The Bank of Canada slashed its benchmark interest rates four times last year and could continue its monetary easing initiatives. Amid falling interest rates, investing in monthly-paying dividend stocks to earn a stable passive income would be an excellent strategy. Against this backdrop, investors can look at the following three top monthly-paying dividend stocks offering over 6% dividend yields.
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SmartCentres Real Estate Investment Trust
SmartCentres Real Estate Investment Trust (TSX:SRU.UN) owns and operates 195 mixed-use properties strategically located in major Canadian markets. Amid rising demand, the REIT leased out 186,589 square feet of vacant space during the third quarter, thus raising its occupancy rate to 98.5%.
Moreover, SmartCentres has a solid developmental pipeline, with permissions to develop around 58 million square feet of properties. Of these, the company is currently constructing 0.8 million square feet of properties. Also, the company is witnessing a healthy renewal rate with substantial rent growth. Further, its high-quality tenant base and diversified portfolio provide financial stability, thus allowing it to reward its shareholders with healthy dividends. The company currently pays a monthly dividend of $0.1542/share, with its forward yield at 7.6%. Further, the REIT’s valuation also looks attractive, with its NTM (next 12 months) price-to-earnings multiple at 16.6.
Whitecap Resources
Another monthly-paying dividend stock I am bullish on is Whitecap Resources (TSX:WCP), an oil and natural gas producer. Supported by its solid performance, the company’s management expects its average production in the last year to come in at around 174,000 boe/d (barrels of oil equivalent per day), 5% higher than its earlier guidance.
Besides, WCP has planned to invest around $1.1–$1.2 billion this year, with half of this utilized to drill unconventional wells at Montney and Duvernay and half to drill conventional wells in Alberta and Saskatchewan. Amid these growth initiatives, its production could rise this year. Also, the company’s management has provided a longer outlook, with its average production to grow at an annualized rate of 5% to reach 215,000 boe/d by 2029. These growth initiatives could boost WCP’s financials in the coming years, thus making its future dividend payouts safer.
Meanwhile, the oil and natural gas company currently pays a monthly dividend of $0.0608/share and offers a healthy dividend yield of 7.2%.
Sienna Senior Living
My final pick would be Sienna Senior Living (TSX:SIA), which offers a full range of services to senior citizens and operates high-quality assets in Ontario, Alberta, Saskatchewan, and British Columbia. The company has reported a solid performance in the first three quarters, with its topline growing by 14.4%. Higher occupancy, increased annual rentals, and higher care revenue boosted its topline. Amid topline growth, its AFFO (adjusted funds from operations) grew 33.8% to $1.053/share.
Besides, Sienna raised around $294 million during the third quarter by issuing additional shares and senior unsecured debentures, thus raising its liquidity to $516.5 million by the end of the third quarter. Further, the company is working on acquiring four new, high-quality senior houses in Alberta and the remaining 30% stake in Nicola Lodge – a 256-bed long-term care community. The company’s management expects to complete these acquisitions in the early part of this year. So, I expect these growth initiatives to boost its financials, thus allowing it to continue rewarding its shareholders with healthy dividends. Meanwhile, Sienna currently pays a monthly dividend of $0.078/share, with its forward dividend yield at 6.2% as of the January 21 closing price.
