Want $100 in Safe Monthly Dividend Income? Invest $17,200 in These Ultra-High-Yield Canadian Stocks

Investing in dividend stocks with monthly payouts can be a smart strategy for meeting regular financial obligations or boosting long-term returns through reinvestment. Monthly dividend stocks, particularly those offering ultra-high yields, can significantly increase your passive income and shorten the payback period of your investment.

Thankfully, the TSX has a few fundamentally strong companies offering high yields, making those Canadian stocks reliable investments to generate steady passive income. Against this background, let’s explore how much you need to invest in these ultra-high-yield stocks to get a relatively safe dividend income of over $100 per month.

SmartCentres REIT

Canadian real estate investment trusts (REITs) are famous for offering monthly distributions and high yields. Among REITs, SmartCentres (TSX:SRU.UN) is a reliable option for generating monthly income. It provides a reliable monthly dividend of $0.154 per share, equating to an attractive yield of over 7% based on its closing price of $26.28 on September 10.

SmartCentres stellar payouts are supported by its diversified mix of high-demand retail and mixed-use properties, which consistently enjoy high occupancy rates. With many of its properties located in busy, high-traffic areas, SmartCentres benefits from solid tenant retention and the ability to command higher rents during lease renewals.

This steady demand helps SmartCentres generate stable net operating income (NOI) and cash flow, which covers its monthly distributions. The firm also boasts top-quality tenants, including large retailers and banks, which stabilize its operations and ensure high rent collection.

The REIT is poised to sustain its payouts led by strong leasing demand, a solid development pipeline, and a substantial unused land bank, making it a reliable monthly dividend stock.

NorthWest Healthcare

Northwest Healthcare Properties REIT (TSX:NWH.UN) is an attractive stock for income investors seeking monthly dividends. This REIT owns healthcare properties—a sector known for its stability and consistent demand. With tenants that include hospital operators and healthcare practitioners, many of whom are backed by government funding, NorthWest enjoys reliable rental income.

NorthWest Healthcare also has a high occupancy rate of 97%, with long-term leases averaging 13.4 years. This adds stability to its cash flows. Moreover, over 85% of leases are indexed to inflation, and rent collection remains very high.

In addition to its strong operating metrics, NorthWest has been taking steps to improve its financial health by selling non-core assets and reducing debt. This move will strengthen the company’s balance sheet and position it well to benefit from lower borrowing costs in the future.

It currently offers a monthly dividend of $0.03 per share, reflecting a high yield of over 7%.

Bottom line 

In summary, both SmartCentres and NorthWest Healthcare provide solid options for investors looking for reliable monthly dividends. Their high yields and stable financial foundations make them excellent choices for enhancing passive income and meeting financial goals.

The table below shows that to generate a monthly income of $100 from these stocks, you’d need to invest $8,600 (totalling $17,200) in each of these stocks.