Top dividend-paying stocks are solid investments to earn recurring cash. Here, I’ll focus on three Canadian stocks with monthly payouts. These Canadian stocks have fundamentally strong businesses and offer high yields. The higher frequency of their payouts and attractive yields are helpful for meeting regular financial obligations, and when reinvested, they can significantly enhance long-term returns.
Against this background, let’s explore these stocks with monthly payouts.
SmartCentres REIT
Investors seeking stocks with monthly payouts could consider real estate investment trusts (REITs). These companies are renowned for higher payouts and monthly distributions. SmartCentres (TSX: SRU.UN) is one such REIT known for the reliability of its dividends, high yield, and monthly distributions.
SmartCentres owns a diverse range of retail and mixed-use properties in high-traffic areas. These prime locations drive strong demand, allowing the company to maintain high occupancy rates, solid tenant retention, and renew leases at higher rents.
These factors help SmartCentres generate steady net operating income (NOI) and cash flow, which comfortably supports its monthly payouts. The REIT’s portfolio also features top-tier tenants, including major retailers and financial institutions, ensuring consistent rent collection.
The REIT is well-positioned to continue delivering steady monthly dividends. Its high occupancy, unused land holdings, and strong development pipeline provide a solid base for growth. Currently, SmartCentres offers a monthly dividend of $0.154 per share, representing a generous 6.8% yield based on its September 13 closing price of $27.34.
Whitecap Resources
Whitecap Resources (TSX: WCP) stock is worth considering for monthly cash. The oil and gas company’s balanced portfolio, significant growth in assets, lower cost structure, low maintenance capital requirement, and higher production volumes support its financials and dividend payouts.
Whitecap continues to benefit from its conventional drilling program. The company’s conventional assets expand its free cash flow capabilities and support higher payouts. Since 2010, the company’s production and funds flow have risen at an annualized rate of 11% and 13%, respectively. This has helped Whitecap return a significant amount of cash to its shareholders.
In October 2023, Whitecap raised its dividend by 26%, and the company plans to further increase shareholder returns. With high-quality assets, reduced debt, and a strong balance sheet, Whitecap is well-positioned to continue delivering value.
Currently, Whitecap pays a monthly dividend of $0.061 per share, offering an attractive annualized yield of 7.3%.
Pizza Pizza Royalty
Pizza Royalty (TSX: PZA) could be an attractive investment for monthly cash. Its diversified revenue sources, including royalty income, food and beverage sales, and ownership in Pizza 73 restaurants provide a solid foundation for regular dividend payments.
Moreover, Pizza Pizza gives out all its available cash (after setting aside necessary reserves) to its shareholders, maximizing returns. In 2023, Pizza Pizza raised its monthly dividend three times, resulting in a total increase of 10.7%.
With a growing number of restaurants, strategic menu pricing, and continued investment in food and technology, Pizza Pizza is well-positioned to increase revenue and support higher dividends in the future. Pizza Pizza pays a monthly dividend of $0.077 per share, which works out to a solid 7.2% yield.
