%.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX:PZA) would be my second pick, given its asset-light business model, stable cash flows, and high dividend yield. It operates 743 Pizza Pizza and Pizza 73 brand restaurants through franchisees. The pizza chain collects royalties based on franchisees’ sales, thus making its financials less susceptible to commodity price fluctuations and wage inflation.
Meanwhile, the company’s same-store sales declined in the June-ending quarter. The company’s management has blamed the challenging macro environment for the decline. However, given its high-quality and value-oriented menu offerings, the company hopes to retain its existing customers and expects to win new ones. Besides, it plans to increase its store network by 3 to 4% and continue its renovation program, which could contribute to its financial growth. So, I expect PZA to continue rewarding its shareholders at a healthier yield. Currently, it offers a monthly dividend of $0.0775/share, translating it into a forward yield of 7.5%.
Whitecap Resources
Whitecap Resources (TSX:WCP), which produces oil and natural gas, posted a record production of 177,314 barrels of oil equivalent per day in the recently announced second quarter. Its production grew by 22% per share year-over-year, surpassing its internal guidance. Amid a solid operating performance, the company’s revenue and net income grew by 22.9% and 39.4%, respectively. It also generated free fund flows of $223 million in the second quarter while returning around $110 million to its shareholders through share repurchases and dividends.
Besides, WCP brought 33 wells into service during the quarter and had spud 27 wells. Further, the company plans to make a capital investment of $0.9–$1.1 billion this year, strengthening its asset base. Amid these growth initiatives, the company projects its average annual output could come between 167,000 and 172,000, with the midpoint representing an 8.3% year-over-year growth. In the long run, the company expects its total production to increase at an annualized rate of 5% through 2029.
With oil prices falling substantially since the beginning of this month, WCP has been under pressure, losing over 7% of its stock value. The pullback has increased its forward dividend yield to 7.5% while dragging its NTM (next 12 months) price-to-sales multiple to 1.6. Despite the near-term weakness, I believe WCP would be an excellent buy due to its healthy growth prospects, cheaper valuation, and high yield.
