How frequently do you get your paycheque: weekly, fortnightly, or monthly? In the investing world, payouts can be quarterly or monthly. With markets see-sawing around interest rate decisions, passive-income play is a game changer for investors seeking immediate passive income.
Some resilient dividend-paying stocks have been trading near their lows despite strong fundamentals. It has created an opportunity for retirees to pool their money in a few good 8% yield stocks and collect a monthly payout.
Two affordable passive-income stocks
Canada is home to good dividend stocks. However, in this market uncertainty, good is not enough. You need resilience. And the best resilience was shown by grocers in every crisis. Even in an apocalypse, Walmart would be a place where people would flock to get supplies. That’s the epitome of resilience. And housing these grocers is Slate Grocery REIT (TSX:SGR.UN).
The grocery REIT
Although Slate Grocery REIT trades on the TSX, it has its roots in the United States. It has 116 properties across 23 states of America, and most of them are occupied by grocers like Kroger and Walmart. The real estate investment trust’s (REIT’s) rental income has been growing. Until June, the REIT was trading at a 20% discount to its net asset value of $13.98. However, the market caught up and bridged this discount after interest rate cuts.
Even after the recovery, the REIT has an annual distribution yield of 8.3%. The REIT pays distributions in U.S. dollars, but Canadian investors get the payout in Canadian dollars, benefitting from exchange rate fluctuations.
In a recovery or a recession, the REIT has the resilience to keep paying distributions.
Timbrecreek Financial
While not as resilient as Slate Grocery REIT, Timbrecreek Financial (TSX:TF) offers something different. The short-term lender to income-generating REITs gives you resilience through its diversified customer base. Timbercreek lends to various REITs: commercial, residential, retail, and industrial. Since it provides short-term loans, the interest risk is comparatively lower than that of long-term mortgage lenders.
In the high interest-rate environment, Timbercreek reported its record-high interest income and even gave a special dividend last year. However, lending activity slowed, and loan repayment increased. This reduced its processing fee revenue and interest revenue. However, the slowdown is short-lived as the rate cuts have revived loan demand. TF’s stock price surged 13% since June, when rate cuts began.
Even after the stock price recovery, the lender has an annual distribution yield of 8.4%.
How to earn monthly passive income
If you invest $10,000 each in the above two stocks now, you can earn up to $1,673 in annual dividends.
| Stock | Dividend Yield | Current Share Price | Share Count | Total Dividend in 2025 |
| Timbercreek Financial | 8.46% | $8.16 | 1225.00 | $845.25 |
| Slate Grocery REIT | 8.30% | $14.1 | 708.72 | $828.36 |
| Annual Dividend | $1,673.61 |
Since the two give monthly payouts, you can start earning $139.5 in monthly passive income from October 15 onwards. You can use this income to reinvest in other stocks and compound your returns. Or you can use it to make ends meet.
If you are looking for opportunistic growth stocks to buy with the $139 passive income, you can add Hive Digital Technologies to your watch list and buy it when it trades at $4. Descartes Systems and Bombardier are also some good stocks to consider.
