Have you ever thought of earning a steady income from your investments without having to sell your stock holdings or worrying about market volatility? That’s exactly what monthly dividend stocks offer. While most dividend-paying companies pay quarterly, some go the extra mile by distributing cash every month — making them an excellent choice for income-focused investors. This monthly income could help you cover extra expenses, reinvest for higher growth, or simply provide financial security for retirement.
In this article, I’ll talk about a top TSX stock that offers an attractive 7.5% dividend yield and pays cash every single month. If you’re looking for a reliable income stream, this stock is worth considering in 2025.
Whitecap Resources stock
The monthly dividend stock to consider is Whitecap Resources (TSX:WCP). If you don’t know it already, it’s an oil and gas production firm headquartered in Calgary. The company mainly focuses on acquiring and operating quality energy assets, with its key operations in Alberta and Saskatchewan. Its portfolio includes both conventional light oil and unconventional liquids-rich assets, which are known for strong production growth and high profitability. Whitecap generates revenue primarily by selling crude oil, natural gas liquids, and natural gas.
With a market cap of $5.7 billion, WCP stock currently trades at $9.67 per share after rising by 8% over the last year. While the stock has seen some short-term dips of late, its long-term trajectory still remains positive as it has surged by more than 100% in the last five years, rewarding patient investors. Even more attractive is its 7.5% annualized dividend yield, which means investors get healthy monthly cash payments just for holding the stock.
A reliable pick for long-term income investors
Despite recent fluctuations in oil prices, the company continues to generate cash due to its efficient production and low-cost operations.
Now, let’s find out what makes Whitecap a great stock for long-term investors. To begin with, the company has a rock-solid balance sheet, with manageable debt and strong free cash flows. It recently exceeded its 2024 production guidance, averaging 173,302 barrels of oil equivalent per day, exceeding its initial forecasts. This operational strength has helped WCP maintain healthy profit margins and consistent dividend payouts.
Looking ahead to 2025, Whitecap’s board has approved a capital budget of $1.1 to $1.2 billion, which is expected to drive further production growth and enhance its ability to sustain and even grow its monthly dividend payouts. With a diversified asset base, a history of shareholder returns, and a stable, high-yield dividend, Whitecap could be an ideal stock for those seeking reliable, long-term passive income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL MONTHLY PAYOUT | FREQUENCY |
| Whitecap Resources | $9.67 | 1,650 | $0.0608 | $100.32 | Monthly |
| Prices as of Jan 28, 2025 |
Generating $100 in monthly income from WCP stock
Earlier this month, Whitecap announced a monthly dividend of $0.0608 per share. So, if you want to earn $100 every month from its dividends, you’ll need to buy around 1,650 of its shares. At the current market price, buying these shares would cost $15,956. This example shows how easily monthly dividend stocks can provide passive income, though diversifying with more such stocks is always a smart approach.
