Earn $100 Monthly With $17,500 in These 3 TSX Stocks

Monthly-paying dividend stocks will deliver stable cash flows that can help investors meet recurring expenses, such as rent and utility payments. Investors can also utilize these monthly payouts to reinvest, thus earning overall superior returns. One can earn over $100 monthly by investing $17,500 in monthly-paying dividend stocks that offer around 7% of dividend yield. Against this backdrop, here are my three top picks.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX: PZA) is one of the top monthly-paying dividend stocks to have in your portfolio due to its healthy cash flows and high dividend yield. The company has adopted an asset-light business model, operating its restaurants through franchisees. It collects royalties from its franchisees based on their sales. So, its royalty income is less susceptible to the inflationary environment, thus allowing it to reward its shareholders with healthy dividend yields.

PZA expects to retain and win new customers through its high-quality, value-oriented menu offerings. It is expanding its footprint and hopes to increase its store count by 3-4% this year. Further, it is also renovating its old restaurants, which could increase footfall, thus driving its financials. Although its payout ratio is at 109%, given its healthy growth prospects, I expect its payout ratio to come down in the coming quarters. Meanwhile, the company currently pays a monthly dividend of $0.0775/share, translating into a forward yield of 7.38%. The company trades at an attractive NTM (next-12-month) price-to-sales multiple of 0.7, making it an excellent buy.

Whitecap Resources

Whitecap Resources (TSX: WCP), which is involved in extracting oil and natural gas, is my second pick. The company posted a record overall production of 177,314 barrels of oil equivalent per day during the second quarter, representing a 22% increase from the previous year. Amid the increased production, its revenue and diluted EPS (earnings per share) grew by 22.9% and 41.4%, respectively. The company also generated free fund flows of $222.6 million while lowering its net debt by $64 million to $1.297 billion.

The company has planned to make a capital investment of $0.9 billion to $1.1 billion this year, strengthening its production capabilities. Amid these growth initiatives, the company’s management projects its total production to increase by 8.3% this year. The management plans to invest $6 billion through 2029, thus raising its output at an annualized rate of 5%. Also, the company is hoping to become debt-free by 2029. Given these growth initiatives and healthy cash flows, WCP’s future dividend payouts could be safer. It currently pays a monthly dividend of $0.0608/share, translating to a forward yield of 7.48%.

SmartCentres Real Estate Investment Trust

SmartCentres Real Estate Investment Trust (TSX: SRU.UN) owns and operates 195 properties with a gross leasable area of 35.2 million. Supported by solid leasing momentum, it leased out 272,000 square feet of vacant space during the second quarter, thus raising its occupancy rate by 50 basis points from the previous quarter to 98.2%. Its net operating income on the same properties, excluding anchors, rose by 2.2% amid lease-up activities and lease extensions at higher rental rates.

SmartCentres REIT has a solid developmental pipeline with 57.5 million square feet of mixed-use development permissions, with around 0.8 million square feet of sites under construction. Further, the occupancy rate of its Millway, a 458-unit purpose-built rental property, is increasing and could reach 95% by the end of this year. These growth initiatives and rising rent could boost its financials, thus allowing it to reward its shareholders with healthy dividends. With a monthly dividend of $0.15417/share, its forward yield currently stands at 6.96%.