Investing in dividend stocks can help you start a passive-income stream. Moreover, monthly dividends can better align your investment income to meet regular financial commitments. Fortunately, a few TSX stocks enable investors to earn and reinvest dividends every 30 days. Reinvesting more frequently can enhance your long-term returns and help create significant wealth over time.
With this background, let’s explore three stocks that give you a dividend cheque every month. These Canadian stocks are backed by fundamentally strong businesses that support regular payouts.
Source: Getty Images
Stock #1
For monthly dividends, investors could consider Canadian Apartment Properties REIT or CAPREIT (TSX: CAR.UN). The real estate investment trust (REIT) owns multi-unit residential properties like apartment buildings, townhouses, and manufactured home community sites. It offers a monthly dividend of $0.125 per share, yielding a decent 3.3%.
CAPREIT benefits from its diversified portfolio, consistently high occupancy rates, and growth in average rents, which support its net operating income (NOI) and payouts. Notably, CAPTREIT’s occupancy rate stood at 98.2% at the end of June 30, 2024. Thanks to higher occupancy and rents, its operating revenue and NOI increased by 5.4% and 7.2% in the June-ending quarter.
CAPREIT focuses on acquiring high-quality premium rental properties, which bode well for future growth. Further, its focus on controlling costs and divesting non-core assets will likely improve its financials and position it well to enhance its shareholders’ return through regular dividend payments. CAPREIT’s solid balance sheet, balanced mortgage portfolio, low leverage profile, and sustainable payout ratio make this REIT a reliable stock for monthly cash.
Stock #2
Whitecap Resources (TSX: WCP) is another attractive monthly dividend stock for passive-income investors. The company acquires and holds interests in petroleum and natural gas properties and assets. Currently, Whitecap pays a monthly dividend of $0.061 per share, reflecting a high yield of over 7%.
This energy company benefits from a solid portfolio of premium assets, which drives its cash flows and supports its payouts. Its strong balance sheet, low maintenance capital requirements, and cost-efficient structure further support its financials and distributions.
Whitecap has consistently grown its production and funds flow at a double-digit rate since 2010 thanks to its high-quality assets and low debt structure. The momentum will likely be sustained as Whitecap plans to expand its asset base and increase production volumes, further driving its future cash flows and monthly distributions. Moreover, its focus on an efficient conventional drilling program will cushion its earnings and drive higher payouts.
Stock #3
Passive-income investors could consider Pizza Pizza Royalty (TSX: PZA) stock for steady monthly cash and high yields. This company, which operates quick-service restaurants, offers monthly dividend payouts of $0.077 per share. Moreover, it provides an attractive high yield of over 7%, making it a compelling buy.
Notably, Pizza Pizza Royalty distributes all available cash after maintaining necessary reserves, reflecting its commitment to delivering higher value to its investors. In 2023, Pizza Pizza raised its monthly dividend three times at a cumulative growth of 10.7%.
Despite the ongoing headwinds related to reduced consumer spending, Pizza Pizza focuses on food and technology innovation, which will likely enhance customer experience, increase sales, and improve efficiency. Its strategic efforts to enhance its menu and strengthen its store presence across Canada will likely drive its financials and enable it to return higher cash to its shareholders.
