Investors seeking worry-free passive income in 2025 could consider top dividend stocks. While the TSX has several fundamentally strong dividend-paying companies, here I’ll focus on three stocks paying dividends every 30 days. These stocks are solid investments that generate monthly cash.
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SmartCentres REIT
SmartCentres REIT (TSX: SRU.UN) is a top stock for generating monthly cash. Besides offering monthly payouts, it offers a high and sustainable yield, which makes it an attractive investment. The REIT holds a defensive portfolio of mixed-use properties at prime locations, with a particular focus on grocery-anchored shopping centres, ensuring stability. These properties benefit from strong renewal demand and higher rents.
With its high-quality real estate portfolio, SmartCentres generates robust net operating income (NOI), supporting its reliable monthly dividends. The REIT currently offers a monthly dividend of $0.154 per share, yielding approximately 7.5% based on its closing price of $24.46 on December 31, 2024.
The solid performance of its core retail business, bolstered by high occupancy and ongoing mixed-use development projects, supports future NOI growth. This growth is expected to drive its monthly dividends.
SmartCentres’ portfolio of high-traffic, value-oriented centres will likely experience strong demand, with an influx of new tenants and a mix of existing ones improving cash flow and occupancy. Additionally, rental growth and strong cash collections further strengthen its financial standing.
Beyond retail, SmartCentres is expanding through its mixed-use development strategy, broadening its income base and enhancing growth potential. Overall, its high-quality retail properties, strong retention, mixed-use development, and extensive land bank position the REIT to return significant cash to its shareholders.
Whitecap Resources
Investors seeking monthly cash could add Whitecap Resources (TSX: WCP) stock to their portfolios in 2025. This oil and gas company is known for rewarding its shareholders with solid dividends, distributing $2.1 billion since 2013. Currently, Whitecap offers a monthly dividend of $0.061 per share, reflecting an attractive 7.2% yield.
The company’s high-quality assets, ability to grow production volumes, and efficient cost management support its financials and monthly payouts. Over the past decade, Whitecap’s production and funds flow per share have grown at a CAGR of 11% and 12%, respectively. This growth has enabled it to return substantial cash through dividends and share buybacks.
Whitecap’s focus on high condensate production and operational efficiencies maximizes free cash flow. Further, with an emphasis on debt reduction, a strong balance sheet, and a low capital requirement, the company is well-positioned to sustain its monthly payouts, making it a compelling investment for steady monthly income.
Firm Capital Mortgage Investment Corporation
Firm Capital (TSX: FC) could be a solid addition to your income portfolio in 2025. The non-bank lender pays monthly dividends and offers a high yield. The company’s diversified portfolio enables it to generate steady income and supports its payouts.
The financial services company’s conservative underwriting approach, market-to-market portfolio, and strong risk management practices position it well for steady earnings growth that will support monthly dividend payouts. Firm Capital offers a monthly dividend of $0.078 per share, equating to an attractive yield of about 7.8%.
Firm Capital targets niche markets that are underserved by larger institutions, providing a solid base for continued growth. Further, its real estate-backed assets provide stability by lowering loan loss risks. Its diversified investment strategy generates steady income from interest, fees, and other sources, ensuring reliable cash flows. Overall, Firm Capital is a dependable stock for monthly income.
