Build $1,000 Monthly Income: 3 Premium Canadian Dividend Payers

A stable passive income would provide financial stability and help you achieve financial freedom sooner. With falling interest rates, one should invest in monthly-paying dividend stocks that offer higher yields to earn a stable passive income. Meanwhile, an investment of $57,000 in each of the following three stocks could help you earn over $1,000 monthly. Let’s look at these three stocks in detail.

NorthWest Healthcare Properties REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) owns and operates defensive healthcare properties across multiple countries. The company enjoys higher occupancy and collection rates due to its long-term lease agreements with government-backed tenants. In the recently reported third-quarter earnings, the real estate investment trust’s (REIT) occupancy and collection rates stood at 96.1% and 99%, respectively. The company’s weighted average lease expiry at the quarter’s end was 13.4 years. Its inflation-indexed lease agreements help in shielding its financials from rising expenses.

Further, NorthWest Healthcare has undertaken deleveraging initiatives to strengthen its balance sheet and drive sustainable growth to enhance long-term shareholder value. As of November 14, the company had sold $1.3 billion of non-core assets last year, with the net proceeds utilized to pay off its higher interest-bearing debt. It also focuses on improving operating efficiency and has cut its headcount by 16%. Along with these initiatives, its expanding net operating income for the same property could continue to drive its financials, thus making its future payouts safer. Meanwhile, the company currently pays $0.03/share monthly, with its forward yield at 7.88% as of January 23rd closing price.

Pizza Pizza Royalty

My second pick is Pizza Pizza Royalty (TSX: PZA),  which operates Pizza Pizza and Pizza 73 brand restaurants through franchisees. It has adopted a highly franchised model and collects royalties from its franchisees based on their sales. So, its financials are less prone to rising commodity prices and wage inflation, thus delivering stable cash flows. Also, despite the inherent seasonal issues of the restaurant business, the company intends to make equal payments to smoothen shareholders’ income. It currently offers a monthly dividend payout of $0.078/share, with its forward dividend yield at 7.15%.

Although PZA has experienced negative same-store sales for the last two quarters, its management is confident that it can reverse the trend. The company expects its menu enhancements, value propositions, and initiatives to enhance restaurant and digital experiences to boost its same-store sales in the coming quarters. Also, the company continues to increase its restaurant count, which would expand its royalty pool and boost its royalty pool income. Given these growth initiatives, I expect PZA to continue rewarding its shareholders with healthy dividends.

Sienna Senior Living

My final pick is Sienna Senior Living (TSX: SIA), which owns and operates several high-quality seniors’ residences in Ontario, Saskatchewan, Alberta, and British Columbia. It offers a full range of services, such as independent living, assisted living, long-term care, and specialized programs and services. The demand for senior services would remain relatively immune to macro challenges, generating consistent financials and supporting dividend payouts.

Moreover, the aging population is raising the demand for Sienna’s services. Further, the company is expanding its asset base through organic growth and acquisitions. It has around $300 million in development projects, representing 627 new and redevelopment units. It is currently working on acquiring four high-quality properties in Alberta for $181.6 million and the remaining 30% stake in Nicola Lodge. These growth initiatives could boost its financials and cash flows in the coming quarters, thus allowing it to pay dividends at a healthier rate. Meanwhile, it currently pays a monthly dividend of $0.078/share, offering a forward dividend yield of 6.21%.