A reliable passive income would help in achieving financial stability and freedom. Investors could look at high-yielding monthly-paying dividend stocks to earn a stable passive income as interest rates continue to fall. Against this backdrop, let’s look at the following three top stocks that offer monthly payouts at a healthier yield.
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NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) would be an excellent monthly dividend stock to boost your passive income due to its highly defensive healthcare properties and high dividend yield of 7.95%. Besides, its long-term lease agreements with government-backed tenants ensure high occupancy and collection rates, thus delivering stable financials irrespective of the broader market environment.
Moreover, NorhtWest Healthcare has been divesting its non-core assets through the non-core asset sales program to lower its debt levels and interest expenses. It had sold around $1.3 billion worth of non-core assets last year as of November 14, with the net proceeds utilized to pay off higher interest-bearing debt. It also listed 19 income-producing assets for sale and expects to generate $122.8 million from these asset dispositions. Moreover, the real estate investment trust (REIT) also focuses on simplifying its geographical footprint, improving efficiencies, and strengthening its balance sheet. Considering all these factors, I believe NorthWest Healthcare’s future dividend payouts will be safe.
Sienna Senior Living
Sienna Senior Living (TSX: SIA) is another monthly-paying dividend stock I am bullish on due to its solid financials, healthy growth prospects, and a dividend yield of 6.35%. The company operates high-quality assets in prominent Canadian cities, such as Ontario, Alberta, Saskatchewan, and British Columbia, offering a full range of services to senior citizens, including long-term care and specialized programs and services.
In the recently reported third-quarter earnings, the company’s top line grew by 12.5% amid increased occupancy, an annual rental rate hike, and increased fund flows from the government for direct care. Also, its adjusted NOI (net operating income) increased by 14.8%, while AFFO (adjusted fund flows from operations) per share declined by 1.1%. The decline was primarily due to the issuance of additional shares, a decline in construction funding income, and higher capital expenditure on maintenance.
Moreover, Sienna continues to expand its portfolio through strategic acquisitions. In October, it acquired four high-quality properties in Alberta for $181.6 million. Further, it is working on acquiring the remaining 30% stake in Nicola Lodge and hopes to complete the deal this quarter. The company also strengthened its financial position by raising around $300 million in the third quarter by issuing additional shares and unsecured debentures. These growth initiatives could boost its financials, thus making its future dividend payouts safer.
Whitecap Resources
My final pick is Whitecap Resources (TSX: WCP), which has rewarded its shareholders by returning around $2.1 billion through dividends and share repurchases since the beginning of 2013. The company has posted solid performances in the first three quarters and expects its 2024 average production to come at 174,000 boe/d (barrels of oil equivalent per day) — 5% higher than its initial guidance. Drilling new wells, optimizing base production, and lowering downtime have boosted its production.
Moreover, the oil and gas company plans to make a capital expenditure of $1.1-$1.2 billion this year, which could boost its production to $176,000-$180,000. The midpoint of the guidance represents a 2.3% increase from the 2024 guidance. Also, the company’s management expects its average production to reach 215,000 boe/d by 2029. Further, oil prices have strengthened over the last few weeks amid the fears that the sanctions by the United States could disrupt exports from Russia to China and India. Higher production and favourable commodity prices could boost WCP’s financials, thus making its future payouts safer. Currently, the company offers a monthly dividend of $0.0608/share, with its forward yield standing at 6.91%.
