Whether the stock market goes up or down, reliable monthly dividend stocks could provide a steady source of income to help you meet your financial goals. Unlike quarterly payers, these stocks provide a consistent income stream every 30 days, which makes them ideal for covering regular expenses or reinvesting for stronger long-term returns. The good news is that we have several high-quality TSX stocks that pay monthly dividends, supported by robust cash flows and strong balance sheets.
In this article, I’ll introduce you to two trustworthy dividend stocks on the Toronto Stock Exchange that pay monthly dividends.
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Mullen stock
Mullen Group (TSX:MTL) is an Okotoks-based company that provides road truck transportation, logistics, and warehousing services to businesses in Canada and the United States. After rising by nearly 10% over the last six months, MTL stock currently trades at $14.84 per share with a market cap of $1.3 billion.
In the September 2024 quarter, Mullen’s total revenue rose 5.6% YoY (year over year) to a record $532 million as it continued to focus on strategic acquisitions and improving the efficiency of its operations. Its logistics and warehousing segment performed well, with over a 23% YoY increase in quarterly revenue. Although pricing pressures and softer freight demand continued to affect its operations last quarter, the company maintained a solid operating margin of 17.9% with the help of cost-control measures.
By the end of 2025, Mullen expects its annual revenue to be around $2.2 billion and operating income to be close to $350 million. These ambitious targets could be supported by its strong balance sheet and a history of disciplined acquisitions, including its recent expansion into the Yukon and northern Alberta through the purchase of Pacific Northwest Investments.
The expected boost in consumer spending and economic activity from declining interest rates and easing inflation could further support its growth. With an annualized dividend yield of 5.7%, Mullen’s consistent monthly payouts make it a great pick for investors seeking steady income.
Exchange Income stock
The Winnipeg-headquartered Exchange Income (TSX:EIF) could be another top monthly dividend stock investors can consider right now. This diversified company operates in aerospace and aviation as well as manufacturing. Known for its reliable monthly dividends, EIF currently trades at $54.61 per share after rising by 12.4% over the last six months, with a 4.8% annualized dividend yield.
In the third quarter of 2024, Exchange Income posted record results, including $710 million in revenue and $193 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), which rose 15% YoY. Its aerospace and aviation segment fueled much of this growth with new contracts, increased medevac activity, and improvements in its aircraft sales and leasing business. While project delays affected the performance of EIF’s manufacturing segment, it’s still gaining traction as economic conditions improve.
Moreover, Exchange Income is continuing to make efforts to accelerate its financial growth prospects. For example, the company recently acquired Spartan Mat to expand its environmental access solutions business into the U.S. market. Similarly, it secured a new air ambulance contract for Newfoundland and Labrador. With interest rates declining and inflation easing, EIF could see stronger demand across its businesses, which could translate into higher profitability and growth.
