If you want a reliable way to boost your passive income, monthly-paying dividend stocks should be on your radar. Unlike quarterly dividends, these TSX-listed stocks distribute income every month, offering consistent cash flow that’s perfect for covering extra expenses, reinvesting in stocks, or building wealth over time.
But, finding stocks with a strong track record of monthly payouts and solid financials could be a key challenge for most new investors. In this article, I’ll highlight two top monthly-paying TSX dividend stocks that can help you create a steady stream of passive income for years to come.
Dream Industrial REIT stock
As the name suggests, Dream Industrial REIT (TSX:DIR.UN) is an industrial sector-focused open-ended real estate investment trust (REIT). This Toronto-based company currently has a market cap of $3.3 billion as its stock trades at $11.78 per share after declining by 7% for the last six months. This recent drop in share price, however, has made its annualized dividend yield look even more attractive, which currently stands at 5.9%.
The main reason behind the poor performance of Dream Industrial REIT’s stock recently has been the negative impact of rising interest rates and non-cash fair value losses on its investment properties and financial instruments. Nevertheless, the company’s operational performance still remains strong.
In the third quarter of 2024, Dream Industrial posted a 4.1% YoY (year-over-year) increase in its adjusted funds from operations per unit to $0.26 per share, surpassing Bay Street analysts’ expectations. During the quarter, robust leasing activity and higher rental spreads in its Canadian portfolio also helped the trust deliver a 3.3% YoY improvement in its comparable property net operating income.
To add optimism, the company’s portfolio occupancy remained solid at 95.5% last quarter while it signed over 1.2 million square feet of leases, achieving rental rate increases of nearly 39% over expiring rents. Dream Industrial is entering 2025 with a strong foundation, which could not only support its share prices but also help it maintain monthly dividend payouts.
Freehold Royalties stock
If you’re looking for a high-yield Canadian dividend stock with monthly payouts, Freehold Royalties (TSX:FRU) could be an excellent addition to your portfolio. This energy sector-focused royalty firm currently has a market cap of $12.7 billion as its stock trades at $12.70 per share after sliding by around 7% in 2024. And its impressive annualized dividend yield of 8.5% isn’t easy to ignore for income-focused investors.
In the September 2024 quarter, Freehold generated $74 million in revenue and paid out $41 million in dividends, which clearly reflects its commitment to shareholder returns. Moreover, Freehold’s recent $259 million acquisition of mineral rights in the Midland Basin is expected to give a big boost to its light oil-weighted production, with an estimated $37 million in net royalty revenue in 2025.
With increased drilling activity across both Canada and the U.S. and its robust credit position, Freehold continues to be one of the best TSX monthly dividend stocks to consider right now.
