One of the easiest ways to earn reliable monthly passive income is by investing in high-quality dividend stocks. Many companies listed on the Toronto Stock Exchange that distribute dividends every month can provide a steady cash flow that can be reinvested or used to cover expenses.
In this article, I’ll highlight three top monthly dividend stocks you can buy right now and hold for the long term.
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Sienna Senior Living stock
The first stock on my list is Sienna Senior Living (TSX: SIA). This Markham-based senior living provider specializes in long-term care and retirement residences, which helps it cater to the needs of Canada’s aging population. With sector tailwinds from an aging population and increasing government funding, its growth prospects remain solid.
After rallying by around 31% over the last year, SIA stock currently trades at $15.84 per share, reflecting investors’ confidence in the company. With a market capitalization of $1.3 billion and a 5.9% annualized dividend yield, Sienna could be a great option for income-focused investors looking for steady monthly payouts.
Beyond its strong dividend profile, Sienna’s recent financial performance has been impressive. In the third quarter of 2024, its adjusted same-property net operating income surged by 14.7% YoY (year over year), while total adjusted revenue rose 12.5% from a year ago to $224.8 million. In addition, the company’s focus on expansion into Alberta and its strong occupancy gains make it a compelling pick for long-term investors.
Bird Construction stock
Another strong monthly dividend stock you can consider right now is Bird Construction (TSX: BDT). This Etobicoke-based construction and maintenance firm mainly focuses on industrial, infrastructure, and institutional projects across Canada. With a legacy spanning over a century, Bird has a long track record of posting attractive earnings growth, benefiting from long-term government and private sector contracts.
Currently, BDT stock trades at $24.60 per share after surging by around 58% in the last 12 months. With a market capitalization of $1.4 billion and a 3.4% annualized dividend yield, Bird offers a solid combination of growth and monthly passive income for investors.
Despite concerns about slowing economic growth, Bird Construction has been delivering strong financial performance. In the third quarter, the company posted a 15% YoY increase in its revenue to $898.9 million, while net income jumped 26% to $36.2 million. Strong project execution and its expanding backlog of $3.8 billion could help Bird sustain growth in the years to come, making its stock attractive to buy now and hold forever.
Whitecap Resources stock
Whitecap Resources (TSX: WCP) is the third stock on this list, offering reliable monthly passive income. This Calgary-based oil and gas producer currently has a market cap of $5.8 billion as its stock trades at $9.76 per share after gaining nearly 11% over the last year. At this market price, WCP stock offers an impressive 7.5% annualized dividend yield.
The company delivered $811.6 million in revenue last quarter ended in September 2024, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surging 18.5% YoY to $630.7 million. Similarly, Whitecap’s adjusted EBITDA margin stood strong at around 77.7%.
In addition to its strong financials, WCP’s strong operational execution and expanding high-performing assets like Duvernay and Montney make it a great stock for long-term income-focused investors.
