Last week, the United States Federal Reserve indicated just two interest rate cuts in 2025 compared to the four cuts it had earlier predicted. The delay in monetary easing initiatives has turned the equity markets volatile, with the S&P/TSX Composite Index falling around 4% this month. Besides, the ongoing geopolitical tensions and threat of the United States imposing tariffs on imports are causes of concern.
Amid this uncertain outlook, investors can look to acquire the following three monthly-paying dividend stocks to earn a stable passive income.
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NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) is one of the top monthly-paying dividend stocks to have in your portfolio due to its defensive healthcare portfolio and high dividend yield. The REIT operates around 186 properties with a total gross leasable area of 16.1 million square feet. The company enjoys high occupancy and collection rates due to its long-term lease agreements with government-backed tenants. Also, most of its lease agreements are inflation-indexed, thus shielding its financials against rising prices.
Moreover, NorthWest Healthcare has substantially reduced its debt levels through a non-core asset sales program. Under this program, it has sold around 50 properties, generating $1.3 billion in net sales. The company has utilized the net proceeds to pay off higher-yielding debt, thus lowering its consolidated leverage to 43.6%. Also, the REIT is working on disposing of 19 properties and hopes to generate $122.8 million from asset sales. Besides, it is also focused on simplifying its geographical footprint, improving efficiencies, and strengthening its balance sheet. Considering all these factors, I believe NWH.UN’s future dividend payouts to be safe. Meanwhile, it currently pays a monthly dividend of $0.03/share, with its forward dividend yield at 8%, making it an excellent buy.
Extendicare
The second pick would be Extendicare (TSX: EXE), which offers care and services to senior citizens across Canada under various brands. The company has witnessed healthy buying amid solid quarterly performances and continued strategic acquisitions this year. Year-to-date, EXE stock is trading around 50% higher. In the recently reported third-quarter earnings, its revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew by 11.3% and 42.4%, respectively. Increased pricing, volume growth in home health care, and solid performance from managed services boosted its financials.
Meanwhile, Extendicare has agreed to acquire nine Class C long-term care (LTC) homes in Ontario and Manitoba from Revera for $60.3 million. Given the customary closing conditions, the company expects to complete the transaction by mid-2025. Further, it has undertaken several redevelopment projects, which could increase its LTC capacity in the coming quarters. Given these growth initiatives and acquisitions, I expect Extendicare’s financials to improve, thus supporting its future dividend payouts. Meanwhile, it currently offers a healthy forward dividend yield of 4.7%.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX: PZA) is another top monthly dividend stock to have in your portfolio due to its highly franchised business that generates stable cash flows. The company, which operates Pizza Pizza and Pizza 73 brands, collects royalties from its franchisees based on their sales. So, rising commodity prices and wage inflation would not impact its financials. Also, the company’s management intends to distribute all available cash to its shareholders.
Meanwhile, PZA has experienced a decline in its same-store sales in the last two quarters. The company’s management has blamed the decline in consumer spending amid the challenging macro environment for lower same-store sales. However, the management hopes its menu enhancements, value offerings, and initiatives to improve its restaurant and digital customer experiences could enhance its sales in the coming quarters. With a monthly dividend of $0.0775/share, the pizza franchisor currently offers an attractive forward dividend yield of 7.1%, making it an enticing buy.
