Investing in top dividend stocks can help you earn worry-free income for years. Several TSX stocks pay monthly dividends, helping investors meet regular financial obligations or reinvest more frequently. Moreover, a few of these stocks offer high yields, making them attractive investments to generate monthly cash.
With this background, let’s look at the three Canadian dividend stocks with monthly payouts.
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NorthWest Healthcare
Northwest Healthcare Properties REIT (TSX:NWH.UN) is an attractive stock that pays a monthly dividend. This real estate investment trust (REIT) boasts a high-quality portfolio of defensive healthcare real estate. Its properties include hospitals, medical offices, outpatient centres, and specialized healthcare facilities.
Thanks to its high-quality real estate, its tenants are large hospital operators backed by government funding. Since the healthcare sector offers consistent demand, the company is able to generate reliable rental income, maintain high occupancy rates, and maintain steady cash flows, enabling regular dividend payouts. NorthWest also benefits from long-term leases, which adds stability to its operations.
Northwest REIT looks well-positioned to sustain its monthly dividend payouts in the future, owing to its strong underlying business, growing healthcare demand, and focus on expanding its global healthcare real estate portfolio. Further, Northwest has been divesting non-core assets to reduce its debt load and streamlining its operations, which is strengthening its balance sheet and enhancing liquidity. The REIT currently pays a monthly dividend of $0.03 per share, translating to a high yield of over 7%.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX: PZA) is another attractive investment option for investors seeking monthly cash. It pays a dividend of $0.077 per share every month, offering an attractive annualized yield of about 7%. Its diversified revenue sources, including royalty income, strong food and beverage sales, and ownership in Pizza 73 restaurants, provide a solid foundation for higher earnings and regular dividend payments.
Pizza Pizza distributes all its available cash (after setting aside reserves) as dividends, reflecting its focus on returning value to its shareholders. In 2023, Pizza Pizza raised its monthly dividend three times, resulting in a total increase of 10.7%.
With a growing number of restaurants, a focus on improving its menu pricing, and continued investment in marketing and technology, Pizza Pizza is well-positioned to increase revenue and support higher dividends in the future.
Whitecap Resources
Investors could consider Whitecap Resources (TSX: WCP) stock for earning monthly cash. The oil and gas company pays a monthly dividend of $0.061 per share, translating to a solid 7.1% yield. In October 2023, Whitecap raised its dividend by 26% and is well-positioned to increase shareholder returns further.
Its portfolio of high-quality assets, lower cost structure, and higher production volumes support its financials and dividend payments. Since 2010, the company’s production and funds flow have risen at an annualized rate of 11% and 13%, respectively, thus allowing Whitecap to return a significant amount of cash to its shareholders.
Looking forward, Whitecap will likely benefit from its conventional drilling program and growth in assets, which will further expand its free cash flow and support higher payouts. Whitecap is well-positioned to continue delivering regular monthly dividends with a low maintenance capital requirement, reduced debt, and a strong balance sheet.
